- Case
- MARVEL REALTORS AND DEVELOPERRS LIMITED v. THE COMPETENT AUTHORITY AND ORS (Bombay High Court, 25-03-2025)
- Law
- Maharashtra Ownership Flats (Regulation of the promotion of Construction Sale Management and transfer) Act.
Facts: Marvel Promoters & Developers (Pune) challenged an order by the District Deputy Registrar, Cooperative Societies, Pune (the "Competent Authority") directing the execution of a deemed conveyance deed in favor of Marvel Aquanas Co-op. Housing Society Ltd. The dispute concerns land where the petitioner developed two buildings. Agreements to sell were executed between the petitioner and individual purchasers who are now members of the respondent society. The society claimed the petitioner failed to execute the conveyance deed despite completion of construction.
Procedural Posture: The petitioner filed a writ petition under Article 227 of the Constitution of India challenging the legality, propriety, and correctness of the Competent Authority's order and the subsequent registration of the deemed conveyance deed.
Issue: Did the Competent Authority err in directing a deemed conveyance in favor of the respondent society, considering the petitioner's arguments that the application was premature, that the society was not a "body duly constituted" at the relevant time, and that the conveyance was contingent upon completion of the entire project and realization of all outstanding dues as per Clause 33 of the agreement for sale?
Holding: No, the Competent Authority did not err. The writ petition is dismissed.
Reasoning: The Court held that Rule 9 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Rules, 1964 ("MOFA Rules") provides a clear timeframe for conveyance, which is four months from the date of registration of the cooperative housing society if no specific period is agreed upon. The Court emphasized that this rule is framed to prevent indefinite withholding of conveyance. The Court rejected the petitioner's argument that Clause 33 of the agreement, making conveyance contingent on project completion and realization of all dues, could override the statutory mandate of MOFA and the MOFA Rules. The Court cited Jayantilal Investments v. Madhuvihar Co-operative Housing Society, stating that promoters cannot avoid the duty to convey title within the prescribed time by stipulating arbitrary conditions. The Court also found that the society's application was not premature as it was filed after the four-month period.
