Case Note & Summary
The Petitioner, Ariisto Realtors Private Limited, a developer, challenged an order dated 14 July 2025 passed by the District Deputy Registrar, Co-operative Societies, Mumbai City (Competent Authority) granting a certificate of unilateral deemed conveyance of land and building in favor of Respondent No. 2 Society, formed by flat purchasers of the building 'Ariisto Cloud'. The developer had constructed the building on land owned by Respondents 3 to 5 under a Development Agreement dated 3 March 2010 and a Supplementary Deed of the same date. A Tripartite Deed of Irrevocable Perpetual Lease dated 9 September 2011 was executed between the developer, landowners, and another society (Kum Kum Apartments Cooperative Housing Society Limited), which permitted the developer to utilize additional FSI arising from the land. The developer claimed that additional FSI of 841.16 sq.m. became available under DCPR 2034 and that it had applied to the Municipal Corporation for its utilization. The society had earlier filed an application for deemed conveyance which was rejected on 10 March 2025. The society filed a second application, which was allowed by the Competent Authority on 14 July 2025, leading to the present petition. The main legal issue was whether the Competent Authority had jurisdiction to entertain a second application after rejection of the first, and whether the developer's claim over additional FSI could prevent conveyance. The Court held that the rejection of the first application does not operate as res judicata, and the Competent Authority has jurisdiction to entertain a subsequent application. The Court further held that the developer's right to additional FSI, being a contractual right, does not create an interest in the land that can defeat the society's statutory right to conveyance under Section 11 of MOFA. The Court dismissed the petition, upholding the order of deemed conveyance, but clarified that the developer's rights under the tripartite deed regarding additional FSI would be protected and could be enforced separately.
Headnote
A) Cooperative Housing Society - Deemed Conveyance - Jurisdiction of Competent Authority - Section 11, Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - The Competent Authority has jurisdiction to entertain a second application for deemed conveyance after rejection of the first application, as the rejection does not operate as res judicata. The developer's claim over additional FSI does not bar conveyance of land to the society. (Paras 1-10) B) Property Law - Additional FSI - Rights of Developer - Development Agreement - The developer's right to utilize additional FSI under a tripartite deed does not create an interest in the land that can defeat the society's right to conveyance under MOFA. The society is entitled to conveyance of the land and building, and the developer's FSI rights can be protected by appropriate conditions. (Paras 5-15)
Issue of Consideration
Whether the Competent Authority under the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 has jurisdiction to entertain a second application for deemed conveyance after the first application was rejected, and whether the developer's claim over additional FSI can be a ground to oppose such conveyance.
Final Decision
The Court dismissed the Writ Petition, upholding the order dated 14 July 2025 granting certificate of unilateral deemed conveyance in favor of Respondent No. 2 Society. The Court held that the Competent Authority had jurisdiction to entertain the second application and that the developer's claim over additional FSI did not bar conveyance. The Court clarified that the developer's rights under the tripartite deed would be protected and could be enforced separately.
Law Points
- Deemed conveyance
- Jurisdiction of Competent Authority
- Res judicata
- Additional FSI
- Maharashtra Ownership Flats Act
- 1963
- Section 11
- Section 4
- Development Agreement
- Tripartite Lease
