Case Note & Summary
The dispute concerns a layout development in Mulund (East), Mumbai, where Acme Enterprises (the Developer) claimed development rights over a larger plot of 77,823 sq.mtrs. The layout was subdivided, and Plot ‘D’ originally measuring 21,102 sq.mtrs. was central to the controversy. After deduction for recreational ground and separation of a welfare center plot, the net area became 18,602.20 sq.mtrs. In 1991, the Municipal Corporation sanctioned plans for two buildings: Building No.1, a tower with Wings A, B, C (stilt plus 17 floors, built-up 7,166.70 sq.mtrs.), and Building No.2 with Wings A to J (ground plus 7 floors, built-up 13,830.73 sq.mtrs.). Building No.2 was constructed first, and MOFA agreements were executed with flat purchasers, attaching the sanctioned plan that disclosed Building No.1 would be built. By 2004, Building No.2 was complete and occupancy certificate issued; the OC plan still showed proposed built-up area for Building No.1. In 2005, revised plans transferred 5,000 sq.mtrs. of FSI from Plot ‘D’ to Plot ‘A’, reducing Building No.1’s permissible built-up to 1,842.82 sq.mtrs. The Developer opted to construct Building No.1 with only 1,628.78 sq.mtrs. Meanwhile, the flat purchasers of Building No.2 formed cooperative housing societies and later a Federation. The Federation applied for and obtained a unilateral deemed conveyance under the Maharashtra Ownership Flats Act, 1963 (MOFA) from the Competent Authority on 26 November 2019, conveying the entire Plot ‘D’ land (18,602.20 sq.mtrs.) in its favour. A registered deed of deemed conveyance was executed on 26 June 2023. The Developer filed Suit No.151 of 2025 challenging the deemed conveyance and seeking a declaration that it is entitled to complete development on at least a 3,200 sq.mtr. part of Plot ‘D’. The Federation filed Suit No.143 of 2025 seeking a permanent injunction to restrain the Developer from utilizing any FSI on the conveyed land and to remove any construction. Both parties filed interim applications for temporary injunctions: the Developer sought stay of a stop-work notice dated 6 June 2023 issued by MCGM, injunction against obstruction, and stay of the deemed conveyance deed; the Federation sought temporary injunction against further construction and against MCGM sanctioning plans. The core legal issues were whether the Federation was entitled to conveyance of the entire plot including future FSI, and whether the Developer retained any right to build on the land. The court considered the provisions of MOFA, the sanctioned plans, and the submissions of both sides, and pronounced judgment on the interim applications on 4 November 2025.
Issue of Consideration
Whether any portion of land of Plot ‘D’ needs to be excluded from conveyance granted to the Federation, and whether the Developer is entitled to construct the sanctioned building on land admeasuring 3,200 sq.mtrs. out of total area of 18,602.20 sq.mtrs
Case Details
2025 LawText (BOM) (11) 137
Suit No.151 of 2025 (Interim Application No.4859 of 2025) and Suit No.143 of 2025 (Interim Application (L) No.16204 of 2024)
As pi Chinoy, Karl Tamboly, Kausar Banatwala, Riya Thakkar, Yash Sheth, Tushar Goradia; Mayur Khandeparkar, Vikramjeet Garewal, Vinayak Pandit, Sufyaan Mansuri, Ajinkya M. Udane; G.O. Giri, Rohit Gaikwad, Komal R. Punjabi
Deputy Registrar Co-operative Societies (2) & Ors.
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Nature of Litigation
Cross suits involving dispute about conveyance of land in a common layout and developer's right to carry out further construction, with both parties seeking interim injunctions.
Remedy Sought
Developer seeks stay of stop-work notice, injunction against obstruction, and stay of deemed conveyance deed; Federation seeks injunction against further construction and utilization of FSI on conveyed land.
Filing Reason
Developer filed suit challenging unilateral deemed conveyance of entire layout land to Federation and to assert right to complete sanctioned building; Federation filed suit to prevent Developer from constructing additional building contrary to disclosures under MOFA.
Previous Decisions
Competent Authority ordered unilateral deemed conveyance on 26 November 2019, and registered deed of deemed conveyance dated 26 June 2023.
Issues
Whether any portion of land of Plot ‘D’ needs to be excluded from conveyance granted to the Federation, and whether the Developer is entitled to construct the sanctioned building on land admeasuring 3,200 sq.mtrs. out of total area of 18,602.20 sq.mtrs
Submissions/Arguments
Developer contended it is entitled to complete construction based on approved plans and unutilized FSI; Federation contended it became owner of entire land through deemed conveyance and Developer cannot build.
Judgment Excerpts
What needs to be decided in Developer’s Suit is whether any portion of land of Plot ‘D’ needs to be excluded from conveyance granted to the Federation.
The Federation on the other hand believes that it has become owner of entire land admeasuring 18,602.20 sq.mtrs. and that therefore, the Developer cannot carry out any construction in any part of the said land.
The Developer had published brochures showing Building No.1 as a tower building with Wings A, B and C and a smaller Building No.2 with Wings A to J.
According to the Developer, the sanctioned plan of 11 May 1991 was attached to the MOFA Agreements, thereby making a disclosure that Building No.1 would be constructed using FSI of 7,166.70 sq.mtrs.
Procedural History
Suit No.151 of 2025 filed by Developer on a date not mentioned; Suit No.143 of 2025 filed by Federation on a date not mentioned. Interim Application No.4859 of 2025 filed in Suit No.151 of 2025; Interim Application (L) No.16204 of 2024 filed in Suit No.143 of 2025. Both applications heard together; judgment reserved on 14 October 2025 and pronounced on 4 November 2025.
Acts & Sections
- Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA): 7, 7A
