High Court Sets Aside Deemed Conveyance Order Due to Lack of Reasoned Findings. The Competent Authority Failed to Address Material Objections and Provide Adequate Reasons for Its Decision Under Section 11 of the Maharashtra Ownership of Flats Act, 1963.

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

The Writ Petition challenged an order dated 20th March 2025 passed by the District Deputy Registrar of Societies, granting deemed conveyance of a property in Mumbai to a cooperative housing society. The principal question was whether the order adequately addressed the material submissions of the Petitioner and provided sufficient reasoning for its conclusions. The background involved a partnership firm, M/s. Vimal Builders, which was dissolved in 1988, and subsequent legal proceedings regarding the conveyance of the subject plot. The Society, formed by flat purchasers, sought deemed conveyance under the Maharashtra Ownership of Flats Act, 1963. The Competent Authority had previously dismissed the Society's application, citing disputed ownership issues, but this dismissal was set aside by the High Court, which directed a fresh consideration. Upon remand, the Competent Authority granted deemed conveyance, leading to the current challenge. The Petitioner argued that the order lacked cogent reasons and failed to consider relevant material, including the authority of the Society's Secretary to file the application. The Society contended that the order provided sufficient reasons for its decision. The Court found that the Competent Authority did not adequately address the material objections raised by the Petitioner, nor did it provide a reasoned order as required by law. Consequently, the Court set aside the impugned order and remitted the application for fresh consideration, emphasizing the need for a reasoned decision that addresses all material submissions. The Court directed that the matter be resolved expeditiously, before 31st March 2027, while leaving all contentions on merits open for determination.

Headnote

A) Administrative Law - Requirement of Reasoned Order - Natural Justice - The Competent Authority must provide a reasoned order when deciding applications under Section 11 of the Maharashtra Ownership of Flats Act, 1963 - The impugned order failed to address material objections raised by the Petitioner and did not provide adequate reasons for its conclusions, necessitating remand for fresh consideration. (Paras 22-34)

B) Jurisdiction - Competent Authority's Powers - The Competent Authority has limited jurisdiction to decide deemed conveyance applications based on agreements executed under the Maharashtra Ownership of Flats Act, 1963 - The order did not adequately consider the contractual clauses and objections raised by the Petitioner, rendering it unsustainable. (Paras 22-34)

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Issue of Consideration

Whether the impugned order addressed the material submissions advanced by the Petitioner and provided reasons for rejecting them.

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Final Decision

The impugned order dated 20th March 2025 was set aside. Application No. 50 of 2021 was remitted to the Competent Authority for fresh consideration, with directions to afford all parties an opportunity to be heard and to pass a reasoned order in accordance with law before 31st March 2027.

Law Points

  • Natural justice
  • Deemed conveyance
  • Jurisdiction of Competent Authority
  • Maharashtra Ownership of Flats Act
  • 1963
  • Requirement of reasoned order
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Case Details

2026 LawText (BOM) (10) 57

WP-1184-2026

2026-10-19

Farhan P. Dubash

Mr. Sharan Jagtiani, Mr. Aditya Thakkar, Ms. Rishika Harish, Mr. Ronish Mehta, Ms. Sonal Awasthi, Mr. Jerome Stephen, Mr. Vikrant Parshurami, Mr. Shiraz Rustomjee, Mr. Viraj Parekh, Mr. Jugal Haria, Mr. Rajesh Sharma, Mr. Wasim Shaikh, Ms. Tejashree Parab

Hasmukh Narmadandas Malkan

The District Deputy Registrar Societies, Mumbai City - 3 & Ors.

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Nature of Litigation

Writ Petition challenging deemed conveyance order

Remedy Sought

Setting aside the order granting deemed conveyance

Filing Reason

Failure to address material submissions and provide reasons

Previous Decisions

Order dated 20th March 2025 granting deemed conveyance was set aside

Issues

Whether the Competent Authority provided a reasoned order Whether the material objections raised by the Petitioner were adequately addressed

Submissions/Arguments

Petitioner argued that the order lacked cogent reasons and did not consider relevant material. Respondent contended that the order provided sufficient reasons and addressed the objections.

Ratio Decidendi

The Competent Authority must provide a reasoned order when deciding applications under Section 11 of the Maharashtra Ownership of Flats Act, 1963, addressing all material objections raised by the parties.

Judgment Excerpts

The present Writ Petition challenges the order dated 20th March 2025 passed by Respondent No. 1 – District Deputy Registrar of Societies, granting deemed conveyance in favour of Respondent No. 2 – Society. The principal question considered in this judgment is whether the impugned order addresses the material submissions advanced by the Petitioner and gives reasons for rejecting them. The Competent Authority failed to address material submissions and record reasons. The impugned order is required to be set aside and Application No. 50 of 2021 remitted to the Competent Authority for fresh consideration. The Authority shall hear the parties, consider their material submissions and the relevant documents, and pass a reasoned order in accordance with law.

Procedural History

The Society's application for deemed conveyance was initially dismissed on 11th August 2023. The dismissal was challenged in Writ Petition No. 13103 of 2023, which resulted in the order being set aside on 29th November 2024 and remitted for fresh consideration. The Competent Authority then granted deemed conveyance on 20th March 2025, leading to the current Writ Petition.

Acts & Sections

  • Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963: Section 11, Section 5-A
  • Maharashtra Ownership of Flats Rules, 1964: Rule 13(3)(d), Rule 13(5)
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