The Bombay High Court, in a detailed 70-page judgment delivered by Justice Sandeep V. Marne adjudicated cross-suits between Acme Enterprises (the developer) and the Neelam Nagar Building Co-operative Housing Society Association Ltd. (the federation) over rights to land in a Mulund housing layout.
The dispute centered on whether the developer retained rights to construct an additional building on a portion of land after the Competent Authority had granted a unilateral deemed conveyance of the entire 18,602.20 sq.m. plot to the Federation under the Maharashtra Ownership Flats Act (MOFA).
While the Developer contended that it had disclosed plans for Building to purchasers and was entitled to complete it using unutilized FSI, the Federation argued that the developer had abandoned construction decades ago and that full conveyance of the land was valid.
The Court held that orders of deemed conveyance issued under MOFA are summary in nature and do not conclusively determine title, allowing developers to challenge them through civil suits. However, pending adjudication, the Court refused to grant interim relief to the Developer. It noted that the developer’s construction permissions had long lapsed, that the conveyance deed was lawfully executed, and that the Federation’s possession and title over the entire land must be maintained.
Accordingly, the Court dismissed the developer’s plea to stay the stop-work notice and declined to restrain the Federation from asserting ownership, emphasizing that developers cannot indefinitely delay conveyance or rely on expired rights to justify fresh construction.
Appearances:
Mr. Aspi Chinoy, Senior Advocate with Mr. Karl Tamboly, Ms. Kausar Banatwala, Ms. Riya Thakkar and Mr. Yash Sheth i/b Mr. Tushar Goradia for Plaintiff in Suit No.151 of 2025 and for Defendant No.1 in Suit No.143 of 2025.
Mr. Mayur Khandeparkar with Mr. Vikramjeet Garewal, Mr. Vinayak Pandit and Mr. Sufyaan Mansuri i/b Mr. Ajinkya M. Udane for the Applicant/Plaintiff in Suit No.143 of 2025 and for Defendant No.2 in Suit No.151 of 2025.
Mr. G.O. Giri with Mr. Rohit Gaikwad i/b Ms. Komal R. Punjabi for Defendant Nos.3 and 4/MCGM in both Suits.
