Bombay High Court Dismisses Petition Challenging Deemed Conveyance Order Under MOFA — Competent Authority Can Consider Property Register Card and Area Certificate Beyond Agreement Schedule. Court holds that the Competent Authority under Section 11 of MOFA is not strictly confined to the area mentioned in the Section 4 agreement and can rely on property records and architect's certificate to determine the actual area to be conveyed.

High Court: Bombay High Court
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Case Note & Summary

The petitioners, original owners of land comprising plot nos. 3, 4, 5, and 6 at Village Valnai, Marve Road, Malad (West), Mumbai, challenged the order dated 18th May 2022 and corrigendum dated 31st July 2023 passed by the District Deputy Registrar, Co-operative Societies, Mumbai (Competent Authority) under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The Competent Authority had granted deemed conveyance in favour of the respondent No.1 society for an area of 956.75 sq. mtrs., later corrected to 1002.50 sq. mtrs. by corrigendum. The petitioners had sold their entire right, title, and interest in the property to respondent No.4 in 1979 and retained no interest. The society was registered on 16th January 1986, and the building was constructed on plot nos. 3 and 4. The MOFA agreement executed with flat purchasers in 1984 described the schedule as plot nos. 3, 4, 5, and 6 with approximate areas, and clause 19 required conveyance within two years of society registration. The society applied for deemed conveyance on 21st March 2022. The Competent Authority initially granted deemed conveyance for 956.75 sq. mtrs., but on the society's application, issued a corrigendum increasing the area to 1002.50 sq. mtrs. based on the property register card and an architect's area certificate. The petitioners argued that the Competent Authority cannot go beyond the MOFA agreement and that the society was only entitled to 919 sq. mtrs. as per the agreement. The respondent society contended that the property register card showed the area as 1002.50 sq. mtrs., and the architect's certificate confirmed this area by two methods. The court examined the MOFA agreement and found that the schedule described the plots with approximate areas and did not limit the society's entitlement. The court held that the Competent Authority was not confined to the area mentioned in the agreement and could rely on the property register card and area certificate. The court dismissed the petition, upholding the deemed conveyance order and corrigendum.

Headnote

A) Maharashtra Ownership Flats Act - Deemed Conveyance - Section 11 - Competent Authority's Power - The Competent Authority while granting deemed conveyance under Section 11 of the MOFA is not strictly confined to the area mentioned in the Section 4 agreement and can consider the property register card and architect's area certificate to determine the actual area to be conveyed. The court held that the impugned order granting deemed conveyance for 1002.50 sq. mtrs. was valid as the society was entitled to the entire plot area as per the property records. (Paras 6-9)

B) Maharashtra Ownership Flats Act - Conveyance - Section 4 Agreement - Scope - The agreement under Section 4 of the MOFA only describes the plots by their numbers and approximate areas, and does not limit the society's entitlement to a specific area. The court held that the society is entitled to conveyance of the entire land on which the building stands, as per the property register card. (Paras 5-6)

C) Maharashtra Ownership Flats Act - Corrigendum - Section 11 - The Competent Authority has the power to issue a corrigendum to correct an error in the area mentioned in the deemed conveyance order, based on the architect's area certificate and property records. The court held that the corrigendum was validly issued to correct the area from 956.75 sq. mtrs. to 1002.50 sq. mtrs. (Paras 7-9)

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Issue of Consideration

Whether the Competent Authority under Section 11 of the MOFA can grant deemed conveyance for an area exceeding that mentioned in the Section 4 agreement by relying on the property register card and area certificate.

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Final Decision

The court dismissed the writ petition, upholding the order dated 18th May 2022 and corrigendum dated 31st July 2023 granting deemed conveyance for an area of 1002.50 sq. mtrs. in favour of the respondent society.

Law Points

  • Deemed conveyance under Section 11 of MOFA
  • Competent Authority's power to consider property register card and area certificate
  • Scope of Section 4 agreement
  • Conveyance of entire land area
  • Corrigendum to correct area in deemed conveyance order
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Case Details

2024 LawText (BOM) (08) 2828

Writ Petition (L) No.5259 of 2024

2024-08-27

Madhav J. Jamdar

2024:BHC-OS:15114

Dr. Abhinav Chandrachud, Mr. Janay Jain, Mr. D. D. Singh, Mr. Rohan Savant, Mr. Atul Singh, Mr. Akshay Patkar

Luis Gabriel Nicholas Cardoz & Ors.

Oasis CHS Ltd. & Ors.

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Nature of Litigation

Writ Petition under Article 226 of the Constitution of India challenging the legality and validity of an order granting deemed conveyance under Section 11 of MOFA and a corrigendum thereto.

Remedy Sought

The petitioners sought quashing and setting aside of the order dated 18th May 2022 and corrigendum dated 31st July 2023 passed by the Competent Authority granting deemed conveyance in favour of the respondent society.

Filing Reason

The petitioners, original owners of the land, contended that the Competent Authority exceeded its jurisdiction by granting deemed conveyance for an area larger than that mentioned in the Section 4 agreement and by relying on the property register card.

Previous Decisions

The Competent Authority initially granted deemed conveyance for 956.75 sq. mtrs. on 18th May 2022, and later issued a corrigendum on 31st July 2023 correcting the area to 1002.50 sq. mtrs.

Issues

Whether the Competent Authority under Section 11 of MOFA can grant deemed conveyance for an area exceeding that mentioned in the Section 4 agreement by relying on the property register card and area certificate. Whether the corrigendum issued by the Competent Authority correcting the area from 956.75 sq. mtrs. to 1002.50 sq. mtrs. was valid.

Submissions/Arguments

Petitioners argued that the Competent Authority cannot go beyond the agreement executed under Section 4 of MOFA, and that the society was only entitled to 919 sq. mtrs. as per the agreement. They relied on Riddhi Gardens case. Respondent society argued that the property register card showed the area as 1002.50 sq. mtrs., and the architect's area certificate confirmed this area by two methods. They relied on Zainul Abedin, Shree Chintamani Builders, and Poonam Builders cases.

Ratio Decidendi

While dealing with a deemed conveyance application under Section 11 of MOFA, the Competent Authority is not strictly confined to the area mentioned in the Section 4 agreement. The Competent Authority can consider the property register card and architect's area certificate to determine the actual area to be conveyed, as the agreement only describes the plots with approximate areas and does not limit the society's entitlement. The society is entitled to conveyance of the entire land on which the building stands as per property records.

Judgment Excerpts

Thus MOFA Agreement provides that within a period of 2 years from the registration of the Society, conveyance would be executed in favour of the Society. The Competent Authority while granting deemed conveyance under Section 11 of MOFA is not strictly confined to the area mentioned in the Section 4 agreement and can consider the property register card and architect's area certificate to determine the actual area to be conveyed.

Procedural History

The respondent society filed an application for deemed conveyance under Section 11 of MOFA on 21st March 2022. The Competent Authority passed an order on 18th May 2022 granting deemed conveyance for 956.75 sq. mtrs. The society filed an application on 15th September 2022 seeking a corrigendum. The Competent Authority issued a corrigendum on 31st July 2023 correcting the area to 1002.50 sq. mtrs. The petitioners filed the present writ petition on an unspecified date challenging both orders.

Acts & Sections

  • Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963: Section 4, Section 5A, Section 11
  • Constitution of India: Article 226
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