Case Note & Summary
The Petitioner-Developer, Kiran Builders Pvt. Ltd., challenged an order dated 15 May 2017 passed by the District Deputy Registrar, Co-operative Societies-3, Mumbai and Competent Authority under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA), granting unilateral deemed conveyance of land admeasuring 21,736 sq. mtrs together with buildings standing thereon in favor of Respondent Nos.1 to 3-Societies. The developer had constructed 10 buildings (A to H, J and K) and later buildings L and M on the subject land. The societies, formed by flat purchasers, opposed construction of additional buildings and filed a civil suit for conveyance of the entire land. The City Civil Court directed conveyance of only land appurtenant to buildings A to H, J and K. The societies appealed, but later withdrew the appeal in 2016 to apply for deemed conveyance under MOFA. They jointly filed an application under Section 11(3) of MOFA, which was granted by the Competent Authority. The developer challenged this order, arguing that the Competent Authority lacked jurisdiction because the developer retained development rights over part of the land and because the civil suit had been withdrawn. The High Court held that the Competent Authority has jurisdiction under Section 11 of MOFA to grant deemed conveyance even if the developer retains development rights, as the purpose of MOFA is to ensure flat purchasers get title to the land. The withdrawal of the civil suit does not bar the societies from seeking deemed conveyance under MOFA, as the remedy is independent. The court dismissed the writ petition, upholding the deemed conveyance order.
Headnote
A) MOFA - Deemed Conveyance - Section 11 of Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - Jurisdiction of Competent Authority - The Competent Authority has jurisdiction to grant deemed conveyance under Section 11 of MOFA even if the developer retains development rights over part of the land, as the purpose of MOFA is to ensure that flat purchasers get title to the land. The withdrawal of a civil suit for conveyance does not bar the societies from seeking deemed conveyance under MOFA. (Paras 1-27) B) MOFA - Deemed Conveyance - Section 11 of MOFA - Effect of Withdrawal of Civil Suit - The withdrawal of a civil suit for conveyance does not preclude the societies from applying for deemed conveyance under MOFA, as the remedy under MOFA is independent and the Competent Authority is not bound by the civil court's decree. (Paras 3-4) C) MOFA - Deemed Conveyance - Section 11 of MOFA - Rights of Developer - The developer's right to construct additional buildings on the land does not defeat the societies' right to deemed conveyance of the entire land, as the conveyance is subject to the developer's existing rights. (Paras 2, 27)
Issue of Consideration
Whether the Competent Authority under Section 11 of MOFA has jurisdiction to grant deemed conveyance of the entire land to the societies when the developer retains development rights over part of the land and when a civil suit for conveyance was withdrawn.
Final Decision
Writ Petition dismissed. The order dated 15 May 2017 granting deemed conveyance in favor of Respondent Nos.1 to 3 is upheld.
Law Points
- Deemed conveyance under MOFA
- Jurisdiction of Competent Authority
- Withdrawal of civil suit
- Effect of pending appeals
- Rights of flat purchasers
