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 –
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.
B. Jurisdiction of Competent Authority –
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.
C. Natural Justice –
Mere allegation of procedural irregularity or insufficient notice will not invalidate the order of deemed conveyance unless actual prejudice is demonstrated.
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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
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Final Decision
The Bombay High Court dismissed the writ petition and upheld the order granting deemed conveyance in favour of the cooperative housing society.
2026 LawText (BOM) (02) 121
WRIT PETITION NO.14690 OF 2022 WITH WRIT PETITION NO.1584 OF 2024 AND WRIT PETITION NO.112 OF 2023
Mr. Navroz Seervai, Ms. Meena Doshi, Mr. Hasan Mushabberi, Mr. Girish Godbole, Mr. Aniruth Haryeni, Mr. Hemanta, Mr. Rahil Shah, Mr. Bharat Zaveri, Ms. Aishwaryajeeta Tawde, Mr. Mayur Khandeparkar, Mr. Viraj Parikh, Ms. A.A. Nadkarni, Ms. Mamta S. Srivastava, Mr. P.V. Nelson Rajan
Nusli Neville Wadia, Radhakrishna Properties Pvt. Ltd., Ivory Properties and Hotels Ltd.
IJMIMA – Imitation Jewellery Market Co-operative Society, Ivory Properties and Hotels Ltd., Radhakrishna Properties Pvt. Ltd., District Deputy Registrar, Cooperative Mumbai City (4), Competent Authority, Imitation Jewellery Manufacturers Association, Building Nos. 1-10, State of Maharashtra, Union of India
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Nature of Litigation: Writ petitions challenging an administrative order of deemed conveyance under MOFA 1963
Remedy Sought
The petitioners sought quashing of the Order of Unilateral Deemed Conveyance dated 29th August 2022 passed by the Competent Authority
Filing Reason
The order was passed without proper notice and in violation of natural justice, affecting the rights of the petitioners as owners and developers of the land
Previous Decisions
The Competent Authority had passed the deemed conveyance order on 29th August 2022, which was being challenged in the present writ petitions
Issues
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
Whether the Competent Authority followed due process and principles of natural justice in passing the order
Submissions/Arguments
The petitioners argued that the order was passed without serving notice to all affected parties, including the petitioners, and in violation of natural justice
The respondents, including the Cooperative Society, supported the order as being within the authority's jurisdiction under MOFA 1963
Ratio Decidendi
The Bombay High Court held that when a promoter fails to execute conveyance as required under the Maharashtra Ownership Flats Act, 1963, the competent authority can grant deemed conveyance to the cooperative society.
Technical objections or procedural challenges raised by the developer cannot defeat the statutory rights of flat purchasers.
Judgment Excerpts
The promoter has a statutory obligation to convey property to the society.
The competent authority has jurisdiction to grant deemed conveyance when the promoter fails to execute the conveyance.
Technical objections cannot defeat statutory rights of flat purchasers and societies.
Procedural History
Cooperative housing society applied for deemed conveyance before the District Deputy Registrar.
Competent authority granted deemed conveyance of land and building to the society.
The developer filed Writ Petition No. 14690 of 2022 before the Bombay High Court challenging the order.
The High Court examined the legality of the deemed conveyance order.
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