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  5. January

Apoorvi Co Operative Housing Society Ltd. Through Chairman Atul M Daundakr vs. Yashashri Construction Through Director Viraj V Lomte and Ors

Decided on 31 January 2024• Citation: WP/963/2020• Bombay High Court
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                                                               45-wp-963-2020.doc 
                    Nikita                                                        
                       IN THE  HIGH  COURT  OF  JUDICATURE   AT BOMBAY            
                                CIVIL APPELLATE   JURISDICTION                    
                                WRIT  PETITION  NO.963  OF 2020                   
                    Apoorvi Co-operative Housing Society                          
                    Ltd. Through   Chairman   Atul  M.                            
          NIKITA                                                                  
                    Daundkar                            …  Petitioner             
          KAILAS                                                                  
          DARADE                                                                  
                             V/s.                                                 
          Digitally signed by                                                     
          NIKITA KAILAS                                                           
          DARADE                                                                  
                    Yashashri   Construction   Through                            
          Date: 2024.01.31                                                        
          19:12:27 +0530                                                          
                    Director Viraj V. Lomte and Ors.    …  Respondents            
                    Mr. Rameshwar N. Gite, a/w Mr. Rohit D. Gorade for            
                    the Petitioner.                                               
                    Mr. Mahesh R. Joshi for Respondent No.1                       
                    Mr. Sanjay D. Rayrikar, AGP for the State-Respondent          
                    Nos. 4 and 5.                                                 
                                          CORAM    :AMIT   BORKAR,  J.            
                                          DATED    :JANUARY    31, 2024           
                    P.C.:                                                         
                    1.   The petitioner is challenging order passed by the Competent
                                       th                                         
                    Authority dated  10   October  2019, rejecting petitioner’s   
                    application for registration of Society in furtherance of agreement
                    under Section 4 executed by promoter in favour of purchasers. 
                    2.   The Competent  Authority refused to pass direction for   
                    deemed conveyance on the ground that eight purchasers out of 33
                    have registered deed of apartment in relation to land in question
                    and, therefore, registration of conveyance in favour of society is
                                               1                                  

                                                               45-wp-963-2020.doc 
                    barred under Section 10(2) Maharashtra Ownership of Flats Act,
                    1963.                                                         
                    3.   It is not in dispute that in an agreement entered into under
                    Section 4 of the said Act, purchasers are given option to register
                    either the society or submit such project to the provisions of the
                    Maharashtra Apartment Ownership Act, 1970. In such situation, 
                    the decision as regards to the submission of such Society either
                    under the provisions of Cooperative Societies Act, 1960 or the
                    Maharashtra Apartment Ownership Act, 1970 needs to be taken by
                    the majority of purchasers. The material on record, indicates that
                    only 8 persons out of 33 claimed to have supported promoter’s 
                    decision to submit project under the provisions of Maharashtra
                    Apartment Ownership Act, 1970.                                
                    4.   The law in this regard is no longer res integra in view of the
                    judgment of this Court in the case of Rahul Enterprises Vs.   
                    Abhineha   Park   Sahakari   Gruha   Rachana    Samstha       
                    Maryadit  and  Ors. reported in 2013 (2) Mh. L.J. 463. This   
                    Court held that if flat purchasers have not decided to form an
                    apartment, in absence of such decision, promoter could not have
                    decided to submit the project under the provisions of the     
                    Maharashtra Apartment Ownership Act, 1970.                    
                                                      th                          
                    5.   On perusal of the order dated 25 March 2014, it appears  
                    that the purchasers have registered cooperative society under the
                    provisions of Maharashtra Cooperative Societies Act, 1960.    
                    6.   The scheme of the Act indicates that in furtherance of the
                    agreement entered into between the promoter and the purchasers,
                                               2                                  

                                                               45-wp-963-2020.doc 
                    if the choice is with the purchasers, it is purchasers’ right to decide
                    either to register deed or declaration or apply for deemed    
                    conveyance under the provisions of Maharashtra Ownership of   
                    Flats (Regulation of  the  Promotion,  Construction, Sale,    
                    Management and Transfer) Act, 1963 (MOFA Act). Such right in  
                    absence of support from majority of members could not have been
                    exercised by the promoter.                                    
                    7.   During the pendency of the present petition, the petitioner
                    society has submitted affidavits of 29 members out of 33 which
                    have stated that they are interested in registration of deemed
                    conveyance under the provisions of MOFA Act.                  
                    8.   Affidavits are taken on record and marked as “X” for     
                    identification collectively.                                  
                    9.   In view of the fact that the deed of declaration was     
                    submitted by the promoter unilaterally without getting majority of
                    the purchasers include with the fact that 29 members out of 33
                    desired to have deemed conveyance under Section 11(3) of the  
                    MOFA  Act, the submission of project unilaterially under the  
                    Maharashtra Apartment Ownership Act, 1970 deserves to be set  
                    aside. It is pertinent to note that promoter has not placed on
                    record, an intimation as contemplated under Section 10(2) of the
                    MOFA  Act  to the Registrar defined under the Maharashtra     
                    Cooperative Societies Act, 1960.                              
                    10.  The Competent  Authority, therefore, directed to pass a  
                    formal order of deemed conveyance in view of the petitioner   
                    society and to issue certificate as required under the provisions of
                                               3                                  

                                                               45-wp-963-2020.doc 
                    Section 11 of the MOFA Act. The Sub-registrar shall thereafter
                    register the conveyance under Section 11(5) of the said Act.  
                    11.  The Competent Authority shall pass appropriate order within
                    four week from today.                                         
                    12.  The writ petition stands disposed of in above terms.     
                                                         (AMIT BORKAR,   J.)      
                                               4