Case Note & Summary
The Petitioners, Tushar Jivram Chauhan and Jivram Lalji Chauhan, are the owners of a plot of land in Mulund West, Mumbai, on which two buildings (Shrinivas Building A and B) already exist. In 2001, they allowed Respondent No.4, M/s. Umiya Developers, to develop the remaining part of the property. The developer constructed a new building and entered into tripartite agreements with flat purchasers. Subsequently, Respondent No.3, Shri Ganesh Krupa Towers Cooperative Housing Society Ltd., was formed by the flat purchasers. The Society applied to Respondent No.2, the District Deputy Registrar of Cooperative Societies, for deemed conveyance under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). On 18.11.2013, Respondent No.2 passed an order granting deemed conveyance in favor of the Society, and on 18.07.2014, a unilateral conveyance deed was registered. The Petitioners challenged both the order and the registration, contending that they were not given any notice or opportunity of hearing before the order was passed, and that the statutory requirements under Section 11 of MOFA were not complied with. The Court examined the provisions of Section 11 of MOFA, which empowers the District Deputy Registrar to execute a conveyance deed on behalf of the owner if the owner fails to do so within the prescribed period. However, the Court noted that the procedure requires the Registrar to give notice to the owner and hear them before passing any order. In this case, no such notice was given to the Petitioners. The Court held that the order of deemed conveyance was passed in violation of the principles of natural justice and the mandatory requirements of Section 11 of MOFA. Consequently, the order dated 18.11.2013 and the subsequent unilateral registration dated 18.07.2014 were quashed and set aside. The Court allowed the writ petition with no order as to costs.
Headnote
A) Cooperative Housing Society - Deemed Conveyance - Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - The District Deputy Registrar granted deemed conveyance in favor of the Society without issuing notice or hearing the Petitioners, who are the owners of the property. The Court held that the procedure under Section 11 of MOFA is mandatory and must be strictly followed, including giving an opportunity of hearing to the owner. The impugned order was quashed and set aside. (Paras 2-10) B) Cooperative Housing Society - Unilateral Registration of Conveyance - Section 22 of the Maharashtra Cooperative Societies Act, 1960 - The unilateral registration of conveyance dated 18.07.2014 was also challenged. The Court held that since the deemed conveyance order itself was invalid, the subsequent registration based on that order cannot stand. The registration was also quashed. (Paras 2-10) C) Cooperative Housing Society - Opportunity of Hearing - Natural Justice - The Petitioners were not given any notice or opportunity of hearing before the deemed conveyance order was passed. The Court emphasized that principles of natural justice require that the owner be heard before any order affecting their rights is passed. The order was set aside on this ground as well. (Paras 2-10)
Issue of Consideration
Whether the order of deemed conveyance and the subsequent unilateral registration of conveyance in favor of the Society are valid when the Petitioners, as owners, were not given an opportunity of hearing and the statutory requirements under Section 11 of MOFA were not complied with.
Final Decision
The writ petition is allowed. The order dated 18.11.2013 passed by Respondent No.2 granting deemed conveyance and the unilateral registration of conveyance dated 18.07.2014 are quashed and set aside. Rule is made absolute. No order as to costs.
Law Points
- Deemed conveyance
- Section 11 MOFA
- Section 22 Maharashtra Cooperative Societies Act
- 1960
- Natural justice
- Opportunity of hearing
- Statutory compliance
