Case Note & Summary
The dispute involved four registered co-operative housing societies (petitioners) challenging orders from co-operative authorities that directed them to admit two private individuals (respondents 3 and 4) as members based on registered agreements for sale dated 30 April 2019. The petitioners contended that the agreements pertained to non-existent flats, as the spaces were actually refuge areas in the building complex, with no constructed flats fit for occupancy. The building had received a Full Occupancy Certificate in 2009, and the petitioners had been in possession of these refuge areas since their incorporation in 2008-09. The respondents had applied for membership under Section 22(2) of the Maharashtra Co-operative Societies Act, 1960, but the Assistant Registrar rejected their application in October 2020. However, the Divisional Joint Registrar allowed their revision in July 2022, directing admission, and an execution order followed in October 2022. The petitioners argued that the orders ignored the factual absence of flats, violated Section 154B-5 of the MCS Act limiting membership to available flats, and that the agreements were void as they were executed after a Certificate of Entitlement for Deemed Conveyance was issued in May 2017, divesting the developer of rights. They also noted a pending civil suit on the agreements' validity. The respondents' arguments were not detailed in the provided text. The court, in its analysis, considered the petitioners' submissions that the flats were non-existent and the statutory violations. It found the impugned orders illegal for disregarding these facts and contravening the MCS Act. The court quashed and set aside the orders dated 22 July 2022 and 19 October 2022, granting the relief sought under Article 226 of the Constitution of India.
Headnote
A) Co-operative Societies Law - Membership Admission - Section 22(2) and Section 154B-5 of Maharashtra Co-operative Societies Act, 1960 - The petitioners, registered co-operative housing societies, challenged orders directing them to admit respondents as members based on agreements for sale of non-existent flats. The court held that the impugned orders were illegal as they ignored the factual reality that the flats were refuge areas, not constructed flats, and violated Section 154B-5 which restricts membership to available flats. The orders were quashed and set aside. (Paras 4-11) B) Co-operative Societies Law - Deemed Conveyance - Certificate of Entitlement - Maharashtra Co-operative Societies Act, 1960 - The petitioners argued that after issuance of the Certificate of Entitlement for Deemed Conveyance on 31 May 2017, the developer stood divested of rights to execute subsequent agreements for sale. The court considered this in quashing the orders, as the agreements were executed after this date and pertained to non-existent flats. (Paras 5, 8) C) Constitutional Law - Writ Jurisdiction - Article 226 of Constitution of India - The petitioners filed a writ petition under Article 226 seeking certiorari to quash orders of co-operative authorities. The court exercised its jurisdiction to examine legality and propriety, finding the orders based on erroneous facts and in violation of statutory provisions, thus granting relief. (Paras 2, 11)
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Issue of Consideration: Whether the orders directing the petitioner societies to admit respondents as members based on agreements for sale of non-existent flats are legal and proper under the Maharashtra Co-operative Societies Act, 1960 and Article 226 of the Constitution of India.
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Final Decision
Court quashed and set aside the orders dated 22 July 2022 and 19 October 2022, granting the relief sought under Article 226 of the Constitution of India.
