The court emphasizes the principles of res judicata and the finality of judicial decisions in the B. K. Corporation vs. State of Maharashtra case.
In a significant ruling, the Bombay High Court has set aside an order by the Competent Authority granting deemed conveyance to Apeksha Co-operative Housing Society Ltd., highlighting the principles of res judicata and the finality of judicial decisions. The judgment, delivered by Justice Farhan P. Dubash on June 9, 2026, concluded that the Competent Authority acted beyond its jurisdiction by entertaining a second application for deemed conveyance without any new circumstances or changes in the legal landscape.
The case stems from a writ petition filed by B. K. Corporation, a promoter and developer of a single layout housing multiple societies, challenging the order dated May 31, 2017, which granted deemed conveyance to Apeksha CHSL. The controversy was rooted in an earlier application by Apeksha CHSL that had been rejected on August 4, 2016, due to the pending civil suit filed by Noble House CHSL concerning the same land.
The court's decision underscores that the Competent Authority, as a quasi-judicial body, is bound by its previous decisions unless set aside by a higher authority. Justice Dubash emphasized that the principle of res judicata, which prevents re-litigation of the same issue, applies to such authorities. The court observed that the second application filed by Apeksha CHSL was essentially an attempt to review the earlier decision, which is not permissible under the Maharashtra Ownership of Flats Act, 1963 (MOFA), as it does not confer review powers on the Competent Authority.
The judgment also highlighted the need for statutory discipline and the necessity for authorities to respect their previous determinations unless there is a valid reason to deviate. As a result, the deemed conveyance deed executed on January 12, 2018, was also cancelled.
While the court recognized MOFA as beneficial legislation aimed at protecting home buyers, it noted that the statutory rights of parties must be respected within the framework of the law. The court granted Apeksha CHSL the liberty to challenge the earlier order dated August 4, 2016, ensuring that the society is not left without a remedy.
This decision is a critical reminder of the legal principles governing quasi-judicial bodies and the importance of adhering to procedural fairness and statutory mandates.
Bottom line:-
Principles of Res Judicata and Finality of Judicial Decisions - Competent Authority under MOFA cannot review its earlier order rejecting deemed conveyance application unless expressly empowered by statute.
Statutory provision(s): Maharashtra Ownership of Flats Act, 1963 Section 11, Civil Procedure Code, 1908 Sections 10 and 11.
B. K. Corporation v. State of Maharashtra, (Bombay) : Law Finder Doc id # 2919684
