Case Note & Summary
The Bombay High Court heard a group of writ petitions filed by Jay Anand Co-operative Housing Society Ltd. against the State of Maharashtra and others, challenging orders that bifurcated the society and granted deemed conveyance of a portion of its land to a breakaway group. The petitioner society, comprising 22 members in two wings (A and B), had resisted a proposal for bifurcation made by three members (Respondent Nos. 4–6) who sought to form a separate society, Jay Anand Bungalow CHS. The bifurcation order was passed by the Competent Authority on 3 November 2018 under Section 18(1) read with Section 17 of the Maharashtra Co-operative Societies Act, 1960, without a general body resolution and allegedly in favour of a miniscule minority. Prior to that, the Ministry of Cooperation had granted an exemption under Section 7 of the MCS Act for formation of the new society, which the petitioner contended was illegal as Section 7 applies only to registration of new societies and not to existing ones; the proper provision was Section 157. Simultaneously, a deemed conveyance order dated 5 November 2020 granted unilateral conveyance of part of the petitioner’s land to the breakaway society under Section 11(3) of the Maharashtra Ownership Flats Act, 1963, precipitating a contempt petition when the petitioner allegedly violated a status quo order. The petitioner’s senior counsel argued that bifurcation without a 3/4th majority resolution contravenes the MCS Act and that the exemption and deemed conveyance were void ab initio. The court also heard the respondents’ contentions and reserved judgment on 19 September 2025, pronouncing it on 30 January 2026. However, the operative portion of the judgment is not included in the provided excerpt, leaving the final decision and detailed reasoning undisclosed.
Headnote
A) Co-operative Societies - Bifurcation of Society - Sections 17, 18(1), Maharashtra Co-operative Societies Act, 1960 - Requirement of General Body Resolution - The bifurcation order was passed without a 3/4th majority resolution of the general body; the petitioner contended that such bifurcation is only permissible with a resolution or in public interest/interest of members, not at the behest of a minority. The court heard arguments on whether the order was contrary to the Act. (Paras 3-7)
B) Co-operative Societies - Registration and Exemption - Sections 6, 7, 157, Maharashtra Co-operative Societies Act, 1960 - Exemption for Formation of New Society - The Ministry granted exemption under Section 7 for formation of a new society by the respondent minority members; the petitioner argued that Section 7 applies only to registration of new societies and that an exemption for an existing society should be under Section 157, which requires hearing the existing society. The court considered the applicability of these provisions. (Paras 4-5)
C) Property Law - Deemed Conveyance - Section 11(3), Maharashtra Ownership Flats Act, 1963 - Validity of Deemed Conveyance to Breakaway Society - The respondent authority granted a certificate of unilateral deemed conveyance of part of the petitioner society's property to the breakaway society; the petitioner challenged this on the ground that the bifurcation itself was invalid, thus the deemed conveyance was of no effect. The court examined the legality of the deemed conveyance. (Paras 3(xxvi)-(xxvii))
Issue of Consideration
Whether the bifurcation order dated 3rd November 2018 and the deemed conveyance order dated 5th November 2020 are valid under the Maharashtra Co-operative Societies Act, 1960 and the Maharashtra Ownership Flats Act, 1963.
Law Points
- Bifurcation of co-operative society requires general body resolution under Section 18 of MCS Act
- exemption under Section 7 not applicable to existing societies
- public interest must be shown for bifurcation without resolution
- reliance on Janata Dal v. H.S. Chowdhary and Bombay Catholic CHS Ltd. v. V.B. Mathankar
Case Details
2026 LawText (BOM) (01) 126
Writ Petition No. 478 of 2020 (Connected with Writ Petition No. 2936 of 2022 and Contempt Petition (L) No. 35195 of 2022)
Mr. Pravin Samdhani, Senior Advocate for Petitioner; Ms. Uma PalsuleDesai, AGP for Respondent No. 1 in WP/478/20; Ms. Gaurangi Patil, AGP for Respondent No. 1 in WP/2936/22; Dr. Virendra Tulzapurkar, Senior Advocate for Respondent Nos. 3 to 5 in WP/2936/22 and Respondent Nos. 4 to 6 in WP/478/20
Jay Anand Co-operative Housing Society Ltd.
State of Maharashtra & Ors.
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Nature of Litigation
Writ petition challenging the bifurcation order and deemed conveyance order under Maharashtra Co-operative Societies Act, 1960 and Maharashtra Ownership Flats Act, 1963.
Remedy Sought
The petitioner society sought to quash the order dated 3rd November 2018 bifurcating the society and the order dated 5th November 2020 granting deemed conveyance in favour of the breakaway society.
Filing Reason
The petitioner society opposed the bifurcation initiated by a minority group of members without a general body resolution, and the subsequent deemed conveyance of part of the society's land.
Previous Decisions
The bifurcation order was passed by Respondent No.3 on 3rd November 2018; an appeal under Section 152 was filed and is pending. The exemption order was granted on 8th December 2017. The deemed conveyance order was passed on 5th November 2020. An interim order dated 28th September 2021 directed status quo.
Issues
Whether the bifurcation order dated 3rd November 2018 passed under Section 18(1) read with Section 17 of the MCS Act is valid without a general body resolution.
Whether the exemption granted under Section 7 of the MCS Act for formation of a new society was legal.
Whether the deemed conveyance order dated 5th November 2020 under Section 11(3) of MOFA is valid given the challenge to the bifurcation order.
Submissions/Arguments
The exemption under Section 7 of the MCS Act was erroneously granted because it applies only to registration of new societies, not existing ones; Section 157 is the correct provision for exemptions concerning existing societies.
Bifurcation under Section 18 read with Section 17 requires a general body resolution of 3/4th of members; only in exceptional cases of public interest or interest of members (majority) can it be ordered without a resolution.
The present case does not meet the criteria of public interest or interest of members as the majority opposed bifurcation; reliance placed on Janata Dal v. H.S. Chowdhary and Bombay Catholic CHS Ltd. v. V.B. Mathankar.
The deemed conveyance order is a consequence of the illegal bifurcation and should be set aside.
Judgment Excerpts
The Writ Petition No.478 of 2020 impugns the Order dated 3rd November, 2018 passed by Respondent No.3 by which the Petitioner – Society has been bifurcated under Section 18(1) read with Section 17 of the Maharashtra Co-Operative Societies Act, 1960 (“MCS Act”).
The Writ Petition No.2936 of 2022 impugns Order dated 5th November, 2020 passed by Respondent No.3 by which the Respondent No.3 has granted Deemed Conveyance in favour of Jay Anand Bungalow Co-Operative Housing Society Ltd. (‘Jay Anand Bungalow CHS’)
Section 18 of the MCS Act read in the context of and in conjunction with Section 17 of the MCS Act leaves no manner of doubt that a bifurcation can only be a general body resolution of 3/4th of the members, unless, in exceptional cases it is in ‘public interest’ or ‘in the interest of members’ (plural / majority) and not miniscule minority.
Procedural History
The petitioner society was registered on 14th September 1988. On 11th February 2015, it applied for deemed conveyance. On 1st April 2015, Respondent Nos. 4–6 wrote seeking sub-division of land. On 27th May 2016, a deemed conveyance order was passed in favour of the petitioner. On 27th December 2016, Respondent No. 4 proposed bifurcation. On 8th December 2017, the Ministry granted exemption under Section 7 for a new society. The bifurcation order was passed on 3rd November 2018, challenged by the petitioner in Appeal No. 114 of 2018 and later in WP 478/2020. The breakaway society applied for deemed conveyance, which was granted on 5th November 2020, leading to WP 2936/2022. An interim status quo order was passed on 28th September 2021, and a contempt petition was filed for alleged violation.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: 6, 7, 17, 18(1), 152, 157
- Maharashtra Ownership Flats Act, 1963: 11(3)
