Mumbai, June 13: The Bombay High Court has held that once a decision becomes final, a Competent Authority cannot reopen the same issue by entertaining a fresh deemed conveyance application unless it has the legal power to review its own order. The court passed the ruling while setting aside a deemed conveyance granted to an Andheri housing society.
Justice Farhan Dubash, on June 9, set aside the deemed conveyance granted in favour of Apeksha Co-operative Housing Society in Andheri (West), while allowing a petition filed by developer BK Corporation challenging the 2017 order of the Competent Authority.
The dispute relates to Sundervan Complex at Lokhandwala Road, Oshiwara, where four housing societies — Apeksha, Noble House, Valencia and Camron Heights — were formed in buildings constructed by the developer on a common layout.
First Application Rejected In 2016
Apeksha CHS had first sought deemed conveyance in 2016. However, the Competent Authority rejected the application on August 4, 2016, observing that a civil suit filed by Noble House CHS over conveyance rights concerning the same layout was pending before the City Civil Court. The authority had granted liberty to Apeksha to file a fresh application only after the suit was decided.
Despite this, Apeksha filed a second application in January 2017, which was allowed by the Competent Authority, leading to execution of a unilateral deemed conveyance deed in 2018. The suit by Noble House CHS was still pending hearing.
High Court On Maintainability
The High Court held that the second application was not maintainable as the earlier order had never been challenged and the civil suit was still pending.
“The liberty was therefore conditional and not absolute,” Justice Dubash observed.
The court further noted, “Having elected not to challenge the earlier order, Apeksha CHSL could not indirectly nullify the earlier order by initiating a second round of proceedings before the same authority.”
Jurisdictional Error By Authority
Holding that the Competent Authority had effectively exercised review powers not available under the Maharashtra Ownership of Flats Act (MOFA), the court said, “The impugned order therefore suffers from a fundamental jurisdictional defect.”
Accordingly, the court set aside the order dated May 31, 2017, and cancelled the unilateral deemed conveyance deed registered in April 2018.
Liberty To Approach Fresh Forum
At the same time, the court recognised the statutory rights of flat purchasers and granted liberty to Apeksha CHS to challenge the Competent Authority’s original 2016 order before an appropriate forum.
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The City Civil Court has also been requested to expedite hearing of Noble House CHS’s pending suit, preferably within one year. Following a request by Apeksha CHS, the High Court stayed operation of its judgment for four weeks, till July 7, 2026, to enable the society to approach the Supreme Court.
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