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MOFA Deemed Conveyance Prevails Over IBC Moratorium; No Title for Developer Post Flat Sales: Bombay HC
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Bombay High Courtpropertycorporate

MOFA Deemed Conveyance Prevails Over IBC Moratorium; No Title for Developer Post Flat Sales: Bombay HC

July 2, 2026

The Bombay High Court ruled that deemed conveyance under the Maharashtra Ownership Flats Act, 1963, takes precedence over the IBC moratorium, eliminating the developer's title post-sale of flats.

Bombay High Court Rules on Title Under MOFA

The Bombay High Court recently held that deemed conveyance provisions under the Maharashtra Ownership Flats Act, 1963 (MOFA) prevail over the moratorium imposed under the Insolvency and Bankruptcy Code, 2016 (IBC). The court ruled that once flats are sold, the developer retains no title in the property.

This ruling underscores the legal recognition of the rights of flat purchasers, emphasizing that their ownership takes priority even when a developer is undergoing insolvency proceedings. The court’s decision is anchored in the statutory framework provided by MOFA, aimed at protecting the interests of flat owners.

For legal practitioners, this ruling signifies an important precedent regarding property rights amidst insolvency. Developers and flat purchasers must carefully consider the implications of this judgment on current and future transactions involving properties registered under MOFA.

Citations

  • Maharashtra Ownership Flats Act (1963)
Source:Bombay High Court
Practice Areas:propertycorporate

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