As per case facts, Petitioners, cooperative housing societies, have been in settled possession of row houses and garden areas for over three decades on a plot where Respondent No. 3 ...
wp11328-2023-J-final.doc
Shabnoor
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.11328 OF 2023
1.Magnum Unit ‘A’ CHS Limited,
having office at 2nd Cross Lane,
Lokhandwala, Andheri (West),
Mumbai – 400 053
2.Magnum Unit ‘B’ CHS Limited,
having office at 2nd Cross Lane,
Lokhandwala, Andheri (West),
Mumbai – 400 053
3.Magnum Unit ‘C’ CHS Limited,
having office at 2nd Cross Lane,
Lokhandwala, Andheri (West),
Mumbai – 400 053… Petitioners
V/s.
1.The State of Maharashtra,
through the Office of Sub-Registrar
office, Andheri Taluka,
having its office at Ground Floor,
Family Court Building, Opp. MMRDA,
Building, Bandra Kurla Complex,
Bandra (East), Mumbai 400 051.
2.District Deputy Registrar Cooperative
Society, Mumbai City (3),
A Competent Authority u/s. 5A of the
Maharashtra Ownership of the Flats
Act, 1963, having its office at
MHADA Building, Ground Floor,
Room No.69, Bandra (East),
Mumbai 400 051.
1
SHABNOOR
AYUB
PATHAN
Digitally signed by
SHABNOOR AYUB
PATHAN
Date: 2026.02.24
12:14:31 +0530
wp11328-2023-J-final.doc
3.Magnum Tower CHS Limited,
through its Chairman/Secretary,
having office at 2nd Cross Lane,
Lokhandwala, Andheri (West),
Mumbai – 400 053
4.Lokhandwala Estate & Development
Company Ltd., having its office at
48, Indrayan Road, Santacruz West,
Mumbai 400 054.
5.Oshiwara Land Development
Corporation Private Limited,
having office at 71/73, 2
nd
Floor,
Boatwala Building, Bombay News Road,
Mumbai 400 023.
6.Shri Swami Samartha,
Plot No.357, Survey No.41 (Part),
2nd Cross Lane, Lokhandwala Complex,
Andheri (West), Mumbai 400 053.… Respondents
Mr. Girish Godbole, Senior Advocate with Mr. Harsh
Moorjani, & Mr. Aaqib Kazi i/by Mr. Rizwan Siddiquee for
the petitioner.
Ms. Kavita N. Solunke, Additional G.P. with Mr. S.L. Babar,
AGP for respondent Nos.1 & 2-State.
Mr. Sachin Mandlik i/by Mandlik Partners for respondent
No.3.
CORAM :AMIT BORKAR, J.
RESERVED ON :JANUARY 28, 2026
PRONOUNCED ON:FEBRUARY 24, 2026
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JUDGMENT:
1.The Petitioners contend that Plot No. 357, Survey No. 41
Part, C.T.S. No. 1/175 of Oshiwara Village, Taluka Andheri,
Mumbai admeasuring 13,569 sq. mtrs. was developed under a
composite Block Plan in distinct phases. It is their case that
“Magnum Unit A” was the first development undertaken on the
said property and comprises an area of 3,545.95 sq. mtrs., which
has remained in its possession for over thirty-five years. Thereafter,
“Magnum Unit B” was developed and constructed, admeasuring
4,389.82 sq. mtrs., and has similarly been in possession for more
than thirty-five years. Upon completion of Units A and B, the
Developer utilized the residual Floor Space Index available on the
said plot for construction of “Magnum Tower,” which occupies an
area of 4,345.29 sq. mtrs.
2.It is further stated that Petitioner Nos. 1 and 2, representing
the respective unit holders of Magnum Units A and B, are in settled
and peaceful possession of the row houses together with the
appurtenant garden areas for over thirty-five years, and that such
possession predates the construction of Magnum Tower. According
to the Petitioners, Respondent No. 3 has, at no point of time,
occupied or possessed any land in excess of 4,345.29 sq. mtrs.
Notwithstanding these factual circumstances, Respondent No. 2
has, by order dated 9 January 2023, granted unilateral deemed
conveyance in favour of Respondent No. 3 in respect of land
admeasuring 10,097.84 sq. mtrs. out of the total area of 13,569 sq.
mtrs., which, according to the Petitioners, has resulted in serious
prejudice to their proprietary and possessory rights. It is stated that
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M/s. Oshiwara Land Development Corporation Pvt. Ltd. was the
original owner of the aforesaid property situated at Plot No. 357,
Survey No. 41 Part, C.T.S. No. 1/175 of Oshiwara Village, Taluka
Andheri, Mumbai.
3.On 16 September 1979, a Tripartite Agreement was executed
between M/s. Lokhandwala Estate and Development Company Pvt.
Ltd., described as the Developer, M/s. Oshiwara Land Development
Corporation Pvt. Ltd., and Shri Swami Samarth Prasanna Co-
operative Housing Society Ltd. Under the said agreement, the
Developer acquired possession and development rights in respect
of the subject land. On 5 January 1982, the Chief Promoter of
Respondent No. 3 entered into a Package Deal Agreement with the
Developer concerning development of the said plot. A
Supplementary Package Deal Agreement dated 10 April 1984 was
thereafter executed between the Chief Promoter of Respondent No.
3 and the Developer, inter alia delineating the rights of the row
house and bungalow purchasers. During the period 1983 to 1984,
the Developer completed construction of the bungalows
comprising Magnum Unit A and Magnum Unit B. Subsequent to
completion of Magnum Units A and B, the Developer utilized the
balance FSI available on the plot for construction of “Magnum
Tower.” The Block Plan for the entire parcel admeasuring 13,569
sq. mtrs. received approval on 3 June 1986. On 3rd and 4th
February 2014, Respondent No. 3 instituted a Civil Suit before the
City Civil Court at Dindoshi seeking a permanent mandatory
injunction restraining the present Petitioners from undertaking
construction or demolition activities on a strip of land
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admeasuring 360 x 25 sq. ft., contending that the said strip was
intended for joint use and enjoyment. By Judgment and Order
dated 3-4 February 2014, the City Civil Court dismissed the suit
and decided the issue against Respondent No. 3.
4.Thereafter, on 24January 2017, Respondent No. 3 filed
Application No. 39 of 2016 before the District Deputy Registrar
seeking deemed conveyance of the entire land admeasuring
13,569 sq. mtrs. The said application came to be rejected by order
dated 24 Janaury 2017. Subsequently, on 16 May 2022,
Respondent No. 3 preferred Application No. 63 of 2022 before
Respondent No. 2 seeking unilateral deemed conveyance of
10,097.84 sq. mtrs. out of the said plot. By the impugned order
dated 9 January 2023, the District Deputy Registrar, Co-operative
Societies, Mumbai City, granted unilateral deemed conveyance in
favour of Respondent No. 3 in respect of land admeasuring
10,097.84 sq. mtrs. A certificate under Section 11 of the
Maharashtra Ownership Flats Act, 1963 was accordingly issued in
favour of Respondent No. 3 on the same date. Aggrieved thereby,
the Petitioners have instituted the present Writ Petition challenging
the legality and validity of the order dated 9 January 2023 and the
consequential certificate issued thereunder.
5.Learned Senior Counsel Mr. Godbole appearing for
Respondent No. 2 submitted that the impugned order dated 9
January 2023, in effect, amounts to the authority sitting in appeal
over its own earlier decision and disregarding the jurisdictional bar
arising from the principles of res judicata. He invited attention to
the description of the subject property and the societies situated
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thereon, namely Plot No. 357, Survey No. 41 Part, C.T.S. No.
1/175 of Oshiwara Village, Taluka Andheri, Mumbai admeasuring
13,569 sq. mtrs., comprising the Petitioner societies, Magnum Unit
A, Magnum Unit B and Magnum Unit C, and Respondent No. 3,
Magnum Tower Co-operative Housing Society Ltd.
6.It was submitted that paragraphs 14 and 15 of the impugned
order record the earlier Application No. 39 of 2016, yet
Respondent No. 2 erred in entertaining a subsequent application
by Respondent No. 3 on the same cause of action and in respect of
the same plot. The earlier application was rejected on merits by
order dated 24 January 2017 on the ground that the conveyance
sought would prejudice the rights of the other building owners,
namely the Petitioners. According to the submission, even though
the earlier application pertained to the entire plot, Respondent No.
3 had in substance claimed entitlement to approximately 10,000
sq. mtrs., which is substantially the area granted under the
impugned order, and the said contention had been expressly
rejected after due consideration.
7.It was further contended that no liberty was granted to
Respondent No. 3 while rejecting the earlier application for
deemed conveyance. Once a quasi judicial authority adjudicates
upon an issue and the order attains finality without liberty to file a
fresh application or pursue a superior remedy, the authority lacks
power of review to adopt a contrary position. It was emphasized
that the order dated 24 January 2017 has not been challenged to
date and has therefore attained finality.
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8.Learned Senior Counsel submitted that the finding in the
impugned order that Section 11 of the Code of Civil Procedure
does not apply to deemed conveyance proceedings constitutes a
manifest error of law. The principles underlying res judicata apply
equally to quasi judicial proceedings in order to prevent
multiplicity of litigation and inconsistent findings. Reliance was
placed on the decisions in M/s. Aakansha Construction Co. v. State
of Maharashtra and Others, 2025 BHC 20530 and M/s. Faime
Makers Private Ltd. v. District Deputy Registrar, (2025) 5 SCC 772.
9.It was submitted that Respondent No. 2 has, in effect,
rewritten the contractual terms governing the parties by
disregarding the exclusive garden rights conferred upon the
Petitioner societies under the Package Deal Agreement and the
Supplementary Agreement, which were acknowledged and
accepted by Respondent No. 3. It was contended that the
impugned order is ex facie illegal inasmuch as Section 11 of the
Maharashtra Ownership Flats Act mandates that conveyance be
granted strictly in accordance with the Agreement for Sale.
Respondent No. 2 failed to consider Clause 6(b) of the Package
Deal Agreement dated 5 January 1982 and Clause 4 of the
Supplementary Agreement dated 10 April 1982, which expressly
conferred exclusive possession and enjoyment of the front garden
areas upon the row house owners, namely the Petitioner societies.
These rights were also incorporated in the MOFA agreements and
acknowledged by the flat purchasers under Clause 20 thereof. It
was further submitted that Clause 12 of the Agreement dated 28
May 1987 reiterates the aforesaid terms and specifically provides
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that the units of the Petitioner societies would enjoy exclusive
garden amenities appurtenant thereto. In the civil suit instituted by
Respondent No. 3, which came to be dismissed by order dated 03-
4 February 2011 passed by the City Civil Court, Respondent No. 3
had itself founded its claim on the Agreement dated 25 August
1987, and is therefore estopped from adopting a contrary stand.
10.It was contended that despite significant discrepancies
between the measurements furnished by the architects of the
Petitioners and those relied upon by Respondent No. 3,
Respondent No. 2 mechanically accepted the certificate produced
by Respondent No. 3 without independent scrutiny. Under Clause
B(3) of the Government Resolution dated 22 June 2018, where
measurement disputes arise in a layout involving multiple
societies, the authority is required to appoint an independent
architect from its approved panel to submit a report. It was
submitted that failure to adhere to the mandatory procedure
prescribed under the Government Resolution vitiates the impugned
order. Respondent No. 2 granted conveyance of 10,097.84 sq.
mtrs. in favour of Respondent No. 3 without disclosing any
rational methodology for quantification or accounting for the
phased development of the layout, and solely on the basis of the
architect’s certificate furnished by Respondent No. 3. The approach
adopted ignores the mandate of the 2018 Government Resolution
that, where Transferable Development Rights are utilized,
conveyance must be confined to the plinth area and appurtenant
land.
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11.It was further submitted that inclusion of garden areas and
common access roads in the certificate issued to Respondent No. 3
exceeds the scope of the governing agreements and renders the
order perverse. Reliance was placed on
Mazda Construction Co. v.
Sultanabad Darshan Co-operative Housing Society Ltd.,
2012 SCC
OnLine Bom 1266, wherein it has been held that when common
amenities such as gardens and access roads are seriously disputed
or form the subject matter of pending litigation, the Competent
Authority ought not to include them in a deemed conveyance. It
was therefore prayed that the reliefs sought in prayers clauses (a)
and (b) be granted.
12.Per contra, learned counsel Mr. Mandlik submitted that
although quasi judicial authorities are generally bound by
principles analogous to res judicata, the same are inapplicable in
the present case. He submitted that the earlier application filed in
2016 pertained to the entire plot admeasuring 13,569 sq. mtrs.,
whereas the subsequent application filed in 2022 was confined to
10,097.84 sq. mtrs. This distinction, according to him, is
acknowledged by the Petitioners in ground 9(w) of the writ
petition. The issue previously determined was whether Respondent
No. 3 was entitled to deemed conveyance of the entire plot. The
entitlement to a specific portion measuring 10,097.84 sq. mtrs.
was neither directly nor substantially in issue in the earlier
proceedings. Consequently, the impugned order does not
determine any matter which had been finally adjudicated earlier. It
was further submitted that reliance placed by the Petitioners upon
the Package Deal Agreements and subsequent agreements is
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misconceived. These agreements, though executed between certain
Chief Promoters and the developer, remain unregistered and
cannot override registered MOFA agreements executed with flat
purchasers. It was pointed out that one such registered agreement
records entitlement of Respondent No. 3 to a plot area of
13,282.20 sq. mtrs. It was also contended that the unregistered
agreements were subject to modifications and that the areas
mentioned therein do not correspond with the total land area of
13,569 sq. mtrs. reflected in the Property Register Card. The
impugned order, according to him, addresses these aspects in
detail in paragraphs 14(i) to (o) and 15 thereof.
13.Learned counsel further submitted that the entitlement of
Respondent No. 3 is founded upon legitimate documents and in
conformity with the Government Resolution dated 22 June 2018.
Reliance was placed on the sanctioned layout plan and the
architect’s certificate. Respondent No. 3 comprises 126 flats and 17
garages, aggregating to 143 units. After utilization of permissible
FSI of 1.0062, the built-up area of its building is stated to be
10,160.75 sq. mtrs. In contrast, the built-up areas of the
bungalows belonging to the Petitioner societies aggregate to
3,492.79 sq. mtrs. On the basis of proportional FSI consumption,
Respondent No. 3 is stated to be entitled to 10,097.84 sq. mtrs. It
was further submitted that the Petitioners have not effectively
rebutted this quantification by producing any sanctioned plans or
credible architect’s certificate. The reliance placed by the
Petitioners on the area statement of N.B. Andurlekar and
Associates, allegedly based on a total station survey, is stated to be
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unsupported by sanctioned layout plans and contrary to the
Government Resolution. Similar criticism was directed against the
certificate of Phatarpekar and Associates.
14.It was finally submitted that denial of Respondent No. 3’s
claim to 10,097.84 sq. mtrs. would result in disproportionate
allocation of land to its society. Even assuming that the Petitioners
assert rights under unregistered agreements, such claims relating
to common areas or amenities must be pursued before the Civil
Court. The District Deputy Registrar exercises limited jurisdiction
in deemed conveyance proceedings and cannot adjudicate complex
title disputes. It was contended that writ jurisdiction is also not the
appropriate forum to determine such issues, and that an aggrieved
party must seek substantive relief before the competent Civil
Court.
I.Introductory Background and Governing Principles of
Finality and Res Judicata:
15.I have considered the papers, the impugned order dated 9
January 2023, the earlier order dated 24 January 2017, and the
rival submissions advanced by learned counsel for the parties.
16.When a statutory authority acts in a quasi judicial capacity, it
hears both sides, examines pleadings and documents, records
reasons and decides rights. Once such an authority decides a
dispute on merits and closes the matter without granting liberty to
file a fresh application, that decision does not remain open-ended.
It achieves finality between the same parties in respect of the same
dispute. Finality serves an important purpose. If parties are
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allowed to repeatedly approach the same authority on the same
dispute, litigation would never end. Every rejection could be
followed by a slightly modified application. That would burden the
system and unsettle rights that have already been adjudicated.
17.The doctrine of res judicata rests on this basic principle. A
matter which has been directly and substantially decided between
the same parties cannot be reopened in a second round. It also
bars issues which could and ought to have been raised in the
earlier proceeding. The law does not permit a party to split its
claims or hold back part of its case and then attempt to agitate it
later in a fresh proceeding. The Court must examine whether the
parties are the same, whether the foundation of the claim arises
from the same transaction or set of facts, and whether the core
issue was directly and substantially in issue earlier. If these
elements are present, then the earlier adjudication binds, whether
right or wrong, unless it has been set aside in appeal or
appropriate proceedings. A litigant cannot avoid this bar by
changing the wording of the relief or by reducing or enlarging the
area claimed. If in substance the claim arises from the same cause
of action and seeks what was earlier refused, it remains barred.
Merely fragmenting the relief, or presenting it in a slightly altered
form, does not create a new cause of action. The law looks at the
real nature of the dispute, not the label attached to it. Therefore,
once a quasi judicial authority has finally decided a matter on
merits and no liberty to reapply has been granted, the parties are
bound by that determination. The only lawful course for an
aggrieved party is to challenge the decision before a higher forum.
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It cannot invite the same authority to revisit and reverse its own
concluded findings in a second round.
II.Tests for Identifying Directly and Substantially in Issue vs
Collateral Issues (Sajjadanashin Sayed Principles):
18.The principles explained in Sajjadanashin Sayed v. Musa
Dadabhai Ummer,
(2000) 3 SCC 350 provide a guidance for courts
to decide whether an earlier finding binds the parties in later
proceedings. The judgment repeatedly stresses that not every
finding recorded in an earlier case becomes final for all future
disputes. Only those findings which formed the real foundation of
the earlier decision will operate as res judicata. Everything else
may remain open. When the Supreme Court speaks about matters
“collaterally or incidentally in issue,” it refers to issues that arise
during the discussion but are not the real point that the court had
to decide. Courts often examine many facts and legal arguments.
Some of them are central. Some are merely supporting or
explanatory. The law draws a clear distinction between the two.
19.The expression used in Section 11 CPC is “directly and
substantially in issue.” This language shows that the law is
concerned with substance, not form. If a matter was central to the
earlier decision and the judgment could not have been delivered
without deciding it, that finding binds the parties later. But if the
matter was only an auxiliary step, or part of the background
reasoning, it does not automatically create a bar in future
proceedings.
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20.The Supreme Court points out that courts across different
jurisdictions have struggled with this distinction. The difficulty lies
in identifying what exactly was decided and what was merely
discussed. Therefore, certain tests have evolved. The most
important test is this. Ask whether the earlier decision could stand
without that particular finding. If the answer is no, then the issue
was directly and substantially in issue. If the answer is yes, then
the finding is likely collateral.
21.Another test explained in the judgment is whether the
finding forms the immediate foundation of the decision or merely
supports the reasoning. A mere step in reasoning is not enough.
The law requires something more solid. The finding must be
fundamental to the final outcome.
III.Application of Res Judicata Principles to Section 11 MOFA
Proceedings and Scope of Competent Authority:
22.Applying these principles to proceedings under Section 11 of
the MOFA Act becomes important because such proceedings are
limited in scope. The competent authority is not deciding every
possible dispute relating to title, ownership or contractual
interpretation. It examines whether statutory conditions for
deemed conveyance are satisfied. Therefore, only those issues
necessary for granting or refusing deemed conveyance are directly
and substantially in issue.
23.In the present factual background, the earlier Section 11
proceeding required the authority to decide whether Respondent
No. 3 was entitled to deemed conveyance over the land claimed,
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considering objections raised by other societies. That question
went to the root of the application. The authority could not have
rejected or granted conveyance without deciding entitlement.
Therefore, that issue was directly and substantially in issue.
24.On the other hand, discussions regarding exact measurement
method, allotment of garden spaces, or comments on certain
clauses may have arisen during the hearing. Unless the earlier
order clearly shows that its final conclusion depended entirely
upon those findings, they remain incidental or collateral. The
Supreme Court cautions that even if an issue is framed or
discussed in detail, it does not automatically become decisive. One
must see whether the adjudication of that issue was material and
essential for the decision.
25.The illustrations given by the Supreme Court make this
distinction clearer. In the Privy Council cases referred to, certain
findings were recorded in earlier proceedings but were later held
not to operate as res judicata because those findings were not
necessary for deciding the earlier case. They were only incidental
observations made while deciding another principal issue. The
same principle applies here. If a finding was not the foundation of
the earlier Section 11 decision, it cannot bar later adjudication.
26.The Supreme Court also explains that even where a finding
appears specific, courts must examine the relief claimed and the
nature of the proceeding. For example, in cases where possession
alone was in issue, a casual observation on title did not become
final. But where possession depended entirely on title, then the
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title finding became binding. The key question always remains
necessity. Was the finding essential to grant or refuse the relief
sought?
27.In Section 11 MOFA proceedings, the principal issues
generally concern statutory entitlement to conveyance. Complex
questions of ownership, inter se rights between multiple societies,
or detailed title disputes may arise in argument, but they are often
beyond the limited scope of the authority. Findings on such
questions, if made only as background reasoning, may not attain
finality as res judicata. Those matters are better suited for civil
courts where full evidence can be led.
28.Therefore, while applying Sajjadanashin Sayed to the present
facts, the Court must carefully separate the core decision from
peripheral observations. The earlier adjudication on entitlement to
deemed conveyance forms the substantive foundation and is
directly and substantially in issue. However, issues which were
secondary, explanatory or not essential for the final conclusion
remain collateral.
29.This separation prevents two extremes. It avoids reopening
matters that have already been finally decided. At the same time, it
ensures that parties are not unfairly barred from litigating issues
which were never truly adjudicated. The judgment in
Sajjadanashin Sayed thus provides a structured and principled
approach. It guides courts to look beyond labels and examine the
real role played by each finding in the earlier decision. Only then
can the doctrine of res judicata be applied correctly and fairly in
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proceedings under Section 11 of the MOFA Act.
30.In Faime Makers (P) Ltd. v. Coop. Societies, (2025) 5 SCC
772
the Supreme Court has made it clear that res judicata is not
confined to civil courts alone. It binds quasi judicial authorities as
well. When a statutory authority hears parties, examines
documents and gives a reasoned decision on facts and law, that
decision has binding force. It remains binding even if it is wrong,
unless it is set aside in appeal, revision or writ proceedings. The
Deputy Registrar, while deciding an application under Section 11
of MOFA, acts as a quasi judicial authority. He issues notice, hears
parties, considers rival claims and passes a reasoned order. That
order is not an administrative opinion. It is an adjudication.
Therefore, the rule stated in
Ujjam Bai v. State of U.P., 1962 SCC
OnLine SC 8
and reaffirmed in Abdul Kuddus v. Union of India,
(2019) 6 SCC 604 squarely applies.
31.The Supreme Court in Faime Makers has reiterated two
important points. First, findings of a quasi judicial body cannot be
reopened in a collateral manner or in a second round between the
same parties. Second, even if the earlier decision contains an error
of fact or law, it still binds unless it is set aside by a higher forum.
A coordinate or successor authority cannot simply take a different
view on the same issue.
32.In proceedings under Section 11 of the Maharashtra
Ownership of Flats Act, the Competent Authority does not sit as a
civil court to decide title in the larger sense. It examines whether
the promoter has failed to execute a conveyance and whether the
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society or flat purchasers are entitled to have a unilateral
conveyance executed. The scope is limited. The authority must see
the agreement, the sanctioned plans, the layout, the nature of the
property described and the rights flowing from the statute.
33.The distinction drawn in Sajjadanashin Sayed turns on one
central test. Was the issue necessary for the earlier decision. Was it
the foundation of that decision. If yes, it is directly and
substantially in issue. If it was only part of the reasoning or a step
taken to reach another conclusion, it is collateral or incidental.
34.Issues directly and substantially in issue under Section 11 of
MOFA:
(i) Whether the applicant is a co-operative housing society
or association of flat purchasers entitled under the Act.
(ii) Whether the promoter has executed the agreement for
sale in accordance with Section 4 and whether the statutory
period for conveyance has expired.
(iii) Whether the promoter has failed or refused to execute
the conveyance.
35.Issues collateral or incidental in Section 11 MOFA
proceedings
(i) Complicated questions of title between the promoter
and third parties, such as rival claims of ownership based on
prior conveyances, inheritance disputes, or partition claims.
(ii) Validity of prior development agreements between
landowners and promoters.
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(iii) Questions regarding internal disputes within the
society, such as validity of elections or membership disputes.
(iv) Findings on zoning violations, FSI calculations, or
planning breaches, unless they are essential to identify what
portion of land must be conveyed.
(v) Issues relating to monetary claims, damages, or accounts
between promoter and purchasers.
IV.Situations Where Res Judicata May Not Apply and
Exceptions to Finality:
36.If the earlier application came to be rejected on account of
non production of requisite documents, procedural defects, non
compliance with statutory requirements, or on any ground which
did not result in a final adjudication of the society’s substantive
entitlement, such decision may not operate as res judicata. In such
circumstances, the issue of entitlement cannot be said to have been
finally and conclusively determined. Consequently, the rejection
would not extinguish the statutory right of the society, particularly
where the defects are subsequently cured, and the application is
presented afresh on a proper and complete foundation.
37.If, in the earlier proceedings, the authority made certain
observations regarding the title of the promoter, the validity of the
development agreement, or the extent of land ownership, but
ultimately rejected the application on a procedural ground, such
observations would be regarded as collateral or incidental in
nature. In that event, those observations would not operate as a
bar in subsequent proceedings. Finality would attach only to the
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issue which constituted the true foundation of the rejection, and
not to ancillary findings recorded in the course of the reasoning.
38.However, where the cause of action undergoes a material
change, the bar of res judicata would not operate. By way of
illustration, such change may arise on account of the subsequent
formation of a duly registered co-operative housing society, the
subsequent expiry of the statutory period prescribed for execution
of conveyance. In such circumstances, a fresh cause of action may
be said to arise, and the principle of res judicata would not apply,
as the factual foundation of the later proceedings is distinct from
that which formed the basis of the earlier adjudication.
V.Comparative Analysis of the 2017 and 2023 Proceedings and
Findings on Merits:
39.On a careful reading of the earlier order dated 25 January
2017, it becomes clear that the competent authority had already
examined the core question which arises again in the present
proceedings. The authority did not dismiss the earlier application
on a technical ground. It considered the claim on merits. In that
earlier round, the authority specifically examined the entitlement
asserted by Respondent No. 3 in respect of an area measuring
about 10,160.81 square metres. The discussion in the order shows
that the authority analysed what portions of land could form part
of the conveyance and what portions could not.
40.The principal reason for rejection in the earlier order was
that the area claimed by Respondent No. 3 included recreation
grounds, internal roads and other common facilities. These areas
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were not treated as automatically available for unilateral
conveyance. The authority recorded that inclusion of such common
areas would affect the rights of other occupants and societies on
the layout. Therefore, the rejection was based on a clear finding
that the claim, as presented, could not be accepted because of
inclusion of common areas.
41.This aspect becomes important when one compares the
earlier application with the present one. The present application
seeks conveyance of 10,097.84 square metres. The difference
between the two figures is marginal. When the descriptions and
components of the area are compared, it is evident that the
common areas which formed the basis of rejection earlier continue
to be substantially included even now. In substance, therefore, the
claim remains the same. The change is only in numerical
adjustment. The foundation of the dispute has not altered.
VI.Final Determination: Binding Effect of Earlier Adjudication
and Invalidity of Later Order:
42.In such circumstances, the law does not permit reopening of
the same controversy before the same authority. Once a quasi
judicial authority has considered entitlement on merits and
rejected the claim, the proper course for the aggrieved party is to
challenge that order before a higher forum. If a party believes that
the earlier decision is wrong in law or fact, the remedy lies in
appeal, revision or writ proceedings. The law does not allow a
party to bypass that route by filing a fresh application with a
slightly modified figure and seeking a different outcome from the
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same authority.
43.Allowing such a course would undermine the principle of
finality. Litigation would become endless. Every unsuccessful
applicant could simply alter the measurements or reframe the
relief and compel the authority to decide the same issue again.
That is precisely what the doctrine of res judicata prevents.
44.The Supreme Court has recognised only a narrow exception
to this rule. If the earlier decision suffers from a jurisdictional
defect, meaning the authority lacked legal power to decide the
matter, then the earlier order may not bind. No such case has been
made out here. The 2017 order was passed by the competent
authority acting within the scope of Section 11 of the MOFA Act.
The parties were heard. Reasons were recorded. Therefore, the
order cannot be ignored or treated as non-existent.
45.Applying the principles laid down in Faime Makers, Ujjam
Bai
and Abdul Kuddus, the position becomes clear. A quasi judicial
determination, once made on merits and not challenged, attains
finality. The authority itself cannot later take a contrary view on
the same issue merely because a fresh application is filed in a
modified form. The earlier decision binds until it is set aside by a
superior forum.
46.When the later order dated 9 January 2023 is examined in
this background, it becomes apparent that it revisits and alters
what had already been settled in 2017. The subject matter of both
applications is substantially identical. The reasons for rejection in
the earlier round, particularly the inclusion of common areas and
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facilities, remain equally relevant in the present claim. There is no
new foundational fact, no change in legal position, and no
jurisdictional error in the earlier order which could justify
reopening.
47.Therefore, the conclusion follows naturally. The issues
decided in the earlier order continue to govern the field. The later
order, to the extent it grants relief contrary to the earlier
adjudication, cannot stand in law. The principle of res judicata
applies squarely in the facts and circumstances of the present case.
48.In view of the foregoing discussion and for the reasons
recorded hereinabove, the following order is passed:
(i) The Writ Petition is allowed.
(ii) The impugned order dated 9 January 2023 passed by
the District Deputy Registrar, Co-operative Societies, Mumbai
City, granting unilateral deemed conveyance in favour of
Respondent No. 3, together with the consequential certificate
issued under Section 11 of the Maharashtra Ownership of
Flats Act, 1963, is hereby quashed and set aside.
(iii) Respondent No. 3 is at liberty to pursue appropriate
remedies before the competent Civil Court, if so advised, for
seeking appropriate reliefs.
(iv) If such civil proceedings are instituted, the Civil Court
shall endeavour to decide the same as expeditiously as
possible and preferably within a period of one year from the
date of filing of the suit, uninfluenced by any observations
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made in this judgment except on the issue of applicability of
res judicata to the proceedings before the Competent
Authority.
(v) Rule is made absolute in the aforesaid terms.
(vi) No order as to costs.
49.Pending interlocutory application(s), if any, stands disposed
of.
50.At this stage, learned Advocate for respondent No.3 seeks
stay of the judgment. Considering the reasons assigned in this
judgment, the effect and operation of the judgment and order is
stayed for a period of eight weeks from today.
(AMIT BORKAR, J.)
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