As per case facts, petitioners, co-owners who developed flats, challenged an order granting deemed conveyance of the entire property to a cooperative society. They argued the Maharashtra Ownership Flats Act, ...
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AGK
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.16411 OF 2024
1.Mahendra Narayan Lade,
Age 68, Occupation Business
2.Jayant Narayan Lade,
Age 50, Occupation Business
3.Santoshi Mahendra Lade,
Age 48, Occupation Business,
All are having address at A/3,
2nd Floor, Laxminarayan Apartment,
Opposite Grampanchayat Fish Market,
At/Post Vangaon, Taluka Dahanu,
District Palghar 401 103… Petitioners
Vs.
1.Laxminarayan Apartment Coop.
Housing Society Limited, having
address at Vangaon, Taluka Dahanu,
District Palghar
2.S.M. Enterprises, a partnership
(dissolved), through its partners
2a.Suresh Ratilal Kansara,
having address at Abhishek Bungalow,
Opposite to Ramchandra & Rajani
Bungalow, At Post Vangaon,
Taluka Dahanu District Palghar 401 103
2b.Paras Sureshchandra Kansara,
At Abhishek Bungalow, Opposite to
Ramchandra & Rajani Bungalow,
At Post Vangaon, Taluka Dahanu,
District Palghar, 401 103
1
ATUL
GANESH
KULKARNI
Digitally signed by
ATUL GANESH
KULKARNI
Date: 2026.05.05
11:29:47 +0530
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2c.Vinay Dhansukhlal Kansara (deceased)
Abhishek Bungalow, Opposite to
Ramchandra & Rajani Bungalow,
At Post Vangaon, Taluka Dahanu,
District Palghar, 401 103
3.The State of Maharashtra … Respondents
Mr. Mandar Soman for the petitioners.
Ms. Hosanna Fernandez or respondent No.1.
Smt. S.D. Chipade for respondent No.3-State.
CORAM :AMIT BORKAR, J.
RESERVED ON :APRIL 27, 2026.
PRONOUNCED ON:MAY 5, 2026
JUDGMENT:
1.By the present writ petition instituted under Articles 226 and
227 of the Constitution of India, the petitioners call in question the
legality, validity, and propriety of the order dated 15 July 2024
passed by the District Deputy Registrar, Cooperative Societies,
Palghar, whereby the Competent Authority has been pleased to
grant deemed conveyance in favour of respondent No.1 Society.
2.The facts giving rise to the present petition, as set out by the
petitioners, may be briefly stated thus. The petitioners claim to be
co-owners of an uncultivated land bearing N.A.S. No. 37/8, Hissa
No. 3, admeasuring 2350 square metres, situated at Mauje
Wangan, Taluka Dahanu, hereinafter referred to as “the said
property”. Petitioner No.4, late Vijay Dhansukhlal Kansara, was
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one of the partners of M/s S.M. Enterprises, a partnership firm
which has since been dissolved. Respondent No.1 is a Cooperative
Housing Society registered on 13 January 2003 under Section 9A
of the Maharashtra Cooperative Societies Act, 1960, in accordance
with Section 10A of the Maharashtra Ownership Flats Act, 1963.
Respondent No.2 is the said partnership firm, now dissolved, and
respondent Nos.2(a) to 2(e) are its erstwhile partners, along with
the petitioners, who had undertaken development of respondent
No.1 Society pursuant to a Development Agreement dated 23
March 1992. It is the case of the petitioners that they were arrayed
as original respondent Nos.4 to 6 before the Competent Authority,
whereas respondent No.1 herein was the original applicant, and
respondent Nos.2 to 2(e) were original respondent Nos.1 to 3. The
impugned order granting deemed conveyance has been passed by
the Competent Authority in those proceedings. The total area of
the said property admeasures approximately 2350 square metres.
Out of the said extent, about 1950 square metres was allotted by
the petitioners to respondent No.2 firm for the purpose of
development under a Development Agreement dated 26 March
1992. Pursuant thereto, respondent No.2 obtained building
permission bearing No. D.P./Uncultivated/Construction/S.R./3/92
dated 27 July 1992 from the Sub-Divisional Officer, Dahanu
Division.
3.In terms of the said building permission, construction was
permitted only on an area of 478 square metres, while the
remaining area of 1872 square metres was required to be kept
open and free from construction. As per the sanctioned plan, the
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permissible built-up area was confined to 478 square metres. It is
stated that respondent No.2 constructed a building known as
“Laxmi Narayan Apartment” on the said property and sold flats
and shops therein to members of respondent No.1 Society. It is
further the case of the petitioners that under the Sale Deeds
executed between respondent No.2 firm and the flat purchasers, it
was expressly stipulated that the additional FSI would vest with
the promoters, who would retain the right to undertake further
construction on the said property, and that conveyance of the land
would be effected only upon completion of the entire
development. It is further stated that respondent No.2 constituted
an association of flat purchasers and shopkeepers, and in
continuation thereof, respondent No.1 Society came to be
registered on 13 January 2003. According to the petitioners, since
the development rights were retained, an application seeking
permission for further development was submitted to the Planning
Authority on 29 June 2022, which was received on 10 October
2022 along with payment of requisite scrutiny fees. It is their
grievance that subsequent to the said application, respondent No.1
Society approached the Competent Authority seeking deemed
conveyance of the entire property, allegedly in breach of the
contractual terms under which development rights and FSI were
expressly reserved in favour of the developers.
4.The petitioners filed their detailed reply opposing the
application for deemed conveyance. It was contended that the
entire property was never subjected to development, as recorded
in the Flat Purchase Agreements, and therefore, no unilateral
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conveyance of the entire land could be granted. It was further
urged that the contractual stipulation reserving additional FSI and
future development rights in favour of the promoters was binding,
and that conveyance was contemplated only upon completion of
full development. Respondent No.2 also filed its reply opposing the
application, contending that only 1950 square metres had been
brought under development and that conveyance of the entire
2350 square metres was impermissible. The application was
opposed on various other grounds as set out in the respective
replies. Respondent No.1 Society filed a rejoinder controverting
the contentions raised by the petitioners.
5.The Competent Authority thereafter proceeded to hear the
parties. During the course of hearing, the Flat Purchase
Agreements were specifically relied upon and brought to the notice
of the Competent Authority. Upon conclusion of arguments, the
matter was reserved for orders. The petitioners submitted written
arguments, and respondent No.2 filed a pursis adopting the
submissions advanced on behalf of the petitioners.
6.By the impugned order dated 15 July 2024, the Competent
Authority allowed the application preferred by respondent No.1
and granted deemed conveyance in respect of the entire property
admeasuring 2350 square metres. The said order proceeds on the
basis that construction on the plot admeasures approximately 1174
square metres and that the entire FSI of the plot has been utilized,
thereby necessitating conveyance of the entire land. It was further
observed that since the Society had been formed in the year 2003,
it was incumbent to convey the entire property, including open
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spaces, roads, and amenities, in favour of respondent No.1 Society.
Being aggrieved thereby, the petitioners have preferred the present
writ petition.
7.Mr. Mandar Soman, learned Advocate appearing for the
petitioners, assails the impugned order principally on the ground
of lack of jurisdiction. It is his submission that the Competent
Authority could not have exercised powers under the Maharashtra
Ownership Flats Act, 1963 inasmuch as the said enactment was
not applicable to Village Vangaon, Taluka Dahanu at the time when
the agreements for sale were executed in the year 1993. He
submits that the State Government had not issued any notification
under Section 1(3) of the said Act bringing the said village within
its fold at the relevant time. Reliance is placed on the affidavit filed
on behalf of the State Government clarifying that it is only by
virtue of Notification dated 17 February 2009 that the provisions
of the said Act were extended to areas where it was not previously
applicable. It is urged that the operation of a statute is prospective
in nature and becomes enforceable in a particular area only from
the date on which it is notified for that area. According to him, the
Act was not in force in the concerned locality in the year 1993
when the agreements were executed. It is further submitted that
an application for deemed conveyance presupposes the existence
of an agreement under Section 4 of the Act. Since the Act itself
was not applicable to the said village at the relevant time, such an
application could not have been entertained. He further submits
that there is no provision in the Act conferring retrospective or
retroactive operation, and in any case, substantive rights and
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obligations cannot be imposed retrospectively. In support of the
aforesaid submissions, learned counsel for the petitioners has
placed reliance upon the decisions of the Supreme Court in
Civil
Appeal No. 5815 of 2019 in the case of Assistant Excise
Commissioner vs. Esthappan Cherain and another,
as well as in
Shanti Conductors Pvt. Ltd. vs. Assam State Electricity Board
reported in (2019) 19 SCC 529
, and also on the judgment in Writ
Petition (A.S.) No. 8978 of 2021 in the case of Vilas Deshpande vs.
Government of Maharashtra
.
8.It is further submitted by the learned counsel that the second
ground of challenge pertains to the extent of the property.
According to him, the total area of the property is 2350 square
metres, out of which only 1950 square metres was made available
to respondent No.2 for development under the Development
Agreement dated 26 March 1992. This aspect, according to him, is
also reflected in the schedule to the agreements executed with the
flat purchasers. It is therefore contended that the respondent
Society could not have claimed conveyance of an area larger than
that which was contractually agreed to be developed. Learned
counsel further submits that the impugned order is vitiated on
account of violation of principles of natural justice, inasmuch as
the Competent Authority has failed to afford an opportunity to the
petitioners to verify the correctness of the unilateral instrument of
conveyance, as contemplated under Section 11 of the said Act. On
this ground also, it is urged that the impugned order deserves to
be set aside.
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9.Per contra, Ms. Fernandez, learned Advocate appearing for
respondent No.1 Society, supports the impugned order. It is
submitted that despite the Society having been duly registered in
the year 2003 and the flat purchasers having been in possession of
their respective premises for over two decades, respondent No.2,
being the promoters, have failed to execute the conveyance in
favour of the Society. It is her submission that the Society has been
in lawful possession and enjoyment of the property since its
registration and has been maintaining the same, while its members
have been residing in the premises for a considerable period.
Despite repeated requests and follow-up, respondent No.2 has
neglected to perform its statutory obligation under Section 11 of
the Act to convey the property in favour of the Society. Learned
counsel further submits that building permission was obtained on
27 July 1992, and the sanctioned layout plan dated 25 February
1992, which was shown to the flat purchasers at the time of sale,
indicated the total area of the property as 2350 square metres. It is
pointed out that even in the present petition, the total area is
stated to be 2350 square metres, comprising 478 square metres
earmarked for construction and the remaining area required to be
kept open. It is submitted that upon formation and registration of
the Cooperative Housing Society on 13 January 2003, an
enforceable right accrued in favour of the Society to seek
conveyance. It is further submitted that under clauses 11 and 12 of
the agreements for sale, respondent No.2 was under an express
obligation to execute the conveyance and transfer all right, title,
and interest in the property in favour of the Society upon its
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formation. Despite such obligation becoming operative, respondent
No.2 has failed to take any steps to execute the conveyance.
10.It is further submitted that the affidavit filed by the State of
Maharashtra dated 20 February 2026 clearly records that by virtue
of Notification dated 17 February 2009 bearing No. MA/SR/South-
229/2006-08, Village Vangaon, Taluka Dahanu, District Palghar
falls within the applicability of the Maharashtra Ownership Flats
Act, 1963. It is contended that once the Act has been made
applicable to the area, the provisions thereof govern the rights and
obligations of the parties. The applicability of the Act, according to
her, does not depend upon the date of execution of the agreement
for sale. It is submitted that the obligations cast under the Act are
continuing in nature and subsist until they are duly performed,
culminating in conveyance of title in favour of the Society. Upon
the issuance of the notification dated 17 February 2009,
respondent No.2 became bound to execute the conveyance within
a reasonable period, and in any case within the statutory period
prescribed.
11.Learned counsel further submits that the petitioners have not
specifically disputed the applicability of the Act and the Rules
framed thereunder to the said property. It is urged that by virtue of
the Notification dated 17 February 2009, the provisions of the Act
were extended to the entire State of Maharashtra, including the
area in question. Consequently, the statutory obligations under
Section 11 of the Act and Rule 9 of the Rules of 1964 became fully
enforceable against respondent No.2. It is contended that despite
the Act becoming applicable, respondent No.2 has failed to execute
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the conveyance in favour of the Society in accordance with the
statutory mandate, thereby continuing in breach of its obligations.
12.Smt. S.D. Chipade submitted that Respondent No.3 has filed
an affidavit placing reliance upon Section 1(3) of the Maharashtra
Ownership Flats (Regulation of the Promotion of Construction,
Sale, Management and Transfer) Act, 1963. It is stated therein that
a subsequent Notification dated 17 February 2009, issued and
published by the State Government of Maharashtra, has been
produced on record. By the said Notification, in addition to the
areas to which the Act was previously applicable, the entire
territory of the State of Maharashtra has been brought within the
purview of the provisions of the said Act. A copy of the said
Notification dated 17 February 2009, bearing No. MA/SR/South-
229/2006-08, has been annexed to the affidavit and marked as
Exhibit R-1. It is further stated that, by virtue of the said
Notification, Village Vangaon, Taluka Dahanu, District Palghar,
stands included within the jurisdiction and applicability of the
provisions of the said Act.
REASONS AND ANALYSIS:
13.I have gone through the pleadings, the rival submissions and
the material placed on record.
14.For the purpose of adjudication of the issues arising in the
present matter, it is necessary to reproduce and consider the
relevant provisions of the Maharashtra Ownership Flats
(Regulation of the Promotion of Construction, Sale, Management
and Transfer) Act, 1963, which are set out herein below.
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“2(c): “promoter” means a person and includes a partnership
firm or a body or association of persons whether registered
or not, who constructs or causes to be constructed a block or
building of flats [or apartments] for the purpose of selling
some or all of them to other persons, or to a company, co-
operative society or other association of persons, and
includes his assignees; and where the person who builds and
the person who sells are different persons, the term includes
both;
15.Section 2(c) defines the expression “promoter” in a wide
manner. It includes a partnership firm, or anybody or association
of persons, whether registered or not, who constructs or causes to
be constructed a building of flats for the purpose of selling them.
The definition extends to assignees, and also makes it clear that
where the person who builds and the person who sells are
different, both would fall within the meaning of promoter. This
language designed to ensure that no entity involved in the process
of development and sale can escape liability by taking technical
pleas regarding its role. Thus, in the present case, even if the
development was undertaken through a firm, and even if there
were multiple partners or entities acting together, all such persons
who participated in the construction and sale would come within
the purview of the expression “promoter”.
16.When this definition is read along with the scheme of
Sections 4, 10 and 11, it becomes clear that the statute fixes
responsibility upon the promoter not merely at the stage of
entering into agreements, but also at the stage of formation of the
society and conveyance of title. The obligation is attached to the
status of being a promoter travels with that status. It does not
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depend upon the date on which the agreement was executed
alone. Therefore, once a person satisfies the description of a
promoter, he is bound by the statutory duties so long as the
consequences of his acts, such as the sale of flats and existence of
the building and society, continue to exist.
17.It is in this background that the argument regarding
retrospectivity has to be understood. The Act does not declare that
agreements executed prior to its applicability are void or invalid. It
does not reopen or unsettle past transactions which have already
been concluded. In that sense, it is not retrospective. However, the
Act becomes applicable to regulate the relationship which
continues between the promoter and the flat purchasers or the
society, where obligations remain unperformed. The conveyance of
title is one such obligation. Until the title is conveyed, the
promoter continues to hold interest in the property, and the society
continues to be deprived of ownership. This situation is a
continuing state.
18.Therefore, once the Act is brought into force in a particular
area, the promoter, as defined under Section 2(c), becomes subject
to its provisions in respect of such continuing obligations. The law
does not travel back to undo what has already been done, but it
regulates what remains to be done. The failure to execute
conveyance is an ongoing default. The statute, therefore, attaches
consequences to such continuing default from the date it becomes
applicable. This approach does not disturb completed transactions,
but it ensures that promoters cannot avoid their obligations by
relying upon the timing of the original agreement.
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19.In this view of the matter, the definition of “promoter” is
important because it attaches liability upon all persons who have
undertaken the development and sale. Such persons cannot be
permitted to contend that that they stand exempted from statutory
duties merely because the agreements were executed at a time
when the Act was not applicable. The obligation to convey, being a
essential incident of the development and sale, continues, and
once the Act becomes applicable, it regulates that obligation in
accordance with its provisions.
20.The first submission advanced on behalf of the petitioners is
based upon Section 1(3) of the Act. It states that while the Act
extends to the whole of the State, its operative provisions do not
apply everywhere immediately, but come into force in such areas
and from such dates as may be notified by the State Government.
In the present case, the material placed on record, particularly the
notification dated 17 February 2009, indicates that Village
Vangaon was brought within the scope of the Act only from that
date. Therefore, it would not be correct to say that the Act was
applicable in that village in the year 1993 when the agreements for
sale were executed. To this limited extent, the contention of the
petitioners has substance.
21.The statute, especially when it creates obligations and
liabilities, is generally understood to operate prospectively. It does
not ordinarily reach back to govern transactions which were
completed at a time when such law was not in force, unless such
intention is expressed clearly or can be necessarily inferred. The
principle explained in
Mithilesh Kumari v. Prem Behari Khare,
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(1989) 2 SCC 95 supports this approach. However, that principle
cannot be applied mechanically. One must look at the wording of
the statute, its object, and the kind of right or duty it deals with. In
the present case, since the Act itself was not in operation in the
area in 1993, the agreements of that period cannot be treated as
agreements under Section 4. This aspect cannot be ignored lightly.
The record shows, through the affidavit of the State, that by
notification dated 17 February 2009, the area in question was
brought within the ambit of the Act. Once such notification came
into force, the parties became governed by the provisions of the
Act, in respect of what remained to be performed. It is important
to note that the society had been formed in the year 2003, and the
flat purchasers were in occupation of their premises. The promoter,
however, had not executed the conveyance. This failure continued
even after the Act became applicable. The duty under Section 11
continues until the conveyance is executed. Therefore, when the
Act came into force in the area, the promoter could not take a
stand that the earlier date of the agreements completely excludes
the operation of the statute. The law, once applicable, governs the
existing situation and requires compliance with the obligations
which remain unfulfilled.
22.The petitioners have contended that Section 4 is the basic
requirement for invoking the remedy of deemed conveyance, and
in absence of an agreement under Section 4, no proceedings under
Section 11 could be entertained. Section 11 is enacted to enforce
conveyance where the promoter has failed to act in accordance
with law and the understanding with flat purchasers. It cannot be
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read in isolation. The provision takes into account the entire
background, namely the agreements entered into, the construction
carried out, the formation of the society, and the failure of the
promoter to convey title. If, at the time when the application is
made, the Act is already applicable to the area and the society is in
existence, it cannot be said that the authority lacks power merely
because the agreements were executed before the notification. To
accept such an argument would defeat the purpose of extending
the Act to new areas. It would allow promoters in such areas to
avoid their statutory obligations by relying only on the timing of
the agreements. Such an interpretation would render the
legislative exercise ineffective.
23.The duty cast upon the promoter is not a one time formality
which stands completed by execution of agreements. It is an
obligation to complete title and to convey the right, title and
interest in the land and building to the society. Until that act is
performed, the obligation remains unfulfilled. It is necessary to
consider that Section 11 is enacted as a remedial provision to
address a mischief. The Supreme Court in
Nahalchand Laloochand
Pvt Ltd v. Panchali Cooperative Housing Society Ltd
.,
(2010) 9 SCC
536 has recognised that the scheme of the Act is to protect flat
purchasers from exploitation and to ensure that promoters do not
retain undue control over the property after selling flats. The Court
has emphasised that the rights of flat purchasers and the society
are substantive and cannot be defeated by technicalities or by the
conduct of the promoter. Seen in this light, the obligation to
convey is statutory in character. Such statutory obligation
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continues until it is fully discharged.
24.The promoter’s failure to convey title is not a completed
wrong confined to the past. It is a subsisting injury to the society,
which remains without title. Therefore, the consequences of such
failure must be assessed with reference to the position as it exists
when the authority is approached.
25.Once this position is accepted, the effect of subsequent
application of the statute becomes clearer. When the Act was
extended to the concerned area by notification, the rights
governing the parties stood altered prospectively. From that point
onwards, the continuing default of the promoter came within the
purview of the Act. A statute may operate upon present situations
and may affect present rights and obligations, even if the initial
transaction was prior in time, provided the statute is applied to
present and future stages. In that sense, the Act does not invalidate
past transactions but regulates the relationship and the
unperformed obligations.
26.Therefore, when an application for deemed conveyance is
made after the Act has become applicable to the area, the
Competent Authority is required to examine the matter as on that
date. The authority is not confined to the historical point of time
when the agreement was executed. It must consider whether the
society exists, whether the promoter has failed to execute
conveyance, whether the documents support the claim, and
whether it is a fit case to enforce conveyance. The power under
Section 11 is thus attracted by the failure of the promoter, and not
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defeated because the agreements are prior to the notification.
27.The Supreme Court in Shanti Conductors Pvt. Ltd. has taken
view that the 1993 Act is prospective in nature. The Court has
said that the liability created under that Act does not connect with
any past event which already happened before the law came into
force. The duty to make payment and the consequences attached
to such duty arise only after the Act started operating. Because of
this position, the Court did not find it necessary to even describe
the law as retroactive. It treated the Act as one which works only
in future time and not touching what is already completed.
28.When this reasoning is brought to the facts of the present
case, it becomes necessary to see its correct application. The
petitioners have relied on this judgment as if it gives complete
support to their case. What the Supreme Court has said is that a
statute should not disturb past and completed transactions or take
away vested rights unless such intention is shown. It does not
mean that every law becomes useless for situations which started
earlier but are still continuing. In the present case, the Act is not
reopening or cancelling the agreements made in the year 1993. It
is not declaring them void. Those agreements remain as they are.
But what continues even today is the failure of the promoter to
execute conveyance in favour of the society, though the society is
already formed and members are in possession. Therefore,
applying the Act to such situation cannot be said to be giving it
retrospective effect in the legal sense. The law is not going
backward to undo something already finished. It is stepping in
after its enforcement to regulate a situation which is still
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incomplete and where obligation is not yet performed. Once the
Act came into force in that area, it started governing such existing
and continuing obligations. The difference between a past
completed transaction and a continuing default becomes important
here. For this reason, though the general rule of prospectivity is
well settled, it does not help the petitioners in the present facts.
The promoter cannot avoid his duty to convey by only pointing to
the old date of agreement. The obligation is still pending. The law
now applies to it. Hence, the reliance placed on the principle of
prospectivity does not take the petitioners’ case further.
29.The judgment in Esthappan Cherian sets out the settled rule
regarding retrospective operation of a statute. In paragraph 16, the
Supreme Court has observed that there are many decisions which
consistently hold that a law should not be read as retrospective
unless such intention is clearly expressed. The Court has referred
to the Constitution Bench judgment in
CIT v. Vatika Township Pvt.
Ltd.
,
(2015) 1 SCC 1 and has reiterated that law looks forward and
not backward. A person conducts his affairs based on the law
which is in force at that time. If a later law is applied to past acts,
it may disturb settled positions and create difficulty. Therefore,
unless the legislature clearly provides otherwise, a statute should
not alter past transactions or impose fresh burdens in respect of
them. This principle is commonly expressed by saying that law
looks forward and not backward.
30.However, while applying this principle to the present case, a
necessary distinction must be kept in view. The issue here is not
about setting aside or invalidating the agreements executed in the
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year 1993. Those agreements are not being reopened or disturbed.
No new liability is being imposed in respect of acts which stood
completed at that time. What is under consideration is the
continued failure of the promoter to execute conveyance even after
the society has been formed, and the purchasers have taken
possession. This situation cannot be treated as a closed or
completed transaction. It is a continuing state of default which still
subsists. In this background, the application of Section 11 after the
Act became applicable to the area cannot be regarded as giving
retrospective effect to the statute. The law is not being applied to
undo the past. It is being applied to regulate a present and
continuing obligation which remains unperformed. The flat
purchasers, having paid consideration and being in occupation, are
entitled to receive conveyance. If the promoter is permitted to
avoid this obligation merely by referring to the date of the
agreements, it would result in injustice. Therefore, though the
principle laid down in the above judgment is binding, it must be
understood in its context. In these circumstances, the reliance
placed by the petitioners on the said judgment does not advance
their case.
31.The next ground raised by the petitioners relates to the
extent of the property which is made subject matter of the deemed
conveyance. According to them, 1950 square metres was made
available for development under the Development Agreement
dated 26 March 1992, and therefore, the respondent society could
not have claimed conveyance of land admeasuring 2350 square
metres. The sanctioned layout plan shows the total plot area as
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2350 square metres. The agreements executed with flat purchasers
also refer to the entire property. Even in the schedule forming part
of such agreements, the total area is consistently described as 2350
square metres. It is further seen that out of this, only 478 square
metres was permitted for construction, while the remaining area
was required to be kept open. This itself indicates that the project
was conceived as a composite unit where the constructed portion
and the open areas together formed projest.
32.In such a situation, it cannot be accepted that the society is
entitled only to a limited portion of land. Once the flats were sold
with reference to the entire layout, the promoter cannot later seek
to restrict the conveyance by relying upon a separate development
arrangement which was not the basis of the purchasers’
understanding. Internal arrangements between co-owners or
between the owners and the developer may regulate their inter se
rights, but such arrangements cannot override the rights created in
favour of third party purchasers when the project documents and
sanctioned plan indicate otherwise.
33.The petitioners have further contended that the agreements
for sale reserved additional FSI in favour of the promoters and
permitted them to undertake further construction, and therefore
the conveyance ought not to have been granted in respect of the
entire property. Section 11 casts an obligation upon the promoter
to convey his right, title, and interest in the land and building to
the society. The language of the provision is wide and does not
require a narrow interpretation. The normal rule is that once the
society is formed and the flats are sold, the land beneath the
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building along with appurtenant areas must be conveyed to the
society. In the present case, the competent authority has recorded
that the entire FSI available on the plot has been utilized and that
construction has been carried out on a substantial portion of the
land. In such circumstances, the direction to convey the entire
property cannot be termed as arbitrary or perverse.
34.On an overall consideration, therefore, it emerges that the
competent authority has taken into account these relevant aspects
and has arrived at its conclusion. I do not find any jurisdictional
error or perversity in the impugned order so as to warrant
interference in exercise of writ jurisdiction.
35.For these reasons, the writ petition is devoid of merit. The
impugned order dated 15 July 2024 granting deemed conveyance
in favour of respondent No.1 society is upheld. The writ petition is
accordingly dismissed. There shall be no order as to costs.
36.At this stage, Mr. Soman, learned Advocate for the petitioner
seeks stay of the operation of this judgment. However, for the
reasons recorded above, the oral prayer for stay stands rejected.
(AMIT BORKAR, J.)
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