Bombay High Court Dismisses Petition by Housing Society Challenging Orders Under Section 23(2) of Maharashtra Co-operative Societies Act, 1960. Society's refusal to admit purchaser as member and issue NOC for plot transfer was set aside as applicant fulfilled all eligibility criteria.

High Court: Bombay High Court Bench: KOLHAPUR In Favour of Prosecution
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Case Note & Summary

The petitioner, The Ichalkaranji Ex-serviceman Housing Society Limited, challenged an order dated 11.02.2025 passed by the Divisional Joint Registrar, Co-operative Societies, Kolhapur, which upheld an earlier order dated 23.08.2024 by the Deputy Registrar, Co-operative Societies, directing the society to admit respondent no.3, Vikita Pritesh Adani, as a member and issue a no objection certificate for transfer of a plot. The dispute concerned Plot No.11 admeasuring 331 square meters, part of City Survey No.117. The society had refused membership to respondent no.3, who had purchased the plot, on the ground that the transfer was not in accordance with its by-laws. The Deputy Registrar, exercising powers under Section 23(2) of the Maharashtra Co-operative Societies Act, 1960, found that respondent no.3 had fulfilled all eligibility criteria and directed the society to admit her as a member and issue NOC. The society's revision before the Divisional Joint Registrar was dismissed. The High Court, in the present writ petition, considered whether the orders were legal. The court noted that the authorities had correctly applied Section 23(2), which provides that a person who has purchased a plot from a member of a housing society is entitled to be admitted as a member if they fulfill the conditions of the by-laws. The court found that respondent no.3 had complied with all requirements and the society's objections were not sustainable. The High Court dismissed the petition, upholding the orders of the lower authorities. The court held that the society's refusal was arbitrary and the directions to admit and issue NOC were justified.

Headnote

A) Co-operative Societies - Membership - Section 23(2) of Maharashtra Co-operative Societies Act, 1960 - Right to admission - The petitioner-society refused membership to respondent no.3 on grounds of alleged non-compliance with by-laws regarding transfer of plot. The Deputy Registrar and Divisional Joint Registrar found that respondent no.3 had fulfilled all eligibility criteria and directed admission. The High Court upheld these orders, holding that the society's objections were not sustainable and the authorities had correctly exercised their powers under Section 23(2) (Paras 2-4).

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Issue of Consideration

Whether the orders passed by the Deputy Registrar and the Divisional Joint Registrar under Section 23(2) of the Maharashtra Co-operative Societies Act, 1960 directing the petitioner-society to admit respondent no.3 as a member and issue no objection for transfer of plot are legal and valid.

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Final Decision

The High Court dismissed the writ petition, upholding the orders of the Deputy Registrar and Divisional Joint Registrar. The court directed the petitioner-society to admit respondent no.3 as a member and issue no objection certificate for transfer of plot.

Law Points

  • Section 23(2) of Maharashtra Co-operative Societies Act
  • 1960
  • Right to membership
  • Housing society
  • By-laws
  • Transfer of plot
  • No objection certificate
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Case Details

2025 LawText (BOM) (09) 192

Writ Petition No. 3037 of 2025

2025-09-18

S. G. Chapalgaonkar, J.

2025:BHC-KOL:707

Mr. Chetan Patil a/w Prathamesh Magadum a/w Ms. S. R. Chavan for Petitioner; Mr. Sanjay D. Rayrikar, AGP for Respondent Nos.1 and 2; Mr. S. S. Patwardhan a/w Rushikesh K. Gaikwad for Respondent No.3

The Ichalkaranji Ex-serviceman Housing Society Limited

The Divisional Joint Registrar, Co-operative Societies, Kolhapur; The Deputy Registrar, Co-operative Societies, Taluka Hatkanangale; Vikita Pritesh Adani

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Nature of Litigation

Writ petition challenging orders under Section 23(2) of Maharashtra Co-operative Societies Act, 1960 directing admission of member and issuance of NOC for plot transfer.

Remedy Sought

Petitioner-society sought quashing of orders dated 11.02.2025 and 23.08.2024 passed by the Divisional Joint Registrar and Deputy Registrar respectively.

Filing Reason

Petitioner-society was aggrieved by the direction to admit respondent no.3 as member and issue no objection for transfer of plot.

Previous Decisions

Deputy Registrar passed order dated 23.08.2024 under Section 23(2) directing admission and NOC; Divisional Joint Registrar upheld that order in Revision Application No.318/2024 on 11.02.2025.

Issues

Whether the orders under Section 23(2) of the Maharashtra Co-operative Societies Act, 1960 directing the society to admit respondent no.3 as member and issue NOC are legal and valid.

Submissions/Arguments

Petitioner argued that respondent no.3 did not comply with the society's by-laws regarding transfer of plot. Respondent no.3 contended that she fulfilled all eligibility criteria and was entitled to membership under Section 23(2).

Ratio Decidendi

Under Section 23(2) of the Maharashtra Co-operative Societies Act, 1960, a person who has purchased a plot from a member of a housing society is entitled to be admitted as a member if they fulfill the conditions of the by-laws. The society cannot refuse admission arbitrarily. In this case, respondent no.3 had fulfilled all eligibility criteria, and the society's objections were not sustainable. Therefore, the directions to admit and issue NOC were justified.

Judgment Excerpts

The petitioner impugns order dated 11.02.2025 passed by Division Joint Registrar, Co-operative Societies, Kolhapur-respondent no.1 in Revision Application No.318/2024, thereby upholding order dated 23.08.2024 passed by Deputy Registrar, Co-operative Societies-respondent no.2 under Section 23(2) of Maharashtra Co-operative Societies Act, 1960, thereby directing petitioner-Society to admit respondent no.3 as member and issue no objection for transfer of plot.

Procedural History

The Deputy Registrar, Co-operative Societies passed an order on 23.08.2024 under Section 23(2) of the MCS Act, 1960 directing the petitioner-society to admit respondent no.3 as member and issue NOC. The society filed Revision Application No.318/2024 before the Divisional Joint Registrar, who dismissed it on 11.02.2025. The society then filed the present writ petition before the High Court.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: 23(2)
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