• Deed of Declaration and OTM

A cancellation deed has been filed for a Deed of Declaration executed unilaterally by Builder (Nov 2006) while Society formation was in progress with Dy Registrar. Registrar granted Society recognition (Dec 2006) basis the fact that Deed of Apartment was not executed and hence Deed of Declaration did not suffice u/s 10(2) of MOFA, but it was overturned by Minister of Cooperative affairs. However, Bombay HC stayed Minister's order in interim order in 2014.

In related cases in Civil Court the Builder has literally said that he does not know as to whom to convey the land to, or return the one time maintenance he had taken from purchasers because the question of Society vs. Apartments remained open. In a filing to stay a civil court matter with HC the builder admitted that Deed of declaration was the single point of opposition to Society recognition. 

In civil cases related to OTM and Conveyance, no T.I. application had been filed by us till date. With cancellation deed, can T.I. be filed to force immediate refund of OTM and Conveyance? Or summary suit? 

In OTM refund, there is a matter of principal amount and interest rate. We claim principal at 55L, he claims it to be 52L. Also, flat sale agreement stated 18% Rate of Interest in case of delayed payments to builder, so can we demand reciprocity in OTM interest rate? NCDRC judgments generally award 9-12% in OTM refund rulings. 
QUESTION 1) So, can T.I. be for refund of 52L + 9% rate of interest, and suit be to decide the difference in principal amount and interest rate (hopefully 18%)? 

Similarly, can conveyance be expedited? There is a parallel criminal case for conveyance too. 
QUESTION 2) Can civil court order immediate conveyance since Deed of declaration has been cancelled?
Asked 4 years ago in Property Law
Religion: Hindu

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6 Answers

Yes it can be expedited with direction of the court. 

Prashant Nayak
Advocate, Mumbai
34663 Answers
249 Consultations

You are entitled to refund of Rs 52 lakhs plus 9 per cent rate of interest 

 

if builder is refusing to execute conveyance in favour of society opt for deemed conveyance 

 

court can direct builder to execute conveyance in favour of society within stipulated period 

Ajay Sethi
Advocate, Mumbai
99980 Answers
8162 Consultations

If the builder refuses to hand  over the OTM to the society which is not in operation or being recognised, the OTM can be handed over to the association only, hence you may ascertain if the association is formed and is eligible to receive the OTM from the builder  so that you can take legal steps to recover the same from builder if in case he still refuses to hand over the money.

You may bear it in mind that the interest over the delayed period cannot be claimed for a period beyond three years from the date preceding the application for the claim.

It is not an automatic process that the civil court would pass an order for conveyance at your urgency.

The court will go through the legal process as required by law to decide and dispose the case before it to grant the desired reliefs. 

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

This is not the action of the government servant but the orders were passed by the government body hence the individual government servant cannot make any decision at his discretion.

In such a situation the aggrieved party can aproach the high court with a writ petition against the competent authority and the builder seeking the relief agaisnt the grievances caused to him.

 

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

govt officials should with draw commencement certificate if it  is issued in contravention of court orders

 

section 51 of the MRTP Act, provides that once the Planning Authority has sanctioned the plans, the power to modify or revoke is under section 51, which can be exercised only in case of the contingencies provided in the provisions of the said section.

 

it appears to a Planning Authority that it is expedient, having regard to the Development plan prepared or under preparation that any permission to develop land granted 1[or deemed to be granted] under this Act or any other law, should be revoked or modified, the Planning Authority may, after giving the person concerned an opportunity of being heard against such revocation or modification, by order, revoke or modify the permission to such extent as appears to it to be necessary :
Provided that—
(a) where the development relates to the carrying out of any building or other operation, no such order shall affect such of the operations as have been previously carried out ; or shall be passed after these operations have substantially progressed or have been completed ;
(b) where the development relates to a change of use of land, no such order shall be passed at any time after the change has taken place.

 

Ajay Sethi
Advocate, Mumbai
99980 Answers
8162 Consultations

File a writ petition in high court. This is for case for the same

Prashant Nayak
Advocate, Mumbai
34663 Answers
249 Consultations

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