High Court of Judicature at Bombay Discharges Rule in Developer's Writ Petition as Infructuous After Subsequent Registration of Cooperative Society. Companion Petition by Flat Purchasers Challenging Declaration under Apartment Ownership Act Left Unresolved in Incomplete Text.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

This judgment pertains to two companion writ petitions before the High Court of Judicature at Bombay. Writ Petition No. 571 of 1995 was filed by the owners/developers (legal heirs of the original developer) of a building named Bharat Vihar, situated at S. No. 19/1(A), Erandwane, Pune. They challenged the order dated 26 September 1994 passed by the Joint Registrar, Cooperative Societies (Appeals), Pune Division, which allowed a revision application filed by the flat purchasers and remanded the matter of registration of a cooperative housing society to the Deputy Registrar for de novo consideration. The owners contended that since the building had already been subjected to the provisions of the Maharashtra Apartment Ownership Act, 1970, no cooperative society could be formed. Writ Petition No. 2638 of 1995 was filed by the flat purchasers challenging the declaration dated 19 September 1992 by the owners/developers that submitted the building to the Maharashtra Apartment Ownership Act, 1970. The background involved a land development project by a construction company, a compromise decree in a partition suit among the family members in 1991, and agreements for sale of flats to several purchasers. Construction was completed by September 1992, after which the declaration under the Apartment Ownership Act was registered. The flat purchasers applied for reservation of the name of a cooperative society, but the Deputy Registrar rejected the application on 8 February 1993 on the ground that the property was already governed by the Apartment Ownership Act. The flat purchasers filed a revision under Section 154 of the Maharashtra Cooperative Societies Act, 1960. The Joint Registrar allowed the revision on 26 September 1994, rejecting the objection and remanding the matter for fresh consideration. On remand, the Deputy Registrar registered the society on 20 December 1994. In the High Court, the owners challenged the remand order, but since they did not challenge the subsequent registration, their petition became infructuous. The Court, therefore, discharged the rule in Writ Petition No. 571 of 1995. The text of the judgment is incomplete, and the final order in Writ Petition No. 2638 of 1995 is not available in the provided excerpt.

Headnote

A) Cooperative Societies - Registration - Bar under Maharashtra Apartment Ownership Act, 1970 - Section 154, Maharashtra Cooperative Societies Act, 1960 - Deputy Registrar rejected application for registration of cooperative society on ground that building was already subjected to Apartment Ownership Act; Joint Registrar in revision allowed the application and remanded for de novo consideration, holding that registration could not be denied solely on that ground; subsequently on remand, society was registered - Held that challenge to the remand order became infructuous as registration was granted and not challenged (Paras 4-5).

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Issue of Consideration

Whether the formation and registration of a cooperative housing society is permissible after the building has been subjected to the Maharashtra Apartment Ownership Act, 1970

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Final Decision

Writ Petition No. 571 of 1995: Rule discharged as infructuous due to subsequent registration of the society and lack of challenge to it. The final order in Writ Petition No. 2638 of 1995 is not available in the provided incomplete judgment text.

Law Points

  • Interplay between Maharashtra Apartment Ownership Act
  • 1970 and Maharashtra Cooperative Societies Act
  • 1960 regarding formation of cooperative society after building subjected to apartment ownership
  • registration of cooperative society not automatically barred by prior submission to Apartment Ownership Act
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Case Details

2010 LawText (BOM) (06) 92

Writ Petition No. 571 of 1995 and Writ Petition No. 2638 of 1995

2010-06-07

P.B. Majmudar, R.M. Savant

2010:BHC-AS:10481-DB

N.B. Shah, S.S. Kulkarni, A.I. Patel

Shakuntala Bharat Kachare & Ors. (in WP 571/1995) and Subhash Prataprao Chavan & Ors. (in WP 2638/1995)

Subhash Prataprao Chavan & Ors. (in WP 571/1995) and Sub-Registrar Haveli No. 4, Dy. Registrar Cooperative Societies, State of Maharashtra, and Shakuntala Bharat Kachare & Ors. (in WP 2638/1995)

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Nature of Litigation

Writ petitions under Articles 226 and 227 of the Constitution of India challenging orders related to registration of cooperative society and applicability of Maharashtra Apartment Ownership Act, 1970

Remedy Sought

WP 571/1995: Quash the Joint Registrar's order remanding the registration matter; WP 2638/1995: Quash the declaration submitting the building to the Apartment Ownership Act

Filing Reason

Owners/developers contended that once the building was subjected to the Apartment Ownership Act, no cooperative society could be formed; flat purchasers challenged the unilateral declaration under the Apartment Ownership Act to facilitate formation of a cooperative society

Previous Decisions

Deputy Registrar rejected application for registration on 08-02-1993; Joint Registrar allowed revision and remanded on 26-09-1994; Deputy Registrar registered the society on 20-12-1994

Issues

Whether the formation and registration of a cooperative housing society is barred after the building has been subjected to the Maharashtra Apartment Ownership Act, 1970

Submissions/Arguments

Owners/developers argued that registration of a cooperative society is not permissible once the property is covered by the Apartment Ownership Act Flat purchasers argued in favour of registration and challenged the declaration under the Apartment Ownership Act

Judgment Excerpts

Rule is discharged in the said Writ Petition No. 571 of 1995. the Joint Registrar ... rejected the said objection and had allowed the revision application filed by the petitioners under Section 154 of the Maharashtra Co operative Societies Act, 1960 and remanded the matter for a de novo consideration.

Procedural History

Special Civil Suit No. 1087 of 1991 filed among family members for partition; compromise decree passed on 04-10-1991. Construction of building completed around September 1992; declaration under Maharashtra Apartment Ownership Act, 1970 registered on 19-09-1992. Flat purchasers applied for reservation of name of proposed cooperative society on 23-10-1992. Deputy Registrar rejected application on 08-02-1993. Flat purchasers filed revision before Joint Registrar, who allowed it on 26-09-1994 and remanded for de novo consideration. On remand, Deputy Registrar registered society on 20-12-1994. WP 571/1995 filed by owners/developers challenging the 26-09-1994 order; WP 2638/1995 filed by flat purchasers challenging the 19-09-1992 declaration. High Court heard both petitions and delivered oral judgment on 07-06-2010, discharging rule in WP 571/1995. Text of judgment is incomplete regarding WP 2638/1995.

Acts & Sections

  • Maharashtra Apartment Ownership Act, 1970:
  • Maharashtra Cooperative Societies Act, 1960: Section 154
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