2024High CourtLatestLegalMay 2024Real Estate

Unilateral Deemed Conveyance – Refusal on account of pendency of a title civil suit between promoter and other persons – Illegal

Madhavrao Jagtap was the original owner of the land Final Plot CTS Nos.229, 229/1 to 7 admeasuring 7890.17 sq.mters at village Kanheri, Borivali East, Mumbai.  After his death, Manoramabai and Uday Jagtap came in possession of the said larger land and they took portion of 1583.46 sq.mts for development.

Nalini daughter of Alice who claim marriage with Madhavrao Jagtap had filed Suit No.246 of 1977 for partition and possession and later on, for declaration that she is the sole owner of the property.   The said suit is pending in the City Civil Court and prosecuted by heirs of deceased Nalini.

During the pendency of the suit, there was no injunction in the civil suit against Manoramabai or Uday against construction or sale of flats.  The building was constructed, flats were sold and an occupancy certificate was given on 3.1.1978.

The society was registered on 18.11.1988.

Though the agreements of flat purchasers were only in respect of the land of 1583.46 sq.mts.  Society made the application for unilateral deemed conveyance for the entire larger land.

On 7.1.2012, the application for deemed conveyance was filed.  On 31.12.2012, the Competent Authority rejected the said application on the ground Nalini Jadhav is the owner of the land and did not execute sale agreements of flats.   The writ petition against the said order was disposed by the Order dated 12.1.2023 on the submission of the petitioner society it would seek conveyance only for 1583.46 sq mts.

By the Order dated 18.10.2023  of the Competent Authority rejected the fresh application for grant of unilateral deemed conveyance of the land.

Jurisdiction of the Competent Authority is extremely narrow to convey what the promoter fails to convey as per the agreements executed under Section 4 of MOFS.   Section 11 imposes obligation on the promoter to convey title to the society in accordance with the agreements.  Thus, the Competent Authority is not supposed to entertain, go into or consider title disputes between the original owners & promoters.

If there is an agreement of flat under Section 4 of MOFA and contains an obligation on promoter to convey his right, title and interest in the land to the society, the Competent Authority has no option but to issue a certificate of deemed conveyance as per Section 4 Agreement.  It has neither jurisdiction nor is supposed to go into such title disputes between parties.   In this case, the Competent Authority has over-stepped his jurisdiction by going into the disputes between various persons.

Unilateral Deemed Conveyance is not determinative of rights and contentions of the parties to the land in question.

Mere pendency of title suit between the promoter and other persons claiming a right or share in the land to be conveyed cannot be a ground for avoiding performance of statutory duty by the Competent Authority under Section 11(3) of MOFA.

Judgment dated 30.4.2024 in W.P.No.1421 of 2024 of New Manoday Cooperative Housing Society Ltd Vs. Uday Madhavrao Jagtap and others with W.P.(L) No.4104 of 2024

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