Bombay High Court Clarifies Partial Deemed Conveyance Rights For Multi-Building Layouts
Justice G.S. Patel Rules In Favour Of Housing Societies, Upholding MOFA Rights Despite Developer Objections
Mumbai | April 18, 2024: In a significant ruling shaping Maharashtra’s housing law, the Bombay High Court has upheld the rights of housing societies to obtain partial deemed conveyance under the Maharashtra Ownership Flats Act (MOFA), 1963, even in multi-building layouts where the developer has not completed the entire project.
The judgment, delivered by Justice G.S. Patel in Marathon Era Co-Operative Housing Society Ltd. & Anr. vs. Marathon Nextgen Realty Ltd. & Ors. (Writ Petition No. 9116 of 2013 and connected matters), clarified the scope of Section 11 of MOFA—restating that the right to conveyance cannot be diluted by developer delays, unnotified statutes, or incomplete construction phases.
The Case: Societies Left Without Title For Years
The petitioners, Marathon Era Co-op Housing Society and Gulmohar Lokmilan Co-op Housing Society, had long sought ownership of their plots and common areas within a large integrated layout developed by Marathon Nextgen Realty Ltd.. Despite full occupancy and registration of individual societies, the developer failed to execute conveyance deeds, citing that the layout remained “under development.”
The Competent Authority (District Deputy Registrar) rejected the societies’ applications, claiming that MOFA had been overtaken by the Maharashtra Housing (Regulation and Development) Act, 2012 (MHRD) and later by RERA (2016). The developer argued that since the MHRD Act implicitly repealed MOFA, and its repeal under RERA was never notified, MOFA no longer applied.
Court’s Analysis: MOFA Still Governs Completed Building
Justice Patel rejected the developer’s position, noting that the MHRD Act was never brought into force, and hence, MOFA remains operative for completed buildings. The Court observed that RERA does not extinguish society rights under MOFA, particularly where developers have failed to convey title post-occupation.
The Court held that:
- Deemed conveyance under Section 11(3) is a statutory right, not dependent on developer consent.
- Partial conveyance is valid for each completed building along with its proportionate undivided land share.
- The Competent Authority erred in rejecting the societies’ applications entirely.
- Developers must cooperate and provide documents, failing which they risk penalties under Section 13 of MOFA.
Directions Issued By The Court
The Bombay High Court directed the Competent Authority to:
- Process pending deemed conveyance applications within three months,
- Issue certificates of deemed conveyance for each completed building,
- Ensure developers submit all requisite documents (OC, layout plans, etc.), and
- Allow societies to register unilateral conveyance deeds for their respective buildings.
The Court reiterated that lack of conveyance hampers redevelopment, maintenance, and financing, emphasizing that societies cannot be held hostage to incomplete phases in large townships.
Significance: Legal Clarity For 1,000+ Multi-Tower Projects
This ruling reinforces that deemed conveyance remains a vested right under MOFA despite the introduction of newer housing laws. It prevents developers from exploiting legal ambiguity to delay ownership transfer, particularly in multi-tower projects and phased layouts common across Mumbai, Thane, and Pune.
Legal experts say the decision aligns with Tirupati Shopping Centre Premises Co-op. Society Ltd. vs. Shabayesha Construction Co. (2021), further strengthening societies’ autonomy in managing and redeveloping their properties.
