Case Note & Summary
The petitioners, M/s. K.G. Associates (developer) and its partner, challenged an order dated 17 March 2020 passed by the Deputy Registrar of Co-operative Societies and Competent Authority, Pune, granting deemed conveyance of land admeasuring 77,754.75 sq. mtrs out of Gat No.1420 (Part), Village-Wagholi, Pune, in favor of Respondent No.2-Society (Kamalbaug Co-operative Housing Society Ltd.). The petitioners were the original owners/developers of the land and had appointed an organizer to develop a layout. The society, comprising flat purchasers, applied for deemed conveyance under Section 11 of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The Competent Authority granted the deemed conveyance without issuing any notice to the petitioners, who were not members of the society. The petitioners contended that the order was passed in violation of principles of natural justice. During the pendency of the writ petition, the society registered the deemed conveyance certificate and mutated its name in revenue records, allegedly in breach of an interim order dated 17 December 2020 passed by this court. The court examined the issue of whether the developer, who is not a member of the society, has a right to be heard before deemed conveyance is granted. The court held that the order was passed in gross violation of natural justice as the developer had a legitimate interest in the property and was entitled to notice. The court quashed the deemed conveyance order and the subsequent registration. Regarding the contempt petition, the court found that the society had willfully disobeyed the interim order and issued notice to the society to show cause why contempt proceedings should not be initiated. The court directed the Competent Authority to decide the society's application afresh after giving an opportunity of hearing to all concerned parties.
Headnote
A) Co-operative Law - Deemed Conveyance - Natural Justice - Section 11 of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) - The Competent Authority granted deemed conveyance of land to the society without issuing notice to the original landowner/developer who was not a member of the society. The court held that the order was passed in gross violation of principles of natural justice as the developer had a right to be heard before such an order affecting its rights was passed. The order was quashed and set aside. (Paras 1-10) B) Contempt of Court - Violation of Interim Order - The society, during pendency of the writ petition, registered the deemed conveyance certificate and got its name mutated in revenue records despite an interim order dated 17 December 2020 restraining such actions. The court found that the society had willfully disobeyed the interim order and issued notice to the society to show cause why contempt proceedings should not be initiated. (Paras 11-15) C) Co-operative Law - Deemed Conveyance - Rights of Developer - Section 11 MOFA - The court observed that the developer, who is not a member of the society, has a right to be heard before deemed conveyance is granted, as the order affects its ownership rights. The Competent Authority must ensure that all interested parties are given an opportunity of hearing. (Paras 16-20)
Issue of Consideration
Whether the order granting deemed conveyance under Section 11 of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) is valid when passed without notice to the original landowner/developer who is not a member of the society, and whether the subsequent registration of the deemed conveyance certificate and mutation of records violates interim orders of the court.
Final Decision
The court quashed and set aside the order dated 17 March 2020 granting deemed conveyance and the subsequent registration of the certificate. The court also issued notice to the society to show cause why contempt proceedings should not be initiated for violating the interim order dated 17 December 2020. The Competent Authority was directed to decide the society's application afresh after giving an opportunity of hearing to all concerned parties.
Law Points
- Natural justice
- deemed conveyance
- opportunity of hearing
- co-operative housing society
- developer rights
- Section 11 MOFA
- Section 22 Maharashtra Co-operative Societies Act
- 1960
