This case involves a dispute over the execution of a conveyance deed for a co-operative housing society (Plaintiff) under the Maharashtra Ownership of Flats Act, 1963 (MOFA). The plaintiff sought the conveyance of the suit land by the defendants, who include trustees and developers. The court also scrutinized alleged fraudulent consent decrees and lease agreements executed by the defendants to exclude the plaintiff society. The court ruled in favor of the plaintiff, ordering an injunction against the defendants to prevent further construction or third-party rights on the disputed land until the final decision of the civil suit.

1. Parties Involved:

• Plaintiff: Sita Vihar Co-operative Housing Society Ltd.
• Defendants: Trustees of the land-owning trust, the developer, and tenants.
• Defendant No.1: A registered Public Charitable Trust, owner of the disputed property.
• Defendant Nos. 2 to 4: Present Trustees.
• Defendant No. 5: Attorney of the Trustees.
• Defendant No. 9: Developer attempting to construct on the disputed land.

2. Property Dispute:

• The plaintiff society claimed that the defendants failed to execute the conveyance of the land as per their statutory obligations under MOFA. The land, measuring over 9500 sq. meters, was partially leased to tenants (Defendant Nos. 9 and 10), who had been occupying structures on the land under a series of allegedly fraudulent agreements.

3. Fraudulent Agreements:

• The plaintiff challenged a consent decree executed between Defendant No. 1 and Defendant No. 10 in Regular Civil Suit No. 495 of 1998, claiming that it was done without their knowledge. This decree purportedly granted a 999-year lease to the tenants, transferring full development rights over large portions of the property to them.

4. Key Developments:

• 1999: Formation of the plaintiff society following the sale of flats by Defendant No. 8 under a development agreement.
• 2011: Execution of consent terms granting lease rights to Defendant No. 10, which the plaintiff alleged were fraudulent and void.
• 2016: Defendant No. 9 began development on the disputed land, triggering further legal action by the plaintiff.

Legal Issues and Acts Involved:

1. Maharashtra Ownership of Flats Act, 1963 (MOFA):

   • The core issue revolves around the defendants’ failure to execute a conveyance deed for the plaintiff society under MOFA Sections 3, 4, and 11.

2. Bombay Public Trust Act, Section 36 (1)(b):

   • The Charity Commissioner’s order was central in directing the trust to execute a lease for the benefit of the plaintiff society, which was disregarded by the trustees in favor of a fraudulent lease.

3. Consent Decree and its Fraudulent Nature:

   • The court examined the validity of the consent decree and lease executed in 2011, which the plaintiff argued was conducted without their consent, thereby being void and unenforceable.

Ratio Decidendi:

The court emphasized the obligations under MOFA to transfer the land to the housing society as per the statutory provisions. The fraudulent actions of the trustees and developers, which deprived the society of its legal right to conveyance, were condemned. It was held that the consent decrees and lease deeds were void and unenforceable, as they were created to favor certain developers and tenants at the expense of the rightful owners, the co-operative society.

Injunction Orders:

• The court imposed an injunction preventing the defendants, particularly Defendant No. 9, from carrying out any further construction or creating third-party rights on the land until the resolution of the primary civil suit.

Subjects:

• Property Dispute
• Conveyance under MOFA
• Fraudulent Lease Agreement
• Charity Trust Land Dispute
• Housing Society Litigation