Citation : 2026 Latest Caselaw 3180 Bom
Judgement Date : 30 March, 2026
2026:BHC-AS:15198-DB WP 9931 OF 2023, 12628 OF 22, J..DOC
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 9931 OF 2023
1. Reena Sanjay Minz, ]
Aged - 59 years; ]
]
2. Siraj M. Yusuf, ]
Aged - 57 years; ]
]
3. Jigna Jay Kantawala, ]
...Petitioners
Aged - 44 years. ]
]
All presently R/at. ]
327, Samuel Street, ]
Jamnabai Building, Vadgadi, ]
Masjid Bunder (West), ]
Mumbai 400 003 ]
Versus
1. State of Maharashtra ]
Through the office of the ]
Government Pleader, ]
High Court, Appellate Side, Mumbai; ]
]
2. Collector of Stamps, Mumbai, ]
having office at Old Customs House, ]
34 Floor, Fort, Mumbai; ]
]
3. The District Deputy Registrar ]
Co - operative Societies ]
Mumbai City -1, having office ]
at 6th floor, Malhotra House, ]
Opp. GPO, Mumbai 400 001; ]
Digitally
signed by
RAJESHRI
]
RAJESHRI PRAKASH
PRAKASH AHER
AHER Date:
4. Sambhav Tirth CSH Ltd., ]
2026.03.30
19:43:39
+0530
Through its Chairman/Secretary, ]
Having office at 2A, Bhulabhai ]
Desai Road, Mumbai 400 026; ]
Page 1 of 30
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WP 9931 OF 2023, 12628 OF 22, J..DOC
5. Vishwamangal Housing Company ]
Pvt. Ltd., Having its registered office ]
at 4-D, Court Chamber, 35, ]
New Marine Lines, Mumbai 400 020 ]
C/o. Mr. Shantilal N. Shah, ]
Residing at A-Wing, Flat No. A-4 , ]
Ground Floor Padma Nagar, ]
...Respondents
Andheri - Kurla, Chakala, ]
New Western Express Highway, ]
Metro Station, Union Bank of India ]
Lane, Andheri (East), ]
Mumbai - 400 099. ]
WITH
WRIT PETITION NO. 12628 OF 2022
1. Reena Sanjay Minz, ]
Aged - 59 years; ]
]
2. Siraj M. Yusuf, ]
Aged - 57 years; ]
]
3. Jigna Jay Kantawala, ]
...Petitioners
Aged - 44 years. ]
]
All presently R/at. ]
327, Samuel Street, ]
Jamnabai Building, Vadgadi, ]
Masjid Bunder (West), ]
Mumbai 400 003. ]
Versus
1. State of Maharashtra ]
Through the office of the ]
Government Pleader, ]
High Court, Appellate Side, Mumbai; ]
]
2. The District Deputy Registrar ]
Co - operative Societies ]
Mumbai City -1, having office ]
at 6th floor, Malhotra House, ]
Opp. GPO, Mumbai 400 001; ]
Page 2 of 30
Rajeshri Aher
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WP 9931 OF 2023, 12628 OF 22, J..DOC
3. Sambhav Tirth CSH Ltd., ]
Through its Chairman/Secretary, ]
Having office at 2A, Bhulabhai ]
Desai Road, Mumbai 400 026; ]
]
4. Vishwamangal Housing Company ]
Pvt. Ltd., Having its registered office ]
at 4-D, Court Chamber, 35, ]
New Marine Lines, Mumbai 400 020 ]
]
C/o. Mr. Shantilal N. Shah,
]
Residing at A-Wing, Flat No. A-4 ,
]
Ground Floor Padma Nagar,
]
Andheri - Kurla, Chakala,
]
New Western Express Highway,
] ...Respondents
Metro Station, Union Bank of India
]
Lane, Andheri (East),
]
Mumbai - 400 099.
]
5. Bharat Petroleum Corporation Ltd. ]
Having its registered office at ]
Bharat Bhavan, 4 & 6, ]
Currimbhoy Road, Ballard Estate, ]
Mumbai - 400 038. ]
Mr. Bhavesh Parmar a/w. Ms. Reshma Nair, Mr. Rajesh Sahani
i/b. Mr. Devmani Shukla, Advocate for the Petitioners.
Mr. O.A. Chandurkar, Addl. G.P. a/w. Ms. Karan S. Thorat, 'B'
Panel for State-Respondent Nos. 1 to 3.
Mr. Roopadaksha Basu and Ms. Heenal Wadhwa i/b. M/s. The
Law Point, Advocate for Respondent No. 5 in ----
Mr. Vaibhav Sugdare a/w. Mr. Jash Shah i/b. M/s. Induslaw,
Advocate for Respondent No.4 in W.P. 9931 of 2023 and
for Respondent No. 3 in W.P. 12628 of 2022.
CORAM : BHARATI DANGRE &
MANJUSHA DESHPANDE, JJ.
RESERVED ON : 11th MARCH, 2026.
PRONOUNCED ON : 30th MARCH, 2026.
JUDGMENT ( Per : Manjusha Deshpande, J.) :
-
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1. Rule. Rule made returnable forthwith. The matter is
taken up for final disposal with the consent of the parties.
2. Both these Writ Petitions are filed by the same set of
Petitioners against the Respondents who are common in both
the Writ Petitioners. The challenge raised in Writ Petition
No.9931 of 2023, is in continuation of the action taken
pursuant to the orders passed, by the Authorities which is the
subject matter of challenge in Writ Petition No.12628 of 2022.
Hence, both these Writ Petitions are being decided by way of
this common judgment.
3. The Petitioners have challenged the order dated
27.04.2022 issued by the District Deputy Registrar, Co-operative
Societies, Mumbai City 1, in favour of the 'Sambhav Tirth Co
Operating Housing Society' (hereinafter referred to as, 'Sambhav
Tirth CHSL', for short), who is a party Respondent in both the
Writ Petitions. The facts of Writ Petition No. 12682 of 2022', are
that one Mr. Nitin Rangwala entered into an Agreement of Sale
with Vishwamangal Housing Company Private Limited-
Respondent No.4 in that Writ Petition. Late Mr. Nitin Rangwala
executed an Indenture of Lease in favour of Respondent No.4 on
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29th September, 1972. On 6th December, 1977, the Respondent
No.3 Society was registered, comprising of various purchasers of
the residential and commercial premises in the building
constructed by Respondent No.4. The Respondent No.3 society
comprises of 43 members. The Respondent No.3 Society filed Suit
No.398 of 1986, before this Court seeking directions to the
Defendants to convey and transfer the suit property free from all
liabilities and encumbrances and to make out a clear marketable
title; discharge all debts and claims for effectively conveying the
same in favour of the Plaintiffs and for declaration that the
provisions of the Maharashtra Ownership Flats (Regulation of
the Promotion of Construction, Sale, Management and Transfer)
Act, 1963 (hereinafter referred to as 'MOFA', for short) apply to
the flats in the said 'Sambhav Tirth CHSL' situated at plot
bearing Survey No. 1/787 situated at Bhulabhai Desai Road,
Bombay, with the modification mentioned in Section 17 of the
said Act, with other incidental reliefs. However, the said suit
came to be dismissed for want of prosecution by this Court vide
order dated 5th September, 2018.
4. On 15th January, 2021, an application was preferred by the
Respondent No.3 Society seeking deemed conveyance for the plot
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of land bearing cadastral survey no.1/787 admeasuring 1392.99
square meters and also for the plot of land bearing cadastral
survey no.1A/787 admeasuring 610.37 square meters. One more
application seeking deemed conveyance of land bearing survey
no. 889 admeasuring 745.83 square meters was also made on the
same day. This application dated 15.01.2021 was rejected by the
District Deputy Registrar Co-operative Societies vide order dated
30th June, 2021.
5. The Respondent No.3 again filed an Application No. 50 of
2021 before Respondent No.2, seeking declaration of unilateral
Deemed Conveyance Deed. The petitioners have filed their reply
to the application opposing grant of any such relief, as prayed by
the Respondent No.3 society in their application No. 50 of 2021.
The impugned order allowing the Application No.50 of 2021 was
passed by Respondent No.2 on 27th April, 2022. Hence, being
aggrieved by the grant of declaration of 'Deemed Conveyance'
(unilateral), the Petitioners have approached this Court. The
Petitioners apprehended that Respondent No.3 Society would get
the 'Deemed Conveyance' executed pursuant to the order dated
27th April, 2022 which was received by the Petitioners on 28 th
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April, 2022. Hence, they have rushed to this Court immediately
by filing the present petition.
Pursuant to the orders passed by the Respondent No.2 on
27th April, 2022, granting the application for issuance of 'Deemed
Conveyance' accompanied by a certificate of entitlement for
issuance of 'Unilateral Deemed Conveyance', the same was
executed, duly stamped and registered by the Respondent No.2
on 13th March, 2023, which is the subject matter of challenge in
Writ Petition No. 9931 of 2023. Hence, in view of the
aforementioned facts, the Petitioners have approached this Court
challenging the entitlement for issuance of the unilateral Deed of
Conveyance dated 27th April, 2022, and the impugned 'Deed of
Conveyance' dated 13th March, 2023, executed, stamped and
registered by the Respondent Authorities.
6. The learned advocate for the Petitioners Mr. Bhavesh
Parmar submits that, the draft Deed of Conveyance clearly
indicates that the Respondent No.3 Society intended to acquire
ownership rights, title or interest in the plots belonging to the
Petitioners even though the Respondent No.3 Society was fully
aware that the Developer i.e. the Respondent No.4 Housing
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Company never had the right to title or interest in the plot of
land upon which the building is constructed. The right of the
Promoter is limited only to the extent of leasehold rights in the
plot of land. The individual agreement executed by the
Respondent No.4 Housing Company with the purchasers of the
flats i.e. the members of the Respondent No.3 Society, specifically
mentions about the Indenture lease dated 29th September, 1972.
7. Relying on one of the agreements executed by the
Respondent No.4, it is submitted that the agreement itself in
unequivocal terms stipulates that the Lessee as Promoters
obtained a lease of all these pieces and parcels of land, under an
Indenture of lease on 29th September, 1972 executed between
Shri. Nitin Madhavji Hariram Rangwala as the Lessor and the
Vishwamangal Housing Co. Pvt. Ltd. as the Lessee, for the period
of 98 years commencing from 29th June, 1972. Hence, a
Conveyance Deed transferring the leasehold rights in favour of
the Society is issued.
8. It is submitted that the statutory rights, as provided under
Chapter 5 relating to leases of immovable property in Section
105 to 117 of the Transfer of Property Act, cannot be
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circumvented and ignored by the concerned Authority, while
exercising powers under Section 5(A) and 11 (4) of the MOFA
Act. The provisions of MOFA including Section 5(A) and 11(4)
empower the Authorities concerned to convey only the leasehold
rights and not the ownership rights through a 'Deemed
Conveyance Deed'; in favour of the registered society. An
objection is also raised by the learned Advocate on the ground
that similar reliefs were claimed earlier by the Respondent No.3
in Suit No. 398 of 1986, in this Court, which has been rejected
vide order dated 5th September, 2018. Hence, the claim for the
relief that was once rejected before this Court cannot be agitated
again by invoking provisions of the MOFA Act.
9. It is further, submitted that the draft Deed of Conveyance
submitted by the 'Sambhav Tirth CHSL', indicated that, the
society intended to acquire ownership rights, title and interest in
the plot of land belonging to the Petitioners, even though the
society was fully aware that, the 'Vishwamangal Housing
Company' never had and could not have any right, title or
interest in the plot of land upon which the building is
constructed. The members of the society can have only the
leasehold rights in respect of the plot of land. He has drawn our
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attention to the lease deed dated 29th September, 1997, which
clearly restricts the right of the Housing Company to the extent
of leasehold rights acquired vide lease deed dated 29th
September, 1972.
10. The learned advocate for the Petitioners raises further
objection on the ground that, though the Writ Petition No. 12628
of 2022 is pending, before this Court, challenging the order dated
27th April, 2022, granting a certificate of entitlement for
execution of the unilateral 'Deed of Conveyance', yet the
Authorities have proceeded and duly stamped and registered the
unilateral Deed of Conveyance.
11. The Petitioners also object to the Deed of Conveyance dated
13th March, 2023, on the ground that even though the Section
11(5) of the MOFA mandates the Registering Authority to issue
summons to the parties to show cause, why unilateral Deed of
Conveyance should not be registered, no such summons has ever
been issued to the Petitioners, thereby violating the basic
principle of natural justice, by denying them opportunity of being
heard. Even though they have addressed letters to the
Authorities on 7th May, 2022 and 20th August, 2022, calling upon
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the Authorities to issue notice to the Petitioners, before
embarking upon execution, stamping and registration of the
'Deed of Conveyance' based on order dated 27 th April, 2022, yet
the Authorities have failed to issue any such notice. Thus, the
registration of 'Deemed Conveyance' having been done without
following the mandatory procedure, provided under Section
11(5) of the MOFA Act, becomes vulnerable, and requires
interference of this Hon'ble Court.
12. It is also submitted that the text of the Deed of 'Deemed
Conveyance' dated 13th March, 2023, entails the transfer of all
rights, title and interest of the Petitioners in the land, when
admittedly the order dated 27th April, 2022, gives only
assignment of legal rights arising out of the deed of lease dated
29th September, 1972. The interim order which came to be
passed by the Respondent Authorities on 13 th February, 2023,
was never communicated to the Petitioners even though the
order itself calls upon the interested persons to record their
objections on or before 20th February, 2023. The Petitioners are
not sure whether a fresh and final order has been passed after
issuance of interim order dated 13th February, 2023.
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13. Both the Petitions are opposed by the 'Sambhav Tirth
CHSL' represented by Mr. Vaibhav Sugdare. The learned
advocate for the Society would submit that, the 'Sambhav Tirth
CHSL', is duly registered under the Maharashtra Co-operative
Societies Act. The construction of the building has been
completed by the Vishwamangal Housing Company, which houses
42 flats and one commercial shop. The building is constructed on
the land at Malabar and Cumballa Hill Division in cadastral
survey no. 889 admeasuring 745.83 square meters and cadastral
survey no. 1/787 admeasuring 1392.99 sq. meters. So far as the
land bearing cadastral survey no. 1/787 to the extent of 1392.99
square meters is concerned, it belonged to late Premabai
Madhavji Hiraram Rangwala. Whereas, the land in cadastral
survey No. 889 to the extent of 745.83 square meters, which is
the second set of land, is Collector's land, which was granted on
lease to Premabai Rangwala by the Collector on 20th September,
1963.
An agreement came to be entered between the
'Vishwamangal Housing Company' and Mr. Nitin Rangwala,
whereby the land comprising survey Nos. 1/787 and 889 came to
be transferred to the Promoter vide agreement dated 29th
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September, 1972, for a period of 98 years commencing from 29 th
September, 1972. The Promoter has constructed the building on
the said lands with common areas, and thereafter entered into
sale agreements with the flat purchasers of each unit under Rule
4 of MOFA Rules, 1964. The Promoter also formed a Co-operative
Housing Society of the flat owners of the building under the name
and style 'Sambhav Tirth Co-operative Housing Society', which
came to be registered on 6th December, 1997. The flat owners are
the members of the Society and have been issued shares of the
society.
The Promoter was required to assign its leasehold rights to
the society within four months of registration of the society, as
provided under Section 11 of the MOFA Act read with Rule 9 of
the Rules made thereunder. However, the developer failed to
comply with this statutory obligation by conveying the leasehold
rights in favour of the society therefore, the society was
constrained to file proceedings for issuance of a unilateral Deed
of 'Deemed Conveyance', as provided under the MOFA Act. The
Competent Authority after hearing the parties on the application
of the Promoter, passed appropriate orders on 27 th April, 2022,
pursuant to which the actual unilateral Deed of Conveyance is
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registered and executed. Therefore, there is no substance in the
objection raised by the Petitioners. The Competent Authority has
passed appropriate orders of entitlement of 'Deemed
Conveyance' (unilateral) only after verifying the authenticity of
documents submitted by the parties and a reasonable
opportunity was given to all parties. The Competent Authority
has passed an order transferring the leasehold rights to the
society, which cannot be faulted with and there is no substance in
the objection raised by the Petitioners. Hence, the Writ Petition
deserves to be dismissed.
14. Mr. Chandurkar, the learned Additional G.P. and Ms. Karan
have also supported the orders passed by the District Deputy
Registrar Co-operative Societies, Mumbai as well as the deemed
Deed of Conveyance (unilateral), which is executed and
registered by the Collector of Stamps, Mumbai, submitting that
the order dated 27th April, 2022 as well as the unilateral Deed of
Conveyance are appropriately issued in exercise of the Section
11 of the MOFA Act and Rule 9 of the MOFA Rules.
15. Heard the respective counsel and perused the papers in
both the Writ Petitions. The Petitioners are taking exception to
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the order dated 27th April, 2022, granting permission and
eligibility for issuance of unilateral Deed of Conveyance and the
consequent execution and registration of the Deed of Conveyance
(unilateral) dated 13th March, 2023. The Petitioners are taking
exception to both the orders primarily on the ground that,
although, Suit No. 398 of 1986 was filed by the Petitioners for
similar reliefs has been dismissed by this Court vide its order
dated 5th September, 2018, hence, once having been refused the
relief by this Court, the Petitioners are prohibited from agitating
the same grievance, by approaching a different forum.
16. Upon perusal of the copy of the suit as well as the orders
passed by this Court, we find that the suit has been dismissed
observing that the Plaintiff does not seem to be interested in
prosecuting the suit, hence, the suit is dismissed. The suit was
filed in the year 1986, and dismissed on 5 th September, 2018. The
suit was filed seeking a declaration that (i) the acts of the
'Vishwamangal Housing Company' shall not cause prejudice to
the rights of the occupiers of the flats in the buildings
constructed, who are members of the 'Sambhav Tirth Co-
operative Housing Society'; (ii) the sum of Rs. 23,54,000/-
recovered and received by the Defendant 'Vishwamangal
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Housing Company', from various flat purchasers of the Plaintiffs
society for converting the suit property from leasehold to
freehold, should be conveyed in their favour; (iii) to appoint a
Court Receiver for Flat No. 13A and B in possession of State Bank
of India, part of the suit property.
17. Upon going through the plaint and the prayers made
therein, we do not find that the relief of 'unilateral Deed of
Conveyance' is claimed in any of the prayers. Therefore, there is
no substance in the objection in so far as it relates to agitating
the same grievance after dismissal of Suit No. 398 of 2023. Even
otherwise the suit was never dismissed on the merits of the
matter, hence, we do not find any substance in the objection
regarding the maintainability of the application under Section 11
of the MOFA Act.
18. The other objection common to both the Writ Petitions is
that, although the land was transferred in favour of
'Vishwamangal Housing Company', for the development and
construction of the building namely, 'Sambhav Tirth Co-
operative Housing Society' it was limited only to the extent of
leasehold rights as per the Indenture of lease dated 29 th
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September, 1972, and no deemed conveyance could have been
executed, granting 'ownership' rights. We have perused the draft
deed of conveyance placed on record, which clearly confers only
the leasehold rights under the lease deed dated 29 th September,
1972 in favour of the Society, and nothing beyond that.
So far as the delay in approaching the Authority for
unilateral issuance of the deed of conveyance is concerned, we do
not find that there is any period of limitation provided for
approaching the Competent Authority for such relief. It is only
upon failure of the Developer to comply with the statutory
obligation of conveying the leasehold rights, within the period if
any specified in the Agreement executed by the Promoter or
from four months of formation of the society.
Under Section 4(1) of the MOFA Act, the Promoter is
required to execute a registered agreement for sale in favour of
flat purchasers in the form prescribed under the MOFA Rules. It
is also the Promoter's obligation to take steps to form a Co-
operative Society. Accordingly, the co-operative society of the
flat owners has been formed. So far as taking steps to complete
the title and convey it to the society formed by the flat
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purchasers has been avoided by the Respondent 'Vishwamangal
Housing Company' for years together which is a continuing cause
of action, for which there is no outer limit. As such the objection
as to delay is not tenable.
19. So far as the locus of the Petitioners in both the Writ
Petitions to raise objection to the orders therein is concerned, the
Petitioners are the legal heirs of Mr. Nitin Rangwala, who entered
into an agreement of lease with the 'Vishwamangal Housing
Company'. By way of a lease, the Promoter has been granted a
lease for a period of 98 years, commencing from 29.06.1972.
This agreement has been entered into 23rd August, 1976,
granting permission to the Promoters, to construct a multi
storied building consisting of a basement, ground and 14 upper
floors., according to the specifications and sanctioned plans by
the Mumbai Municipal Corporation, and further granting
permission to the Promoters for sale of flats alongwith garages
and parking places on ownership basis, with a view that
eventually the holders of all the flats in such building should form
themselves into a co-operative housing society, registered under
the Maharashtra Co-operative Societies Act, with a condition
that, the Promoter shall execute assignment of the lease obtained
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by him in favour of such society. However, in view of the failure
of the Promoter to comply with the condition in the agreement,
the society formed as per the agreement, was constrained to
approach the Competent Authority under Section 11 of the
MOFA. This application is filed as per the Scheme of the Act, no
relief is sought against the Petitioners before the Competent
Authority or the Registering Authority. When the application was
filed by the Applicant society, the said application was filed in the
format provided under form 7, Section 11 (3) and Rule 12 of the
MOFA Act on 15th January, 2021. The society was called upon to
provide necessary documents, after completion of verification of
documents, notice of hearing was issued upon which the
Petitioners who were Respondent Nos. 2 to 4 before the District
Deputy Registrar Co-operative societies, Mumbai, were
represented through their Advocate.
20. The Petitioners have raised objections regarding breach of
condition of lease by alleging that the flat holders/owners have
been given possession of the tenements, without obtaining an
occupancy certificate from the Mumbai Municipal Corporation,
as a result of which the agreement dated 29 th September, 1972 is
liable to be cancelled. An objection was also raised regarding
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violation of other terms of the lease, which would entail in
cancellation of the leasehold rights.
21. After considering the objection of the Petitioners, an order
came to be passed by the District Deputy Registrar, Co-operative
Societies, Mumbai, granting the application of the Society
holding them entitled for 'unilateral Deed of Conveyance'. While
granting the entitlement certificate vide order dated 27 th April,
2022, the Competent Authority has observed that, though
objections have been raised by the non applicants, on the ground
of breach of conditions of lease by the applicants, however they
have not produced on record or document of cancellation of such
lease or any order of stay of the agreement of lease. In view of
that, considering that the agreement was still valid and in
existence, the objection raised by the Petitioners is rightly not
taken into consideration. Hence, we do not find any substance in
the objection raised by the Petitioners to the order dated 27 th
April, 2022, and the certificate of entitlement issued pursuant
thereto by the Competent Authority in Application No. 50 of
2021, filed by the Society. The order has been passed by the
Competent Authority by giving an opportunity being heard to all
the parties and after taking into consideration the objection, the
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competent Authority has held that, as per the agreement the
Vishwamangal Housing Company Limited, had agreed to transfer
their rights in favour of the Society, which is not acted upon.
Therefore, in view of Section 11 (3) of the MOFA, an order has
been passed issuing the certificate of entitlement, declaring that
the society is entitled to unilateral 'Deemed Conveyance Deed'.
Upon perusal of the order dated 27th April, 2022, and the related
documents, we do not find any irregularity committed by the
Competent Authority in issuing the impugned order.
22. The learned Advocate for the Petitioners while making his
submissions, has objected to the exercise of power by the
Authorities under Section 11(4) of the MOFA Act, on the ground
that statutory legal rights provided under Chapter V of the
Transfer of Property Act in Sections 105 to 117, cannot be
circumvented and ignored. When we peruse the relevant
provisions in both the enactments, we find that, Sections 105 to
117 of the Transfer of Property Act governs leases, conditions of
lease, rights of parties and determination of lease etc. On the
other hand, Section 11(4) confers powers on the competent
Authority under the MOFA, to verify the authenticity of
documents and after hearing the parties issue a certificate of
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entitlement of the society for issuance of unilateral 'Deed of
Conveyance', conveying the right, title and interest of the
Promoter in land and building to the society. These two Acts and
the provisions thereunder operate in two distinct situations,
which do not affect or overlap with the rights of the Applicants,
seeking relief under either of the enactments. Section 11(4) of
the MOFA Act does not transfer the ownership or title. It only
declares the applicant to be entitled to certificate of 'Deemed
Conveyance', which is limited to the extent of the right of the
Promoter in the land and building. It does not effectively transfer
the title of land, in the applicant. If at all any party is aggrieved
by such order, he has the remedy of filing civil suit. The Hon'ble
Supreme Court in a recent decision in case of Arunkumar H.
Shah HUF Vs. Avon Arcade Premises Co-Operative Society
Limited and Ors.1 has declared the scope and ambit of Section
11(3), (4) and (5) of the MOFA, which reads thus:
"37. Our conclusions on the interpretation of sub-sections (4) and (5) of Section 11 of the MOFA are as under:
i. It is no doubt true that quasi-judicial powers have been conferred on the competent authority while dealing with applications under Section 11(3) of the MOFA. However, proceedings before the competent authority under Section 11(3) are of a summary nature, as can be seen from the
1 2025 SCC OnLine SC 828
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MOFA Rules. Therefore, the competent authority, while passing the final order, must record reasons;
ii. The competent authority, while following the summary procedure, cannot conclusively and finally decide the question of title. Therefore,notwithstanding the order under sub- section (4) of Section 11, the aggrieved parties can always maintain a civil suit for establishing their rights;
iii. The provisions of Section 11 are for the benefit of the flat purchasers. In writ jurisdiction, the Court should not interfere with the order granting deemed conveyance unless the same is manifestly illegal. The writ court should generally be slow in interfering with such orders. The reason is that, notwithstanding the order under Section 11(4), the remedy of aggrieved parties to file a civil suit remains open; and
iv. The registering officer has no power to sit in appeal over the order of the competent authority while exercising the power under Section 11(5). He can refuse registration only on the grounds indicated in paragraph 23 above and not beyond. Thus, the scope of the powers conferred on the registering officer is limited."
In view of the aforementioned interpretations, we do not
find any scope for entertaining the objection of the Petitioners.
23. Based on this order dated 27th April, 2022, registering
authority has issued a show cause notice to the Promoter as to
why such unilateral 'Deed of Conveyance' instrument should not
be registered as, 'Deemed Conveyance'. Only after giving the
Promoter a reasonable opportunity of being heard and being
satisfied that it is a fit case for issuance of a unilateral Deed of
Conveyance, the instrument is registered as, 'Deemed
Conveyance'. This registration granted by the Registering
Rajeshri Aher
WP 9931 OF 2023, 12628 OF 22, J..DOC
Authority is dated 13th March, 2023, which is the subject matter
of challenge in Writ Petition No. 9931 of 2023.
24. As regards the challenge to this order, an exception has
been taken to the registration of Deed of Conveyance by
repeating some of the grounds in Writ Petition No. 12628 of
2022. So far as the objection about the registration of the
unilateral Deed of Conveyance during the pendency of Writ
Petition No. 12628 of 2022, is concerned, since there was no stay
operating against the order dated 27th April, 2022, there was no
bar for the registering Authorities to act in furtherence to the
certificate of entitlement issued by the Competent Authority.
Thus, the objection raised on that ground is not maintainable.
Further objection is raised by the Petitioners contending
that the Respondent Authorities have played mischief by getting
the 'Deemed Conveyance' (unilateral) executed, by duly
stamping and registering it, without issuing any show cause
notice to them, is in violation of Section 11(5) of the MOFA. This
has been done by ignoring the representations of the Petitioners
requesting the Authorities to give them hearing before
registering the unilateral deed of conveyance.
Rajeshri Aher
WP 9931 OF 2023, 12628 OF 22, J..DOC
Section 11(5) of the MOFA, reads thus:
"11(5) On submission by such society or as the case may be, the company or the association of apartment owners, to the Sub- Registrar or the concerned appropriate Registration Officer appointed under the Registration Act, 1908, the certificate issued by the Competent Authority along with the unilateral instrument of conveyance, the Sub-Registrar or the concerned appropriate Registration Officer shall, notwithstanding anything contained in the Registration Act, 1908, issue summons to the promoter to show cause why such unilateral instrument should not be registered as 'deemed conveyance' and after giving the promoter and the applicants a reasonable opportunity of being heard, may, on being satisfied that it was a fit case for unilateral conveyance, register that instrument as 'deemed conveyance"
Upon careful reading of the Section, we find that, a duty is
cast upon the Sub Registrar or the appropriate Registration
Officer, to issue summons to the Promoter to show cause as to
why such unilateral instrument of conveyance should not be
registered as, 'Deemed Conveyance' after giving the Promoter
and the applicant a reasonable opportunity of being heard. On
being satisfied that, it is a fit case for unilateral conveyance,
register the instrument as, 'Deemed Conveyance'. This Section
does not contemplate a notice to the land owner before
registering the instrument. All that it contemplates is that a
notice is required to be issued to the Promoters, since it is the
duty cast upon the Promoter to execute the conveyance deed,
which is agreed by him as per the terms of agreement, within
Rajeshri Aher
WP 9931 OF 2023, 12628 OF 22, J..DOC
the prescribed period. It is upon failure of the Promoter, the
Competent Authority is called upon to exercise its power for
issuance of unilateral 'Deed of Conveyance' in favour of the
society. The Competent Authority upon receiving such
application from society has to inquire whether such application
is fit for being granted after verifying the documents and giving
opportunity to the Promoter. Thus, at the stage of verification by
the competent Authority, opportunity is given to all the parties
concerned, including the Petitioners. A fitness certificate is
issued by the Competent Authority, which is acted upon by the
Registering Authority, as contemplated under Section 11 (5). At
this stage also, it is the Petitioners who is called upon to show
cause why such deemed conveyance should not be registered.
Thus, the scheme of the Act does not contemplate a notice to the
owners, when they have already granted leasehold rights to the
Promoter.
In this context we may refer to the judgment of the Hon'ble
the Supreme Court in case of Arunkumar H. Shah (Supra), which
reads thus:
"22. Now, we deal with the scope of powers of the registration officer under the Registration Act, 1908 (for short, 'the 1908 Act') under sub-section (5) of Section 11. As provided in sub-section (4)
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WP 9931 OF 2023, 12628 OF 22, J..DOC
of Section 11, a certificate regarding the entitlement of the applicant to deemed conveyance has to be issued by the competent authority to the appropriate registration officer under the 1908 Act. After receiving the certificate, the registration officer is required to issue a summons to the promoter to show cause why such a unilateral instrument should not be registered as a deemed conveyance. After giving an opportunity of being heard to the promoter and after being satisfied that it was a fit case for registration of a unilateral conveyance, the registration officer can register the certificate as deemed conveyance. We may make it clear that the power conferred on the registration officer does not enable him to reopen or set aside the findings recorded by the competent authority while passing an order of grant of certificate. The registration officer is neither an appellate authority nor a revisional authority."
[Emphasis supplied]
25. On this background, even the objection to the interim
order dated 13th February, 2023, passed by the Registering
Authority would not survive since in the interim order itself it is
stated that if no objections are received up to 20 th February,
2023, the order dated 13th February, 2023, shall be deemed to be
a final order. As no objections were received against the interim
order, the interim order culminated into a final order dated 13 th
March, 2023.
So far as the apprehension of the Petitioners that the
contents and text in the Deemed Conveyance dated 13 th
February, 2023, transfers all rights, title and interest of the
Petitioners to the Respondent Society, amounts to transfer of
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WP 9931 OF 2023, 12628 OF 22, J..DOC
their title, we do not find any substance in this apprehension
expressed by the Petitioners for the reason that, the order itself
is very much clear, which stipulates that the Competent
Authority in exercise of the power delegated to him under
section 5(A) of the MOFA, "now has in himself good right, full
power and absolute authority to convey, transfer, release and
assure the leasehold rights under the lease deed dated 29 th
September, 1972 of the said property hereby granted, conveyed,
transferred or assured or intended so to be unto and to the use of
society in the manner aforesaid and that the society will continue
to occupy and possess the said property for its members own use
and benefit." Therefore, there is no doubt about the fact that only
the leasehold rights have been transferred and there is no
passing over of title through this 'Deed of Conveyance'.
In this regard, we may refer to the observations made by
this Court in a reported decision in case of Haresh Vijaysinh
Bhatia and Ors. Vs. District Deputy Registrar and Ors.2
"62. Thus, a statutory right is created in favour of a society or association of flat purchasers to have in its favour conveyance and transfer of every right which the promoter possessed in respect of the land on which building is constructed. If promoter is the owner of land, he must transfer and convey his ownership right in favour of
2 2025 SCC OnLine Bom 1981
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WP 9931 OF 2023, 12628 OF 22, J..DOC
the Society. If on the other hand, promoter is a mere lessee, he must transfer his leasehold rights in the building in favour of the Society. Promoter cannot provide for demise of only leasehold rights if he is the owner of the land."
This Court has unequivocally observed that the statutory
rights which are created in favour of the society by way of
conveyance and transfer are the rights which the Promoter
possesses in respect of land and he cannot transfer something
which is beyond the rights possessed by him. In the present case,
since the Promoter possess only the leasehold rights, he can
transfer only the leasehold right in favour of the society. Hence,
we do not find any favour with the objection raised by the
Petitioners.
26. Similarly, the rectification Deed executed on 30 th
November, 2023, which added the name of M/s. Jigna Jay
Kantawala has no bearing on the merits of the case. This Deed of
Rectification merely adds the correct description of the owners,
who conveyed the rights to the developer, and rest of the Deed of
Unilateral Conveyance stands unaltered. Consequently, the deed
of rectification does not affect the rights of the applicant society
to the unilateral 'Deed of Conveyance'.
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WP 9931 OF 2023, 12628 OF 22, J..DOC
In the wake of the aforementioned facts of the Writ
Petitions, and the scope of Section 11(3), (4) and (5) of MOFA
interpreted by the judicial decisions, as discussed hereinabove,
no case for interference in the orders impugned is made out by
the Petitioners, hence, the challenge in both Writ Petitions fails,
Rule is discharged.
(MANJUSHA DESHPANDE, J.) (BHARATI DANGRE, J.)
Rajeshri Aher
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