JSA successfully represented Mrs. Neetu Bharat Gupta (Respondent No.4) before the Supreme Court of India opposing an application for unilateral deemed conveyance of an immovable property under the Maharashtra Ownership of Flats (Regulation of the Promotion, Construction, Sale, Management and Transfer) Act 1963

By an order dated 13 August 2024 the Supreme Court of India dismissed a Special Leave Petition No. 12340 of 2021 challenging an order of the Bombay High Court dated 22 February 2021 refusing to exercise writ jurisdiction over matters pertaining to the title of an immovable property or deemed conveyance of the immovable property under the Maharashtra Ownership of Flats (Regulation of the Promotion, Construction, Sale, Management and Transfer) Act 1963 (“MOFA”).

The Nirman Co-operative Housing Society Ltd. (“Petitioner Society”) had filed an application under Section 11(3) and Section 11(4) of MOFA before the District Deputy Registrar Mumbai City IV (“Deputy Registrar”) for unilateral conveyance/ deemed conveyance of land comprising of the Petitioner Society as well as land plot admeasuring 824 Sq. Mtrs. on which a bungalow belonging to Respondent No. 4 (“Larger Land”) was situated.

The Deputy Registrar passed an order excluding the area comprising the bungalow of Respondent No. 4 on the ground that the same does not belong to the Society and cannot be conveyed by way of a deemed conveyance. Aggrieved by the decision of the Deputy Registrar, the Petitioner Society preferred a Writ Petition under Article 227 of the Constitution of India before the Hon’ble Bombay High Court. The Bombay High Court dismissed the Writ Petition holding that :-

  • It will not be possible to decide an issue of title on immoveable property in writ jurisdiction in view of earlier decision of the Hon’ble Supreme Court in the matter of Mazda Construction Company and Ors Vs Sultanabad Darshan Co-operative Housing Society Ltd and Ors;
  • If it is the contention of the Petitioner Society that they are the owners and have title and interest over the portion of land on which the bungalow is situated, it is always open for the Petitioner Society to bring a substantial suit by leading evidence both oral and documentary before the Civil Court.

The Petitioner Society thereafter preferred a Special Leave Petition before the Supreme Court of India raising the following grounds of challenge:-

Issues: –

  • Whether the Bombay High Court had erred in not entertaining the Writ Petition and relegating the Petitioner Society to file a civil suit;
  • Whether it was necessary for the Petitioner Society to file a suit on title which would delay the redevelopment of the Petitioner Society as the suit on title would take substantial time.

The Hon’ble Supreme Court after directing parties to file Counter Affidavits and after a detailed hearing held that there was no infirmity in the order passed by the Hon’ble High Court of Bombay and dismissed the Special Leave Petition.

Conclusion

Matters of deemed conveyance of immoveable property can be entertained by the Deputy Registrar under MOFA and Writ Court only when there is no dispute on title. However when a bonafide issue on title is raised, the issue on title can be decided only by the Civil Court.

Our Disputes Team Comprised Lead Partner – Farid Karachiwala, and Associate – Sanya Gandhi.