On September 18, 2024, the Bombay High Court delivered a significant judgment concerning the Maharashtra Ownership of Flats Act, 1963 (MOFA), specifically addressing the issue of deemed conveyance. The case, titled The Chairman/Secretary, Atharva Co-op. Hsg. Soc. Ltd. vs. Shantaram Vithal Kondaskar and Ors., was presided over by Justice R. M. Joshi. The judgment revolves around the rejection of an application for deemed conveyance filed by a cooperative housing society.
Background of the Case
The Atharva Co-operative Housing Society was established to represent flat purchasers in Kondaskar Apartment, who had taken possession of their flats back on August 4, 1977. However, the society faced non-cooperation from the original developer. After being registered on January 30, 2018, the society filed for deemed conveyance under Section 11(3) of MOFA on June 27, 2018. This application was subsequently rejected by the competent authority on December 13, 2018.
Compounding the issue, a civil suit was filed against the society, seeking to cancel its registration, which was stayed by the High Court pending resolution. The competent authority based its refusal to grant deemed conveyance on the existence of this civil suit and the attempted cancellation of the society’s registration.
High Court’s Ruling
Upon review, the High Court noted that the registration of the society remained intact, as the cancellation order was stayed. The Court emphasized that the authority responsible for processing deemed conveyance applications does not possess the jurisdiction to assess the correctness of a cooperative housing society’s registration under the Maharashtra Societies Act, 1960.
Justice Joshi remarked that the authority had overstepped its jurisdiction by denying the deemed conveyance application based solely on the existence of the civil suit. He stated, “Deemed conveyance could not have been refused for filing of some suit,” reaffirming the authority’s limited mandate under MOFA.
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Conclusion
In light of these considerations, the Bombay High Court held that the authority’s refusal to process the application was unjustified and sent the matter back to the Deputy District Co-operative Society, Thane for a fresh decision in accordance with the law. This ruling reinforces the principle that the jurisdiction of the competent authority should not extend to evaluating the validity of a cooperative society’s registration, thereby ensuring that members can pursue their rights to deemed conveyance without undue impediments.
