Bombay High Court Dismisses Writ Petition by Co-operative Housing Society Against Order Allowing Member to Construct Building. Transfer of Plot with Existing Construction Does Not Bar Transferee from Seeking Permission to Raise New Construction Under Bye-laws of Society.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Vinayak Adarsha Co-operative Housing Society Ltd., challenged the judgment and order of the Divisional Joint Registrar dated 25.05.2018 in Revision Application No. 11/2017, which confirmed the order of the Taluka Deputy Registrar (respondent No. 3) dated 11.01.2017. The Taluka Deputy Registrar had allowed respondent Nos. 1 and 2, who were transferees of plot No. 13 from the original allottee, to raise construction of a flatted building on the plot. The society had purchased land and divided it into plots for its members, with bye-laws governing the society's functioning. The original allottee of plot No. 13 resigned from membership and executed a sale deed/lease deed dated 26.11.2012 in favour of respondent Nos. 1 and 2, along with the existing construction on the plot. The respondents then applied to the society for permission to construct a new building, but the society refused. The respondents approached the Taluka Deputy Registrar under Section 23(2) of the Maharashtra Co-operative Societies Act, 1960, who allowed their application. The society filed a revision before the Divisional Joint Registrar, which was dismissed. The society then filed the present writ petition. The court examined the society's bye-laws and found that they did not prohibit construction on plots. The court noted that the original allottee had already constructed a structure, and the transfer included that structure. The court held that the society could not unreasonably withhold permission if the member complied with the bye-laws. The court found no illegality or perversity in the impugned orders and dismissed the writ petition, upholding the orders of the authorities below.

Headnote

A) Co-operative Law - Housing Society - Permission to Construct - Bye-laws - The issue was whether a housing society could refuse permission to a transferee member to construct a building on a plot that had an existing structure built by the original allottee. The court held that the society's bye-laws did not prohibit construction, and the member had a right to seek permission. The Registrar's order allowing construction was upheld. (Paras 2-10)

B) Co-operative Law - Transfer of Plot - Rights of Transferee - Section 23(2) of Maharashtra Co-operative Societies Act, 1960 - The court considered that the original allottee had constructed a structure and then transferred the plot with the structure to the respondents. The court held that the transfer did not extinguish the right to construct, and the transferee could seek permission for new construction. (Paras 3-8)

C) Co-operative Law - Revision - Section 154 of Maharashtra Co-operative Societies Act, 1960 - The Divisional Joint Registrar's order in revision confirming the Taluka Deputy Registrar's order was challenged. The court found no perversity or illegality in the revisional order and dismissed the writ petition. (Paras 9-10)

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Issue of Consideration

Whether a co-operative housing society can refuse permission to its member to raise construction on a plot transferred to the member, when the original allottee had already constructed a structure on the plot and the society's bye-laws do not prohibit such construction.

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Final Decision

The writ petition is dismissed. The impugned orders of the Taluka Deputy Registrar dated 11.01.2017 and the Divisional Joint Registrar dated 25.05.2018 are upheld. Rule discharged. No order as to costs.

Law Points

  • Co-operative society cannot unreasonably withhold permission to construct if member complies with bye-laws
  • Transfer of plot with existing construction does not extinguish right to construct
  • Registrar's power under Section 23(2) of MCS Act to decide disputes
  • Revision under Section 154 of MCS Act
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Case Details

2023 LawText (BOM) (09) 15

Writ Petition No. 9190 of 2018

2023-09-04

Kishore C. Sant

2023:BHC-AUG:19205

Mr. S. S. Thombre for Petitioner, Mr. P. R. Katneshwarkar h/f Mr. Ganesh V. Sukale for Respondent Nos. 1 and 2, Mr. K. B. Jadhavar, AGP for Respondent Nos. 3 and 4

Vinayak Adarsha Co-operative Housing Society Ltd.

Smt. Indumati Laxminarayan Wadkar, Laxminarayan s/o Mahantappa Wadkar, Taluka Deputy Registrar, Co-operative Societies, Aurangabad, The Divisional Joint Registrar, Co-operative Societies, Aurangabad

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Nature of Litigation

Writ petition challenging the order of Divisional Joint Registrar confirming the order of Taluka Deputy Registrar allowing construction on a plot by transferee members.

Remedy Sought

Petitioner society sought quashing of the orders allowing construction and sought to deny permission to respondent members.

Filing Reason

Society refused permission to construct; members approached Registrar under Section 23(2) who allowed construction; society's revision was dismissed.

Previous Decisions

Taluka Deputy Registrar allowed construction on 11.01.2017; Divisional Joint Registrar dismissed revision on 25.05.2018.

Issues

Whether the society can refuse permission to construct when the bye-laws do not prohibit construction? Whether the transfer of plot with existing construction extinguishes the right to construct?

Submissions/Arguments

Petitioner argued that the original allottee had already constructed a structure and the transfer included that structure, so no further construction should be allowed. Respondents argued that the bye-laws do not prohibit construction and they have a right to seek permission.

Ratio Decidendi

A co-operative housing society cannot unreasonably refuse permission to a member to construct on a plot if the society's bye-laws do not prohibit such construction. The transfer of a plot with existing construction does not bar the transferee from seeking permission for new construction, as the right to construct is not extinguished by the transfer.

Judgment Excerpts

The society purchased a land and divided the same in plots for its members. The respondent Nos. 1 and 2 are the transferees of one of the plots bearing plot No. 13 as the original allottee of plot No. 13 resigned from his membership and executed sale deed/lease deed dated 26.11.2012 along with construction thereon in favour of respondent Nos. 1 and 2. The court held that the society cannot unreasonably withhold permission if the member complies with the bye-laws.

Procedural History

The original allottee transferred plot No. 13 to respondent Nos. 1 and 2 on 26.11.2012. Respondents applied to society for permission to construct, which was refused. They then filed an application under Section 23(2) of MCS Act before Taluka Deputy Registrar, who allowed it on 11.01.2017. Society filed Revision Application No. 11/2017 before Divisional Joint Registrar, which was dismissed on 25.05.2018. Society then filed the present writ petition on 27.07.2018. The writ petition was heard and disposed of on 04.09.2023.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 23(2), Section 154
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