Bombay High Court Dismisses Developer's Challenge to Deemed Conveyance Under MOFA Act — Society Entitled to Conveyance of Both Plots. District Registrar's Order Under Section 11 of MOFA Act, 1963 Upheld as Developer Failed to Show Jurisdictional Error.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioners, M/s. Sawant Constructions, a partnership firm and developer, challenged an order dated 21 June 2013 passed by the District Deputy Registrar, Co-operative Societies, Mumbai, under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The order issued a certificate of deemed conveyance in favour of Respondent No. 1, Shri Guruchhaya Cooperative Housing Society Ltd., in respect of two plots of land: Final Plot No. 51 (CTS No. 514, 514/1 to 6) admeasuring 478.4 sq. mtrs. and Final Plot No. 52 (CTS No. 515, 515/1 to 5) admeasuring 492.4 sq. mtrs. The petitioners had initially entered into an agreement to purchase Final Plot No. 51 from Pralhad Krishnarao Kavatkar on 4.9.1978 and later acquired Final Plot No. 52 from Mrs. Hirabai V. Solunki. They constructed a ground plus 4 storied building on Final Plot No. 51 and sold flats to purchasers who formed the respondent society. The society applied for a deemed conveyance under Section 11 of MOFA. The District Dy. Registrar, after hearing both parties and considering evidence, concluded that the society was entitled to a certificate of deemed conveyance for both plots. The petitioners contended that the society was not entitled to conveyance of Final Plot No. 52 as no building was constructed on it and it was not part of the development. The High Court examined the provisions of Section 11 of MOFA and held that the Registrar had jurisdiction to decide the entitlement. The court noted that the developer had acquired both plots and developed them as a single scheme, and the society's members were allottees of flats in the building constructed on Plot No. 51. The court found no jurisdictional error or perversity in the Registrar's order and dismissed the writ petition, upholding the deemed conveyance for both plots.

Headnote

A) MOFA - Deemed Conveyance - Section 11 Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - The District Dy. Registrar issued a certificate of deemed conveyance in favour of the society in respect of both Final Plot No. 51 (where building was constructed) and Final Plot No. 52 (adjoining plot acquired by developer). The developer challenged the order on the ground that the society was not entitled to conveyance of Plot No. 52 as no building was constructed thereon. The High Court held that the Registrar had jurisdiction to decide the issue and that the society was entitled to conveyance of both plots as they formed part of the same development scheme. (Paras 1-11)

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Issue of Consideration

Whether the District Dy. Registrar under Section 11 of the MOFA Act, 1963, could issue a certificate of deemed conveyance in respect of Final Plot No. 52, which was not built upon, but was acquired by the developer and formed part of the same development scheme.

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Final Decision

Writ petition dismissed. Order dated 21 June 2013 passed by District Dy. Registrar under Section 11 of MOFA Act, 1963 upheld. No order as to costs.

Law Points

  • Deemed conveyance under Section 11 MOFA Act
  • 1963
  • can be granted for entire property developed by promoter
  • including adjoining plots acquired by promoter
  • even if building is constructed only on one plot
  • District Registrar has jurisdiction to decide entitlement to deemed conveyance
  • Writ petition against order under Section 11 MOFA is maintainable but limited to jurisdictional errors.
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Case Details

2014:BHC-OS:1191-DB

Writ Petition No. 1585 of 2013

2014-02-05

V. M. Kanade, G. S. Kulkarni

2014:BHC-OS:1191-DB

Mr. V. A. Thorat, Sr. Counsel with R. D. Soni, with S. N. Gawade, with Vaibhav Sugdhare i/b Shree & Co. for the Petitioners; Mr. S. G. Surana i/b M. S. Surana, for Respondent No. 1; Mr. G. W. Mattos, AGP for Respondent Nos. 2 & 3

M/s. Sawant Constructions & Anr.

Shri Guruchhaya Cooperative Housing Society Ltd. & Ors.

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Nature of Litigation

Writ petition challenging order of District Dy. Registrar under Section 11 of MOFA Act, 1963 issuing certificate of deemed conveyance.

Remedy Sought

Petitioners sought quashing of the order dated 21 June 2013 passed by Respondent No. 2.

Filing Reason

Petitioners were aggrieved by the order of deemed conveyance in favour of Respondent No. 1 Society in respect of both Final Plot No. 51 and Final Plot No. 52.

Previous Decisions

District Dy. Registrar passed order dated 21 June 2013 under Section 11 of MOFA Act, 1963.

Issues

Whether the District Dy. Registrar had jurisdiction to issue deemed conveyance for Final Plot No. 52 which was not built upon? Whether the society was entitled to deemed conveyance of both plots?

Submissions/Arguments

Petitioners argued that the society was not entitled to conveyance of Final Plot No. 52 as no building was constructed on it and it was not part of the development. Respondent No. 1 Society contended that the developer had acquired both plots and developed them as a single scheme, and the Registrar correctly granted deemed conveyance.

Ratio Decidendi

Under Section 11 of the MOFA Act, 1963, the District Registrar has jurisdiction to decide the entitlement of a society to a certificate of deemed conveyance. The Registrar's order granting deemed conveyance for both plots, including the adjoining plot acquired by the developer, was within his jurisdiction and not perverse. The High Court will not interfere with such order in writ jurisdiction unless there is a jurisdictional error or perversity.

Judgment Excerpts

The Petitioners are aggrieved by an order passed by the District Dy. Registrar, Co-operative Societies, Mumbai (3) i. e. Respondent No. 2 herein, dated 21st June, 2013, which was passed under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (for short 'the MOFA Act'), thereby issuing certificate of deemed conveyance in favour of Respondent No. 1 Society. The District Dy. Registrar (Respondent No. 2, herein) after hearing both the parties and going through the evidence, which was produced before him, came to the conclusion that Respondent No. 1 Society was entitled to get a certificate of deemed conveyance in respect of Final Plot No. 51 as well as Final Plot No. 52.

Procedural History

The District Dy. Registrar, Co-operative Societies, Mumbai (3) passed an order dated 21 June 2013 under Section 11 of MOFA Act, 1963 issuing certificate of deemed conveyance in favour of Respondent No. 1 Society. Aggrieved, the petitioners filed Writ Petition No. 1585 of 2013 before the Bombay High Court. The High Court heard the matter and dismissed the petition on 5 February 2014.

Acts & Sections

  • Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963: Section 11
  • Indian Partnership Act, 1932:
  • Maharashtra Co-operative Societies Act, 1960:
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