Darshan Mandir Co-operative Housing Society Limited Vs District Deputy Registrar (Bombay High Court)
The Bombay High Court considered whether the pendency of Corporate Insolvency Resolution Proceedings (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC) against a promoter or subsequent purchaser could justify the Competent Authority refusing to exercise jurisdiction under Section 11(3) of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The Court also examined whether the moratorium under Section 14 of the IBC barred the Competent Authority from granting deemed conveyance in favour of a cooperative housing society.
The petitioner society was formed by flat purchasers in a building developed by the original promoter, who had executed agreements under Section 4 of MOFA and undertaken to execute a conveyance in favour of the society. Although the occupancy certificate had been issued and the society had been registered, the promoter failed to execute the conveyance. Subsequently, another entity claimed to have obtained conveyance of the property from the original owner and promoter. After deleting the prayer for conveyance from a pending civil suit, the society filed an application before the Competent Authority seeking deemed conveyance under Section 11 of MOFA.
