Deemed Conveyance under MOFA judgment.

Deemed Conveyance Cannot Be Defeated by Technical Objections – Bombay HC

  Case Title

Writ Petition No. 14690 of 2022 – Developer vs Cooperative Housing Society (Deemed Conveyance Case)

Court & Citation

Court: Bombay High Court

Statute Involved: Maharashtra Ownership Flats Act, 1963

Subject: Deemed Conveyance of Housing Society Property

Facts of the Case

A cooperative housing society applied for deemed conveyance before the competent authority because the developer failed to execute a conveyance deed transferring ownership of the land and building to the society as required under the Maharashtra Ownership Flats Act, 1963.

After examining the relevant documents, including agreements and the architect’s certificate, the competent authority granted deemed conveyance of the property in favour of the housing society.

The developer challenged this order by filing Writ Petition No. 14690 of 2022 before the Bombay High Court, arguing that the authority exceeded its jurisdiction and that the conveyance granted was inconsistent with the original agreements between the parties.

  Issues Before the Court

1.    Whether the competent authority was justified in granting deemed conveyance to the cooperative housing society under the **Maharashtra Ownership Flats Act, 1963.

2. Whether technical objections raised by the developer could invalidate the order granting deemed conveyance.

3. Whether the competent authority followed proper procedure and principles of natural justice while granting the conveyance.

 Judgment / Court Observations

The Bombay High Court observed that the promoter has a statutory obligation to execute conveyance in favour of the cooperative housing society within the prescribed period.

The Court held that where the promoter fails to perform this obligation, the society is entitled to seek deemed conveyance through the competent authority under the **Maharashtra Ownership Flats Act, 1963.

The Court further noted that technical objections raised by the developer cannot defeat the statutory rights of flat purchasers. Unless serious procedural illegality or prejudice is demonstrated, the order granting deemed conveyance should not be interfered with.

 Final Decision

The Bombay High Court dismissed the writ petition and upheld the order granting deemed conveyance in favour of the cooperative housing society.

 Legal Principle / Ratio

Where a promoter fails to execute conveyance as required under the Maharashtra Ownership Flats Act, 1963, the competent authority is empowered to grant deemed conveyance to the cooperative housing society.

Developers cannot defeat the rights of flat purchasers and housing societies by raising mere technical or procedural objections.

3 FAQ Questions.

What is deemed conveyance under MOFA?

Deemed conveyance is a legal mechanism under the Maharashtra Ownership Flats Act, 1963 that allows a cooperative housing society to obtain property ownership when a developer fails to execute the conveyance deed.

Can a developer challenge deemed conveyance?

Yes, a developer may challenge the order, but courts such as the Bombay High Court have held that mere technical objections cannot defeat the rights of flat purchasers.

Which authority grants deemed conveyance?

The competent authority, usually the District Deputy Registrar, grants deemed conveyance after verifying documents and compliance with the law.