Statutory Obligations Under Rule 9 of MOFA Prevail Over Contractual Clauses, Rules Court
In a significant ruling, the Bombay High Court has upheld the right of Upvan Woodlands Co-operative Housing Society Limited to seek a deemed conveyance of land, despite the incomplete development of the entire layout by M/s. Upvan Developers. The judgment, delivered by Justice Sandeep V. Marne, reiterates that statutory obligations under Rule 9 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963 (MOFA) supersede any contractual clauses that attempt to delay the conveyance.
The case arose from the Competent Authority's rejection of the Society's application for deemed conveyance, citing the ongoing layout development as a reason. The Authority had sided with the developer's reliance on a contractual clause that stipulated conveyance only after the completion of the entire layout. However, the High Court found this interpretation flawed, emphasizing that the statutory timeline for conveyance cannot be overridden by contractual agreements.
Justice Marne's decision underscores the legislative intent of MOFA to protect flat purchasers and prevent indefinite delays by developers. The court directed the Competent Authority to issue a certificate of unilateral deemed conveyance in favor of the Society within six weeks. This ruling aligns with the High Court's consistent stance in similar cases, where conveyance of proportionate land has been granted even amid ongoing layout development.
The judgment also addressed the developer's concerns about its right to complete construction on the remaining land, clarifying that the conveyance to the Society does not impede such rights. The court's decision is seen as a reinforcement of the protective measures under MOFA, ensuring that flat purchasers are not left in uncertainty regarding their property rights.
Bottom line:-
Conveyance of land under Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963 (MOFA) - Contractual timeline for conveyance cannot override the statutory timeline prescribed under Rule 9 of the MOFA Rules - Society entitled to deemed conveyance of land even before completion of entire layout development.
Statutory provision(s): Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963 (MOFA) Section 11, Rule 9 of MOFA Rules
