As per case facts, Eversmile Properties (Developer) initiated a phased development named "SRISHTI." Flat purchasers from the initial Sector III formed the Federation, which was registered in 2003. The Developer ...
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AGK
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.5520 OF 2023
Eversmile Properties Private Limited,
a company incorporated under the
provisions of the Companies Act, 1956,
and having its registered office at
Plot No.75, Old Block Factory, Sector-1,
Srishti, Penkar Pada, Mira Road (East),
Thane - 401 104… Petitioner
Vs.
1.The Competent Authority & District
Deputy Registrar of Coop. Societies,
Thane and having office at Gaondevi
Market Building, Near Gaondevi Gr.,
Gokhale Road, Thane (West) 400 602
2.Shristi Sector III Coop. Housing Society
Federation Limited, having office at
Cabin Office, Shristi Complex,
Mira Road (East), Taluka and
District Thane 401 107
3.Kumar Saihans Pradhan,
At Penkar Pada, Shristi, Mira Road (East),
Taluka & District Thane 401 107.
4.Mandakini Prabhakar Mhatre,
At Penkar Pada, Shristi, Mira Road (East),
Taluka & District Thane 401 107
5.Swati Saihans Pradhan,
At Penkar Pada, Shristi, Mira Road (East),
Taluka & District Thane 401 107
6.Mira Bhayandar Muncipal Corporation
1
ATUL
GANESH
KULKARNI
Digitally signed by
ATUL GANESH
KULKARNI
Date: 2026.04.07
12:12:20 +0530
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Indira Gandhi Bhavan, Chhatrapati
Shivaji Maharaj Marg, Bhayandar (West),
Thane 401 101
7.Shristi Complex Sector III Coop. Housing
Society Association Limited,
Shristi Complex, Mira Road (East),
Taluka & District Thane 401 107
8.Joint Sub Registrar of Assurances Thane
No.1, Ground Floor, MTNL Building,
Charai, Thane (West) 400 601
9.Joint Sub Registrar of Assurances Thane
No.1, Mahila Mandal Building, Talavpali,
Opposite Perfect Driving School,
Thane (West) 400 601
10.The Talathi Saza Mire (Penkarpada),
O/l. Talathi Saza Mire (Penkarpada),
Near Kashi-Mira Police Station,
Adjacent to Western Express Highway,
Kashi-Mira, District Thane 401 107
11.The Circle Officer, Mira-Bhayander,
O/o The Additional Tahasildar
Mira-Bhayander, Near Maxus Mall,
Padmavati Nagar, Bhayandar (West),
Thane 401 101… Respondents
WITH
WRIT PETITION NO.10111 OF 2024
Shristi Complex Sector III Coop. Housing
Society Association Limited, an Association
registered under the provisions of the
Maharashtra Coop. Societies Act, 1960,
having its address at Shristi Complex,
Mira Road (East),
Taluka & District Thane 401 107… Petitioner
Vs.
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1.The Competent Authority & District
Deputy Registrar of Coop. Societies,
Thane and having office at Gaondevi
Market Building, Near Gaondevi Gr.,
Gokhale Road, Thane (West) 400 602
2.Eversmile Properties Private Limited,
a company incorporated under the
provisions of the Companies Act, 1956,
and having its registered office at
Plot No.75, Old Block Factory, Sector-1,
Srishti, Penkar Pada, Mira Road (East),
Thane - 401 104
3.Azure Tree Townships Private Limited,
A company incorporated under the
provisions of the Companies Act, 2013
and having address at 101, Kalpataru
Synergy, Opp. Grand Hyatt,
Santacruz (East), Mumbai 400 055
4.Mira Bhayandar Mahanagarpalika,
Indira Gandhi Bhavan, Chhatrapati
Shivaji Maharaj Marg, Bhayandar
(West), Thane 401 101
5.Shristi Sector III Coop. Housing Society
Federation Limited, having office at
Cabin Office, Shristi Complex,
Mira Road (East), Taluka and
District Thane 401 107
6.Swati Saiprasad Pradhan,
At Penkar Pada, Shristi, Mira Road
(East), Taluka & District Thane 401 107
7.Chandrakant Janardhan Mhatre,
At Penkar Pada, Shristi, Mira Road
(East), Taluka & District Thane 401 107…
Respondents
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WITH
WRIT PETITION NO.10113 OF 2024
Shristi Complex Sector III Coop. Housing
Society Association Limited, an Association
registered under the provisions of the
Maharashtra Coop. Societies Act, 1960,
having its address at Shristi Complex,
Mira Road (East),
Taluka & District Thane 401 107… Petitioner
Vs.
1.The Competent Authority & District
Deputy Registrar of Coop. Societies,
Thane and having office at Gaondevi
Market Building, Near Gaondevi Gr.,
Gokhale Road, Thane (West) 400 602
2.Shristi Sector III Cooperative Housing
Society Federation Limited,
Having office at Cabin Office,
Srishti Complex, Mira Road (East),
Thane - 401 104
3.Kumar Saihans Pradhan,
At Penkar Pada, Shristi, Mira Road
(East), Taluka & District Thane 401 107.
4.Mandakini Prabhakar Mhatre,
At Penkar Pada, Shristi, Mira Road
(East), Taluka & District Thane 401 107
5.Swati Saiprasad Pradhan,
At Penkar Pada, Shristi, Mira Road
(East), Taluka & District Thane 401 107
6.Eversmile Properties Private Limited,
a company incorporated under the
provisions of the Companies Act, 1956,
and having its registered office at
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Plot No.75, Old Block Factory, Sector-1,
Srishti, Penkar Pada, Mira Road (East),
Thane - 401 104
7.Azure Tree Townships Private Limited,
A company incorporated under the
provisions of the Companies Act, 2013
and having address at 101, Kalpataru
Synergy, Opp. Grand Hyatt,
Santacruz (East), Mumbai 400 055
8.Mira Bhayandar Mahanagarpalika,
Indira Gandhi Bhavan, Chhatrapati
Shivaji Maharaj Marg, Bhayandar
(West), Thane 401 101… Respondents
Mr. Sanjeev Gorwadkar, Senior Advocate with Mr.
Vishal Kanade, Mr. Suneet Tyagi, & Mr. Swaraj M.
Savant i/by Makarand B. Savant for the petitioner in
WP/5520/2023, for respondent No.5 in
WP/10111/2024 & for respondent No.2 in WP/10113/
2024.
Mr. Atul Damle, Senior Advocate with Mr. Amogh
Singh, Mr. Santosh Pathak, & Mr. Kailash Pathak i/by
Law Origin for the petitioner in WP/10111/2024 &
WP/10113/2024.
Mr. Chetan Kapadia, Senior Advocate with Mr. Sunny
Shah, Mr. Viral Dilip Shukla, Ms. Priti Shukla and Mr.
Rudra M. Dani i/by Shukla & Associates for respondent
No.2 in WP/5520/2023 & WP/10113/2024, and for
respondent No.5 in WP/10111/2024.
Ms. S.S. Jadhav, AGP for the State.
Mr. N.R. Bubna with Ms. Pooja Naik for respondent
No.8-MBMC in WP/10113/2024 & WP/10111/2024.
Mr. Mayuresh Lagu with Mr. Sagar Patil, and Mr.
Shashank Dubey for respondent No.6-MBMC in
WP/5520/2023.
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CORAM :AMIT BORKAR, J.
RESERVED ON :MARCH 30, 2026.
PRONOUNCED ON:APRIL 7, 2026
JUDGMENT:
1.Inasmuch as all the present writ petitions involve
substantially the same questions of law and arise out of a common
set of facts, they are being heard together and are disposed of by
this common judgment, so as to avoid repetition of facts and
conflicting findings.
2.By these writ petitions filed under Articles 226 and 227 of
the Constitution of India, the petitioner in Writ Petition No. 5520
of 2023 has assailed the order dated 27 March 2023 passed by
respondent No. 1 under Section 11(3) of the Maharashtra
Ownership of Flats (Regulation of Promotion of Construction, Sale,
Management and Transfer) Act, 1963, whereby Application No.
797 of 2022 preferred by respondent No. 2 came to be allowed
and a certificate of unilateral deemed conveyance was issued in
respect of the lands bearing Old Survey Nos. 218, 219, 228/1,
230/1, 231 (part), 232 (part), 233 (part) and 240 (part),
corresponding to New Survey Nos. 50, 51, 60/1, 62/1, 63 (part),
65 (part), 66 (part) and 64/2 (part), situated at village Pankar
Pada, Mira Road, District Thane, admeasuring about 50,000 square
meters. The petitioner has further challenged the deed of deemed
conveyance bearing Registration No. 2408 of 2023 dated 12 April
2023, which has been registered under Section 11(5) of the said
Act.
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3.The petitioner in Writ Petition No. 10113 of 2024, which is
an adjoining society, has also questioned the said order; however,
the challenge is founded on entirely distinct grounds, primarily
relating to the alleged incorrect calculation and determination of
the area, which is different from the grounds raised in Writ
Petition No. 5520 of 2023.
4.The petitioner in Writ Petition No. 10111 of 2024, being the
same adjoining society, has further impugned the order dated 12
January 2024 passed by respondent No. 1, whereby Application
No. 439 of 2023 filed by the said petitioner seeking grant of
unilateral deemed conveyance in its favour came to be rejected.
5.For the sake of convenience, the petitioner in Writ Petition
No. 10113 of 2024 is hereinafter referred to as “the Association”,
respondent No. 2 is referred to as “the Federation”, and the
petitioner in Writ Petition No. 5520 of 2023 is referred to as “the
Developer”.
6.The facts necessary for adjudication of these writ petitions,
as borne out from the record, indicate that between the years 1980
and 1993, the Developer acquired development rights in respect of
lands bearing Old Survey Nos. 218, 219, 228/1, 230/1, 231, 232,
233 and 240/2, corresponding to New Survey Nos. 50, 51, 60/1,
62/1, 63, 65, 66 and 64/2, admeasuring in aggregate about
2,00,230.07 square meters, situated at village Penkar, Mira Road,
District Thane. Pursuant thereto, the Developer commenced
development of the said larger property and constructed 34
buildings and 10 row houses on a portion admeasuring about
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50,999 square meters, being the subject property, and entered into
agreements for sale with various flat purchasers in respect thereof.
A model agreement for sale dated 13 August 1993 executed by the
Developer records that the larger property was proposed to be
developed in a phased manner, namely in Sections I to VI, and that
the said agreement pertained to construction in Sector III. It
further stipulated that the ultimate conveyance would be executed
in favour of a corporate body in respect of Sector III and that the
agreement would be governed by the provisions of MOFA.
However, the agreements for sale did not specify or disclose the
exact area of Sector III. It is also evident that at the time of
execution of the agreements, there was no disclosure or indication
of any further construction being proposed in Sector III. In the
period between 1995 and 2000, as many as 20 separate co-
operative housing societies of flat purchasers came to be registered
in respect of the subject property. Thereafter, on 12 May 2003,
respondent No. 2, namely the Federation, was formed and
registered as an apex body comprising the said 20 societies.
7.On 18 October 2007, the Developer entered into a
Development Agreement with Azure Tree Townships Private
Limited for undertaking further construction of 16 buildings on
lands bearing Old Survey Nos. 231 (part), 232 (part), 233 (part),
234 (part) and 240 (part), corresponding to Survey Nos. 63 (part),
65 (part), 66 (part), 67 (part) and 64 (part), admeasuring about
30,880 square meters at village Penkarpada, District Thane, being
the property of respondent No. 7, as more particularly described in
the Second Schedule to the said Development Agreement.
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8.On 16 June 2008, the Federation instituted Special Civil Suit
No. 460 of 2008 before the Civil Judge, Senior Division, Thane,
inter alia seeking conveyance of the subject property. In the period
between 2010 and 2011, the Developer along with Azure Tree
Townships Private Limited executed agreements for sale with
various flat purchasers in relation to the development carried out
in the property pertaining to the Association. The Association itself
came to be registered on 2 February 2016 comprising 16 societies.
The aforesaid Special Civil Suit No. 460 of 2008 came to be
dismissed for default on 4 October 2017, whereafter the
Federation filed an application for restoration of the said suit on 27
October 2017.
9.On 21 May 2019, the Developer forwarded a draft deed of
assignment of leasehold rights to both the Federation and the
Association. Thereafter, the Federation filed Application No. 797 of
2022 before respondent No. 1 on 2 December 2022 seeking
unilateral deemed conveyance of the subject property. The
Developer filed its affidavit in reply to the said application on 31
January 2023 opposing the grant of such conveyance.
10.By order dated 27 March 2023, respondent No. 1 allowed
the said Application No. 797 of 2022 filed by the Federation and
issued a certificate of unilateral deemed conveyance in respect of
the subject property in favour of the Federation. Pursuant thereto,
on 31 March 2023, the Federation lodged the deemed conveyance
deed for registration before respondent No. 8. Thereafter,
respondent No. 8 issued a show cause notice dated 3 April 2023
under Section 11(5) of MOFA, inter alia to the Developer and the
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Association. The Developer addressed communications dated 10
April 2023 and 11 April 2023 to respondent No. 8 requesting that
the deemed conveyance deed should not be registered.
Notwithstanding the same, the deemed conveyance deed came to
be registered on 11 April 2023 bearing Serial No. 2408 of 2023.
11.The Developer served Civil Writ Petition No. 5520 of 2023
upon the Federation on 11 April 2023 and 12 April 2023. The said
writ petition was listed before this Court on 20 April 2023;
however, it could not be taken up for hearing due to paucity of
time. The Association thereafter filed Application No. 439 of 2023
before respondent No. 1 on 14 July 2023 seeking unilateral
deemed conveyance in respect of an area admeasuring about
47,101.52 square meters, which included a part of the subject
property. The Association also filed an affidavit in reply dated 28
August 2023 supporting the challenge raised by the Developer to
the order granting conveyance in favour of the Federation. The
Federation filed its limited affidavit in reply on 31 August 2023.
The writ petition filed by the Developer came up for consideration
on several dates in September 2023; however, no interim relief
was granted, though the Developer was permitted to amend the
petition so as to challenge the registered conveyance deed.
12.Ultimately, by order dated 12 January 2024, respondent No.
1 rejected Application No. 439 of 2023 filed by the Association
seeking unilateral deemed conveyance.
13.Mr. Damle, learned Senior Advocate appearing on behalf of
the Federation, along with Mr. Gorwadkar, learned Senior
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Advocate for the Developer, invited attention to Clause Nos.
1C(vii)(a), (b) and (viii) of the agreements for sale. He submitted
that Clause (a) stipulates that the promoter is undertaking
development of the entire land, known as “SRISHTI”, in a phased
manner comprising Sections I to VI, excluding the portion falling
under the ‘G’ Zone, as delineated in the layout plan annexed as
Exhibit B. Clause (b) records that the promoter intended to acquire
or purchase additional lands belonging to other owners, which
may be contiguous, adjoining or situated in the vicinity of the said
entire land, with a view to integrate such lands into the overall
scheme of development of the project known as “SRISHTI”. Clause
(viii) further provides that the promoter is entitled and obligated
to construct buildings in the various sectors forming part of the
said entire land, in accordance with the agreement, the relevant
orders, and the building plans duly sanctioned by the Mira
Bhayander Municipal Council and other competent authorities.
Relying upon Clause Nos. 2(e), (fg), (l)(i) to (iv) and (g), as well
as Clause Nos. 13(A) and 13(B)(i), Mr. Damle contended that
Sector III was clearly identified as a distinct project and that its
scope and extent were made known to each individual purchaser.
It was therefore urged that the Federation cannot object to the
inclusion of the recreational ground area in the unilateral deemed
conveyance executed in favour of the petitioner society.
14.In the alternative, Mr. Damle submitted that the purchasers
forming part of the petitioner society in Writ Petition No. 10111 of
2024 have expressed willingness to become members of the
Federation, thereby resolving any inter se dispute regarding
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entitlement.
15.It was further contended that while passing the impugned
order, respondent No. 1 has placed reliance upon documents
which lack legal validity. In particular, reliance on the Architect’s
Certificate dated 30 November 2022 was questioned, as the said
certificate, being a brief document, does not disclose the basis or
methodology adopted for its issuance. It does not indicate the
sanctioned plans considered nor does it explain the manner in
which the area of 50,999 square meters has been determined as
being attributable to respondent No. 2. It was further submitted
that the said Architect’s Certificate does not appear to have been
issued upon consideration of the layout plans of the Srishti Project
as approved by the Mira Bhayander Municipal Corporation on 31
March 2022, thereby rendering its evidentiary value doubtful.
16.Mr. Gorwadkar submitted that the Developer has at all times
been ready and willing to assign and transfer the subject property
in favour of respondent Nos. 2 and 7 in accordance with their
respective entitlements as per the sanctioned plans pertaining to
Srishti Sector III. In this regard, it was pointed out that a draft
Deed of Assignment of Lease and Transfer had already been
forwarded by the Developer to the Federation and the Association
by letter dated 21 May 2019, much prior to the filing of the
application for deemed conveyance on 2 December 2022.
17.Per contra, Mr. Kapadia, learned Senior Advocate appearing
on behalf of the Federation, invited attention to the proposed deed
of assignment intended to be executed in favour of the Association.
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Referring to Clause 38 thereof, it was submitted that the area
contemplated in Annexure A excludes the recreational ground area
which has been conferred in favour of respondent No. 5 society. By
referring to Clause 39, it was further submitted that even under
the Development Agreement dated 18 October 2007, only an area
of 30,880 square meters constituted the undeveloped portion of
the larger property, as described in the Third Schedule, for the
purpose of constructing 16 buildings of the Association. Learned
Senior Advocate further invited attention to the agreements
executed by the Developer in favour of members of the Federation,
particularly Exhibit B annexed thereto, to contend that the area
forming part of the entire project, including the recreational
ground area, stood confined to the extent allotted to respondent
No. 2 society. Placing reliance upon the judgment of of this court in
case of
Madhuvihar Co-Operative Housing Society v. Jayantilal
Investments, (2011) 1 Mah LJ 641
, it was submitted that even if
the recreational ground area was depicted as part of the overall
layout, the subsequent layout pertaining to the balance land,
including the societies forming part of the Association, cannot
confer any right over such area. It was urged that the recreational
ground forms part of the obligations undertaken under agreements
executed with purchasers under Section 4 of MOFA and is thus
exclusively attributable to the Federation.
18.In rejoinder, Mr. Kapadia invited attention to Clause 9 and
Clause 1C(vii)(a), (b) and (viii) to submit that the layout plan
annexed as Exhibit ‘B’ clearly includes the recreational ground
area, in respect of which the unilateral deemed conveyance has
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been granted. It was contended that there is no stipulation in the
agreements executed with members of the Federation that such
recreational ground would constitute a common area for any
future development. It was therefore submitted that the competent
authority has rightly included the said area in the conveyance
granted in favour of the Federation, and that the Association
would be entitled only to the residual areas such as the clubhouse
and other remaining land after deducting the area conveyed to the
Federation. The learned counsel for the respondents further
submitted that the applicable legal provisions have been correctly
applied to the facts of the present case. It was pointed out that the
Federation was registered on 12 May 2003 and that the
agreements for sale executed with the flat purchasers do not
prescribe any definite timeline for execution of conveyance. In
such circumstances, it was contended that the Developer was
under a statutory obligation to convey the title of the subject
property in favour of respondent No. 2 within a period of four
months from the date of its registration, that is, on or before 12
September 2003. It is not disputed that such conveyance was not
effected. Consequently, respondent No. 2 became entitled to
invoke the provisions of Section 11(3) of MOFA and to seek
unilateral deemed conveyance, which led to the filing of
Application No. 797 of 2022 on 2 December 2022.
19.It was further submitted that respondent No. 1, upon due
consideration, rightly allowed the said application by order dated
27 March 2023 and granted unilateral deemed conveyance in
respect of the subject property admeasuring 50,999 square meters.
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It was also contended that disputes relating to the extent of area
and entitlement thereto involve questions of fact which cannot be
adjudicated in writ jurisdiction and would appropriately lie within
the domain of a civil court. Without prejudice, it was submitted
that respondent No. 1 has rightly relied upon the Architect’s
Certificate dated 30 November 2022 as an expert opinion. In
contrast, the agreements for sale executed by respondent No. 7
and the Development Agreement dated 18 October 2007 clearly
restrict the area to 30,880 square meters, and therefore
respondent No. 7 cannot claim any right over the recreational
ground area or any area beyond what is expressly stipulated
therein. On these grounds, it was urged that the writ petitions are
devoid of merit and deserve to be dismissed with costs.
REASONS AND ANALYSIS:
20.I have given my careful consideration to the rival stands. I
have also gone through the agreements for sale, the development
agreement, the layout plans, the certificate of deemed conveyance,
the show cause notice issued by the registering authority and the
orders passed by respondent No. 1. The matter involves following
questions. The first is whether the Federation was entitled to the
deemed conveyance in respect of the subject property including
the RG area. The second is whether the Association which came
later and on a different footing can claim a joint right over that
same RG area. The third is whether the Association is entitled to a
separate deemed conveyance in respect of the balance area of
30,880 sq. mtrs.
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21.The Supreme Court in Jayantilal Investments v. Madhuvihar
Coop. Housing Society, (2007) 9 SCC 220
held as under:
“18. The above clauses 3 and 4 are declared to be statutory
and mandatory by the legislature because the promoter is
not only obliged statutorily to give the particulars of the
land, amenities, facilities, etc., he is also obliged to make full
and true disclosure of the development potentiality of the
plot which is the subject-matter of the agreement. The
promoter is not only required to make disclosure concerning
the inherent FSI, he is also required at the stage of layout
plan to declare whether the plot in question in future is
capable of being loaded with additional FSI/floating
FSI/TDR. In other words,
at the time of execution of the
agreement with the flat takers the promoter is obliged
statutorily to place before the flat takers the entire
project/scheme, be it a one-building scheme or multiple
number of buildings scheme . Clause 4 shows the effect of the
formation of the Society.
22.In Madhuvihar Co-Operative Housing Society v. Jayantilal
Investments
, this court held as under:
“46. Thus, there is consistent view of this Court, that
the
blanket consent or authority obtained by the promoter, at the
time of entering into agreement of sale or at the time of
handing over possession of the fiat, is not consent within the
meaning of section 7(1) of the MOFA, inasmuch as, such a
consent would have effect of nullifying the benevolent
purpose of beneficial legislation.
47. It is, thus, clear that it is a consistent view’ of this
Court, that
the consent as contemplated under section 7(1)
of the MOFA has to be an informed consent which is to be
obtained upon a full disclosure by the developer of the entire
project and that a blanket consent or authority obtained by
the promoter at the time of entering into agreement of sale
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would not be a consent contemplated under the provisions of
the MOFA . I am in respectful agreement with the consistent
view. The interpretation placed by the learned Single Judges
of this Court is in consonance with the benevolent provisions
of the MOFA which have been enacted for protecting flat
takers.”
23.At the outset it is necessary to bear in mind the object of the
provisions of the Maharashtra Ownership of Flats Act. Its purpose
is to safeguard flat purchasers who in most cases invest their
lifetime savings and act on the representations made by the
promoter. The Act therefore casts a strict obligation upon the
promoter to place before the purchaser the true and complete
picture of the project. A flat purchaser, at the stage of entering
into an agreement, does not have equal bargaining power. He
relies upon what is shown to him and what is stated in the
agreement. If the promoter is permitted to withhold material
particulars and later alter the project, the purchaser would be left
without any real protection.
24.It follows from this that the concept of consent under the Act
requires that such consent must be meaningful based on
knowledge. A person cannot be said to have consented to
something which was never properly disclosed to him. If the
agreement contains general clauses without explaining specific
nature of the proposed development such clauses cannot be
treated as valid consent in the eye of law.
25.The judgments referred to above emphasise this aspect
making it clear that the promoter cannot rely upon a blanket
consent taken at the time of agreement. Such a consent would
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defeat the very object of the statute. What is required is a informed
consent, which is given after the purchaser is made aware of the
entire project. Only when the purchaser has been placed in a
position to understand the nature of the development can his
consent be treated as valid. At the same time the Act does not
prevent the promoter from undertaking development in phases or
from constructing additional structures provided such
development forms part of the scheme that was disclosed at the
outset. If the entire project including future phases has been
clearly placed before the purchaser at the time of agreement, and
the subsequent construction is in accordance with that disclosed
plan and the applicable regulations, then no further consent is
required. In such a case, the purchaser is aware of the overall
scheme and has accepted it. However, where the additional
construction or alteration is not part of the disclosure, the position
is different. In such a situation the promoter cannot proceed on the
basis of implied consent. The Act requires that the promoter must
obtain prior consent after making full disclosure of the proposed
changes.
26.When the present record is examined on that footing, the
position of the Federation becomes clear and steady. The
agreements executed with the original flat purchasers seen as a
whole document show that the promoter was dealing with a large
land, known as “SRISHTI” and that land was to be developed in
parts. The annexed layout plan, marked as Exhibit B also becomes
very important in this context. It is part of the agreement itself.
When a purchaser signs such an agreement he is taken to have
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seen the plan and to have understood what is being developed.
The plan shows the structure of the project. It shows how the land
is divided. It gives a picture of what is to come. Once such a plan is
part of the agreement the promoter cannot later deny it and
equally the purchaser cannot later say that he had no idea of
phased development.
27.Now coming to the objection raised by the Association. The
Association says that the RG area should not be treated as part of
the Federation’s project. This argument does not fit with the
Agreements entered with purchasers. The agreement does not
contain a recital that the RG area will remain common or will be
shared with future development. The agreements, along with the
layout plan, show a larger and connected scheme. They do not
show a closed or isolated building. They show different sections.
They show that the development is continuing. In such a situation,
open spaces like RG area are normally part of the layout of that
phase. They are part of the planning itself. If that is so it would
not be correct to later separate that area and say that it was never
part of the project disclosed to the first purchasers.
28.So far as the submission of the Association that the
Federation has no exclusive right over the RG area and that the
Association has a joint right to use the same is concerned, the said
contention, when examined closely, does not appear to be
supported either by the documents or by the legal position. The
land is one larger piece. Different buildings have come up at
different times. Therefore, according to the Association all open
spaces like RG area should be treated as common for everyone.
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The Court must see what was actually disclosed, what was agreed,
and what rights have already been created. When one turns to the
agreements executed with the original flat purchasers it becomes
clear that the project known as “SRISHTI” was shown as a phased
development. The layout plan Exhibit B formed part of those
agreements. That plan included the RG area as part of the layout
of that phase. Therefore, for the purchasers who became part of
the Federation the RG area was part of the project as disclosed to
them at the time of purchase.
29.Now if that is the position then the rights of those purchasers
get attached to that layout. They purchased flats on the
understanding of that plan. They were shown a particular scheme.
That scheme included open spaces. Once such rights are created
they cannot be diluted later by bringing in another group and
saying that the same area must now be shared jointly unless there
is clear material to support such sharing. The Association has not
been able to point out any clause in the agreements which says
that the RG area forming part of Exhibit B would be kept open for
use by future developments or future societies. There is no such
express provision. More importantly there is no material to show
that the original purchasers were told that this RG area would
later become a common facility for other independent
developments coming up on different portions of the land.It is also
necessary to keep in mind that the Association’s project arises from
a later development agreement. That agreement relates to a
different portion of land admeasuring 30,880 sq. mtrs. That area is
clearly identified. The Association’s rights flow from that
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agreement. Therefore, the Association must confine its claim to
what belongs to that later project. It cannot travel backwards and
claim rights over areas which were already part of an earlier
disclosed phase.
30.The concept of “joint use” must have some basis. Either there
must be a clear agreement, or there must be a clear indication in
the layout that the area was reserved for common use across all
phases. In the present case, no such material is shown. The mere
fact that both projects are part of a larger land parcel is not
enough to create joint rights.
31.Another aspect also needs to be noticed. If the argument of
the Association is accepted it would lead to uncertainty. Any later
development could then claim a right over the open spaces of
earlier developments even though those spaces were part of the
scheme shown to earlier purchasers. That would disturb settled
rights. Once rights have crystallised in favour of one set of
purchasers based on a disclosed plan those rights cannot be lightly
interfered with.
32.The Association has argued that the RG area should be
treated as a general amenity for all residents of the larger project.
But this argument overlooks the distinction between a single
integrated project and multiple phased developments with
separate entitlements. In a truly integrated project where all
phases are disclosed together and the amenities are shown as
common such a claim may have merit. But in the present case the
material shows that the Federation’s phase was disclosed earlier
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with its own layout and the Association’s phase came later under a
separate agreement with a defined area. Therefore, the claim of
the Association that it has a joint right to use the RG area cannot
be accepted. The Federation’s right over the RG area flows from
the original disclosure and the agreements executed with its
members. That right has now been recognised by the deemed
conveyance. The Association cannot by a later claim reduce that
right into a shared entitlement.
33.It is also important that the Federation came into existence
much earlier. The original societies were formed between 1995
and 2000 and the Federation was registered on 12 May 2003. The
promoter was under a duty to convey the property within four
months required by MOFA rules. That was not done. Instead, the
matter prolonged for years. A draft deed of assignment was
forwarded only on 21 May 2019. By then the statutory obligation
had long matured. The Federation therefore had every right to
move under Section 11(3) of MOFA for unilateral deemed
conveyance. The application filed in 2022 was a lawful response to
a failure to execute conveyance.
34.The challenge raised by the Developer against the order
dated 27 March 2023 does not persuade this Court for more than
one reason. The record shows that the authority had before it the
agreements executed with the flat purchasers, the layout plans
including Exhibit B, the history of development of the project and
the circumstances in which the Federation approached for deemed
conveyance.
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35.The case of the Association requires to be considered
separately because its position is not exactly the same as that of
the Federation. The Association has come into existence at a later
point of time. Its claim is not arising from the original agreements
with the first set of flat purchasers. Instead its claim is based on a
different arrangement namely the Development Agreement dated
18 October 2007. The said Development Agreement deals with
the undeveloped portion of the larger property. It identifies the
area as 30,880 sq. mtrs. Even agreements under Section 4 of
MOFA entered with members of Association refer to area of project
as 30,880 sq. mtrs. This area is part of the contractual
understanding between the parties. It fixes the extent of land on
which the later development was to take place. Therefore, the
Association’s rights must flow from this agreement and must
remain confined within this identified area. It would not be correct
for the Association to go outside this boundary and attempt to
claim rights over areas which were already part of an earlier
disclosed phase. The RG area which has already been dealt with
while considering the Federation’s case forms part of that earlier
phase. Therefore the Association cannot enlarge its claim by
including that area. Its claim must stand or fall on the strength of
the Development Agreement of 2007 and agreement under section
4 of MOFA.
36.The record clearly shows that the Development Agreement
dated 18 October 2007 and agreements under Section 4 of MOFA
deal with a separate portion of land admeasuring 30,880 sq. mtrs.
That portion is not the same as the land covered by the
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Federation’s conveyance. It is described as the balance or
undeveloped land. Therefore the Association’s entitlement has to
be seen in respect of that balance land alone. Second schedule of
agreement under Section 4 indicates the area as 30,880 sq. mtrs.
These clauses show that the parties themselves were conscious that
the later development was to proceed on a separate portion of
land. The figure of 30,880 sq. mtrs. fits into this understanding.
Once the documents themselves identify the area and the
development, the authority ought to have given effect to the same.
If the competent authority refuses to act even in such a case then
the purpose of the statute would be defeated. The provision for
deemed conveyance is intended to give relief where the promoter
fails to perform his duty. It is not meant to be rendered ineffective
by directing parties to another forum even when the entitlement is
evident from the record itself.
37.The correct approach is to read both sets of rights separately
and harmoniously. The Federation’s rights over its phase including
the RG area remain undisturbed. At the same time, the
Association’s rights over the later phase, confined to 30,880 sq.
mtrs. must also be recognised.
38.In the present case, however, the authority appears to have
allowed the earlier conveyance in favour of the Federation to
overshadow the independent claim of the Association. This has
resulted in rejection of Application No. 439 of 2023 without
properly appreciating the distinction between the two phases. Such
an approach is not correct. Therefore, the rejection order dated 12
January 2024 cannot be sustained. The Association is entitled to
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have its application considered in the light of the Development
Agreement dated 18 October 2007 and agreements under Section
4 of MOFA the area of 30,880 sq. mtrs. specified therein.
39.In view of the aforesaid discussion and reasons recorded
hereinabove, I proceed to pass the following order:
(i) Writ Petition No. 5520 of 2023 is dismissed;
(ii) Writ Petition No. 11013 of 2024 is dismissed;
(iii) Writ Petition No. 10111 of 2024 is allowed;
(iv) The order dated 12 January 2024 passed by
respondent No. 1 rejecting Application No. 439 of 2023 is
quashed and set aside;
(v) Respondent No. 1 is directed to grant and issue a
certificate of unilateral deemed conveyance in favour of the
petitioner in Writ Petition No. 10111 of 2024 in respect of
the land admeasuring 30,880 sq. mtrs.in accordance with
law;
(vi) It is clarified that the deemed conveyance granted in
favour of respondent No. 2–Federation pursuant to order
dated 27 March 2023 including the RG area forming part of
Exhibit B of the agreements shall remain undisturbed;
(vii) The claim of the petitioner–Association to any joint or
shared right over the said RG area is rejected;
(viii) Respondent No. 1 shall complete the process of issuing
the certificate and all consequential steps within a period of
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eight weeks from the date of this order;
(ix) There shall be no order as to costs.
40.At this stage, learned Advocate for the petitioner in Writ
Petition No.10111 of 2024 prays for stay of the judgment.
However, in view of the reasons recorded herein above, the said
request stands rejected.
(AMIT BORKAR, J.)
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