High Court of Judicature at Bombay Reviews Challenge by Developer to Unilateral Deemed Conveyance Orders Passed by Competent Authority Under MOFA. Developer Argues Conveyed Land Exceeds Area Agreed in Section 4 Agreements and Jeopardises Pending Construction; Court Examines Principles of Land Division and Effect of Amalgamated Layout.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner, a developer, filed two writ petitions challenging orders dated 22 November 2023 and 2 June 2025 passed by the District Deputy Registrar, Co-operative Societies and Competent Authority under the Maharashtra Ownership Flats Act, 1963, granting unilateral deemed conveyance of land and buildings to Shree Jupiter Co-operative Housing Society Ltd. and Shree Siddhi Co-operative Housing Society Ltd. The developer had acquired development rights over two adjacent parcels of land and obtained a common layout for three buildings: Shree Siddhi, Shree Jupiter, and New Mercury. The developer alleged that the Competent Authority conveyed land in excess of the area agreed in the flat purchase agreements under Section 4 of the MOFA, and that the conveyances jeopardised the completion of the remaining wings of Mercury building. The developer further contended that in respect of Shree Jupiter CHSL, no notice of the application was served. The respondent societies argued that the developer amalgamated the lands and utilised FSI from the larger plot for construction, and therefore the conveyance should be based on proportionate division according to the sanctioned plan of 21 March 1997, not the original flat purchase agreements. The High Court heard the submissions and considered the questions of law and fact. The judgment is incomplete and does not contain the final decision or ratio decidendi.

Headnote

A) Property Law - Deemed Conveyance - Competent Authority's Jurisdiction - Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, Sections 4, 5A - The Competent Authority issued unilateral deemed conveyance in favour of two housing societies over land larger than that specified in the flat purchase agreements. The developer contended that conveyance must be confined to the area agreed in the Section 4 agreements, while the societies argued that subsequent amalgamation of land and layout development entitles them to proportionate land based on built-up area. The High Court considered the submissions. (Paras 5-10)

B) Property Law - Deemed Conveyance - Effect of Amalgamation and Layout Plan - Maharashtra Ownership Flats Act, 1963, Section 4 - Whether the land division should follow the original flat purchase agreements or a later sanctioned layout plan was a key issue. The developer relied on a plan dated 1 August 2007 and architect's certificate to propose a different division, while the societies argued that the plan dated 21 March 1997 should govern. The Court examined the relevance of the layout plans. (Paras 7-9)

C) Civil Procedure - Consent Decree - Binding Effect on Non-Parties - Code of Civil Procedure, 1908 - The developer argued that the consent terms in a prior suit by another society reserved specific land area, but the respondent societies contended that they were not parties and thus not bound. The Court considered the impact of the consent decree. (Paras 8, 10)

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Issue of Consideration

Whether the Competent Authority can convey land in excess of the area agreed in Section 4 MOFA agreements; whether the conveyance orders are contrary to consent terms in a prior suit; whether land division should follow flat purchase agreements or subsequent amalgamated layout plan

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Law Points

  • Competent Authority's jurisdiction under MOFA
  • Proportionate land division
  • Binding effect of Section 4 agreement
  • Relevance of layout plans
  • Unilateral deemed conveyance
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Case Details

2026 LawText (BOM) (07) 222

Writ Petition No. 12677 of 2025 with Writ Petition No. 12680 of 2025

2026-07-28

Sandeep V. Marne

Mr. S.M. Gorwadkar, Senior Advocate for Petitioner; Ms. Vishaki Bhatia for Respondent No.1; Mr. Hamid Mulla, AGP for State; Ms. M.S. Srivastav, AGP for State

Nitin Nagarji Mehta

Shree Jupiter CHSL, Shantabai Budhaji Bhandari, Jaywant Budhaji Bhandari, Laxmibai Budhaji Bhandari, Parvati Budhaji Bhandar, Parshuram Ramchandra Shinde, Shreeji C.H.S. Ltd., Mercury C.H.S. Ltd., State of Maharashtra, Shakuntala Budhaji Bhandari, Chintamani Bhaskar Mali, M/s. Jaya Enterprises, M/s. Vikram Builders Pvt. Ltd., Jiten Zaverchand Gala, M/s. Surbhi Rijin Construction through Partners Mitesh B. Shah and Tej M. Shah

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Nature of Litigation

Writ petition challenging orders of Competent Authority granting deemed conveyance of land to housing societies

Remedy Sought

Petitioner-developer seeks to set aside orders dated 22 November 2023 and 2 June 2025 passed by the Competent Authority and to restrict conveyance to land area agreed in Section 4 MOFA agreements or based on revised plan dated 1 August 2007

Filing Reason

Competent Authority conveyed land in excess of that agreed in flat purchase agreements and without proper notice, jeopardising developer's right to complete construction of remaining building wings

Previous Decisions

Competent Authority allowed Application No.215 of 2023 dated 22 November 2023 and Application No.104 of 2024 dated 2 June 2025; interim stay granted by High Court on 29 September 2025 for Shree Siddhi CHSL order

Issues

Whether the Competent Authority can convey land in excess of the area mentioned in the Section 4 MOFA agreement? Whether the conveyance orders are contrary to the consent terms in the suit filed by Mercury-A CHSL? Whether the land division should be based on the original flat purchase agreements or the subsequent amalgamated layout plan? Whether the Competent Authority followed proper procedure regarding service of notice?

Submissions/Arguments

Petitioner: The Competent Authority must convey land in accordance with the flat purchase agreement; land conveyed to Shree Siddhi CHSL (1644.89 sq.mtrs) and Shree Jupiter CHSL (2054.67 sq.mtrs) exceeds the agreed areas of 822 sq.mtrs and 1416.50 sq.mtrs respectively. The conveyance orders severely prejudice the developer's right to complete Mercury building. The consent terms in the Mercury-A CHSL suit reserve land and the impugned orders are contrary to them. Even if proportionate division is allowed, it must be based on the plan dated 1 August 2007 and architect's certificate. Notices were not served for Jupiter CHSL application. Respondent: Conveyance cannot be restricted to land in Section 4 agreements because the developer amalgamated land and obtained layout development permission; FSI for existing buildings arose from larger plot. Proportionate division must follow the plan dated 21 March 1997, not the draft plan of 2007. The developer's claim of insufficient land for remaining wings is unfounded. The consent decree in Mercury suit does not bind these societies as they were not parties. The Competent Authority correctly apportioned land based on built-up area.

Judgment Excerpts

the Competent Authority has allowed Application No.215 of 2023 filed by Shree Jupiter CHSL and has conveyed in its favour land admeasuring 1746.47 sq.mtrs plus proportionate rights in the R.G. area admeasuring 308.20 sq.mtrs aggregate land of 2054.67 sq.mtrs plus proportionate rights in the road set back area admeasuring 147.18 sq.mtrs. it is well settled position that the Competent Authority cannot convey land contrary to the flat purchase agreement. conveyance cannot be executed on the basis of land indicated in Section 4 Agreements as the developer has subsequently amalgamated land and has secured development permission for layout development.

Procedural History

Shree Jupiter CHSL filed Application No. 215 of 2023 before Competent Authority; order dated 22 November 2023 granted deemed conveyance. Shree Siddhi CHSL filed Application No. 104 of 2024; order dated 2 June 2025 granted deemed conveyance. Petitioner filed writ petitions challenging these orders; interim stay granted on 29 September 2025 for Shree Siddhi order.

Acts & Sections

  • Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA): Section 4, Section 5A
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