Bombay High Court Considers Writ Petition Challenging Deemed Conveyance Order Under MOFA; Petitioner Alleges Natural Justice Violation and Non-Impleadment. Court Hears Arguments on Maintainability and Scope of Section 11(3) Inquiry Without Final Decision in Excerpt.

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

The present writ petition, filed under Articles 226 and 227 of the Constitution of India, challenged 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), granting deemed conveyance in favour of Respondent No.3 Society. The petitioner, a housing company and developer, sought to quash and set aside the impugned order. The respondent No.3 was a co-operative housing society that had applied for deemed conveyance. Respondent No.4 was another party, likely a flat purchaser or adjacent society, and the State was represented by the Assistant Government Pleader. The petitioner alleged that the competent authority passed the order without making the petitioner a party to the proceedings, in violation of principles of natural justice. It also contended that adjacent societies located on the undivided larger land parcel were not joined as parties, though they were adversely affected. The petitioner asserted that the area granted to Respondent No.3 Society was incorrect—either 2,304 sq. mtrs. or 2,340 sq. mtrs. as claimed—and that no proper reasons were given for granting that specific area. The petitioner pointed out that the Architect Certificate dated 28 February 2022 was the sole basis for the impugned order, other material was ignored, and the Government Resolution dated 22 June 2018 was not followed. The petitioner also referred to a pending Suit No.763 of 2013 filed by the petitioner and Respondent No.4 against Respondent No.3 regarding obstruction of open space. Further, the petitioner relied on consent terms dated 6 September 1978 in Bombay High Court Suit No.1210 of 1986, which allegedly conferred development rights on the petitioner. The petitioner cited an order dated 4 August 2023 in Writ Petition No.9597 of 2023 where a similar deemed conveyance order was set aside for non-impleadment and remanded. The petitioner argued that the writ petition was maintainable because of natural justice violations and absence of disputed title questions, relying on several precedents including R v. Sussex Justices, A.H. Wadia Trust v. State of Maharashtra, Tushar Jivram Chauhan v. State of Maharashtra, and others. Respondent No.3, on the other hand, contended that there were disputed questions of title and facts, and therefore the writ petition should not be entertained. Relying on ACME Enterprises v. Registrar, Coop. Societies, the respondent argued that the inquiry under Section 11 of MOFA is summary in nature and cannot decide title; a party can agitate title before a civil court. The respondent also argued that the petitioner failed to perform its statutory duty to convey the property, that the petitioner's rights under the consent terms had extinguished after 12 years, and that the order in another writ petition cannot be a binding precedent. Respondent No.4 submitted that Clause 20 of the Sale Agreement provided for a single co-operative society for all buildings on the larger property, and that conveyance was to be executed only after full development; it also alleged obstruction of common open recreational space. The court heard extensive submissions from all parties but, in the provided excerpt, no final reasoning, analysis, or operative order is available as the text ends mid-sentence during Respondent No.4's submissions. Therefore, the final decision of the court cannot be determined from the given material.

Headnote

A) Constitutional Law - Writ Jurisdiction - Maintainability of Writ Petition Against Deemed Conveyance Order - Constitution of India, Articles 226 and 227 - Petitioner contended that the writ petition is maintainable because the impugned order violates principles of natural justice and no disputed questions of title are involved, while respondents argued that disputed questions of title and facts bar writ remedy; the court heard submissions but no final holding is available in the provided excerpt (Paras 3(viii), 4(i)).

B) Administrative Law - Natural Justice - Non-impleadment of Affected Parties - Constitution of India, Articles 226 and 227; Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, Section 11(3) - Petitioner argued that it was not made a party to the deemed conveyance proceedings and adjacent societies on the undivided larger land parcel were also not joined, violating principles of natural justice; the court noted the contention but no ruling is visible (Paras 3(i)-(ii), 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) - Respondents relied on ACME Enterprises to argue that the competent authority's inquiry under Section 11 is summary and cannot decide title, while petitioner argued the authority must conduct proper inquiry and consider all documents; the court heard both submissions without a final decision in the excerpt (Paras 4(ii), 3(ix)).

D) Civil Procedure - Res Judicata / Precedent - Binding Effect of an Order in Another Writ Petition - Constitution of India, Articles 226 and 227 - Petitioner cited an order dated 4 August 2023 in Writ Petition No.9597 of 2023 setting aside a similar deemed conveyance for non-impleadment, but respondent argued such an order is not a judgment and cannot be a binding precedent relying on Sundeep Kumar Bafna v. State of Maharashtra; the court noted the conflicting submissions without a final determination (Paras 3(xiii), 4(v)).

E) Contract Law - Consent Terms - Extinguishment of Development Rights - Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, Section 11(3) - Petitioner claimed rights under consent terms dated 6 September 1978 in Bombay High Court Suit No.1210 of 1986, while respondent contended those rights existed only for 12 years and have extinguished; the court heard arguments but no final holding in the provided text (Paras 3(xii), 4(vi)).

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Issue of Consideration

Whether the impugned order dated 14 July 2022 granting deemed conveyance under Section 11(3) of MOFA is invalid for non-impleadment of the petitioner and other affected parties and violation of natural justice; whether the writ petition is maintainable despite alleged disputed questions of title; whether the competent authority failed to conduct proper inquiry and consider relevant material.

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Law Points

  • Principles of natural justice require all affected parties be heard before grant of deemed conveyance
  • Competent Authority under Section 11(3) MOFA has summary jurisdiction but must not act mechanically
  • writ petition under Articles 226 and 227 maintainable for violation of natural justice even if disputed facts
  • deemed conveyance inquiry is limited and cannot decide title questions
  • affected parties may pursue civil suit for title
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Case Details

2023 LawText (BOM) (12) 43

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

2023-12-19

Madhav J. Jamdar, J.

2023:BHC-AS:40087-DB

Anoshak Daver, Rushabh Sheth, Pratibha Rupnawar, Suveena Shetty, A. M. Saraogi, Amit G. Dubey, Pooja Batra, Mansi Jain, 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 the Constitution of India challenging the order dated 14 July 2022 passed by the Competent Authority and District Deputy Registrar, Co-operative Societies, Thane granting deemed conveyance in Application No.186 of 2022 under Section 11(3) of MOFA in favour of Respondent No.3 Society.

Remedy Sought

Petitioner sought quashing and setting aside of the impugned order granting deemed conveyance and consequential relief.

Filing Reason

Petitioner alleged the order was passed without making it a party, in violation of principles of natural justice, granting incorrect area without proper reasons, and ignoring pending litigation and government resolution.

Previous Decisions

The Competent Authority granted deemed conveyance on 14 July 2022; the deemed conveyance was registered on 14 October 2022; an earlier order dated 4 August 2023 in Writ Petition No.9597 of 2023 set aside a similar deemed conveyance order for non-impleadment and remanded the matter; Suit No.763 of 2013 between petitioner and Respondent No.4 against Respondent No.3 regarding obstruction of open space was pending.

Issues

Whether the impugned order dated 14 July 2022 granting deemed conveyance under Section 11(3) of MOFA is invalid for non-impleadment of the petitioner and other affected parties and violation of principles of natural justice. Whether the writ petition is maintainable despite alleged disputed questions of title and facts. Whether the competent authority failed to conduct a proper inquiry and consider all relevant documents, including the Architect Certificate dated 28 February 2022 and Government Resolution dated 22 June 2018. Whether the area granted in the deemed conveyance order is correct and supported by reasons. Whether the pending Suit No.763 of 2013 and consent terms dated 6 September 1978 affect the validity of the deemed conveyance order.

Submissions/Arguments

Petitioner contended that it was not made a party to the deemed conveyance proceedings, violating natural justice, and adjacent societies were also not joined. Petitioner argued that the competent authority granted incorrect area without proper reasons, relying solely on the Architect Certificate dated 28 February 2022 and ignoring other material. Petitioner submitted that the writ petition is maintainable due to natural justice violations and no disputed title questions, relying on multiple precedents. Petitioner cited an order dated 4 August 2023 in Writ Petition No.9597 of 2023 where a similar deemed conveyance order was set aside for non-impleadment. Respondent No.3 argued that there are disputed questions of title and facts, so the writ petition should not be entertained. Respondent No.3 submitted that the inquiry under Section 11 of MOFA is summary and cannot decide title, relying on ACME Enterprises, and that the petitioner can file a civil suit. Respondent No.3 contended that the petitioner failed to perform its statutory duty to convey and that the petitioner's rights under consent terms dated 6 September 1978 extinguished after 12 years. Respondent No.3 argued that the order in Writ Petition No.9597 of 2023 cannot be a binding precedent, relying on Sundeep Kumar Bafna v. State of Maharashtra. Respondent No.4 submitted that Clause 20 of the Sale Agreement provided for a single co-operative society for all buildings on the larger property and conveyance only after full development, and alleged obstruction of common open recreational space.

Judgment Excerpts

The Petitioner by way of the present Writ Petition preferred under Articles 226 and 227 of the Constitution of India, is challenging the legality and validity of the Order dated 14th July 2022 passed by the Competent Authority and District Deputy Registrar, Co-operative Societies, Thane in Application No.186 of 2022 preferred under Section 11(3) of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963. Heard Mr. Daver, learned Counsel for the Petitioner, Mr. Saraogi a/w Mr. Dubey, learned Counsel for Respondent No.3, Ms. Batra, learned Counsel for Respondent No.4 and Ms. Nimbalkar, learned AGP for Respondent-State.

Procedural History

Respondent No.3 Society filed Application No.186 of 2022 under Section 11(3) of MOFA before the Competent Authority and District Deputy Registrar, Thane seeking deemed conveyance. The Competent Authority passed impugned order dated 14 July 2022 granting deemed conveyance in favour of Respondent No.3 Society. The deemed conveyance was registered on 14 October 2022. Petitioner filed the present writ petition challenging the order. Interim Application No.12734 of 2023 was filed. The court heard the parties on 19 December 2023. Prior litigation included Suit No.763 of 2013 filed by petitioner and Respondent No.4 against Respondent No.3 regarding obstruction of open space, and Writ Petition No.9597 of 2023 where a deemed conveyance order was set aside on 4 August 2023 for non-impleadment and remanded.

Acts & Sections

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