IBC Moratorium Does Not Bar Grant of Deemed Conveyance Under MOFA Against Promoters.
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Case: DARSHAN MANDIR CO OP HSG SOC LTD v. DISTRICT DEPUTY REGISTRAR CO OP SOC AND ORS
Court: Bombay High Court
Date: 22-06-2026
Law: Insolvency and Bankruptcy Code, Maharashtra Ownership Flats (Regulation of the promotion of Construction Sale Management and transfer) Act, Maharashtra Co-operative Societies Act, Maharashtra Slum Areas (Improvement Clearance and Redevelopment) Act.
Highlights of the Judgment:
- Analysis of the interplay between Section 14 of the Insolvency and Bankruptcy Code, 2016 and Section 11 of the Maharashtra Ownership Flats Act, 1963.
- Interpretation of whether a moratorium on the transfer of assets includes the statutory duty of granting unilateral deemed conveyance to housing societies.
- Judicial distinction between monetary "claims" and non-monetary statutory obligations that survive the initiation of corporate insolvency resolution proceedings.
- Application of the "divesting of title" principle where a promoter's interest in land is exhausted upon the sale of all flats.
- Examination of the overriding effect of Section 238 of the IBC in the context of welfare legislations and regulatory forfeitures.
- Clarification on the jurisdiction of the Competent Authority to adjudicate deemed conveyance applications during the pendency of a moratorium.