Case Note & Summary
The petitioner, a co-operative housing society registered under the Maharashtra Co-operative Societies Act, 1960, challenged an order passed by the Secretary, Co-operation and Textiles Department, Government of Maharashtra, which allowed a revision application filed by the respondent developer and directed de-registration of the society. The society was formed by flat purchasers from the developer who had constructed the building. The Deputy Registrar granted registration on 21st January 1999. Prior to that, the Divisional Joint Registrar, by order dated 10th November 1998, had rejected the developer's complaint alleging unauthorised constructions by some flat purchasers. The developer filed a revision under Section 154 of the Maharashtra Co-operative Societies Act, 1960. On 20th May 1999, the revisional authority set aside the earlier order and directed de-registration on the ground that the society's formation would amount to sanctioning illegal constructions. The society filed a writ petition under Article 227 of the Constitution. The core legal issue was whether the registration of a co-operative society could be cancelled solely because some of its members had carried out unauthorised construction in their flats. The petitioner argued that such unauthorised works could not be a valid ground for cancellation and relied on the case of Sukhsagar Co-operative Housing Society Ltd. v. State of Maharashtra. The respondents, including the developer and the Municipal Corporation, supported the revisional order. The High Court held that the registration of a society under the Maharashtra Co-operative Societies Act, 1960 cannot be set aside on the ground of unauthorised construction by a few members. The court relied on the Sukhsagar case, which established that registration does not impinge upon the Municipal Corporation's statutory powers to grant occupation certificates or take action against illegal constructions. The court found the impugned order to be perverse and contrary to law. Accordingly, the writ petition was allowed, the order dated 20th May 1999 was quashed, and the revision application filed by the developer was dismissed. No costs were awarded.
Headnote
A) Co-operative Law - Registration of Society - Cancellation of Registration - Maharashtra Co-operative Societies Act, 1960, Section 154 - Ground for cancellation must be valid; unauthorised construction works by members cannot be considered for refusing or cancelling registration - Held that the order setting aside registration was perverse and contrary to law; Municipal Corporation empowered to take action against unauthorised construction under Mumbai Municipal Corporation Act, 1888 (Paras 6, 10-12).
Issue of Consideration
Whether the registration of a co-operative society under the provisions of the Maharashtra Co-operative Societies Act, 1960 could be set aside on the ground of alleged unauthorised construction works carried out by flat purchasers in the building
Final Decision
Impugned order dated 20th May 1999 quashed and set aside; revision application filed by developer dismissed; rule made absolute with no costs
Law Points
- Registration of co-operative society cannot be cancelled on ground of unauthorised constructions by members
- such infractions to be handled by Municipal Corporation under Mumbai Municipal Corporation Act
- 1888
- registration does not affect powers to grant occupation certificate
