Bombay High Court Dismisses Trust's Challenge to Conveyance Order Under Section 5A of MOFA Due to Delay and Lack of Merit. Competent Authority's Order Directing Execution of Conveyance Deed in Favor of Cooperative Housing Society Upheld as Trust Had Agreed to Convey Land and Society Had Complied with Conditions.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioners, A.H. Wadia Trust (a public charitable trust) and its trustees, filed a writ petition under Article 226 of the Constitution challenging an order dated 30th June 2012 passed by the District Deputy Registrar of Co-operative Societies (II), Eastern Suburban, Mumbai, acting as the Competent Authority under Section 5A of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The order directed the trust to execute a conveyance deed in favor of Respondent No.3, Jai Anand Co-operative Housing Society Limited, in respect of land admeasuring 1,200 square yards at CTS No.608, 608 (1 to 4), Jawakar Lane, Chunabhatti (E), Mumbai. The trust had originally owned the land and entered into a development agreement with a builder, who constructed a building and formed the society. The society claimed that the trust had agreed to convey the land but failed to do so, leading to the application under Section 5A. The Competent Authority, after hearing the parties, allowed the society's application and directed conveyance. The trust challenged this order on the ground that the land was a public trust property and could not be conveyed without sanction under the Maharashtra Public Trusts Act, 1950, and that the Competent Authority lacked jurisdiction. The court examined the provisions of MOFA, particularly Section 5A, which empowers the Competent Authority to direct conveyance where a promoter fails to execute a conveyance deed. The court noted that the trust had entered into a development agreement and had received consideration; the society had fulfilled its obligations. The court also considered the delay of over 5 years in filing the writ petition and held that the petitioners were guilty of laches. The court dismissed the petition, upholding the Competent Authority's order and directing the trust to execute the conveyance deed within four weeks, failing which the Competent Authority could execute it.

Headnote

A) MOFA - Section 5A - Conveyance of Land - Competent Authority's Jurisdiction - The Competent Authority under Section 5A of MOFA has the power to direct conveyance of land to a cooperative housing society even if the land belongs to a public charitable trust, provided the society has fulfilled its obligations under the agreement. The trust's contention that the land is trust property and cannot be conveyed was rejected as the trust had entered into a development agreement and the society was entitled to conveyance. (Paras 1-26)

B) Limitation - Writ Petition - Delay and Laches - The writ petition challenging the order of the Competent Authority was filed after a delay of over 5 years without any explanation. The court held that such inordinate delay disentitles the petitioners to any relief under Article 226 of the Constitution. (Paras 27-30)

C) MOFA - Section 5A - Conveyance Deed - Execution - The Competent Authority's order directing execution of conveyance deed was upheld as the society had complied with all conditions, including payment of consideration, and the trust had failed to execute the deed despite repeated requests. (Paras 18-26)

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Issue of Consideration

Whether the Competent Authority under Section 5A of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) has jurisdiction to order conveyance of land belonging to a public charitable trust in favor of a cooperative housing society, and whether the writ petition challenging such order is maintainable after inordinate delay.

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Final Decision

The High Court dismissed the writ petition, upholding the order of the Competent Authority dated 30th June 2012. The court directed the petitioners to execute the conveyance deed in favor of the society within four weeks, failing which the Competent Authority may execute the same.

Law Points

  • Section 5A of MOFA
  • Conveyance of land to cooperative society
  • Competent Authority's jurisdiction
  • Public trust property
  • Limitation for filing writ petition
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Case Details

2023 LawText (BOM) (04) 41

WRIT PETITION NO.555 OF 2018

2023-05-12

2023:BHC-OS:4171

Mr. Maneesh Trivedi, Tinaz Kapadia, Mr. Manish Upadhye, Mr. Pramod N. Patil, Mr. Ajit Hon, Mr. Shamsundar Solanke

A. H. Wadia Trust and Others

State of Maharashtra and Others

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Nature of Litigation

Writ petition under Article 226 of the Constitution challenging an order of the Competent Authority under Section 5A of MOFA directing conveyance of land.

Remedy Sought

Petitioners sought quashing of the order dated 30th June 2012 passed by the Competent Authority directing execution of conveyance deed in favor of the society.

Filing Reason

The petitioners claimed that the Competent Authority lacked jurisdiction to order conveyance of trust property and that the order was passed without considering the provisions of the Maharashtra Public Trusts Act.

Previous Decisions

The Competent Authority under Section 5A of MOFA passed an order on 30th June 2012 directing the trust to execute a conveyance deed in favor of the society.

Issues

Whether the Competent Authority under Section 5A of MOFA has jurisdiction to direct conveyance of land belonging to a public charitable trust. Whether the writ petition is maintainable given the inordinate delay of over 5 years in filing.

Submissions/Arguments

Petitioners argued that the land is a public trust property and cannot be conveyed without sanction under the Maharashtra Public Trusts Act, and that the Competent Authority exceeded its jurisdiction. Respondents argued that the trust had entered into a development agreement and received consideration, and the society was entitled to conveyance under MOFA; also that the petition was barred by delay and laches.

Ratio Decidendi

The Competent Authority under Section 5A of MOFA has jurisdiction to direct conveyance of land even if it belongs to a public trust, where the trust has entered into a development agreement and the society has fulfilled its obligations. Further, a writ petition challenging such an order after an inordinate delay of over 5 years without explanation is liable to be dismissed on the ground of laches.

Judgment Excerpts

The Competent Authority under Section 5A of MOFA has the power to direct conveyance of land to a cooperative housing society even if the land belongs to a public charitable trust, provided the society has fulfilled its obligations under the agreement. The writ petition challenging the order of the Competent Authority was filed after a delay of over 5 years without any explanation. The court held that such inordinate delay disentitles the petitioners to any relief under Article 226 of the Constitution.

Procedural History

The Competent Authority under Section 5A of MOFA passed an order on 30th June 2012 directing the trust to execute a conveyance deed. The trust filed the present writ petition in 2018 challenging that order. The petition was heard and dismissed by the High Court on 12th May 2023.

Acts & Sections

  • Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963: Section 5A
  • Maharashtra Public Trusts Act, 1950:
  • Constitution of India: Article 226
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High Court Bombay High Court Dismisses Trust's Challenge to Conveyance Order Under Section 5A of MOFA Due to Delay and Lack of Merit. Competent Authority's Order Directing Execution of Conveyance Deed in Favor of Cooperative Housing Society Upheld as Trust Had ...
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