Case Note & Summary
The Bombay High Court, in M/s. Asian Chemical Industries v. Vijay Kailas Industrial Premises CHS Ltd. & Ors. (Writ Petition No. 11164 of 2024, decided on 11 February 2026), allowed the writ petition and set aside the order of the District Deputy Registrar granting a Certificate of Unilateral Deemed Conveyance under Section 11 of the Maharashtra Ownership of Flats Act, 1963 (MOFA). The Petitioner, a lessee of the land and owner of the commercial structure, contended that the Competent Authority ignored its subsisting leasehold rights and ownership of the building while granting deemed conveyance in favour of the Respondent Society.
The Court held that the Competent Authority failed to verify compliance with the mandatory provisions of Sections 4 and 11 of MOFA and overlooked the Petitioner's subsisting legal rights. It found that the Society had relied upon defective, unregistered and prima facie fabricated documents, including an incorrect building plan and a questionable deed of confirmation. Reaffirming the doctrine of dual ownership, the Court observed that ownership of land and ownership of the structure can vest in different persons and such rights cannot be ignored while granting deemed conveyance.
Holding that the impugned order was legally unsustainable, the Court quashed the Certificate of Deemed Conveyance and all consequential actions. It also rejected the Respondent Society's request to stay the operation of the judgment.
Headnote
Maharashtra Ownership of Flats Act, 1963 – Section 11 – Deemed Conveyance – Transfer of Property Act, 1882 – Sections 111 & 114 – Cooperative Housing Society – Leasehold Rights – Dual Ownership – Fraudulent Documents – Writ Jurisdiction –
The Bombay High Court allowed the writ petition challenging the order of the District Deputy Registrar granting a Certificate of Unilateral Deemed Conveyance under Section 11 of the Maharashtra Ownership of Flats Act, 1963 (MOFA) in favour of a cooperative housing society – The Petitioner established subsisting leasehold rights over the land and ownership of the superstructure through a registered lease and deed of assignment – The Court reiterated the doctrine of dual ownership, holding that ownership of land and ownership of the structure may vest in different persons – The Competent Authority failed to consider the Petitioner's subsisting rights and relied upon defective, unregistered and prima facie fabricated documents – Mandatory requirements under Section 4 and Section 11 of MOFA, including valid agreements for sale, approved building plans and commencement certificate, were not satisfied – The Court found serious procedural irregularities, inconsistencies in the Society's case and prima facie fraud in documents relied upon for obtaining deemed conveyance – The impugned order granting unilateral deemed conveyance was quashed and all consequential actions were set aside.
Paras: 8–20
Issue of Consideration
Whether the Certificate of Unilateral Deemed Conveyance granted under Section 11 of the Maharashtra Ownership of Flats Act, 1960 (MOFA) was valid in view of the Petitioner's subsisting leasehold rights, ownership of the structure, and the alleged reliance on defective and fraudulent documents by the Respondent Society.
Final Decision
The Court allowed the Writ Petition, quashed and set aside the impugned Order dated 20.03.2024 granting the Certificate of Unilateral Deemed Conveyance under Section 11 of the Maharashtra Ownership of Flats Act, 1963, cancelled the Deemed Conveyance Certificate and all consequential actions, and rejected the Respondent Society's request for stay of the judgment.
Law Points
- Interpretation of Section 11 of Maharashtra Ownership of Flats Act
- 1960 (MOFA)
- Principles of natural justice
- Fraudulent misrepresentation in legal proceedings
- Protection of leasehold rights
- Jurisdiction of District Deputy Registrar of Cooperative Societies
Case Details
2026 LawText (BOM) (02) 57
Writ Petition No. 11164 of 2024
Mr. Ashish Kamat, Senior Advocate, a/w Ms. Priyanka Chadda, D.K. Shukla i/b Mr. Shivam Singh, Advocates for Petitioner, Mr. Dushyant Pagare a/w Ms. Shubashree Yewale, Advocates for Respondent No. 1, Mr. Pradeep J. Thorat i/b Ms. Aditi S. Naikare, Advocates for Respondent No. 3, Mr. P.J. Gavhane, A.G.P for Respondent No. 7 – State
M/s. Asian Chemical Industries
Vijay Kailas Industrial Premises CHS Ltd. and Ors.
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Nature of Litigation
Writ Petition challenging the order of the District Deputy Registrar granting a Certificate of Unilateral Deemed Conveyance under Section 11 of the Maharashtra Ownership of Flats Act, 1963 (MOFA).
Remedy Sought
Quashing and setting aside the impugned Order dated 20.03.2024 granting the Certificate of Unilateral Deemed Conveyance and all consequential actions.
Filing Reason
The Petitioner challenged the impugned Order on the ground that the Competent Authority ignored its subsisting leasehold rights and ownership of the superstructure, failed to consider mandatory statutory requirements under MOFA, and granted deemed conveyance based on defective and allegedly fraudulent documents.
Previous Decisions
The District Deputy Registrar, Cooperative Societies, by Order dated 20.03.2024, granted a Certificate of Unilateral Deemed Conveyance under Section 11 of MOFA in favour of Respondent No.1 Society.
Issues
Whether the Certificate of Unilateral Deemed Conveyance granted under Section 11 of MOFA was legal and valid.
Whether the Competent Authority failed to consider the Petitioner's subsisting leasehold rights and ownership of the superstructure.
Whether the Society obtained the Certificate by relying upon defective, unregistered, or prima facie fraudulent documents.
Submissions/Arguments
Petitioner
The impugned Order was illegal, arbitrary, and passed without proper application of mind.
The Competent Authority ignored the Petitioner's subsisting leasehold rights over the land.
The Petitioner's ownership of the superstructure was not considered.
The landlord-tenant relationship between the Petitioner and the Society's members continued to subsist.
The Society relied upon incorrect building plans, defective documents, and allegedly fraudulent representations to obtain deemed conveyance.
Mandatory requirements under Sections 4 and 11 of MOFA were not complied with.
Respondent No.1
The Society contended that it was entitled to deemed conveyance under MOFA.
The Petitioner's lease had expired, and the Society had acquired rights through conveyance documents executed by the landowner.
The Petitioner had no locus to challenge the deemed conveyance.
Ratio Decidendi
The Competent Authority must strictly verify compliance with Sections 4 and 11 of MOFA before granting deemed conveyance. Where subsisting leasehold rights, ownership interests, and mandatory statutory requirements are ignored, or where the application is supported by defective or prima facie fraudulent documents, the grant of deemed conveyance is unsustainable in law. The doctrine of dual ownership recognises that ownership of land and ownership of the structure may vest in different persons and such rights cannot be disregarded.
Judgment Excerpts
Petition is filed challenging impugned Order dated 20.03.2024 passed by the District Deputy Registrar of Cooperative Societies granting Certificate of Unilateral Deemed Conveyance under Section 11 of MOFA."
"Ownership of land and ownership of the structure constructed thereon can vest in different parties."
"The impugned Order dated 20.03.2024 is clearly unsustainable, bad in law and is therefore quashed and set aside."
"Certificate of Deemed Conveyance dated 20.03.2024 stands cancelled. All consequential actions are also quashed and set aside."
Procedural History
Respondent No.1 Society filed Application No.109 of 2023 under Section 11(3) of MOFA seeking a Certificate of Unilateral Deemed Conveyance. By Order dated 20.03.2024, the District Deputy Registrar granted the Certificate. The Petitioner challenged the said Order before the Bombay High Court, which allowed the writ petition, quashed the Order and the Certificate of Deemed Conveyance, and set aside all consequential actions.
Acts & Sections
- Maharashtra Ownership of Flats Act, 1960: Section 11, Section 11(3), Section 4, Section 4(1A), Section 2(c)
