Nahar Builders Ltd (Formerly Known As … vs Orchid Enclave Coopertive Housing … on 28 July, 2026

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    Bombay High Court

    Nahar Builders Ltd (Formerly Known As … vs Orchid Enclave Coopertive Housing … on 28 July, 2026

                                                             CNR No : HCBM010220732026
    
     Neeta Sawant                                                    WP 6063 of 2026
    
    
                    IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                            CIVIL APPELLATE JURISDICTION
    
                          WRIT PETITION NO. 6063 OF 2026
    
    
    
    1. Nahar Builders Ltd. (formerly known                  ...Petitioners
    as M/s. Nahar Enterprises)
    
    2. Jitendra Amritlal Sheth (Karta and
    Manager of Jt. Hindu Family)
    3. Narendra Amritlal Sheth
    4. Jatin Manubhai Sheth
    5. Shantaben Manubhai Sheth
    6. Leena Jitendra Sheth
    7. Purna Jatin Sheth
    8. Samir Jitendra Sheth
    9. Rama Narendra Sheth
    10. Amar Jatin Sheth
    11. Rishabh Jatin Sheth
    (Petitioner Nos. 2 to 11, members of
    the Joint Hindu Family of Late Amritlal
    Dalpatbhai Sheth viz. A.D. Sheth HUF)
    
    12. Jatin Manubhai Sheth (Karta and
    Manager of Jt. Hindu Family)
    13. Purna Jatin Sheth
    14. Amar Jatin Sheth
    15. Rishabh Jatin Sheth
    16. Shantaben Manubhai Sheth
    (Petitioner Nos. 12 to 16, members of
    the Joint Hindu Family of Late
    Manubhai A. Sheth viz. M.A. Sheth
    HUF)
    
    17. Narendra Amritlal Sheth (Karta and
    Manager of Jt. Hindu Family)
    18. Rama Narendra Sheth
    
    _____________________________________________________________________________
                                    PAGE NO. 1 of 43
                                      28 July 2026
      Neeta Sawant                                                    WP 6063 of 2026
    
    
    (Petitioner Nos. 17 and 18, members of
    Joint Hindu Family of N.A. Sheth HUF)
    
    19. Jitendra Amritlal Sheth (Karta and
    Manager of Jt. Hindu Family)
    20. Leena Jitendra Sheth
    21. Samir Jitendra Sheth
    (Petitioner Nos. 19 to 21, members of
    Joint Hindu Family of J. A. Sheth HUF)
    
    22. Shantaben Manubhai Sheth
    23. Leena Jitendra Sheth
    24. Rama Narendra Sheth
    (Petitioner Nos. 22 to 24, members of
    Joint Hindu Family of J.A. Sheth HUF)
                      V/s.
    1. Orchid Enclave Co-operative                          ...Respondents
    Housing Society Ltd.
    2. The Competent Authority, District
    Deputy Registrar, Co-op Societies,
    Mumbai-2
    3. Office of the Joint Sub Registrar of
    Assurances (Class-II), Mumbai
    
    
    
    
    Mr. Atul Damle, Senior Advocate with Mr. Ankit Lohia, Mr. Filji
    Frederick and Mr. Pranav Pradhan i/b. FF & Associates for the Petitioners.
    
    Mr. Mayur Khandeparkar with Mr. Amrut Joshi, Mr. Nikhil Adkine, Mr.
    Tatsat Gor, Mr. Satchit Gor and Mr. Amit Chavan i/b. Mr. Kapil Gor, for
    Respondent No.1.
    
    Mr. A.C. Bhadang, AGP for State.
    
    
    
    
    _____________________________________________________________________________
                                    PAGE NO. 2 of 43
                                      28 July 2026
      Neeta Sawant                                                    WP 6063 of 2026
    
    
                                      CORAM : SANDEEP V. MARNE, J.
                                      JUDGMENT RESD. ON : 21 JULY 2026.
                                      JUDGMENT PRON. ON : 28 JULY 2026.
    JUDGMENT:

    1) This is a challenge to the order of deemed conveyance of land
    and building in favour of a housing society at the instance of a developer,
    who intends to retain control over portion of the conveyed land on which
    common amenities like club house, swimming pool etc. are set up for use
    by the residents of the building. Petitioner contends that application for
    deemed conveyance could not have been entertained and decided in the
    light of parties entering into consent terms resulting in a consent decree.
    According to Petitioner, the consent decree provides for lease of portion
    of conveyed land in their favour and that therefore the order of deemed
    conveyance which does not provide for a lease in their favour is bad in
    law.

    THE CHALLENGE

    SPONSORED

    2) By this Petition filed by the Petitioner-developers, order
    dated 31 July 2025 passed by the District Deputy Registrar, Co-operative
    Societies (2), East Suburban, Mumbai and Competent Authority
    (Competent Authority) is challenged, by which land admeasuring
    13,578.293 sq.m. alongwith the building is conveyed in favour of
    Respondent No.1-Society.

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    Neeta Sawant WP 6063 of 2026

    3) Petitioners have acquired development rights in respect of
    large portion of land admeasuring 28,494.60 sq.m. situated at Sector R-3
    and CTS Nos. 53/C, 53/A-1, 53A-1/A, 53-A1/D and 53A-1/C of Village-
    Chandivali, Taluka-Kurla, Mumbai Suburban District. Petitioners have
    constructed a building on the larger portion of land and flat purchasers
    have formed society known as Orchid Enclave Co-operative Housing
    Society Limited (Respondent No.1). Respondent No.1-Society had filed
    L.C. Suit No. 901 of 2007 in the City Civil Court at Bombay against the
    Petitioners and owners of land seeking conveyance of land and building.
    The Suit also sought to restrain the Petitioner No. 1 from constructing
    building ‘Blue Bell’ on the plot. The suit was compromised and consent
    terms were executed between the Petitioner No. 1 and Respondent No.1-
    Society. The suit was decreed in terms of the consent terms by the City
    Civil Court on 25 September 2013. Under the consent terms, Petitioners
    agreed to execute conveyance in respect of land admeasuring 13,629.84
    sq.m. in favour of Respondent No.1. Respondent No.1 agreed to give up
    claim in respect of land admeasuring 2662.98 sq.m. and agreed not to
    object to construction of the building Blue Bell thereat. Under the consent
    terms, Respondent No.1-Society further agreed to execute lease for a
    period of 99 years in favour of M/s. Nahar Buildings and Developers Ltd.
    in respect of land admeasuring 3546.31 sq.m.

    4) According to the Petitioner, Respondent No.1-Society failed
    to come forward for execution of conveyance deed and lease deed.
    Instead, Respondent No.1 filed Application No.52 of 2025 seeking deemed
    conveyance of land and building under Section 11(3) of Maharashtra

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    Neeta Sawant WP 6063 of 2026

    Ownership Flats (Regulation of the promotion of construction, sale,
    management and transfer) Act, 1963 (MOFA). According to the
    Petitioner, Respondent No.1 suppressed the factum of execution of
    consent terms and passing of consent decree dated 25 September 2013.
    Application No. 52 of 2025 was resisted by the Petitioner by filing reply.
    Rosa Alba Cooperative Housing Society Ltd. (Rosa Alba Society) filed
    intervention application before the Competent Authority opposing
    conveyance of any portion of land on which its building is located. By
    order dated 31 July 2025, the Competent Authority has issued certificate
    of unilateral deemed conveyance in respect of land admeasuring
    13578.293 sq.m. alongwith the building situated thereon in favour of
    Respondent No.1-Society. Petitioners are aggrieved by the order of the
    Competent Authority dated 31 July 2025 and have filed the present
    Petition.

    SUBMISSIONS

    5) Mr. Damle, the learned Senior Advocate appearing for the
    Petitioner submits that the Competent Authority has erred in exercising
    jurisdiction under Section 11(3) of MOFA by entertaining Application
    No.52 of 2025. That Respondent No.1-Society has already secured
    conveyance in respect of land admeasuring 13,629.84 sq.m. under the
    consent decree dated 25 September 2013. That once Civil Court
    determines entitlement of conveyance, it is not open for the Competent
    Authority to exercise jurisdiction under Section 11(3) of MOFA. That
    jurisdiction under Section 11(3) can be exercised by the Competent
    Authority only where there is failure on the part of the promoters within

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    Neeta Sawant WP 6063 of 2026

    the meaning of Section 11(3). That in the present case, far from there
    being any failure on the part of the Petitioners, there is a consent decree
    in favour of Respondent No.1 envisaging conveyance of the land. That the
    real remedy for Respondent No.1 was to seek execution of consent decree
    dated 25 September 2013 if it believed that Petitioners did not execute
    the conveyance deed in pursuance of the consent decree. That therefore,
    proceedings for conveyance cannot be initiated merely because the order
    passed in the previous proceedings is not implemented. That the
    Application No. 52 of 2025 was clearly hit by the principles of res judicata.

    6) Mr. Damle submits that the issue involved in the Petition is
    squarely covered by the judgment of this Court in Nahar Seth & Jogani
    Developers Pvt. Ltd. vs. Deputy Registrar, Co-operative Societies &
    Competent Authority and Anr1. He submits that Respondent No.1-
    Society is deliberately not seeking execution of consent terms dated 25
    September 2013 with a view to wriggle out of commitment to execute
    lease in respect of land admeasuring 3546.31 sq.m. That under the
    consent decree, Respondent No.1-Society is not supposed to possess
    entire land admeasuring 13629.84 sq.m. and portion of that land
    admeasuring 3546.31 sq.m. was required to be leased out to the
    Petitioners. On the other hand, the impugned order of conveyance has
    the effect of conveying entire land admeasuring 13,578.293 sq.m. without
    any obligation to execute lease of land admeasuring 3546.31 sq.m. in
    favour of the Petitioners. He relies on judgment of the Apex Court in
    Ajanta LLP vs. Casio Keisanki Kabushiki Kaisha D/B/A Casio Computer

    1
    2024 SCC OnLine Bom 1662
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    Neeta Sawant WP 6063 of 2026

    Company Limited and Anr.2 in support of his contention that a
    compromise decree creates an estoppel by judgment and would operate as
    a res judicata for subsequent proceedings involving same cause of action.
    He also relies on judgment of this Court in Sanu Enterprises vs. Vikhroli
    Laxmi Apartments Coop. Housing Society Limited
    3 in support of his
    contention of res judicata.
    He also relies on judgment of the Apex Court in
    S. Malla Reddy vs. Future Builders Cooperative Housing Society and
    Ors.4
    in support of his contention that subsequent proceedings for same
    relief are not maintainable.
    He also relies on judgment of this Court in
    Sanu Enterprises Vs. Vikhroli Laxmi Apartments Housing Society Ltd. 5

    7) He prays for setting aside the impugned order dated 31 July
    2025.

    8) Mr. Khandeparkar, the learned counsel appearing for
    Respondent No.1-Society opposes the Petition. He submits that the order
    of the Competent Authority results in proportionate subdivision of land
    in accordance with GR dated 22 June 2018. That the Society has received
    conveyance of lesser land admeasuring 13,578.293 sq.m. as compared to
    the land indicated in the consent terms of 13,629.84 sq.m. He submits
    that mere execution of consent terms does not prevent Competent
    Authority from exercising jurisdiction under Section 11(3) of MOFA. He
    relies on provisions of Section 16 of MOFA in support of his contention
    that the provisions of Section 11(3) have overriding effect on contract

    2
    (2022) 5 SCC 449
    3
    Writ Petition No.491 of 2022 decided on 24 February 2026.

    4

    2013 SCC OnLine SC 366
    5
    Writ Petition No. 491 of 2022 decided on 24 February 2026
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    containing contrary stipulations. That consent terms are nothing but
    agreement between the parties and that consent decree is again an
    agreement with imprimatur of the Court. That therefore mere covenants
    of the consent terms cannot come in the way of Competent Authority
    exercising jurisdiction under Section 11(3) of MOFA. That in the present
    case, there is failure on the part of the Petitioners in executing the
    conveyance as conveyance was actually not executed despite passage of
    period of 12 long years from the date of execution of the consent terms.
    That since Respondent No.1-Society has a remedy under Section 11(3) of
    MOFA, it was not necessary to take the route of seeking execution of
    consent decree. He submits that even otherwise, the consent terms
    provide for performance of obligations in sequence. That under the
    consent terms, it was the responsibility of the Petitioners to first convey
    land admeasuring 13629.84 sq.m. The second obligation in sequence was
    to effect registration of the conveyance. The third obligation was to effect
    repairs to the building. The last obligation for Respondent No.1-Society
    to execute lease deed was to kick in only after the first three obligations of
    the Petitioners are discharged. That therefore, time for execution of lease
    in favour of the Petitioners by Respondent No.1-Society has not arrived.
    As of now, the order of the Competent Authority merely results in
    fulfillment of the first obligation of the Petitioner to convey land in favour
    of Respondent No.1-Society. That therefore, passing of impugned order
    by the Competent Authority does not contravene the consent decree in
    any manner. That since there is no conflict between the order of the
    Competent Authority and the consent terms, there is no warrant for
    interference in the impugned order.

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    9) Mr. Khandeparkar further submits that the principle of res
    judicata has no application in the facts and circumstances of present case.
    That the decree dated 25 September 2013 is not the outcome of any
    adjudication made by the City Civil Court. That parties merely agreed on
    particular arrangement which is converted into consent decree. In such
    circumstances, there is no question of application of principles of res
    judicata. He relies on judgment of this Court in Paramanand Builders
    LLP vs. Competent Authority & District Deputy Registrar, Cooperative
    Societies and Ors.6
    in support of his contention that consent terms
    cannot override the statutory obligations under Section 11 of MOFA.
    He
    relies on judgment of this Court in Prestige Garden A-1 CHSL vs. State of
    Maharashtra7
    in support of his contention that the principle of estoppel
    does not apply.
    He also relies on judgment of this Court in Nahalchand
    Laloochand Private Limited and Ors. vs. Shri Panchamrut CHSL and
    Ors.8 in support of his contention of broad contours of enquiry under
    Section 11 of MOFA. He submits that in a summary enquiry conducted
    under Section 11, the Competent Authority has not caused any violence
    to the consent decree. He accordingly prays for dismissal of the Petition.

    REASONS AND ANALYSIS

    10) The case involves a unique conundrum. Petitioner-
    developers completed construction of 5 buildings of Respondent No. 1
    Society and desired construction of an additional building in the layout.
    In a composite Suit filed by the Respondent No.1-Society to stop the

    6
    2026 SCC OnLine Bom 1522
    7
    2024 SCC OnLine Bom 5625
    8
    2025 SCC OnLine Bom 341
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    Neeta Sawant WP 6063 of 2026

    Petitioner No. 1 from constructing an additional building in the layout
    and for seeking conveyance of the entire layout land, a compromise took
    place. Under the compromise, the Society decided to give up its challenge
    against construction of additional building upon acceptance of some
    consideration and against a promise to carry out repairs and painting
    works in its buildings. Under the compromise, the Petitioner-developer
    agreed to convey the proportionate land to the Society (leaving aside the
    land meant for construction of additional building), but upon a condition
    that it would retain the land and structure forming part of common
    amenities and accordingly extracted a promise from the Respondent No. 1
    Society to lease back 26% of the conveyed land almost free of costs.

    11) After striking a deal with the Society leading to a consent
    decree, the Petitioners faltered on its undertaking to convey land in
    favour of the Society for 12 long years. In the meantime, they took
    advantage of the Consent Terms by completing construction of the
    additional building, sold flats therein and earned profits. After waiting for
    12 long years, the Society approached the Competent Authority seeking
    conveyance of land. By allowing the Application filed by the Society, the
    Competent Authority has conveyed slightly lesser land than the one
    agreed under the Consent Terms. Petitioners have challenged the Order
    of the Competent Authority because it does not grant to them lease of the
    land on which common amenities of the Society are situated.

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    CONVEYANCE OF LAND BY THE COMPETENT AUTHORITY

    12) By the impugned order and certificate dated 31 July 2025, the
    Competent Authority has granted conveyance of land admeasuring
    13,578.293 sq.m. in favour of Respondent No.1-Society. The Competent
    Authority has relied upon sanctioned plan dated 31 May 2005, on the
    basis of which buildings of Respondent No.1-Society are constructed. It
    appears that the construction was undertaken in respect of plot
    admeasuring 16,292.82 sq.m. After deducting 15% area reserved for
    Recreation Ground (RG), the balance area of land available was 13,848.9
    sq.m. It appears that the Municipal Corporation sanctioned total built-up
    area (BUA) of 18,313.13 sq.m. out of which BUA of 15,262.28 sq.m. is
    utilised in construction of buildings of the Respondent No.1-Society. The
    Competent Authority has accordingly determined the proportionate share
    of Respondent No.1-Society in the land as 83.34%. The Competent
    Authority has thereafter divided both the net plot area of 13,848.90 sq.m.
    and RG area of 2443.92 sq.m. by taking into consideration share of
    Respondent No.1-Society of 83.34%. Accordingly, the land entitlement of
    Respondent No.1-Society is determined as under:

    (i) 83.34% of net plot area of 13,848.90 sq.m. 11541.673 sq.m.

    (ii) 83.34% of RG land of 2443.92 sq.m. 2036.762 sq.m.

             TOTAL                                        13,578.293 sq.m.
    
    
    13)             It appears that Rosa Alba Society had filed Intervention
    

    Application before the Competent Authority and had expressed an
    apprehension that the Respondent No. 1 Society was seeking conveyance
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    of land admeasuring 2662.98 sq.m. excluded for its building under the
    Consent Terms. The Competent Authority has considered the objection of
    Rosa Alba Society and has undertaken the exercise of land division
    proportionate to the BUA used for buildings of the two societies. After
    conveying 83.34% land admeasuring (11541.673 + 2036.762) 13578.293
    sq.m. to Respondent No. 1 Society, the balance 16.66% land admeasuring
    2714.527 sq.m. in the layout is left for Rosa Alba Society.

    14) This is how the Competent Authority has determined the
    share of Respondent No.1-Society and of Rosa Alba Society in the land
    (net plot area as well as RG) proportionate to the BUA utilised in
    construction of their respective buildings in the layout. What is done by
    the Competent Authority is in accordance with the procedure prescribed
    in the Government Resolution dated 22 June 2018, which provides for
    land division in the layout proportionate to BUA utilised in construction
    of each building. Relevant part of the GR provides thus:

    If there are many buildings on one plot and have a separate co-operative society
    of each building and if construction of some of them is incomplete then while
    making Deemed Conveyance of completed building, undivided share of
    occupancy right in the proportion of construction on the proportionate area of
    the construction of the building of such society or ground coverage or plinth
    area, similarly open space, common services and facilities, roads should be
    given.

    15) This Court has repeatedly upheld the principle of land
    division proportionate to the BUA utilized in construction of each
    building while granting conveyance to a society whose building is located
    in the layout development and where all societies do not come together
    for seeking conveyance of the whole land in the layout.

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    16) Ordinarily therefore, what is done by the Competent
    Authority is in accordance with law. This is the reason why Petitioners
    have not seriously disputed the computations made by the Competent
    Authority. In the present petition, Petitioners do not contend that
    Respondent No.1-Society is not entitled to conveyance of land
    admeasuring 13,578.293 sq.m. However, the certificate of deemed
    conveyance is challenged only on the ground that there has been a
    consent decree passed in the suit filed by Respondent No.1-Society and
    that therefore, the Competent Authority could not have entertained
    application of Respondent No.1 for deemed conveyance. In short, what is
    questioned by the Petitioners is the jurisdiction of the Competent
    Authority to entertain the application filed under Section 11(3) of the
    MOFA for unilateral deemed conveyance when there is already a decree of
    Civil Court for conveyance of land in favour of Respondent No.1-Society.

    PROVISIONS OF MOFA

    17) The provision for unilateral deemed conveyance has been
    introduced by the Legislature by amending Section 11 of MOFA after
    noticing a trend where the developers/landowners were deliberately
    avoiding conveyance of land and building in favour of organisation of flat
    purchasers. Such avoidance on the part of developers was with the
    objective of utilising future development potential in the land by putting
    additional construction on the basis of additional FSI sanctioned due to
    the change in the FSI regime. It was felt that the provisions of unamended
    Section 11 imposing statutory duty on the promoter to convey the land

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    and building in favour of organisation of flat purchasers was ineffective. It
    was also noticed that the organisation of flat purchasers were required to
    file suits and fight a long litigation for securing the conveyance. It would
    be apt to consider the Statement of Reasons and Objects for 2008
    Amendments to Section 11 of MOFA, which is as under:

    STATEMENT OF OBJECTS AND REASONS

    The Maharashtra Ownership Flats (Regulation of the promotion, of
    construction, sale, management and transfer) Act, 1963 has been enacted by the
    Government of Maharashtra in the year 1963 to regulate for a certain period in
    the State, the promotion of the construction of, the sale and management, and
    the transfer of flats on ownership basis. The said Act has been enacted to
    effectively prevent the sundry abuses and malpractices which had been on
    increase, consequent upon the acute shortage of housing in the several areas of
    the State.

    2. It has come to the notice of the Government that the objective behind
    enactment of the said law is not fully achieved and its implementation
    has not been effective enough to curb certain malpractices and sundry
    abuses by the promoters or developers of the properties. Therefore, to
    make provisions of the said Act more effective and to safeguard interests of the
    purchaser of the flats, the Government of Maharashtra considers it expedient to
    carry out certain amendments to the existing provisions of the said Act. The
    important amendments proposed to be carried out are as follows:-

    (a) It is proposed to provide for appointment of one or more Competent
    Authorities for different local areas who would, on failure on the part of the
    promoter,-

    (1) to form a co-operative society of the persons who have purchased the flats
    from the promoter, on application received from such purchasers, direct the
    District Deputy Registrar, Deputy Registrar or, as the case may be, the Assistant
    Registrar of Co-operative Societies to register the co-operative society of such
    flat owners:

    (i) to execute a conveyance within the prescribed period as provided
    in section 11, on receiving an application from the flat owner members of
    a co-operative society, issue a certificate to such society certifying that the
    said society was entitled to have a conveyance registered and that it is a
    fit case for execution of a unilateral conveyance as a ‘ deemed conveyance
    in favour of the said society. by the Registration Officer under the
    Registration Act, 1908.-

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    (b) To serve as a deterrent, a provision is also being made for disqualifying a
    promoter, convicted under the said Act (except under section 12A), for a period
    of five years so as to debar him from being granted any permission by the local
    authorities under the relevant laws for undertaking construction of flats.

    (c)The proceedings before the Competent Authority are given the status of
    judicial proceedings for the purposes of sections 193 and 228 of the Indian
    Penal Code and every Competent Authority is to be deemed to be a Civil Court
    for the purpose of sections 345 and 347 of the Code of Criminal Procedure,
    1973.

    3. The Bill seeks to achieve the above objectives.

    (emphasis added)

    18) The Legislature has therefore created a faster and swifter
    mechanism of unilateral deemed conveyance without the consent of the
    landowner or promoter. Accordingly, provisions of sub-sections (3), (4)
    and (5) are introduced in Section 11 of MOFA wherein an organisation of
    flat purchasers can file an application before the Competent Authority
    and seek certificate of unilateral deemed conveyance of land and building
    which can be registered as a conveyance under sub-section (5).
    Provisions of Section 11 of MOFA read thus:

    11. Promoter to convey title, etc., and execute documents, according to
    agreement.–

    (1) A promoter shall take all necessary steps to complete his title and convey to
    the organisation of persons, who take flats, which is registered either as a co-

    operative society or as a company as aforesaid or to an association of flat takers
    or apartment owners, his right, title and interest in the land and building, and
    execute all relevant documents therefor in accordance with the agreement
    executed under section 4 and if no period for the execution of the conveyance is
    agreed upon, he shall execute the conveyance within the prescribed period and
    also deliver all documents of title relating to the property which may be in his
    possession or power.

    (2) It shall be the duty of the promoter to file with the Competent Authority,
    within the prescribed period, a copy of the conveyance executed by him under
    sub-section (1).

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    (3) If the promoter fails to execute the conveyance in favour of the Co-operative
    society formed under section 10 or, as the case may be, the Company or the
    association of apartment owners, as provided by sub-section (1), within the
    prescribed period, the members of such Co-operative society or, as the case may
    be, the Company or the association of apartment owners may, make an
    application, in writing, to the concerned Competent Authority accompanied by
    the true copies of the registered agreements for sale, executed with the
    promoter by each individual member of the society or the Company or the
    association, who have purchased the flats and all other relevant documents
    (including the occupation certificate, if any), for issuing a certificate that such
    society, or as the case may be, Company or association, is entitled to have an
    unilateral deemed conveyance, executed in their favour and to have it
    registered.

    (4) The Competent Authority, on receiving such application, within reasonable
    time and in any case not later than six months, after making such enquiry as
    deemed necessary and after verifying the authenticity of the documents
    submitted and after giving the promoter a reasonable opportunity of being
    heard, on being satisfied that it is a fit case for issuing such certificate, shall
    issue a certificate to the Sub-Registrar or any other appropriate Registration
    Officer under the Registration Act, 1908 (16 of 1908), certifying that it is a fit
    case for enforcing unilateral execution, of conveyance deed conveying the right,
    title and interest of the promoter in the land and building in favour of the
    applicant, as deemed conveyance.

    (5) On submission by such society or as the case may be, the Company or the
    association of apartment owners, to the Sub-Registrar or the concerned
    appropriate Registration Officer appointed under the Registration Act, 1908 (16
    of 1908), the certificate issued by the Competent Authority alongwith the
    unilateral instrument of conveyance, the Sub-Registrar or the concerned
    appropriate registration Officer shall, notwithstanding anything contained in
    the Registration Act, 1908 (16 of 1908), issue summons to the promoter to show
    cause why, such unilateral instrument should not be registered as ‘deemed
    conveyance’ and after giving the promoter and the applicants a reasonable
    opportunity of being heard, may on being satisfied that it was fit case for
    unilateral conveyance, register that instrument as, ‘deemed conveyance’.

    19) Under sub-section (1) of Section 11 of MOFA, there is a
    statutory duty on the promoter to convey in favour of the organisation of
    flat purchasers the land and the building within the prescribed period. If
    the promoter fails to perform the statutory duty under Section 11(1) of
    the Act, there is a remedy for the organisation of flat purchasers under
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    Section 11(3). The application for unilateral deemed conveyance can be
    filed by the organisation of flat purchasers under sub-section (3) of

    Section 11 of MOFA ‘If the promoter fails to execute the conveyance’. Thus,

    occurrence of failure by the promoter to convey the land and building
    becomes a jurisdictional fact for the Competent Authority to exercise
    jurisdiction under Section 11(3). The ‘failure’ within the meaning of
    Section 11(3) occurs when the promoter fails to execute conveyance
    under Section 11(1) within the prescribed period. Rule 9 of Maharashtra
    Ownership Flats (Regulation of the Promotion of Construction etc.) Rules,
    1964 (MOFA Rules) has prescribed the period for promoter to convey the
    land and building as four months from the date on which a co-operative
    society or a company is registered or an association of flat purchasers is
    constituted. Rule 9 of MOFA Rules reads thus:

    9. Period for conveyance of title of promoter to organisation of Flat
    purchasers

    If no period for conveying the title of the promoter to the organisation of the
    flat purchasers is agreed upon, the promoter shall (subject to his right to
    dispose of the remaining flats, if any) execute the conveyance within four
    months from the date on which co-operative society or the company is
    registered or, as the case may be, the association of flat takers is duly
    constituted.

    When a promoter has submitted his property to the provisions of the
    Maharashtra Apartment Ownership Act, 1970 by executing and regustering a
    Declaration as required by section 2 of that Act, and no period for conveying the
    title of the promoter in respect of an apartment to each apartment-taker is
    agreed upon, the promoter shall execute the conveyance or deed of apartment
    in favour of each apartment-taker within four months from the date the
    apartment-taker has entered into possession of his apartment.

    The promoter shall file with the Competent Authority a copy of the conveyance
    executed by him under sub-section (1) of section 11 within a period of two
    months from the date of its execution.

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    20) Before proceeding further, provisions of Section 16 of MOFA
    also needs to be noted. Noting that the provisions of the Transfer of
    Property Act, 1882
    may come in the way of implementation of the
    statutory scheme of MOFA and to ensure that the contracts to the
    contrary executed by the developers do not defeat the statutory rights of
    the flat purchasers, the Legislature has incorporated Section 16 in MOFA,
    which provides thus:

    16. Act to be in addition to Transfer of Property Act and to over-ride
    contract to the contrary.–

    The provisions of this Act, except where otherwise provided, shall be in addition
    to the provisions of the Transfer of Property Act, 1882 (IV of 1882), and shall
    take effect notwithstanding anything to the contrary contained in any contract.

    21) Thus Section 16 of MOFA overrides contractual covenants to
    the contrary. Section 16 is an important provision, which is aimed at
    nullifying any private deal or unfair bargain struck by the developers with
    the flat purchasers and ensures that the statutory rights of the flat
    purchasers would override such contractual deal/bargain. When the
    statutory scheme of MOFA and MOFA Rules provide for obligation and
    duty to convey the land and the building in favour of organisation of flat
    purchasers within the prescribed time, the promoter cannot contractually
    agree that either there would be no conveyance or conveyance would be
    executed after 25 years or that conveyance would be executed after
    completion of entire layout development or that only leasehold rights in
    the land would be assigned retaining the ownership in favour of
    promoter/land owner, etc. Section 16 ensures that any contract to the
    contrary cannot defeat the statutory right of the organisation of flat
    purchasers to seek unconditional conveyance of whole of the land (as per

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    its entitlement) without retaining any specie of right therein in favour of
    the promoter/landowner. Section 16 of MOFA is aimed at curbing the
    tendencies on the part of the promoters and landowners in avoiding to
    convey unconditional ownership of whole of the land.

    FILING OF CONSENT TERMS AND PASSING OF DECREE IN PURSUANCE THERETO

    22) In the present case, the commencement certificate for
    construction of buildings of Respondent No.1-Society was apparently
    issued on 18 October 1989 and further approval was granted on 12 August
    1995. Petitioners constructed building of Respondent No.1-Society
    comprising of Wings-A, B, C, D and E named ‘Orchid Enclave’. The
    building received occupancy certificate on 2 June 2005. The flat
    purchasers formed Respondent No.1-Society, which was registered on 30
    January 2006. Petitioners, however, failed to execute conveyance in
    favour of the Society, which led to filing of L.C. Suit No. 901 of 2007 by
    the Society. The suit was essentially required to be filed because the
    Petitioners were planning to construct one more building in the layout by
    name ‘Blue Bell’. Respondent No.1-Society was opposed to construction
    of an additional building in the layout and therefore in L.C. Suit No.901 of
    2007, they sought restraint order against Petitioner No.1 from putting any
    additional construction in the form of Blue Bell building. Respondent
    No.1-Society also sought prayer for conveyance of the entire larger land.
    The suit was compromised between Respondent No.1-Society and
    Petitioner No.1-developer and consent terms dated 25 September 2013

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    were tendered in L.C. Suit No. 901 of 2007. The relevant clauses of the
    Consent Terms are as under:

    2. The Defendants no. 1 do hereby agree and undertake to assign, transfer and
    convey in the exclusive and absolute favour of the Plaintiff no. 1, all that piece
    and parcel of land admeasuring 13,629.84 sq. meters along with the structures
    thereon shown bounded by red colour boundary including the five (5) wings of
    the Orchid Enclave Building bearing the names as “A”, “B”, “C”, “D” and “E”

    Wing, situate lying and being on the larger plot of land bearing Sector no. R-3
    admeasuring in the aggregate about 28,494.60 sq. meters and comprising of the
    land bearing CTS no. 53/C, 53/A-1, 53-A/1-A, 53-A/1-D and 53-A/1-C, of Village
    Chandivali, Taluka Kurla, Mumbai Suburban District and Sub-District of
    Mumbai, on the plan annexed hereto and marked as ANNEXURE A strictly in
    terms set out in the draft Deed of Conveyance accepted and approved by the
    parties hereto and the copy whereof acknowledged as accepted and approved by
    the parties is annexed herewith and marked as ANNEXURE B.

    3. The Deed of Conveyance duly signed by the parties shall be lodged for
    registration by the Plaintiff no. 1 in the office of Sub-Registrar and the
    Defendants No. 1 agree and undertake to attend the office of the Sub-Registrar
    of Assurances at Chembur at such time and date as may be mutually agreed
    between the parties and in any event within thirty (30) days of the execution
    hereof to confirm and admit the execution and for the purposes of Registration
    of the said Deed of Conveyance more particularly detailed in clause (2) above.
    The Defendants no. 1 agree and undertake that the responsibility of getting the
    said Deed of Conveyance registered with the concerned sub-registrar of
    Assurances within the aforesaid period of thirty (30) days would be that of the
    Defendants no. 1 alone. The stamp duty and registration charges, if any,
    payable on the said Deed of Conveyance shall however be borne by the Plaintiff
    no. 1. alone.

    4. The Defendant no. 1 has on or before the execution hereof paid to the
    Plaintiff no. 1 the sum of Rs. 5,00,00,000/- (Rupees Five Crores only) by Demand
    Draft/Pay Order dated 18/09/2013, bearing no. 000837, drawn on HDFC Bank in
    favour of the Plaintiff no. 1, as and by the way of Society Fund. The Plaintiff no.
    1 admit and acknowledge the payment of the said amount. The Defendant no. 1
    further agrees and undertakes to carry out the work of repairs of leakages and
    the painting of the said five (5) wings of the Orchid Enclave Building bearing the
    names as “A”, “B”, “C”, “D” and “E” Wing and also replace / install the missing
    electric poles in the garden of the Orchid Enclave complex with all requisite
    permission from the competent authorities, if required. The said work shall be
    carried out as soon as may be practicable and in any event within six (6) months
    of the execution of these presents.

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    5. The Plaintiff no. 1 in the light of the above, agree and undertake to
    permanently relinquish and waive all and every of their right, title, interest
    and/or claim to seek the conveyance of the land admeasuring 2662.98 sq.
    meters more particularly delineated in blue colour boundary lines on the plan
    annexed hereto and marked as ANNEXURE C. The Plaintiff no. 1 in
    consideration of the payment of the said Society Fund, hereby withdraw and
    revoke all and every of their objection to the construction of the building known
    as “Blue Bell” on the said delineated land and further declare and confirm that
    the said delineated land and the building constructed thereon, as aforesaid
    would at all times belong to the Defendants no. 1 and that they would be
    entitled to deal with and dispose off the same as they may deem fit, without any
    recourse to the Plaintiff no. 1.

    6. Consequent upon to the fulfilment of its obligations by the Defendants no. 1,
    in terms of clause (2), (3) and (4) above, the Plaintiff no. 1 agree and undertake
    to execute and register a Deed of Lease for the period of 99 years, in respect of
    the land admeasuring 3546.31 sq. meters, along with the structure constructed
    thereon and more particularly delineated in green colour boundary lines in the
    plan annexed herewith at Annexure C in favour of M/s. Nahar Builders and
    Developers Ltd., strictly on such terms and conditions and for such
    consideration as is set out in the draft Lease Deed the copy whereof, duly
    accepted and approved by the parties, is annexed herewith and marked as
    ANNEXURE D The Plaintiff no. 1 agree and undertake to attend to the office of
    the Sub-Registrar of Assurances at Chembur for the purposes of confirmation of
    the execution and for registration of the said Lease Deed simultaneous to the
    registration of the Deed of Conveyance in terms of clause (2) above. The stamp
    duty and the registration charges, if any, payable on the said Lease Deed and all
    out of pocket expenses in respect thereof shall however be borne by the
    Defendants no. 1 alone.

    23) Thus, Petitioner No.1 agreed and undertook to assign,
    transfer and convey land admeasuring 13,629.84 sq.m. in favour of
    Respondent No.1 alongwith the structure thereon comprising of Orchid
    Enclave building with ‘A’ to ‘E’ wings. Under Clause 3 of the consent
    terms, Petitioner No.1 undertook to register the conveyance within a
    period of 30 days of execution of the consent terms. Under Clause 5, the
    Society gave up its challenge to construction of the building Blue Bell by
    accepting consideration of Rs. 5 Crore from Petitioner No. 1 in addition to
    promise for carrying out repairs and painting works to its buildings under

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    Clause 4. Under Clause 6, the Society agreed to grant lease in respect of
    land admeasuring 3546.31 sq.m. in favour of an entity named ‘Nahar
    Builders and Developers Ltd.’ as per the draft annexed to the Consent
    Terms. The draft of the Lease Deed annexed to the Consent Terms would
    indicate that what was supposed to be leased out is the land on which the
    building’s common amenities like club house, swimming pool, tennis
    court, etc. are situated. The draft Lease Deed also contemplated
    permission to the lessee to carry out construction of basement and
    ground floor parking spaces.

    24) Thus, the Consent Terms envisage a unique arrangement
    where the Petitioner No. 1, after conveying the lawfully due land to the
    Society, wants the Society to hand back substantial portion (26%) of such
    conveyed land to its group entity almost free of cost (on lease rent of Rs.

    1). More importantly, the Consent Terms envisage loss of common
    amenities meant for the Respondent No. 1 Society by handing over the
    same to the developer, with further permission for the developer to
    construct additional parking spaces therein. The Consent Terms thus
    envisage a situation where after milking the entire development potential
    flowing out of the layout land, Petitioner No. 1 wants to retain the
    common amenities in the form of Club House, Swimming Pool, Tennis
    Court, etc. to itself.

    25) The Consent Terms were tendered in L.C. Suit No.901 of 2007
    and accordingly, the learned Judge of the City Civil Court passed a decree

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    in terms of the Consent Terms on 25 September 2013. Accordingly, the
    decree came to be drawn up in view of the Consent Terms.

    WHETHER ‘FAILURE’ ON THE PART OF PROMOTER HAS OCCURRED?

    26) As observed above, failure on the part of the promoter to
    convey land as per Section 11(1) becomes the jurisdictional fact for the
    Competent Authority to exercise jurisdiction under Section 11(3) to grant
    deemed conveyance. It is therefore necessary to examine whether a
    ‘failure’ within the meaning of Section 11(1) of MOFA has occurred in the
    present case for the Competent Authority to exercise jurisdiction under
    Section 11(3).

    27) Though Petitioner No.1 agreed and undertook to convey land
    admeasuring 13,629.84 sq.m. in terms of the consent terms dated 25
    September 2013, he did not perform the obligation. While it completed
    the construction of Blue Bell building taking benefit of Clause-5 of the
    consent terms, it failed to execute and/or register conveyance deed in
    favour of Respondent No.1-Society. The Society waited for 12 long years
    for Respondent No.1 to execute the conveyance. In my view therefore,
    there is a ‘failure’ on the part of Petitioner No.1 to convey the land and
    the building within the meaning of Section 11(1) of MOFA. The case does
    not involve a situation where conveyance in terms of the decree is
    actually executed. If such conveyance was executed, the ‘failure’ within
    the meaning of Section 11 (3) would not have occurred and Competent
    Authority could not have exercised the jurisdiction. However, since

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    conveyance was actually not executed, it will have to be necessarily
    assumed that there is a ‘failure’ on the part of Petitioner No.1 to convey
    the land and the building.

    28) Section 11(1) of MOFA mandates that the promoter shall
    convey his right, title and interest in the land and the building and ‘shall
    execute’ all relevant documents therefor in accordance with the
    agreement executed under Section 4. The act of ‘conveyance’ does not
    occur unless a Deed of Conveyance is executed and registered. It is only
    when the act of registration of the Conveyance Deed happens that it can
    be presumed that there is fulfillment of statutory duty under Section 11(1)
    and that there is no ‘failure’ on the part of the promoter. However, mere
    ‘agreement’ by the promoter for conveyance would not be sufficient for
    the purpose of holding that there is fulfillment of the statutory duty and
    that there is no failure on the part of the promoter within the meaning of
    Section 11(3) of MOFA. Failure would not occur only when the act of
    conveyance is completed. The legislative objective behind Section 11 is to
    ensure that the organisation of flat purchasers must be vested with title,
    and legal effect of vesting gets completed only when a Deed of
    Conveyance is executed and registered. Therefore, mere agreement or
    undertaking by a developer to convey the land and building would not be
    sufficient to hold that there is no failure within the meaning of Section
    11(3)
    of the Act.

    29) In the present case, Petitioner No.1-developer did not convey
    the land and the building in favour of Respondent No.1-Society for 12

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    long years after passing of the consent decree dated 25 September 2013.
    In my view therefore, failure within the meaning of Section 11(3) of
    MOFA has clearly occurred in the facts and circumstances of the present
    case. What must be appreciated is the legislative intent behind making
    provision for unilateral deemed conveyance through Competent
    Authority under Section 11(3) to (5) of MOFA. The objective is to obviate
    the need by organisation of flat purchasers to enter into lengthy litigation
    for the purpose of seeking conveyance. The legislature has provided for a
    summary enquiry while granting certificate of unilateral deemed
    conveyance by the Competent Authority. Therefore, while the option of
    filing execution proceedings was open to Respondent No.1-Society, the
    same would have resulted into a lengthy litigation between the parties.
    Instead, the Society has taken aid of a swifter and faster remedy under
    Section 11(3) of MOFA. Since there is ‘failure’ on the part of Petitioner
    No.1-developer within the meaning of Section 11(3) of MOFA, the
    Competent Authority has correctly exercised the jurisdiction in granting
    certificate of unilateral deemed conveyance.

    CONVEYANCE OF LAND WITHIN THE LIMITS OF CONSENT TERMS

    30) In the present case, upon noticing failure on the part of the
    promoter, Competent Authority has exercised the jurisdiction and has
    conveyed in favour of Respondent No. 1 Society land admeasuring
    13578.293 sq.m. Under the Consent Terms, the Petitioner No. 1 had
    agreed and undertaken to convey land admeasuring 13629.84 sq.m. to
    Respondent No. 1 Society. Thus, the case does not involve conveyance of

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    land to Respondent No.1-Society by the Competent Authority in excess
    than the one agreed in the Consent Terms. This is clear from the
    following:

    Land agreed to be conveyed Land conveyed vide certificate of
    unilateral deemed conveyance
    13629.84 sq.m. 13578.293 sq.m.

    31) Similarly, Rosa Alba Society also does not get land lesser than
    the one agreed under the Consent Terms. This is clear from the following:

    Land reserved for Rosa Alba Land remaining balance after
    Society under Consent Terms conveyance in favour of
    Respondent No.1 Society

    2662.98 sq.m. 2714.527

    32) Thus, it cannot be contended that the certificate of unilateral
    deemed conveyance issued by the Competent Authority contravenes the
    Consent Terms in any manner. In fact, the certificate conveys lesser land
    to Respondent No.1-Society than the one agreed in the Consent Terms.

    IS CERTIFICATE OF DEEMED CONVEYANCE BAD FOR NON-GRANT OF LEASE IN
    FAVOUR OF PETITIONERS?

    33) Mr. Damle has contended that the certificate of deemed
    conveyance does not take into consideration the right of Petitioners to
    have a lease in respect of land admeasuring 3546.31 sq.m. and that
    therefore the same contravenes the consent terms. I am unable to agree.
    The Competent Authority exercising jurisdiction under Section 11 of
    MOFA is not expected to decide entitlement of the developer to secure
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    lease in respect of the conveyed land from the society. That enquiry
    would be outside the jurisdiction of the Competent Authority. The
    Competent Authority has limited jurisdiction to convey land and building
    in favour of the society. If the developer is entitled to secure any other
    right in the property, he needs to adopt appropriate proceedings for the
    same and he cannot expect the Competent Authority to grant such right.
    In the present case, it was not competent for the Competent Authority to
    direct Respondent No.1-Society to execute conveyance of land
    admeasuring 3546.31 sq.m. in favour of the Petitioners. Reliance in this
    regard by Mr. Khandeparkar on judgment of this Court in Nahalchand
    Laloochand Pvt. Ltd. vs. Shri. Panchamrut CHSL (supra) outlining the
    limited scope of inquiry under Section 11 by the Competent Authority is
    apposite.

    34) Clause 6 of the Consent Terms begins with the expression
    ‘Consequent upon to the fulfilment of its obligations by the Defendants no. 1,
    in terms of clause (2), (3) and (4) above’. Thus, the occasion for execution of
    lease under the Consent Terms would arise only after the land was first
    conveyed in favour of the Respondent No. 1-Society. That event itself had
    not occurred and therefore the Society was required to knock the doors of
    the Competent Authority to first seek conveyance of land in its favour. All
    that is done at this juncture is conveyance of land in favour of the
    Respondent No. 1 Society. The order of the Competent Authority, in no
    manner, comes in the way of Petitioners seeking execution of the consent
    decree for seeking lease of portion of the conveyed land.

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    35) It also appears that under the Consent Terms, lease of land
    admeasuring 3546.31 sq.m. was agreed to be conveyed in the name of an
    altogether different entity ‘M/s. Nahar Builders and Developers Ltd.’.
    Petitioner No. 1 before me is ‘Nahar Builders Ltd’. Whether both the
    entities are same or distinct is unknown. Secondly, the said entity or
    Petitioner No.1 have the remedy of seeking execution of the conveyance
    deed for the purpose of securing lease in respect of land admeasuring
    3546.31 sq.m. In such execution proceedings, Respondent No.1 would be
    entitled to raise all defences. Whether a promoter can seek back lease of
    portion of the conveyed land and whether such a term is in accordance
    with the provisions of Sections 4 and 11 of MOFA is something which can
    be decided in appropriate proceedings. This Court need not delve deeper
    into those issues. Suffice it to hold that mere agreement in the consent
    terms for execution of lease of land admeasuring 3546.31 sq.m. in favour
    of the entity M/s. Nahar Builders and Developers Ltd. cannot be a ground
    for Competent Authority not to convey the land and the building in
    favour of Respondent No.1-Society. In my view therefore, the impugned
    order passed by the Competent Authority does not contravene the
    consent decree in any manner.

    36) Mr. Damle has strenuously relied on judgment of this Court
    in Nahar Seth & Jogani Developers Pvt. Ltd. (supra). However, careful
    perusal of the observations made by this Court in that judgment would
    indicate that jurisdiction of Competent Authority to decide application
    under Section 11(3) of MOFA after execution of the consent terms is not
    negatived by this Court. On the other hand, this Court has repeatedly held

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    in that judgment that Competent Authority was expected to apply its
    mind to the consent decree and consent terms and then pass order of
    unilateral deemed conveyance. This is clear from the following
    observations made by this Court in the judgment:

    12. … Once the entire position was placed before the Competent Authority, all
    that the Competent Authority was required to do was to apply its mind to the
    Consent Decrees and Consent Terms.

    13. It is seen that Competent Authority has miserably failed to apply its mind
    and without considering the essence of the same has passed the impugned
    order. …

    14. … The Consent Terms and the Consent Decrees passed by the Civil Court are
    completely disregarded and set to naught by virtue of the impugned order dated
    04.03.2022. Such an impugned order is clearly not sustainable.

    37) Thus, judgment of this Court in Nahar Seth & Jogani
    Developers Pvt. Ltd. does not conclude that Competent Authority ceases
    to have jurisdiction under Section 11 of MOFA after a consent decree is
    passed based of consent terms filed by the parties. All that this Court has
    held in Nahar Seth & Jogani Developers Pvt. Ltd. is that the Competent
    Authority ought to have granted conveyance in accordance with the
    consent terms. In the present case, the Competent Authority has not
    contravened the consent decree while exercising its limited jurisdiction
    under Section 11(3) and (4) of MOFA and has conveyed lesser land than
    the one contemplated in the consent decree. It appears that in the facts of
    the case in Nahar Seth & Jogani Developers Pvt. Ltd., while setting aside
    the order passed by the Competent Authority, this Court has issued
    directions for execution of deed of conveyance by the developer in favour
    of the society and deed of lease by the society in favour of the developer. I

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    am unable to follow the said course of action in the present case for
    variety of reasons. Firstly, this Court is exercising supervisory jurisdiction
    over the order passed by the Competent Authority, which did not have
    jurisdiction to direct execution of lease in favour of the developer under
    Section 11 of MOFA. Therefore, what could not have been done by the
    Competent Authority cannot be done by this Court in exercise of
    jurisdiction under Article 227 of the Constitution of India. Secondly and
    more importantly, execution of lease under thee Consent Terms is
    dependent on Petitioner No.1 executing repairs and painting works in the
    building of Respondent No.1 Society. It is not known whether Petitioner
    No.1 has fulfilled that obligation or not. Performance of obligations under
    the consent terms is sequential (which aspect is dealt with in greater
    details in the latter part of the judgment). Therefore in the facts of this
    case, it is not possible to issue a direction to the Respondent No.1 Society
    to execute lease in favour of Petitioner No.1. Thirdly, in the facts of the
    present case, this Court is satisfied that the order of the Competent
    Authority directing conveyance of lesser land than the one agreed in the
    consent terms does not amount to violation of the consent terms.

    38) As observed above, if Petitioners want to have the lease of
    the portion of the land executed in their favour, they need to exercise
    remedy available in law. Mr. Damle has submitted that Petitioners have
    already filed application for execution of the consent decree dated 25
    September 2013. Copy of the Execution Application No. 31 of 2026 is
    placed on record at Exhibit-J to the Petition. The date of filing of
    Execution Application is not disclosed by the Petitioners. But the same

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    appears to have been filed after filing of Application for deemed
    conveyance by the Respondent No. 1 Society. Thus, the Petitioners, who
    showed no interest in acting in terms of the Consent Decree for 12 long
    years, suddenly developed interest in execution of decree and filed
    Execution Application, filing of which was aimed at somehow defeating
    the Application for deemed conveyance. This conduct on the part of the
    Petitioner needs to be deprecated. The direction sought for by the
    Petitioners in Execution Application again shows that the conveyance of
    land by the Competent Authority does not contravene the consent decree.
    In Clause ‘J’ of Execution Application, Petitioners have sought a direction
    that Plaintiff-society is entitled to portion of land admeasuring 13629.84
    sq.m. As against this, the Competent Authority has conveyed land
    admeasuring 13578.293 sq.m. to Respondent No. 1 Society.

    39) Petitioner can press its entitlement for execution of lease
    before the Executing Court which can decide the same after taking into
    consideration all defences that can be raised by Respondent No.1-Society.
    Therefore there is no warrant for setting aside the order of the Competent
    Authority only because the order does not grant lease of portion of land in
    favour of the Petitioner.

    APPLICATION OF PRINCIPLE OF ESTOPPEL

    40) Mr. Damle has relied upon judgment of the Apex Court in
    Ajanta LLP (supra) in support of his contention that a compromise decree
    creates estoppel by judgment. The judgment also holds that a consent

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    decree would not serve as an estoppel where compromise was vitiated by
    fraud, misrepresentation or mistake. The Apex Court has held in paras-20
    to 22 as under:

    20. Resolving a dispute pertaining to a compromise arrived at between the
    parties, this Court in Shankar Sitaram Sontakke [Shankar Sitaram
    Sontakke v. Balkrishna Sitaram Sontakke
    , AIR 1954 SC 352] held as under : (AIR
    p. 353, para 7)

    “7. … If the compromise was arrived at after due consideration by the
    parties and was not vitiated by fraud, misrepresentation, mistake or
    misunderstanding committed by the High Court — the finding which was
    not interfered with by the High Court — it follows that the matter which
    once concluded between the parties who were dealing with each other at
    arm’s length cannot now be reopened.”

    21. A judgment by consent is intended to stop litigation between the
    parties just as much as a judgment resulting from a decision of the Court
    at the end of a long drawn-out fight. A compromise decree creates an
    estoppel by judgment [Byram Pestonji Gariwala v. Union Bank of India, (1992) 1
    SCC 31] .
    It is relevant to note that in Byram Pestonji Gariwala [Byram Pestonji
    Gariwala v. Union Bank of India
    , (1992) 1 SCC 31], this Court held that the
    appellant therein did not raise any doubt as to the validity or genuineness of the
    compromise nor was a case made out by him to show that the decree was
    vitiated by fraud or misrepresentation. While stating so, this Court dismissed
    the appeal.

    22. A consent decree would not serve as an estoppel, where the
    compromise was vitiated by fraud, misrepresentation, or mistake. The
    Court in exercise of its inherent power may rectify the consent decree to ensure
    that it is free from clerical or arithmetical errors so as to bring it in conformity
    with the terms of the compromise. Undoubtedly, the Court can entertain an
    application under Section 151CPC for alterations/modification of the consent
    decree if the same is vitiated by fraud, misrepresentation, or misunderstanding.

    (emphasis added)

    41) While Mr. Damle contends that the principle of estoppel
    applies and the Respondent No. 1 Society could not have filed application
    for deemed conveyance after the consent decree, Mr. Khandeparkar has

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    relied on the judgment of this Court in Prestige Garden A-1 CHSL (supra)
    in support of his contention that the principle of estoppel has no
    application against provisions of a statute. He contends that if MOFA
    creates a remedy under Section 11 in favour of the Society upon occasion
    of ‘failure’ by the developer, the Society cannot be estopped from
    exercising that remedy as provisions of Section 16 of MOFA creates an
    overriding effect over any private arrangement between the parties. It is
    Society’s contention that the scheme of MOFA does not permit a
    promoter/developer to seek back portion of the conveyed land. In my
    view, it is not necessary to delve deeper into the issue of application of
    principle of estoppel. As of now, this Court is not concerned with the
    issue as to whether the compromise leading to consent decree is lawful or
    not. That issue would arise when the Petitioners’ application for
    execution would seek execution of the consent decree for lease of portion
    of the conveyed land is decided. Suffice it to observe that in a given case
    where a cooperative housing society had acted on the certificate of
    unilateral deemed conveyance by registering Deed of Conveyance for
    lesser area of land, this Court in Prestige Garden A-1 CHSL still
    permitted the society to challenge the order of deemed conveyance for
    seeking conveyance of higher area of land by holding that there cannot be
    estoppel against a statute.

    42) Ordinarily, what Mr. Khandeparkar contends could have been
    accepted if the arrangement between the parties was in the form of a
    mere agreement. In that case, provisions of Section 16 of MOFA would
    have nullified the agreement between the parties upon being

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    demonstrated that the same is contrary to the provisions of MOFA and
    mere act of the Society in entering into the agreement would not have
    acted as estoppel. In judgment of this Court in Paramanand Builders LLP
    (supra) relied upon by Mr. Khandeparkar, this Court has held that internal
    arrangement between the parties cannot nullify the mandate of Section
    11
    of MOFA. However, in the present case, parties have filed the
    agreement in the Court and have obtained imprimatur of the Court
    thereon. In the present case there is no adjudication of rights and
    liabilities by the City Civil Court. It has merely recorded compromise
    between the parties and has put its seal on the private agreement. It is
    only the imprimatur of the court on the agreement which stops the Court
    from declaring, in these proceedings, that provisions of MOFA would
    override the private arrangement made between the parties. That
    declaration needs to be sought in appropriate proceedings. Respondent
    No. 1 Society can either raise that defence before the Executing Court (if
    permissible) or it can adopt separate proceedings for seeking a
    declaration that the compromise is not lawful.

    SEQUENTIAL PERFORMANCES UNDER THE CONSENT DECREE

    43) Under the Consent Terms, the reciprocal performances
    agreed are sequential. Clause 6 of the Consent Terms begin with the
    expression ‘Consequent upon to the fulfilment of its obligations by the
    Defendants no. 1, in terms of clause (2), (3) and (4) above ‘. Therefore, the
    first act agreed and undertaken as per the Consent Terms was to be
    performed by the Petitioner No. 1, who was to first convey the land in

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    favour of the society. The second act was again for Petitioner No. 1 to
    perform where it was supposed to register the conveyance deed within 30
    days. The third act was once again for the Petitioner No. 1 to perform
    where it was required to carry out, within 6 months, the work of repairs of
    leakages and the painting of the five wings of Orchid Enclave Building,
    replace/install electric poles in the garden on complex. It is only after the
    first, the second and the third acts were performed by the Petitioner No. 1
    that the Respondent No. 1 Society was supposed to execute the lease of
    portion of land in favour of the entity Nahar Builders and Developers Ltd.

    44) It is an admitted position that none of the said three acts are
    performed by the Petitioner No. 1. Therefore, no occasion arose for
    Respondent No. 1 to execute the lease. Since performance of the first act
    itself did not occur, the Society was required to seek remedy under
    Section 11 of MOFA to get conveyance executed in its favour. It is only
    after the conveyance was sought from the Competent Authority that the
    Petitioners thought of filing Application for Execution. As of now, only
    first part of the performance under the consent decree has taken place. If
    Petitioners believe that they are entitled to secure lease of portion of
    conveyed land, it will be for them to secure the same in execution
    proceedings as the Authority under Section 11 of MOFA is not competent
    to grant that relief in favour of Petitioners. Similarly, if Respondent No.1-
    Society believes that the scheme of MOFA does not permit the promoter
    to seek back portion of the conveyed land, it will have to adopt
    appropriate proceedings seeking such a declaration or it can defend
    execution proceedings by taking that defence, if permissible in law.

    _____________________________________________________________________________
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    Considering the unique statutory scheme of MOFA, it is difficult to hold
    that the remedy of Respondent No. 1 Society under Section 11(3) of
    MOFA is barred even where the promoter has failed to convey the land
    despite passage of more than 12 years of the parties entering into consent
    terms.

    OBJECTIVE OF PETITIONERS

    45) As observed above, the whole objective behind challenging
    the Order of deemed conveyance by the Petitioners is to ensure that the
    Society does not receive the conveyance of its due land entitlement. Apart
    from delaying the conveyance for eternity, the Petitioner-developers
    want to retain with themselves the land meant for common amenity
    spaces to be used by the residents of the building. Thus, after milking the
    entire development potential in the layout land, Petitioners desire that
    they must receive lease of land on which Society’s common amenities
    such as club house, swimming pool, etc are located. The FSI/BUA for
    construction of buildings of Respondent No. 1 Society has also arisen out
    of the land admeasuring 3546.31 sq.m. It would need that land for
    sustenance of its building. As observed above, whether a compromise for
    leasing back portion of conveyed land in favour of the developer is lawful
    within the meaning of Order XXIII Rule 3 of the Code of Civil Procedure
    1908 (CPC) is something which would be decided in appropriate
    proceedings. Petitioners’ remedy of seeking lease of land admeasuring
    3546.31 sq.m. is not barred on account of passing of the impugned order
    by the Competent Authority. In such circumstances, the objective of the

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    Petitioners in avoiding conveyance of land in favour of Respondent No.1
    Society by raising technical objection needs to be appreciated and the
    order of the Competent Authority conveying land due to Respondent No.1
    Society need not be disturbed.

    IS THIS A CASE FOR THIS COURT TO EXERCISE EXTRAORDINARY JURISDICTION
    UNDER ARTICLE 227?

    46) Present is a case where Petitioner No.1-developer has acted
    in gross violation of provisions of MOFA. It has failed to perform the
    statutory obligations of conveying the land and the building in favour of
    the Society. From its conduct, it is more than apparent that it has avoided
    to execute conveyance in favour of the Society. It first made Respondent
    No.1-Society approach City Civil Court by filing a suit. Even after the
    consent decree, it took no steps for 12 long years to act on the said
    Consent Terms. Now the Petitioners take a very specious stand that
    Respondent No.1-Society ought to have exercised the remedy of seeking
    execution of the consent decree. The objective behind taking this stand is
    more than obvious viz. to embroil Respondent No.1-Society in another
    round of lengthy litigation. Whether this Court can be a party to such
    oblique objective of the developer is the question. The answer, to my
    mind, appears to be in emphatic negative. This Court would not permit its
    extraordinary jurisdiction under Article 227 to be misused by a party like
    the Petitioner whose only objective is to somehow avoid grant of
    conveyance of land and building in favour of the Society and to retain
    control over the same for eternity. Far from assisting such a developer,

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    this Court would in fact come down heavily on such tendencies and would
    refuse to allow its jurisdiction to be misused for perpetuating unlawful
    gain. The extraordinary jurisdiction under Section 227 need not be
    exercised by the High Court to correct every error of law and fact when
    the final finding is found to be justified or found to be supported. In this
    regard, reference can be made to the judgment of the Apex Court in
    Garment Crafts vs. Prakash Chand Goel9 in which it has held in para-15
    as under:

    15. Having heard the counsel for the parties, we are clearly of the view that the
    impugned order [Prakash Chand Goel v. Garment Craft, 2019 SCC OnLine Del
    11943] is contrary to law and cannot be sustained for several reasons, but
    primarily for deviation from the limited jurisdiction exercised by the High Court
    under Article 227 of the Constitution of India. The High Court exercising
    supervisory jurisdiction does not act as a court of first appeal to reappreciate,
    reweigh the evidence or facts upon which the determination under challenge is
    based. Supervisory jurisdiction is not to correct every error of fact or even a
    legal flaw when the final finding is justified or can be supported. The High Court
    is not to substitute its own decision on facts and conclusion, for that of the
    inferior court or tribunal.
    [Celina Coelho Pereira v. Ulhas Mahabaleshwar
    Kholkar
    , (2010) 1 SCC 217] The jurisdiction exercised is in the nature of
    correctional jurisdiction to set right grave dereliction of duty or flagrant abuse,
    violation of fundamental principles of law or justice. The power under Article
    227
    is exercised sparingly in appropriate cases, like when there is no evidence at
    all to justify, or the finding is so perverse that no reasonable person can possibly
    come to such a conclusion that the court or tribunal has come to. It is axiomatic
    that such discretionary relief must be exercised to ensure there is no
    miscarriage of justice.

    47) In the facts of the present case, this Court is ultimately
    satisfied that Respondent No.1-Society is rightly conveyed land
    admeasuring 13,578.293 sq.m. (as against the land agreed to be conveyed of
    13,629.84 sq.m. under the consent terms). Therefore, the impugned order
    of the Competent Authority need not be interfered with by entertaining

    9
    (2022) 4 SCC 181
    _____________________________________________________________________________
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    technical objections sought to be raised by the Petitioners that the
    Respondent No.1-Society must file execution proceedings for execution
    of the consent decree.

    48) It is also well-settled principle that when extraordinary
    jurisdiction of High Court is invoked, Petitioner must show that the
    justice is on his side. Useful reference in this regard can be made to the
    observations of the Chief Justice M. C. Chagla of this Court, speaking for
    the Division Bench in State of Bombay vs. Morarji Cooverji 10, in which it
    is held as under:

    42. … This is, on the contrary, a case where the premises requisitioned for a
    public purpose are occupied by a Government servant and are sought to be
    taken possession of by the landlord by asking the Court to throw the
    Government servant out and restore possession to the landlord when that
    landlord has never shown its need of those premises by occupying them himself.

    Therefore, this is clearly a case where justice is not on the side of the
    petitioner, it is on the side of the State, and we see no reason why we
    should grant any relief to the petitioner.

    ***

    44. With respect to the learned Judge, the matter is much more serious than
    merely the question of this particular vacancy of 1956 not being relevant to the
    vacancy which is the subject-matter of the requisition order. On a writ
    petition, as we have already said, the petitioner has not merely to show
    good faith, but he has not to suppress any facts and has also to show that
    justice lies on its side. If the learned Judge had taken these circumstances into
    consideration and then had come to the conclusion that the discretion should
    be exercised in favour of the landlord, then undoubtedly we would not have
    interfered with the order passed by the learned Judge.

    (emphasis added)

    49) In M.P. Mittal Versus. State of Haryana11, the Apex Court
    has held that while exercising jurisdiction under Article 226 of

    10
    1958 SCC OnLine Bom 188
    11
    (1984) 4 SCC 371
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    PAGE NO. 39 of 43
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    Constitution of India, it is open to the High Court to consider whether it
    should decline relief to a Petitioner if grant of relief would defeat the
    interest of justice. The Court can always refuse relief if Petitioners seek
    to invoke jurisdiction in order to secure dishonest advantage or to
    perpetuate an unjust gain. It has been held by the Apex Court in para-5 as
    under:

    5. Now there is no dispute that the appellant knowingly and deliberately
    entered into the guarantee agreement and is liable as guarantor to make
    payment of the dividend due from Messrs Depro Foods Limited. Nor is it
    disputed that the amount due, with interest, stands at Rs 2,02,166–in respect of
    the period ending with the year 1977. It was not contended that the appellant in
    fact does not possess sufficient funds or cannot avail of sufficient personal
    property for the purpose of discharging the liability. The record also shows that
    before instituting coercive proceedings, the Assistant Collector provided the
    appellant an opportunity to pay up the amount due from him and that the
    appellant made no attempt to discharge the liability. When that is so, we are of
    opinion that he is not entitled to relief in these proceedings. The appeal arises
    out of a writ petition and it is well-settled that when a petitioner invokes
    the jurisdiction of the High Court under Article 226 of the Constitution, it
    is open to the High Court to consider whether, in the exercise of its
    undoubted discretionary jurisdiction, it should decline relief to such
    petitioner if the grant of relief would defeat the interests of justice. The
    court always has power to refuse relief where the petitioner seeks to
    invoke its writ jurisdiction in order to secure a dishonest advantage or
    perpetuate an unjust gain. This is a case where the High Court was fully
    justified in refusing relief. On that ground alone, the appeal must fail.

    (emphasis added)

    50) Therefore, in the facts and circumstances of the present case,
    I am not inclined to exercise jurisdiction in favour of the Petitioner to
    interfere in the impugned order passed by the Competent Authority. The
    judgment obviously is not to be read to mean that in every case where
    there is a decree of Civil Court, the Competent Authority can exercise
    jurisdiction under Section 11(3) of MOFA or can pass order contrary to the
    decree. The judgment is rendered in unique facts and circumstances of
    _____________________________________________________________________________
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    the present case where there is gross failure on the part of the promoter
    to convey land, the conveyed land is within the limits of agreement under
    the Consent Terms and the remedy of the Petitioners to have the lease
    executed in their favour is not barred.

    JUDGMENTS RELIED ON BY PETITIONERS

    51) Mr. Damle has also relied upon judgment of the Apex Court
    in S. Malla Reddy (supra) in support of his plea of res judicata. The
    judgment however is an authority on the proposition that parties cannot
    repeatedly file proceedings in a different form by quoting different
    provisions of law for the same relief which was negatived earlier. The
    judgment is rendered in the unique facts of the case where the Defendant
    therein had initially admitted Plaintiff’s claim in the written statement
    and later filed two applications for striking off the admission in the
    written statement (Order VI Rule 16 CPC) and for seeking permission to
    file detailed written statement (Order VIII Rule 9 CPC) after changing the
    advocate. Both applications were dismissed and the dismissal attained
    finality till the Apex Court. Thereafter, the Defendant therein filed
    application for amendment of written statement (Order VI Rule 17 CPC),
    which was allowed by the Trial Court. In these peculiar facts, the Apex
    Court held that the Defendant therein could not have filed repeated
    applications for same relief. The Apex Court upheld the Order of the High
    Court dismissing the application for amendment of written statement.
    The law enunciated by the Apex Court in S. Malla Reddy does not apply

    _____________________________________________________________________________
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    in the facts and circumstances of the present case as Respondent No.1’s
    plea for conveyance has never been rejected in the earlier proceedings.

    52) The judgment in Sanu Enterprises (supra) involved case of
    filing of second application for deemed conveyance after rejection of the
    first application by the Competent Authority, which is not the factual
    situation in the present case. Therefore, ratio the judgment is
    inapplicable to the facts of the present case.

    CONCLUSION AND ORDER

    53) Considering the overall conspectus of the case, I am of the
    view that no interference is warranted in the impugned order of deemed
    conveyance which appears, to my mind, as unexceptionable. Writ Petition
    is devoid of merits. It is accordingly dismissed with no order as to costs.
    It is however clarified that observations made by this Court in the
    judgment shall not come in the way of parties exercising their respective
    remedies in relation to consent decree.

    [SANDEEP V. MARNE, J.]

    54) After the judgment is pronounced, the learned counsel
    appearing for Petitioner seeks continuation of ad-interim order passed on
    5 May 2026. The request is opposed by the learned counsel appearing for
    the first Respondent-society. Considering the nature of findings recorded

    _____________________________________________________________________________
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    in the judgment, I am not inclined to continue the stay. The request is
    accordingly rejected.

    
    
                                                                                                              [SANDEEP V. MARNE, J.]
    
    
    
                                                Digitally
                                                signed by
                                                NEETA
                                       NEETA    SHAILESH
                                       SHAILESH SAWANT
                                       SAWANT   Date:
                                                2026.07.28
                                                20:56:27
                                                +0530
    
    
    
    
    

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