Bombay High Court Adjudicates Writ Petition Challenging Deemed Conveyance Order Under MOFA; Natural Justice and Area Disputes Raised. Deemed Conveyance Order Granted Under Section 11(3) of Maharashtra Ownership Flats Act, 1963 Challenged for Non-Impleadment of Promoter and Lack of Proper Inquiry.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The writ petition was preferred under Articles 226 and 227 of the Constitution of India challenging the order dated 14 July 2022 passed by the Competent Authority and District Deputy Registrar, Co-operative Societies, Thane in Application No.186 of 2022 under Section 11(3) of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The petitioner, Janta Housing Private Limited, a promoter/developer, challenged the grant of deemed conveyance in favour of Respondent No.3 society. The dispute concerned a larger land parcel on which multiple housing societies were situated, and the petitioner contended that the deemed conveyance order was passed without impleading it or adjacent societies, thereby violating natural justice. The order granted an area of 2,304 square metres to Respondent No.3 society based solely on an architect certificate dated 28 February 2022. The petitioner also relied on consent terms dated 6 September 1978 filed in Bombay High Court Suit No.1210 of 1986, which allegedly conferred development rights for a limited period of 12 years, and clause 20 of the sale agreement providing for a single cooperative society for the entire larger property. The buildings were constructed in 1992-93 and Respondent No.3 sought deemed conveyance for redevelopment. The deemed conveyance was registered on 14 October 2022. The petitioner argued that the writ was maintainable because of violation of natural justice, lack of proper inquiry, and incorrect area determination. Respondent No.3 contended that disputed questions of title barred writ jurisdiction, that the inquiry under Section 11 MOFA was limited, and that the petitioner's development rights had extinguished. Respondent No.4 supported the petitioner, arguing that clause 20 of the sale agreement required a single society and that open recreational space was meant for common use. The court heard extensive submissions but the provided judgment text ends mid-sentence during Respondent No.4's submissions and does not contain a final decision, analysis, or operative directions.

Headnote

A) Constitutional Law - Writ Jurisdiction - Maintainability of Writ Petition Against Deemed Conveyance Order - Constitution of India, 1950, Articles 226 and 227 - Petitioner contended that order passed without hearing necessary party violated natural justice and thus writ lies despite availability of civil suit; Respondents argued disputed title questions bar writ. The Court heard submissions on whether writ can be entertained; no final holding available in provided text (Paras 2-4).

B) Natural Justice - Audi Alteram Partem - Non-Impleadment of Promoter in Deemed Conveyance Proceedings - Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, Section 11(3) - Petitioner argued that failure to implead promoter/developer and adjacent societies rendered the deemed conveyance order void; Respondent No.3 contended inquiry limited and title issues for civil court. The impugned order was challenged for violating principles of natural justice; no final decision recorded in provided text (Paras 2-4).

C) Property Law - Deemed Conveyance - Scope of Inquiry by Competent Authority - Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, Section 11(3) - Whether the Competent Authority is required to conduct full inquiry into title and area or only a limited summary inquiry was disputed; Petitioner relied on Mazda Construction and Marathon Nextgen requiring proper inquiry, Respondent relied on ACME Enterprises limiting inquiry. Held not mentioned in provided text (Paras 3-4).

D) Property Law - Deemed Conveyance - Determination of Correct Area and Reliance on Architect Certificate - Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, Section 11(3) - Petitioner alleged incorrect area of 2,304 sq. mtrs. granted based solely on architect certificate dated 28 February 2022, ignoring larger property and common open recreational space. The Court was urged to quash order for lack of proper inquiry; no final direction in provided text (Paras 2-3).

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Issue of Consideration

Whether the impugned order granting deemed conveyance under Section 11(3) MOFA was vitiated by violation of natural justice, lack of proper inquiry, and incorrect area determination; whether writ petition under Articles 226/227 is maintainable despite disputed questions of title.

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Final Decision

Not mentioned in provided text; judgment text incomplete and does not contain final holding or operative directions after hearing submissions.

Law Points

  • Deemed conveyance under Section 11(3) MOFA requires proper inquiry
  • natural justice requires hearing affected parties
  • writ under Articles 226/227 maintainable if natural justice violated
  • Competent Authority must not act mechanically
  • summary powers do not exclude fair hearing
  • consent terms may create development rights
  • architect certificate alone insufficient for area determination
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Case Details

2023 LawText (BOM) (12) 33

Writ Petition No. 3935 of 2023 with Interim Application No. 12734 of 2023

2023-12-19

Madhav J. Jamdar

2023:BHC-AS:40087-DB

Anoshak Daver, Rushabh Sheth, Pratibha Rupnawar, Suveena Shetty, A. M. Saraogi, Amit G. Dubey, Pooja Batra, Mansi Jain, Pratik Amin, V. S. Nimbalkar

Janta Housing Private Limited

State of Maharashtra & Ors.

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Nature of Litigation

Writ petition under Articles 226 and 227 of Constitution challenging order granting deemed conveyance under Section 11(3) of MOFA.

Remedy Sought

Petitioner (Janta Housing Private Limited) sought quashing and setting aside of order dated 14 July 2022 granting deemed conveyance to Respondent No.3 society.

Filing Reason

Petitioner alleged that deemed conveyance order was passed in violation of natural justice without impleading petitioner, incorrect area granted, no proper reasons, reliance solely on architect certificate, and failure to follow Government Resolution dated 22 June 2018.

Previous Decisions

Competent Authority and District Deputy Registrar, Co-operative Societies, Thane passed order dated 14 July 2022 in Application No.186 of 2022 granting deemed conveyance of 2,304 sq. mtrs. to Respondent No.3 society; deemed conveyance registered on 14 October 2022.

Issues

Whether the impugned order granting deemed conveyance was vitiated by violation of natural justice due to non-impleadment of petitioner and adjacent societies. Whether the Competent Authority conducted a proper inquiry into entitlement and area before granting deemed conveyance under Section 11(3) MOFA.

Submissions/Arguments

Petitioner argued that non-impleadment of promoter and adjacent societies violated principles of natural justice and rendered order void. Petitioner contended that incorrect area of 2,304 sq. mtrs. was granted based solely on architect certificate dated 28 February 2022 without considering larger property. Petitioner relied on Consent Terms dated 6 September 1978 and clause 20 of Sale Agreement to assert rights over larger property and need for single society. Respondent No.3 argued that disputed questions of title bar writ jurisdiction and that inquiry under Section 11 MOFA is limited, with title issues to be agitated in civil suit. Respondent No.3 contended that petitioner's development rights under Consent Terms expired after 12 years and that statutory duty to convey was not performed by petitioner. Respondent No.4 supported petitioner, arguing that clause 20 required a single co-operative society for entire larger property and open recreational space was for common use.

Ratio Decidendi

Not mentioned in provided text; no final ratio decidendi is recorded as the judgment text ends during submissions of Respondent No.4.

Judgment Excerpts

By the impugned Order, Deemed Conveyance has been granted in favour of the Respondent No.3-Society. The Petitioner was not made a party to the proceedings under the Application preferred for obtaining unilateral Deemed Conveyance and therefore the impugned Order has been passed in complete violation of principles of natural justice. the Architect Certificate dated 28th February 2022 is the sole basis for passing the impugned Order and other material on record has not been taken into consideration There are disputed questions of title or facts and therefore the Writ Petition be not entertained. Clause No.20 of the Sale Agreement provides that there shall be a single Co-operative Society of all the buildings on the larger property and that conveyance would be executed in respect of the said larger property and the buildings thereon, in favour of such a single Co-operative Society.

Procedural History

Competent Authority and District Deputy Registrar, Co-operative Societies, Thane entertained Application No.186 of 2022 under Section 11(3) MOFA for deemed conveyance. By order dated 14 July 2022, deemed conveyance granted in favour of Respondent No.3 society for area 2,304 sq. mtrs. Deemed conveyance registered on 14 October 2022. Petitioner filed Writ Petition No.3935 of 2023 challenging order; Interim Application No.12734 of 2023 also filed. Court heard submissions on 19th December 2023; final judgment text incomplete.

Acts & Sections

  • Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA): Section 11(3)
  • Constitution of India, 1950: Articles 226, 227
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