Summary: The Bombay High Court ruled in favor of Harshad Co-op Housing Society, allowing them to officially take ownership of land from Lokmanya Pan Bazar Association. The case involved legal details, arguments about who was a member, and rights under the Maharashtra Ownership of Flats Act (MOFA).
The Lokmanya Pan Bazar Association Ltd., based in Mumbai, challenged a decision that allowed Harshad Co-op Housing Society to take ownership of the land. The dispute was about two buildings, Harshad B and C, built on land originally owned by Lokmanya Pan Bazar.
On December 9, 2025, Justice Amit Borkar looked into the complaint filed by Lokmanya Pan Bazar. They disagreed with the decision made by the authority in charge, which favored the housing society, giving them rights over the land.
Lokmanya Pan Bazar bought the land in 1969. Over time, because of the Urban Land Ceiling and Regulation Act, a large part was declared extra. In 1977, the state government allowed some land for building, but with strict rules.
The main issue was whether the residents of Harshad B and C were just "Special Patron Members" or actual buyers of flats under MOFA. Lokmanya Pan Bazar said these members had no real rights, while the residents argued they were flat buyers who deserved legal ownership.
"The agreements describe allottees as 'Special Patron Members', yet deny them all substantive rights of membership."
In 2002, the residents formed Harshad Co-op Housing Society without Lokmanya Pan Bazar’s permission. Despite objections, the society managed the buildings, paid taxes, and took care of the premises for years.
Justice Borkar stressed that the agreements clearly fell under MOFA, giving residents legal rights to form a society and ask for ownership. The court rejected Lokmanya Pan Bazar's argument that calling the residents "Special Patron Members" meant they didn't have MOFA's protections.
"The mere description of purchasers as Special Patron Members does not override the nature of the transaction."
Lokmanya Pan Bazar claimed they were not properly informed about the ownership proceedings. However, the court found that notices were sent to the registered address, and a public notice was issued.
Lokmanya Pan Bazar argued that the Urban Land Ceiling Act's exemption rules stopped land transfer. The court disagreed, saying these rules did not cancel the rights under MOFA.
The court upheld the order for deemed conveyance, ruling that Harshad Co-op Housing Society was entitled to the land. Lokmanya Pan Bazar was ordered to pay Rs. 50,000 in costs to the society.
"The petitioner shall pay costs of Rs.50,000/- to Respondent No.3 society."
