JAGSHI JETHABHAI CHHEDA v. THE STATE OF MAHARASHTRA and 6 ORS.
Deemed Conveyance under MOFA: "Special Patron Member" Designation Cannot Override Flat Purchasers' Rights; ULC Exemption Does Not Bar Conveyance to Society.
Court: Bombay High Court
Citation: 2025:BHC-AS:53749
Decision Date: 09-12-2025
List of Laws
The Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA); The Companies Act, 1956; The Maharashtra Cooperative Societies Act, 1960; The Urban Land Ceiling and Regulation Act, 1976; Article 226 of the Constitution of India
- Facts: The Lokmanya Pan Bazar Association Ltd., a guarantee company, challenged a deemed conveyance order granted to Harshad Coop. Housing Society Ltd. The Association argued that the flat purchasers were enrolled as "Special Patron Members" and the land was subject to ULC Act restrictions, preventing conveyance. The Housing Society was formed by the flat purchasers of Buildings B and C, constructed on land owned by the Association. The Association claimed the society suppressed material facts to procure registration and that the deemed conveyance violated natural justice and MOFA's scheme.
- Procedural Posture: The Lokmanya Pan Bazar Association Ltd. filed a Civil Writ Petition in the High Court of Judicature at Bombay, challenging the order of the Competent Authority granting deemed conveyance to the Harshad Coop. Housing Society Ltd.
- Issue: (1) Does MOFA apply to the transaction where purchasers are described as "Special Patron Members"? (2) Is the application for deemed conveyance maintainable when the land is owned by the petitioner company? (3) Is the Respondent No. 3 society a valid entity? (4) Was there a denial of natural justice in the deemed conveyance proceedings? (5) Does the ULC exemption order bar conveyance to the society?
- Holding: The High Court dismissed the writ petition, upholding the deemed conveyance in favor of the Housing Society. The Court held that MOFA applies, the "Special Patron Member" designation does not negate the purchasers' rights, the society is a valid entity, there was no denial of natural justice, and the ULC exemption order does not bar conveyance.
- Reasoning: The Court reasoned that the agreements explicitly stated MOFA governed the transaction. The "Special Patron Member" designation was a device to circumvent MOFA's obligations. The purchasers acted as flat buyers, paying consideration and taking possession. The society's formation was a lawful exercise of their statutory rights under MOFA. Service of notice was valid at the registered office address. The ULC exemption order's conditions did not prevent conveyance to a society formed by the intended beneficiaries. The Court emphasized that contractual terms cannot defeat MOFA and that the real position of the parties, not their labels, must be considered. The promoter's prolonged silence and inaction also weighed against their challenge to the conveyance.
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