​In a significant ruling on April 21, 2025, the Supreme Court of India emphasized that High Courts should refrain from interfering with deemed conveyance orders issued under Section 11(4) of the Maharashtra Ownership Flats Act, 1963 (MOFA), unless such orders are manifestly illegal. This decision underscores the welfare-oriented nature of MOFA, designed to protect flat purchasers from malpractices by developers.

The case involved a developer challenging the Bombay High Court’s refusal to intervene in a deemed conveyance order granted to a cooperative housing society. The Supreme Court, through a bench comprising Justices Abhay S. Oka and Ujjal Bhuyan, upheld the High Court’s decision, stating that the competent authority under MOFA has the jurisdiction to grant deemed conveyance when a developer fails to execute the conveyance deed.

Justice Oka, delivering the judgment, highlighted that MOFA is a beneficial legislation aimed at addressing the housing shortage in urban areas and curbing developer malpractices. He noted that the provisions of Section 11 are intended to benefit flat purchasers, and courts should be cautious in interfering with orders granting deemed conveyance unless there is a clear illegality. The judgment also pointed out that aggrieved parties retain the option to file a civil suit, and thus, writ courts should generally be slow to interfere in such matters.

This ruling reinforces the administrative role of the competent authority under MOFA and delineates the boundaries of judicial intervention, ensuring that the rights of flat purchasers are upheld without unnecessary legal hurdles.​

Sources