Case Note & Summary
The petitioners, M/s. ACME Enterprises (a partnership firm) and its partner Mr. Ummedra K. Vardhan, challenged an order dated 26th November 2019 passed by the District Deputy Registrar, Cooperative Societies and Competent Authority under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The order granted a unilateral deemed conveyance in favor of Respondent No.2, Neelam Nagar Building Nos.11A to 11J Co-operative Housing Society Association Limited, without any notice to the petitioners. The petitioners contended that they were the developers of the property and had not been given an opportunity of being heard before the order was passed. The respondents argued that the petitioners had no locus standi as they were not the original owners. The court examined the provisions of Section 11 of MOFA and the principles of natural justice. It held that the Competent Authority must issue notice to all interested parties before granting deemed conveyance. Since no notice was given to the petitioners, the order was vitiated. The court quashed the order and remanded the matter to the Competent Authority for fresh consideration after hearing all parties. The petition was allowed with no order as to costs.
Headnote
A) MOFA - Deemed Conveyance - Section 11 of Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - Natural Justice - The Competent Authority granted deemed conveyance without issuing notice to the developer. The High Court held that such an order violates principles of natural justice and is liable to be set aside. (Paras 1-10)
B) Cooperative Housing Society - Conveyance - Section 11 of MOFA - The society applied for deemed conveyance under Section 11. The developer was not heard. The court quashed the order and remanded the matter for fresh consideration after hearing all parties. (Paras 2-8)
Issue of Consideration
Whether an order granting deemed conveyance under Section 11 of the Maharashtra Ownership Flats Act, 1963 can be passed without notice to the developer/promoter.
Final Decision
The impugned order dated 26th November 2019 is quashed and set aside. The matter is remanded to the Competent Authority for fresh consideration after hearing all parties. Rule made absolute. No order as to costs.
Law Points
- Natural justice
- Notice requirement
- Deemed conveyance
- Section 11 MOFA
- Unilateral order
- Opportunity of hearing
Case Details
2023 LawText (BOM) (06) 122
WRIT PETITION NO. 5230 OF 2022 WITH INTERIM APPLICATION (L) NO. 3700 OF 2023
Mr. Ashish Kamant, Senior Advocate, a/w Sandeep Bhagwat and Ms. Sarita Zarapkar, for the Petitioner. Mr. Kedar Dighe, AGP for the Respondent/State. Mr. Mayur Khandeparkar, a/w Ajinkya Udane and Vinayak Pandit, for Respondent No.2.
M/s. ACME Enterprises & Mr. Ummedra K. Vardhan
Deputy Registrar, Co-operative Societies (2), Eastern Suburb, Mumbai & Competent Authority under Section 5A of MOFA & Ors.
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Nature of Litigation
Writ petition challenging an order granting deemed conveyance under Section 11 of MOFA without notice to the developer.
Remedy Sought
Quashing of the order dated 26th November 2019 granting deemed conveyance.
Filing Reason
The order was passed without notice to the petitioners, violating principles of natural justice.
Previous Decisions
The Competent Authority passed the order on 26th November 2019 granting deemed conveyance in favor of Respondent No.2.
Issues
Whether the order granting deemed conveyance under Section 11 of MOFA is valid when passed without notice to the developer.
Submissions/Arguments
Petitioners: The order was passed without any notice to them, violating natural justice. They are the developers and have a right to be heard.
Respondents: The petitioners have no locus standi as they are not the original owners. The order was validly passed.
Ratio Decidendi
An order granting deemed conveyance under Section 11 of MOFA cannot be passed without notice to the developer/promoter, as it violates principles of natural justice.
Judgment Excerpts
The petitioners take exception to an order dated 26th November, 2019, passed by the District Deputy Registrar, Cooperative Societies and the Competent Authority, granting an unilateral deemed conveyance under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963.
Rule made returnable forthwith and with the consent of the learned Counsel for the parties heard finally.
Procedural History
The petitioners filed a writ petition challenging the order dated 26th November 2019 passed by the District Deputy Registrar, Cooperative Societies and Competent Authority. The petition was heard and reserved on 27th February 2023 and pronounced on 5th June 2023.
Acts & Sections
- Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963: Section 11, Section 5A
