Promoter's Objections Overruled, Statutory Duty of Conveyance Enforced Under MOFA
In a significant ruling, the Bombay High Court dismissed the writ petition filed by Krishna Developers Pvt Ltd., challenging the order of deemed conveyance granted in favor of a housing society by the Competent Authority under the Maharashtra Ownership Flats Act, 1963 (MOFA). The court upheld the statutory obligation of the promoter to execute the conveyance of property to the society, emphasizing that private contractual clauses cannot override statutory duties.
The case arose when Krishna Developers, the promoter and owner of the property, contested the Competent Authority's decision, asserting that certain contractual clauses in agreements with flat purchasers reserved specific rights for the promoter, including excess Floor Space Index (FSI) and a right of way. The promoter argued that these clauses should prevent the deemed conveyance from being granted.
However, Justice Amit Borkar, presiding over the case, highlighted that MOFA is a welfare legislation aimed at protecting flat purchasers' rights. The court observed that once the construction is completed and the society is formed, the promoter's statutory duty to convey the property becomes absolute, with no private agreement able to dilute this obligation. The judgment clarified that any contractual clause inconsistent with statutory provisions cannot override the promoter's duty to convey the property.
The court also addressed objections regarding the internal management of the society, noting that such issues do not affect the society's statutory right to conveyance. The promoter's claims of procedural irregularities within the society were deemed insufficient to invalidate the statutory proceedings under MOFA.
The judgment reaffirmed the Competent Authority's jurisdiction, stating that its power stems from the statute itself, which prevails over any inconsistent private agreements. The court concluded that the Competent Authority acted within its statutory remit by enforcing conveyance in accordance with the sanctioned plans and factual records.
Bottom Line:
Deemed conveyance under Maharashtra Ownership Flats Act (MOFA) - Promoter cannot rely on private contractual clauses to avoid statutory obligation of conveyance to the society.
Statutory provision(s): Maharashtra Ownership Flats Act, 1963 Section 11
