Jurisdiction of Competent Authority for Deemed Conveyance Despite Existing Civil Court Consent Decree
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Case: NAHAR BUILDERS LTD (FORMERLY KNOWN AS NAHAR ENTERPRISES) AND ORS v. ORCHID ENCLAVE COOPERTIVE HOUSING SOCIETY LTD
Court: Bombay High Court
Date: 28-07-2026
Law: Code of Civil Procedure, Constitution of India, Maharashtra Ownership Flats (Regulation of the promotion of Construction Sale Management and transfer) Act.
Highlights of the Judgment:
- Interpretation of "failure" by a promoter as a jurisdictional fact under Section 11(3) of the Maharashtra Ownership Flats Act.
- The overriding effect of Section 16 of MOFA on contractual covenants and private arrangements between developers and societies.
- Analysis of whether a civil court consent decree operates as res judicata against summary proceedings for deemed conveyance.
- The limited scope of the Competent Authority's jurisdiction regarding the enforcement of reciprocal obligations like lease-back agreements.
- Application of the principle of sequential performance in consent terms involving land conveyance and subsequent lease-back.
- Judicial scrutiny of the exercise of extraordinary jurisdiction under Article 227 to prevent the perpetuation of unjust gain.