Case Note & Summary
The dispute arose between the proposed cooperative housing society, represented by the petitioner as Chief Promoter, and the developer/respondent No.1 regarding the formation of a new entity. The petitioner sought registration of a cooperative housing society under the Maharashtra Cooperative Societies Act, while the respondent No.1 contended that a declaration under the Maharashtra Apartment Ownership Act, 1970 (MAO Act) had already been submitted and registered. The declaration was registered by one Mr. M.V. Prajith, not by the respondent No.1. The petitioner moved the Competent Authority under Section 5A of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) for registration of the society. The respondent No.1 objected under Section 10(2) of MOFA, 1963. The Competent Authority rejected the proposal vide order dated 30th June 2018, leading to the present writ petition. The court heard arguments and examined the provisions of both Acts. It held that once a valid declaration under Section 2 of the MAO Act, 1970 is registered, the provisions of that Act apply, and the formation of a cooperative society is not permissible. The court dismissed the petition, upholding the Competent Authority's order.
Headnote
A) Cooperative Societies - Registration of Society - Objection by Developer - Section 10(2) of MOFA, 1963 - The Competent Authority rejected the proposal for registration of a cooperative housing society on the objection of the developer that a declaration under the MAO Act, 1970 had already been registered. The court held that once a valid declaration under Section 2 of the MAO Act, 1970 is registered, the provisions of that Act apply and the formation of a cooperative society under the Maharashtra Cooperative Societies Act is not permissible. (Paras 1-3) B) Maharashtra Apartment Ownership Act, 1970 - Declaration - Effect on Cooperative Society - Section 2 of MAO Act, 1970 - The declaration was registered by one Mr. M.V. Prajith, not by the developer. The court examined whether the declaration was valid and binding. It held that the declaration, once registered, creates a regime of apartment ownership and the flat purchasers cannot insist on formation of a cooperative society. (Paras 1-2) C) MOFA, 1963 - Competent Authority - Powers - Section 5A of MOFA, 1963 - The Competent Authority has jurisdiction to decide objections under Section 10(2) of MOFA, 1963. The court upheld the authority's decision that the registration of a cooperative society would be contrary to the existing declaration under the MAO Act, 1970. (Paras 2-3)
Issue of Consideration
Whether the Competent Authority under MOFA, 1963 was justified in rejecting the proposal for registration of a cooperative housing society on the ground that a declaration under the Maharashtra Apartment Ownership Act, 1970 had already been registered.
Final Decision
The High Court dismissed the writ petition, upholding the order of the Competent Authority dated 30th June 2018 rejecting the proposal for registration of the cooperative housing society.
Law Points
- Section 10(2) of MOFA
- 1963
- Section 2 of MAO Act
- 1970
- Section 5A of MOFA
- Cooperative Housing Society registration
- Apartment Ownership Act
- Declaration under MAO Act
