High Court Quashes Rejection of Deemed Conveyance Application by Housing Society Due to Legal Misinterpretation. The Court affirmed that the principle of res judicata applies to deemed conveyance proceedings under the Maharashtra Ownership Flats Act, 1963.

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

The dispute arose from the rejection of an application for deemed conveyance filed by a co-operative housing society against the Competent Authority's order dated 28 March 2016. The Petitioner-society, registered under the Maharashtra Co-operative Societies Act, 1960, sought conveyance for land and a building constructed by a developer. The initial application was rejected due to various legal issues, including unauthorized construction and rival claims of title. The society did not challenge this rejection for nearly ten years, attributing the delay to internal management disputes and subsequent financial issues. After a new application was filed in 2024, it was granted by the Competent Authority but later set aside by the High Court, which ruled that the successive application was not maintainable. The Court noted that the principle of res judicata applied, as the earlier rejection was a final decision. However, it also recognized that the society had been granted liberty to challenge the initial rejection, allowing the current petition. The Court emphasized that the principles of delay and laches should not strictly apply to the rights of flat purchasers under the Maharashtra Ownership Flats Act, as these rights arise from continuous causes of action. The Court ultimately quashed the rejection order and allowed the society to seek enforcement of its statutory rights through appropriate civil proceedings.

Headnote

A) Property Law - Deemed Conveyance - Challenge to Rejection of Application - Maharashtra Ownership Flats Act, 1963, Section 11 - The Court held that the earlier rejection of the application for deemed conveyance was a reasoned order and thus a subsequent application was impermissible. However, the Court allowed the present petition based on the liberty granted to challenge the initial rejection order. (Paras 22-24).

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Issue of Consideration

Whether the Petitioner-society could challenge the rejection of its application for deemed conveyance after a significant delay and whether the principle of res judicata applied.

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Final Decision

The Court quashed the order dated 29 September 2025 and allowed the Petitioner to seek enforcement of statutory rights under Section 11 of the Maharashtra Ownership Flats Act through appropriate civil proceedings.

Law Points

  • Maharashtra Co-operative Societies Act
  • 1960
  • Maharashtra Ownership Flats Act
  • 1963
  • res judicata
  • deemed conveyance
  • delay and laches
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Case Details

2026 LawText (BOM) (11) 10

Writ Petition No. 8287 of 2026

2026-11-05

Sandeep V. Marne

G.S Godbole, Dhruv S. Malhotra, Rohan Savant, Vincent D'silva, Suresh Sabrad, R.A. Shaikh, P.G. Sawant

Sterling Apartment Co-operative Housing Society Ltd.

The Competent Authority and District Deputy Registrar, Co-operative Societies, Mumbai City & Ors.

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Nature of Litigation

Challenge to the rejection of deemed conveyance application.

Remedy Sought

Petitioner-society sought to quash the rejection order and obtain deemed conveyance.

Filing Reason

The rejection of the application for deemed conveyance by the Competent Authority.

Previous Decisions

The initial application for deemed conveyance was rejected on 28 March 2016.

Issues

Maintainability of the petition after delay Application of res judicata in deemed conveyance proceedings

Submissions/Arguments

Petitioner argued that the rejection was unsustainable and that they were entitled to challenge it based on liberty granted by the Court. Respondents contended that the petition was barred by delay and laches and that the earlier rejection had attained finality.

Ratio Decidendi

The principle of res judicata applies to deemed conveyance proceedings, and the delay in challenging an order can be excused under certain circumstances, particularly when statutory rights are involved.

Judgment Excerpts

The earlier rejection of the application for deemed conveyance was a reasoned order and thus a subsequent application was impermissible. The principles of delay and laches should not strictly apply to the rights of flat purchasers under the Maharashtra Ownership Flats Act.

Procedural History

The Petitioner filed an application for deemed conveyance in 2015, which was rejected in March 2016. After a significant delay, a new application was filed in 2024, which was initially granted but later set aside by the Court in March 2026.

Acts & Sections

  • Maharashtra Co-operative Societies Act:
  • Maharashtra Ownership Flats Act: Section 11
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