Maintaining Deemed Conveyance Entitlements in the Face of Legal Disputes

Introduction: The Maharashtra Ownership Flats Act of 1963 (the Act) is designed to protect the rights of flat buyers and ensure transparency in real estate transactions. Conveyance, the formal transfer of property ownership, plays a vital role in this process. However, in cases where promoters fail to execute conveyance, deemed conveyance becomes necessary to transfer ownership to the legal entity representing flat buyers.

Key Provisions and Amendments: The Act mandates the transfer of ownership rights to the organization representing flat purchasers within a specified timeframe. The 2008 Amendment introduced crucial additions to Section 11, empowering competent authorities to issue deemed conveyance orders in cases of promoter negligence or intentional delays.

Case Overview: Ravi Jagganath Agarwal v/s. Prince Tower CHS Ltd: A recent ruling by the Bombay High Court in the case of Ravi Jagganath Agarwal v/s. Prince Tower CHS Ltd highlights the significance of deemed conveyance. Despite complex legal disputes, the court upheld the competent authority's order, affirming the society's right to seek conveyance.

Comparison with Previous Rulings: The judgment contrasts with previous rulings, emphasizing adherence to contractual terms and fair procedures. In cases where agreements are not followed, or areas beyond the agreed terms are conveyed, courts have set aside conveyance orders.

Conclusion: The recent ruling underscores the importance of interpreting and enforcing the Act strictly to prevent abuse of legal principles. While deemed conveyance facilitates rightful property ownership, adherence to agreement terms and fair procedures is essential. The Bombay High Court's stance reaffirms the authority of competent authorities to issue conveyance orders, ensuring transparency and accountability in real estate transactions.