HARAKHCHAND PREMJI GALA AND ORSversusCOMPETENT AUTHORITY AND DISTRICT DEPUTY REGISTRAR CO OP SOC. AND ORS

2026:BHC-AS:39684

              Renuka Thakur                                             16WP-12777-2026.docx


                         IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                   CIVIL APPELLATE JURISDICTION
                                  WRIT PETITION NO. 12777 OF 2026
              Harakhchand Premji Gala and Ors                     ...Petitioners
                                   V/s.

              Competent Authority and District                ...Respondents
              Deputy Registrar Co Op Soc. and Ors
                                            ________________
              Mr. Bhavin Gala a/w Mr. Hitesh Solanki i/b Hitesh and Associates for
              Petitioner.
              Ms. Darshana Manjrekar a/w Ms. Anuja Ghugare i/b one Point Legal
              Solutions for Respondent No. 3.
              Mr. A. C. Bhadang, AGP for the State.
                                            ________________
                                                    CORAM: SANDEEP V. MARNE, J.
                                                     DATED: 28 SEPTEMBER 2026.


              P.C.:


              1)              The Petitioner is an assignee of the land and the building
              from the original land owner. The original land owner subjected the land
              to a housing scheme and initially created tenancies in respect of the
              units constructed in the building. Subsequently, the original land owner
              accepted valuable consideration from the unit occupiers and converted
              their tenancies into ownership rights by various agreements executed in
              the year 1988. The unit occupiers have come together and applied for
              registration of the society under Section 10 of the Maharashtra
              Ownership Flats (Regulation of the Promotion of Construction, Sale,
              Management and Transfer) Act, 1963 (MOFA). By order dated 10 June
              2026, the District Deputy Registrar Co-operative Societies (3), Western


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Suburbs, Mumbai and the Competent Authority (Competent Authority)
has allowed the Application for registration of society. Petitioner, in his
capacity as assignee of the original land owner has challenged the order
dated 10 June 2026.


2)              I have heard, Mr. Gala, the learned counsel appearing for the
Petitioner, Ms. Darshana, the learned counsel appearing for Respondent
No. 3, and Mr. Bhadang, the learned AGP appearing for Respondent-
State.


3)              The main point sought to be canvassed by Mr. Gala while
challenging the order dated 10 June 2026 absence of valid agreement
executed under Section 4 of the MOFA in favour of the unit occupiers.
According to him, the original land owner had created mere tenancies in
respect of the units through agreements initially executed in the year
1978. He submits that the subsequent agreements executed in the year
1988 are mere agreements to enter into agreement subject to fulfillment
of various conditions and that these conditions remained unfulfilled. He
submits that even if 1988 agreements are treated to be the one executed
under Section 4 of the MOFA, the same have not been registered.


4)              I have gone through one of the Agreements executed on 23
February 1988 by the original land owners in favour of unit occupiers of
Flat No. 5. The Agreement clearly records that upon payment of
consideration of Rs. 24,625/-, the tenancy rights of the occupiers have
been converted into ownership rights. Thus, by agreement dated 23
February 1988, Flat No. 5 has been sold to the flat purchasers. The

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agreement thus conforms to the requirement of Section 4 of MOFA. No
doubt, Agreement dated 23 February 1988 is unregistered. However, it
appears that subsequently, the unit purchaser has paid the requisite
stamp duty on a deed of declaration, which has been registered. So far as
the vice of non registration of the agreement is concerned, the original
land owner has to blame himself since Section 4 of MOFA puts an
obligation on the promoter to register the agreement. A promoter who
fails to register the agreement cannot take benefit of his own wrong and
then question registration of the society on the ground that none of the
agreements are registered. In the present case, though the agreements
themselves are not registered, the unit purchasers have paid the
necessary stamp duty and have registered deeds of declarations.


5)              The original land owner is under obligation to transfer his
right, title and interest in the land and the building in favour of
organization of flat purchasers under Section 11 of the MOFA. The land
owner is also under obligation under Section 10 of MOFA to form a
housing society within a period of four months of sale of minimum
number of flats required for formation of the society. In the present case,
the original land owner has breached both the obligations. He did not
form co-operative housing society within the stipulated time. Instead of
conveying his right, title and interest in the land and building in favour
of the society, the land owner has transferred the same in favour of the
Petitioner by agreements dated 12 January 2020 and 7 November 2020.
Thus, what is purchased by the Petitioner is merely an obligation to
convey right, title and interest of the original land owner to the society
so formed.

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6)              This Court notes the oblique motive of the Petitioners in
opposing formation of the housing society. Petitioners have apparently
purchased land and a building with the intention of the carrying out the
redevelopment of the old building. All the decisions relating to
redevelopment of the old building will have to be necessarily taken by
the unit purchasers through majority decision of the society. Petitioners
cannot decide any matters relating to redevelopment of building the
society except as its members qua three flats allegedly owned by them. In
the present case, formation of the society is being opposed by the
Petitioners with the ulterior motive of preventing redevelopment of the
society through collective will of all the flat purchases. This Court is not
to inclined to entertain the present Petition filed by the Petitioners on
this count.


7)              Considering the overall conspectus of the case, there is
failure on the part of the original land owner to register the agreements
with the unit purchasers. Neither original land owner nor theirs
assignees (Petitioners) can take benefit of their own wrong by preventing
formation of housing society on the ground that flat purchase
agreements are not registered. As observed above, the unit purchasers
have already paid the requisite stamp duty and have also registered
deeds of declaration. Considering these unique facts and circumstances
of the case, I am not inclined to interfere in the impugned order of the
registration passed by the Competent Authority.




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                          Renuka Thakur                                                  16WP-12777-2026.docx


                          8)              Writ Petition is devoid of merits. It is accordingly dismissed
                          with no order as to costs.


                                                                                [SANDEEP V. MARNE, J.]




Signed by: Renuka S Thakur
                                                               Page No.5 of 5
Designation: PA To Honourable Judge                         28 SEPTEMBER 2026
Date: 30/09/2026 10:28:38