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2025 Arbitration High Court Latest Legal March 2025

Deemed Conveyance & Civil Suit

March 5, 2025 legaldeli

By the order dated 26.7.2021, the respondent no.1 granted unilateral deemed conveyance for the land of 13718.26 sq.mt including constructed area of 12048.83 sq.mts on the land at Mouje Tathavade Taluka Mulshi District Pune.

The members of the respondent no.2 society purchased flats as per the agreement of sale based on the sanctioned plan of 24.12.2010. The sanctioned plan was revised on 4.4.2014 by the petitioner without consent of the respondent no.2 society. However, the position of FSI was not changed.

Respondent no.2 society filed civil suit for specific performance of agreement of sale and for declaration that the lay out plans of 4.4.2012 and 26.5.2014 are illegal. Injunction not to revise existing plan without consent was also sought.

The petitioner, therefore, resisted the claim for deemed conveyance on the ground of filing of the civil suit. It was contended that the jurisdiction of the respondent no.1 is barred as the civil suit involves overlapping issues of title, contractual obligations and validity of the sanctioned plan which fall in the domain of the civil court.

HELD that the disputes over phase-wise development rights and separate societies must be adjudicated in civil forums. The Competent Authority’s jurisdiction is strictly circumscribed by the four corners of the sanctioned plan and registered agreements. Any grievance alleging overreach by the society necessitates a civil suit.

Judgment dated 7.2.2025 of the High Court of Bombay in Writ Petition No.6869 of 2021(AS) of Swastik Promoters and Developers Vs. The Competent Authority and another

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