Case Note & Summary
The judgment concerns two connected writ petitions filed by New Manoday Co-operative Housing Society Limited challenging two separate orders: (1) an order dated 18 October 2023 passed by the Competent Authority under the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) rejecting the society's application for unilateral deemed conveyance of land admeasuring 1583.46 sq.mtrs., and (2) an order dated 24 January 2024 passed by the Minister of Cooperation directing the Divisional Joint Registrar of Co-operative Societies to initiate action for cancellation of the society's registration under the Maharashtra Co-operative Societies Act, 1960 (MCS Act). The background involves the society seeking deemed conveyance of the land on which its building stands, as the developer had failed to execute a conveyance. The Competent Authority rejected the application on the ground that the society's bye-laws were not registered under the MCS Act, and therefore the society was not a valid co-operative society. Subsequently, the Minister of Cooperation, in a separate proceeding, directed cancellation of the society's registration on similar grounds. The society argued that the right to deemed conveyance under Section 11 of MOFA is a statutory right independent of bye-law registration, and that the Minister's order violated principles of natural justice. The court analyzed the provisions of MOFA and MCS Act, noting that the Competent Authority under MOFA has the power to grant deemed conveyance if the conditions under Section 11 are satisfied, and that non-compliance with MCS Act bye-laws is not a valid ground for rejection. The court also held that the Minister's order for cancellation of registration was passed without affording the society an opportunity of hearing, and thus violated natural justice. The court quashed both impugned orders and directed the Competent Authority to decide the society's application for deemed conveyance afresh on its merits, and set aside the Minister's order, leaving it open to the authorities to initiate proper proceedings under Section 24 of the MCS Act if warranted.
Headnote
A) MOFA - Deemed Conveyance - Section 11 of MOFA, 1963 - Competent Authority's Power - The Competent Authority under MOFA cannot reject a society's application for unilateral deemed conveyance on the ground that the society's bye-laws are not registered under the MCS Act, as the right to conveyance under MOFA is a statutory right independent of bye-law registration. Held that the Competent Authority must decide the application on its merits under MOFA, and non-compliance with MCS Act bye-laws is not a valid ground for rejection (Paras 1-20). B) MCS Act - Cancellation of Registration - Section 24 of MCS Act, 1960 - Natural Justice - The Minister-Cooperation's order directing the Divisional Joint Registrar to initiate action for cancellation of society registration, based on the same grounds as the conveyance rejection, was set aside as it violated principles of natural justice and was passed without affording the society an opportunity of hearing. Held that cancellation of registration requires a separate proceeding under Section 24 of the MCS Act with proper notice and hearing (Paras 21-30).
Issue of Consideration
Whether the Competent Authority under MOFA can reject an application for unilateral deemed conveyance on the ground that the society's bye-laws are not registered under the MCS Act, and whether the Minister-Cooperation can direct cancellation of society registration without following due process under the MCS Act.
Final Decision
The court allowed both writ petitions. The order dated 18 October 2023 rejecting the society's application for deemed conveyance was quashed and set aside, and the Competent Authority was directed to decide the application afresh on its merits in accordance with law. The order dated 24 January 2024 passed by the Minister-Cooperation directing cancellation of the society's registration was also quashed and set aside, leaving it open to the authorities to initiate proper proceedings under Section 24 of the MCS Act if warranted.
Law Points
- Deemed conveyance under Section 11 of MOFA
- 1963 is a statutory right not dependent on society bye-laws
- Competent Authority cannot reject application for non-compliance with bye-laws
- Minister's order for cancellation of registration under MCS Act
- 1960 must follow natural justice and cannot be based on same grounds as conveyance rejection
