Bombay HC raps collector for insisting on society NOC for shop transfer

The Bombay High Court has pulled up the Mumbai collector for demanding a No Objection Certificate (NOC) from a housing society as a condition for registering a consent decree that transferred a Marine Drive shop premises to restaurateurs Sanjay and Rachna Narang. Justices Suman Shyam and Advait Sethna on Monday said the revenue authorities ought to have acted in deference to the court decree and not created obstacles, calling the insistence on an NOC 'an obstructionist approach.'

Bombay HC raps collector for insisting on society NOC for shop transfer

The dispute involves a 186-sq-ft shop named 'Pushp Milan' and an adjoining 2,530-sq-ft restaurant on the ground floor of Soona Mahal CHSL. Khorshed Udwadia had agreed to sell the shop to the Narangs' company, but the sub-registrar in July 2024 said the collector's NOC was needed since the premises stood on collector's land. When the collector in September asked for the society's NOC, the society refused, prompting the Narangs to move the high court.

The court noted that no statutory provision mandated the NOC and directed the collector to decide the Narangs' application without insisting on it, subject to payment of applicable premium. It also clarified the society would not be held liable for the absence of an NOC, leaving its allegation of encroachment to be decided in separate proceedings.

Indian Opinion Analysis

The dispute hinges on Section 37A of the Maharashtra Land Revenue Code, which the collector cited to demand an NOC. But the high court found that provision applies to government land and does not require a society NOC. The Narangs had obtained a consent decree from the same court in December 2022, and the collector's demand effectively stalled a court-approved transfer. The court's strong language, calling the approach obstructionist, signals that revenue officials cannot override judicial decrees without clear statutory backing. This ruling may affect other similar disputes where societies try to block transfers of premises on collector land. The next step is the collector's decision on the Narangs' application.


Source: timesofindia.indiatimes.com

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