Case Note & Summary
The petitioners, Mazda Construction Company, Maredia Enterprises, and Sultanabad CHS Ltd. (Proposed), challenged an order dated 11.04.2012 passed by the District Deputy Registrar, Cooperative Societies, Mumbai City-3, who also acted as the Competent Authority under Section 5A of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The impugned order directed the conveyance of land in favour of the respondent society, Sultanabad Darshan CHS Ltd., without issuing any notice or affording an opportunity of hearing to the petitioners. The petitioners contended that they were the developers and a proposed society with a legitimate interest in the property, and the order was passed behind their back. The High Court, exercising its writ jurisdiction under Articles 226 and 227 of the Constitution of India, found that the Competent Authority had acted in gross violation of the principles of natural justice. The court noted that the order was passed without any notice to the petitioners, who were likely to be affected by the direction for conveyance. Consequently, the High Court set aside the impugned order and remanded the matter to the Competent Authority for fresh consideration, directing that the petitioners be given an opportunity of hearing. The court also directed that the application be decided expeditiously, preferably within three months from the date of receipt of the order. The rule was made absolute accordingly.
Headnote
A) Constitutional Law - Natural Justice - Right to be Heard - Section 5A of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - The Competent Authority passed an order directing conveyance of land in favour of the respondent society without issuing any notice or affording an opportunity of hearing to the petitioners, who were developers and a proposed society. The High Court held that such an order is in gross violation of principles of natural justice and cannot be sustained. The court set aside the order and remanded the matter for fresh consideration after hearing all parties. (Paras 3-5)
Issue of Consideration
Whether the Competent Authority under Section 5A of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 can pass an order directing conveyance of land without issuing notice and affording an opportunity of hearing to the persons likely to be affected.
Final Decision
The High Court allowed the writ petition, set aside the impugned order dated 11.04.2012, and remanded the matter to the Competent Authority for fresh consideration after giving an opportunity of hearing to the petitioners. The Competent Authority was directed to decide the application expeditiously, preferably within three months from the date of receipt of the order. Rule made absolute.
Law Points
- Natural justice
- Right to be heard
- Section 5A MOFA
- Conveyance of land
- Cooperative society
- Developer's rights
Case Details
2012 LawText (BOM) (08) 42
WRIT PETITION NO.3912 OF 2012
Mr. Pravin Samdani, Senior Advocate a/w Mr. Samir Purohit i/by M/s Markand Gandhi & Company for the Petitioners; Mr. Y.R. Mishra for the Respondent Nos.1 and 2; Ms. P.S. Cardozo, AGP for the Respondent Nos.4 and 5
Mazda Construction Company, Maredia Enterprises, Sultanabad CHS Ltd. (Proposed)
Sultanabad Darshan CHS Ltd., Mr. Abbas Vali Asamadi, The Competent Authority District Deputy Registrar, The Sub-Registrar of Assurances, The State of Maharashtra
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Nature of Litigation
Writ petition under Articles 226 and 227 of the Constitution of India challenging an order passed by the Competent Authority under Section 5A of MOFA directing conveyance of land.
Remedy Sought
The petitioners sought quashing of the order dated 11.04.2012 passed by the District Deputy Registrar/Competent Authority directing conveyance of land in favour of the respondent society.
Filing Reason
The impugned order was passed without issuing any notice or affording an opportunity of hearing to the petitioners, who were developers and a proposed society with an interest in the property.
Previous Decisions
The Competent Authority passed the order on 11.04.2012 on application No.55/2011 directing conveyance of land in favour of respondent No.1 society.
Issues
Whether the Competent Authority under Section 5A of MOFA can pass an order directing conveyance of land without issuing notice and affording an opportunity of hearing to the persons likely to be affected.
Submissions/Arguments
The petitioners argued that the impugned order was passed without any notice to them and in gross violation of principles of natural justice.
The respondents did not dispute the lack of notice but contended that the order was valid.
Ratio Decidendi
An order passed under Section 5A of MOFA directing conveyance of land without issuing notice and affording an opportunity of hearing to the persons likely to be affected is in gross violation of principles of natural justice and cannot be sustained. The Competent Authority must hear all interested parties before passing such an order.
Judgment Excerpts
By this Writ Petition under Articles 226 and 227 of the Constitution of India, the Petitioners are challenging the order dated 11.04.2012... by which the District Deputy Registrar... on an application bearing No.55/2011 has directed as under:...
A perusal of the impugned order would indicate that no notice was issued to the Petitioners and no opportunity of hearing was afforded to them.
In these circumstances, the impugned order cannot be sustained and is required to be set aside.
Procedural History
The Competent Authority passed the impugned order on 11.04.2012 on application No.55/2011. The petitioners filed Writ Petition No.3912 of 2012 before the Bombay High Court challenging the order. The High Court heard the matter on 31.08.2012 and allowed the petition, setting aside the order and remanding the matter for fresh consideration.
Acts & Sections
- Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963: Section 5A
- Constitution of India: Articles 226, 227
