Case Note & Summary
The dispute arose when a cooperative housing society sought deemed conveyance of the land and building from the developer who had failed to execute the conveyance deed despite statutory obligation under the Maharashtra Ownership Flats Act, 1963 (MOFA).
The society approached the competent authority (District Deputy Registrar) seeking deemed conveyance of the property. After examining documents, including agreements and the architect’s certificate, the authority passed an order granting conveyance of the land and building in favour of the society.
The petitioner (developer/concerned party) challenged this order before the Bombay High Court through a writ petition. The petitioner contended that:
The agreements between the parties contemplated only leasehold rights and not freehold transfer.
The competent authority exceeded jurisdiction while granting deemed conveyance.
Proper notice was not served and principles of natural justice were violated.
Certain relevant documents were allegedly suppressed by the society.
The respondents argued that the promoter had statutory duty under MOFA to transfer the property, and since the developer failed to execute the conveyance, the society was legally entitled to seek deemed conveyance through the competent authority.
After examining the record, the High Court observed that the authority had considered the relevant material and acted within its statutory powers. The Court held that mere technical or procedural objections raised by the developer cannot defeat the statutory rights of the society, particularly when the promoter had failed to fulfil the obligation of executing the conveyance.
Headnote
A. Maharashtra Ownership Flats Act, 1963 – Deemed Conveyance – B. Jurisdiction of Competent Authority – C. Natural Justice –
Where a promoter fails to execute conveyance in favour of a cooperative housing society within the prescribed period, the society is entitled to seek deemed conveyance from the competent authority. Technical objections raised by the developer after long delay cannot defeat the statutory right of the society.
The District Deputy Registrar acting as competent authority under MOFA is empowered to examine documents and grant deemed conveyance of the property in favour of the cooperative housing society where the promoter fails to perform his statutory obligation.
Mere allegation of procedural irregularity or insufficient notice will not invalidate the order of deemed conveyance unless actual prejudice is demonstrated.
Issue of Consideration
The Issue of Consideration was whether the Order of Unilateral Deemed Conveyance dated 29th August 2022 passed by the Competent Authority under Section 11 of MOFA 1963 was valid and sustainable in law
Final Decision
The Bombay High Court dismissed the writ petition and upheld the order granting deemed conveyance in favour of the cooperative housing society.
Law Points
- The Competent Authority under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction
- Sale
- Management and Transfer) Act
- 1963 (MOFA) must follow principles of natural justice and ensure proper service of notice to all interested parties
- The jurisdiction of the Competent Authority is limited to granting deemed conveyance only when the promoter fails to execute conveyance as per Section 11 of MOFA
- and the authority cannot act unilaterally without affording opportunity of hearing to affected parties
- The principles of natural justice
- including audi alteram partem
- are fundamental and any order passed in violation thereof is liable to be quashed
- The burden of proof lies on the applicant society to establish that the promoter failed to execute conveyance
- and the authority must consider all relevant documents and objections before passing an order
