Bombay High Court Allows Petition Challenging Conditions in Deemed Conveyance Certificate for Cooperative Housing Society. Conditions requiring payment of additional premium and submission of no-objection certificate from developer held ultra vires the Maharashtra Ownership of Flats Act, 1963.

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

The petitioner, Royal Accord Avenue Co-operative Housing Society Ltd., challenged two specific conditions in an order/certificate granting Deemed Conveyance issued by the District Deputy Registrar, Co-operative Societies, Mumbai City. The conditions required the society to pay additional premium and obtain a no-objection certificate from the developer. The court, after hearing arguments from all parties, held that these conditions were ultra vires the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, as they defeated the purpose of deemed conveyance and imposed obligations not found in the statute. The court allowed the petition and quashed the impugned conditions.

Headnote

A) Cooperative Housing Society - Deemed Conveyance - Conditions Precedent - Ultra Vires - Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - The court considered whether conditions requiring payment of additional premium and submission of no-objection certificate from the developer in a deemed conveyance certificate were valid. Held that such conditions are ultra vires the Act as they frustrate the purpose of deemed conveyance and impose obligations not contemplated by the statute. (Paras 3-6)

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Issue of Consideration

Whether the conditions imposed by the District Deputy Registrar in the deemed conveyance certificate, requiring payment of additional premium and submission of no-objection certificate from the developer, are valid under the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963.

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Final Decision

The court allowed the petition and quashed the impugned conditions (clause 3(1) and (2)) in the deemed conveyance order/certificate.

Law Points

  • Deemed Conveyance
  • Cooperative Housing Society
  • Condition Precedent
  • Ultra Vires
  • Maharashtra Ownership of Flats Act
  • 1963
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Case Details

2023 LawText (BOM) (10) 129

Writ Petition No. 2431 of 2018

2023-10-06

Milind N. Jadhav

2023:BHC-OS:11381-DB

Mrs. Anjali Helekar a/w Ms. Anu Kaladharan and Ms. Yogita Tembe for Petitioner, Mr. S.B. Gore for Respondent No. 1/State, Mr. B.R. Zaveri for Respondent No. 2, Ms. Mudita Pawar a/w Ms. Manasi Sawant for Respondent Nos. 4 to 7

Royal Accord Avenue CHS Ltd

District Deputy Registrar, Co-operative Societies, Mumbai City (4) & Ors.

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Nature of Litigation

Writ Petition challenging conditions in a deemed conveyance certificate issued by the District Deputy Registrar, Co-operative Societies.

Remedy Sought

Quashing of conditions 3(1) and (2) in the deemed conveyance order/certificate.

Filing Reason

The petitioner society was aggrieved by the imposition of conditions requiring payment of additional premium and submission of no-objection certificate from the developer as preconditions for deemed conveyance.

Issues

Whether the conditions in the deemed conveyance certificate requiring payment of additional premium and submission of no-objection certificate from the developer are valid under the Maharashtra Ownership of Flats Act, 1963.

Submissions/Arguments

Mrs. Helekar, learned Advocate for Petitioner, argued that the conditions are ultra vires the Act and frustrate the purpose of deemed conveyance. Mr. Gore, learned AGP for Respondent No. 1/State, and other counsel for respondents opposed the petition.

Ratio Decidendi

Conditions imposed in a deemed conveyance certificate that require payment of additional premium or submission of no-objection certificate from the developer are ultra vires the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, as they are not contemplated by the statute and defeat the purpose of deemed conveyance.

Judgment Excerpts

Present Petition filed by Petitioner – Royal Accord Avenue Co-operative Housing Society Ltd takes exception to the two specific conditions appearing in the order / certificate granting Deemed Conveyance to the Petitioner Society which are mentioned as condition precedent in the operative part of the order / certificate under clause 3(1) and (2) of the said order which is at page No. 41 of the Petition.

Procedural History

The petition was filed in 2018. Rule was issued and made returnable forthwith, and the matter was heard finally at the stage of admission by consent of parties.

Acts & Sections

  • Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963:
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