Supreme Court of India· 21 April 2025
Can the competent authority under Section 11(3) of the Maharashtra Ownership Flats Act, 1963 conclusively decide the question of title?
ARUNKUMAR H SHAH HUF v. AVON ARCADE PREMISES CO-OPERATIVE SOCIETY LIMITED & ORS.
2025 INSC 524 · CIVIL APPEAL NO.5377 OF 2025
Coram: Abhay S. Oka; Ujjal Bhuyan
Answer
No. Although quasi-judicial powers are conferred on the competent authority, proceedings under Section 11(3) are of a summary nature and there is an absolute prohibition under Rule 13(5) on cross-examination of parties. The competent authority therefore cannot conclusively and finally decide the question of title, and notwithstanding an order under sub-section (4) of Section 11, aggrieved parties can always maintain a civil suit for establishing their rights.
Headnote
Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 — ss.5A, 11(3), 11(4), 11(5) — Registration Act, 1908 — Deemed conveyance — Competent authority — Summary procedure — Question of title — Writ jurisdiction —
Maharashtra Ownership Flats Act, 1963 — s.11(3) — Competent authority — Summary procedure; reasons must be recorded —
Held: Quasi-judicial powers are conferred on the competent authority, but proceedings under Section 11(3) are of a summary nature and cross-examination of the parties is absolutely prohibited. The competent authority must nevertheless record reasons while passing the final order. (¶19, 20)
Maharashtra Ownership Flats Act, 1963 — s.11(4) — Question of title — Civil suit remains open —
Held further: Following that summary procedure, the competent authority cannot conclusively and finally decide the question of title. Notwithstanding an order under sub-section (4) of Section 11, aggrieved parties can always maintain a civil suit for establishing their rights. (¶20, 37)
Maharashtra Ownership Flats Act, 1963 — s.11(5) — Registration Act, 1908 — Registering officer's limited scope —
Held further: The registering officer is neither an appellate authority nor a revisional authority and cannot reopen the findings of the competent authority. He may refuse registration only for want of a statutory permission, a subsisting prohibitory order, or non-compliance with the procedural requirements under the Registration Act, 1908. (¶22, 23)
Maharashtra Ownership Flats Act, 1963 — s.11(4) — Beneficial legislation — Interference only if manifestly illegal —
Held further: The MOFA is a beneficial legislation enacted to protect home buyers, and the writ court should be slow to interfere with an order granting deemed conveyance unless it is manifestly illegal. The appellant's rights as a perpetual lessee having been protected, the appeal is dismissed. (¶35, 38)
In the Court's own words
Paragraph 20It is undoubtedly true that quasi-judicial powers have been conferred upon the competent authority while dealing with applications under Section 11(3) of the MOFA. However, proceedings before the competent authority under Section 11(3) are of summary nature, as can be seen from the MOFA Rules. Even cross-examination of the parties is not permissible. There is an absolute prohibition under Rule 13(5) on cross-examination of parties. Thus, it follows that the competent authority, while following the summary procedure, cannot conclusively and finally decide the questions of title. Therefore, notwithstanding the order made under sub-section (4) of section 11, aggrieved parties can always file a civil suit for establishing their rights.
Paragraph 37Our conclusions on the interpretation of sub-sections (4) and (5) of Section 11 of the MOFA are as under: i. It is no doubt true that quasi-judicial powers have been conferred on the competent authority while dealing with applications under Section 11(3) of the MOFA. However, proceedings before the competent authority under Section 11(3) are of a summary nature, as can be seen from the MOFA Rules. Therefore, the competent authority, while passing the final order, must record reasons; ii. The competent authority, while following the summary procedure, cannot conclusively and finally decide the question of title. Therefore, notwithstanding the order under sub-section (4) of Section 11, the aggrieved parties can always maintain a civil suit for establishing their rights; iii. The provisions of Section 11 are for the benefit of the flat purchasers. In writ jurisdiction, the Court should not interfere with the order granting deemed conveyance unless the same is manifestly illegal. The writ court should generally be slow in interfering with such orders. The reason is that, notwithstanding the order under Section 11(4), the remedy of aggrieved parties to file a civil suit remains open; and iv. The registering officer has no power to sit in appeal over the order of the competent authority while exercising the power under Section 11(5). He can refuse registration only on the grounds indicated in paragraph 23 above and not beyond. Thus, the scope of the powers conferred on the registering officer is limited.
Acts & Sections
s.11(3) Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963s.11(4) Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963s.11(5) Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963s.5A Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963s.4 Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963s.10 Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963s.2(c) Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963r.13 Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Rules, 1964Registration Act, 1908One judgment a day. That's the whole habit.
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