Deemed conveyance for housing societies cannot be made conditional, says Bombay HC | mumbai news | Hindustan Times
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Deemed conveyance for housing societies cannot be made conditional, says Bombay HC

Mumbai city news: The developer had approached the high court after the district deputy registrar granted deemed conveyance to the housing society

mumbai Updated: Jun 28, 2017 01:10 IST
Kanchan Chaudhari
The Bombay high court noted that deemed conveyance can be granted under Section 11 of the Maharashtra Ownership of Flats Act.
The Bombay high court noted that deemed conveyance can be granted under Section 11 of the Maharashtra Ownership of Flats Act. (Pic for Representation)

Granting deemed conveyance to cooperative housing societies cannot be conditional if members have paid all their dues to the developer, the Bombay high court held last week.

The division bench of Justice RM Savant and Justice Sadhana Jadhav was hearing a petition filed by Prem Construction Company challenging the order of the district deputy registrar, Mumbai, to grant deemed conveyance to Sonia Premises Cooperative Housing Society.

The housing society had approached the district deputy registrar, who is the competent authority to grant deemed conveyance to registered cooperative housing societies, as mentioned under section 11 of the Maharashtra Ownership of Flats Act.

Developer Prem Construction Company had failed to transfer the property to the housing society although the society had been registered way back in September 1984.

The developer approached the high court after the district deputy registrar granted deemed conveyance to the housing society.

Citing Clauses 23 and 29 of the Flat Purchase Agreements signed by the flat owners with the developer, it was argued on behalf of the developer that the deemed conveyance should not have been granted.

The clauses say that conveyance can only be granted if the flat buyers have made all payments to the developer.

The high court, however, rejected the argument.

It noted that deemed conveyance can be granted under Section 11 of the Maharashtra Ownership of Flats Act which says the grant of deemed conveyance would only be contingent upon members of the cooperative housing society who have paid all dues to the developer.

If the submission is made on behalf of the developer “then section 11 would become meaningless, as there could never be a resolution of disputes between the developer and the flat purchasers, which in turn would delay granting conveyance of the property indefinitely.”

The bench also noted that the application filed by the housing society for deemed conveyance was accompanied by all necessary documents such as flat purchase agreements and society registration certificate.