Interplay Between IBC Moratorium and MOFA Deemed Conveyance: Bombay High Court Rules on Developer Insolvency and Consent

sketch of the Bombay High Court
Case
ROSE VILLA CO-OPERATIVE HOUSING SOCIETY LTD. v. THE DISTRICT DEPUTY REGISTRAR, CO-OPERATIVE SOCIETIES, MUMBAI CITY (3) AND ORS (Bombay High Court, 06-10-2026)
Law
Maharashtra Ownership Flats (Regulation of the promotion of Construction Sale Management and transfer) Act, Insolvency and Bankruptcy Code.

Highlights of the Judgment:

  • Analysis of whether the pendency of CIRP under the IBC against a developer bars proceedings for unilateral deemed conveyance under Section 11 of MOFA.
  • Examination of the principle of divesting of a promoter's title upon the sale of all flats and completion of buildings.
  • Legal interpretation of blanket consent clauses and individual NOCs under Section 7 of MOFA regarding vertical extensions and FSI.
  • Distinction between the existence of consent and the validity of consent within the limited summary jurisdiction of the Competent Authority.
  • Precedents regarding post-occupancy certificate additional development potential generated under DCPR regimes and society ownership rights.