Execution Of A Conveyance Deed Is Mandatory Under Section 11 Of The Maharashtra Ownership Flats Act: NCDRC

The National Consumer Disputes Redressal Commission, presided by Justice Ram Surat Maurya and Bharatkumar Pandya, in a case against Jaycee Homes, held that the execution of a conveyance deed to the buyer is mandatory under section 11 of the Maharashtra Ownership Flats Act of 1963. Brief Facts of the Case The complainant stated that the developer, M/s Jaycee Homes & Hotels Ltd, started constructing Kailash Tower, a building with 82 flats. Subsequently, various home buyers entered into agreements to purchase flats. When the first residents moved in, they noticed severe leakage from the outer walls during the monsoon season. Despite reporting this issue to the developer, no action was taken to fix the construction defects. The complainant society was formed and registered later. They requested necessary documents from the developer as per the Maharashtra Flat Ownership Act, 1963, but the defects remained unaddressed, and the documents were not provided. Aggrieved by this, the complainant filed a complaint before the National Commission Contentions of the Developer The developer argued that, according to the list provided by the complainant, all flat owners took possession in 2005. Therefore, possession handed over before the issuance of the occupation certificate is considered as of the certificate date, and possession after that date is as mentioned in the list. The defect liability period under the Maharashtra Ownership of Flats Act is three years, expiring in 2008. The developer argued that the reliefs claimed in the complaint are time-barred. It was further argued that once the limitation period starts, it is not extended by subsequent actions, and successive representations do not extend the limitation period. Therefore, the limitation for compensation started from the date of possession, extending at most to the issuance of the occupation certificate, and the defect liability period started when the defect was first noticed. Consequently, the claims in the complaint are time-barred. Observations by the National Commission The National Commission observed that regarding the relief sought for directing the developer to execute the Conveyance Deed in favor of the complainant in Kailash Tower, it is a mandatory requirement under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963. The commission further observed that the developer was always ready and willing to execute the Conveyance Deed. However, the complainant society had not provided the registered agreements of its members and a draft of the Conveyance Deed, thus preventing its execution. The National Commission allowed the complaint and directed the complainant to obtain a photocopy of the registered agreements and, in the case of any resale, provide the related documents to the developer within one month. The commission also directed the developer to then prepare a draft of the Conveyance Deed, get approval from the society, execute and register it after receiving approval. Case Title: Kailash Tower Co-Op Housing Society Ltd Vs. M/S. Jaycee Homes & Hotels Ltd. Case Number: C.C. No. 15/2010Click Here To Read/Download Order

Execution Of A Conveyance Deed Is Mandatory Under Section 11 Of The Maharashtra Ownership Flats Act: NCDRC

Ayushi Rani

Tags