Case Note & Summary
The Petitioner, Upvan Woodlands Co-operative Housing Society Limited, filed a writ petition under Article 227 of the Constitution of India challenging an order dated 20 May 2025 passed by the District Deputy Registrar, Co-operative Societies, Mumbai City-4 and Competent Authority (Competent Authority) rejecting its Application No.222 of 2024 for deemed conveyance. The background of the case is that Respondent No.3 was the original owner of a larger property comprising five plots. By an Agreement for Sale dated 18 April 1978, Respondent No.3 transferred its rights to Respondent No.2, which later entered into a partnership with Respondent No.1 under a Deed of Partnership dated 18 July 1989. Respondent No.1 became the developer of the land. A mini layout was approved on 6 July 2007, and Respondent No.1 constructed a building named 'Upvan Woodlands' on an undivided portion of the land admeasuring 2799.90 sq. mtrs. Occupation Certificate was granted on 6 May 2017. Respondent No.1 sold units to flat purchasers under agreements under Section 4 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The flat purchasers formed the Petitioner-Society, registered on 11 July 2018. The Society demanded conveyance of the land from Respondent No.1. By letter dated 1 September 2023, Respondent No.1 shared a draft Deed of Conveyance but indicated willingness to execute conveyance only after completion of the entire layout development. The Society then filed Application No.222 of 2024 before the Competent Authority seeking deemed conveyance under Section 11 of MOFA. The Competent Authority rejected the application on the ground that the developer had not completed the development of the remaining plots in the layout. The Society challenged this order. The legal issues considered were whether the Competent Authority could reject the application for deemed conveyance on the ground that the developer had not completed the entire layout development. The Society argued that the developer's obligation to convey the land under Section 11 of MOFA is absolute once the building is completed and occupation certificate granted, and is not contingent on completion of the entire layout. The developer contended that conveyance could only be executed after completion of the entire layout to avoid complications. The Court analyzed the provisions of MOFA, particularly Sections 4 and 11, and held that the developer's obligation to convey the land to the society is independent and must be performed without waiting for completion of the entire layout. The Court observed that the Competent Authority has jurisdiction to order deemed conveyance even if the developer has not completed development of other plots. The Court set aside the order of the Competent Authority and directed it to allow the society's application for deemed conveyance. The Court further directed that the conveyance deed be executed within a specified period. The decision primarily favors the petitioner-society.
Headnote
A) MOFA - Deemed Conveyance - Section 11 of MOFA, 1963 - Obligation to Convey - The developer's obligation to convey the land to the co-operative society under Section 11 of MOFA is not contingent upon completion of the entire layout development. Once the building is completed and occupation certificate granted, the developer must convey the proportionate land to the society. The Competent Authority erred in rejecting the society's application for deemed conveyance on the ground that the developer had not completed development of the remaining plots. Held that the developer's obligation under Section 11 is independent and must be performed without waiting for completion of the entire layout (Paras 10-15). B) MOFA - Jurisdiction of Competent Authority - Section 11 of MOFA, 1963 - Deemed Conveyance - The Competent Authority under MOFA has jurisdiction to order deemed conveyance of the land on which the building is constructed, even if the developer has not completed development of other parts of the layout. The authority cannot refuse to exercise its power on the ground that the developer's overall development plan is incomplete. Held that the Competent Authority must consider the application on its merits and cannot defer conveyance indefinitely (Paras 16-20). C) MOFA - Rights of Flat Purchasers - Sections 4 and 11 of MOFA, 1963 - Conveyance of Land - Flat purchasers who have paid full consideration are entitled to conveyance of the proportionate land under Section 11 of MOFA. The developer cannot withhold conveyance by citing pending development of other plots. The society, as representative of flat purchasers, has a right to seek deemed conveyance. Held that the society's application for deemed conveyance ought to have been allowed (Paras 21-25).
Issue of Consideration
Whether the Competent Authority under the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) can reject an application for deemed conveyance on the ground that the developer has not completed the development of the entire layout, even though the building in question has been completed and occupation certificate granted.
Final Decision
The Court allowed the writ petition, set aside the order dated 20 May 2025 passed by the Competent Authority, and directed the Competent Authority to allow Application No.222 of 2024 for deemed conveyance. The Court further directed that the conveyance deed be executed within a specified period.
Law Points
- Deemed conveyance under Section 11 of MOFA
- 1963 is not dependent on completion of entire layout development
- Developer's obligation to convey land to society is absolute once occupation certificate is granted
- Competent Authority under MOFA has jurisdiction to order deemed conveyance even if developer has not completed development of remaining plots
- Section 4 and Section 11 of MOFA
- 1963 impose independent obligations on developer
