Bombay High Court Strengthens Flat Owners’ Rights: Blue Heaven Society Wins Deemed Conveyance Battle

Court Quashes Registrar’s Rejection, Orders Immediate Conveyance Under MOFA Section 11(3)

In a powerful affirmation of housing society rights, the Bombay High Court has quashed an order by the Joint Registrar of Co-operative Societies, clearing the path for Blue Heaven Co-operative Housing Society Ltd. to obtain unilateral deemed conveyance of its building and land. The ruling reinforces that procedural or contractual disputes between landowners and developers cannot obstruct flat purchasers’ ownership rights under the Maharashtra Ownership Flats Act (MOFA), 1963.

Delivered on November 21, 2024, in Blue Heaven Co-operative Housing Society Ltd. vs. Joint Registrar, Co-operative Societies & Ors. (Writ Petition No. 1685 of 2023), the judgment clarifies the jurisdictional limits of the competent authority under Section 11(3) of MOFA — a critical provision empowering societies to secure title when promoters fail to execute conveyance deeds.

Case Background
The Blue Heaven Society, comprising flat owners from a building developed by M/s. Punit Construction Company on CIDCO-allotted land, had been waiting since 2006 for conveyance of the 1,500 sq. m. property. Despite completion and occupancy certification, neither the developer nor landowners (Ambo Gadge and Shripat Patil) executed the conveyance.

In 2018, the society applied for deemed conveyance. However, the Joint Registrar rejected the application in January 2023, citing the absence of a registered agreement between the landowners and the developer — a reasoning the Court found legally untenable.

Court’s Findings and Legal Reasoning
Justice [Name withheld] set aside the Registrar’s rejection, ruling that:

The Competent Authority has no power to examine the validity or registration of agreements between landowners and developers. Its jurisdiction is limited to verifying compliance under Section 4 and Section 11 of MOFA, i.e., whether flat purchase agreements mandate conveyance.
Under MOFA’s definition of “promoter”, both landowners and developers are equally responsible for ensuring conveyance. Since building permissions and occupancy certificates were issued in the landowners’ names, they share the statutory duty.
Internal disputes between promoters are irrelevant to the society’s statutory right; such disputes can be resolved through civil suits, but cannot hold up ownership transfer.

Court Directions:

The January 18, 2023 rejection order was quashed and set aside.
The Joint Registrar was directed to issue a certificate of deemed conveyance to the society within 4 weeks, transferring the land (approx. 1,500 sq. m.) and building ownership to the society.
The Court reiterated that flat purchasers cannot be penalized for promoters’ lapses or unregistered contracts.

Significance of the Ruling
This judgment fortifies the protective intent of MOFA, ensuring that housing societies are not trapped in bureaucratic or contractual disputes beyond their control. It delineates the Competent Authority’s summary role, preventing overreach into title adjudication or agreement validity — matters reserved for civil courts.

By reaffirming the statutory nature of deemed conveyance, the Court empowers thousands of cooperative housing societies across Maharashtra awaiting long-delayed property titles — a prerequisite for bank loans, redevelopment, and legal security.