Case Note & Summary
The matter before the High Court of Judicature at Bombay arose from Writ Petition No.2241 of 2024 filed by Ashwini Heights Cooperative Housing Society Ltd., a cooperative housing society registered under the Maharashtra Co-operative Societies Act, 1960. The Society challenged the order dated 12 May 2022 passed by the Divisional Joint Registrar, Cooperative Societies, Pune Division, Pune, which allowed Revision Application No.126 of 2020 and set aside the Deputy Registrar's order dated 6 March 2019. The Deputy Registrar had rejected the application of Respondent Nos.1 and 2—Jyoti Nitin Lunia and Nitin Balchandji Lunia—under Section 23(2) of the Act for admission as members of the Society qua a godown purchased by them. The Divisional Joint Registrar directed the Society to admit the Lunias as members, prompting the Society to approach the High Court. The High Court by order dated 21 February 2024 stayed the Divisional Joint Registrar's order. The factual background reveals that the developer, M/s Ashwini Constructions, sold shop No.8 on the ground floor and a godown in the basement to one Daphalapurkar by a single registered agreement dated 6 August 1994. After formation of the Society, share certificate No.45 was issued in Daphalapurkar's name for both shop No.8 and the godown. Daphalapurkar then sold only the godown to the Bandals by an Assignment Deed dated 18 August 2005 without informing the Society or obtaining its No Objection Certificate. Consequently, the Bandals were never admitted as members. The Bandals subsequently sold the godown to the Lunias by a Deed of Assignment dated 1 April 2010, again without securing the Society's NOC. The Lunias applied for membership on 30 September 2013, and after various correspondences and an advocate's notice dated 4 January 2018, the Society refused membership. The Deputy Registrar rejected the Lunias' appeal on 6 March 2019, holding that both the purchase by Bandals and the purchase by Lunias occurred without the Society's consent. The central legal issues were whether the godown qualified as a 'flat' under Section 154B-1(13) of the MCS Act, whether the absence of Society's NOC barred membership, whether the sanctioned plan restrictions under Section 154B-5 prohibited admission, and whether the Divisional Joint Registrar could consider new material such as a personal occupation certificate that was not before the Deputy Registrar. The Society argued that the godown was part and parcel of shop No.8, had no independent access, was not separately shown in the sanctioned plan, and that membership cannot be granted for a structure not individually sanctioned. It also contended that the transfers were illegal due to lack of NOC and relied on the judgments in Usha Kiran Cooperative Housing Society & Ors. v. The State of Maharashtra & Ors. and Uday Dalal and Others v. Divisional Joint Registrar. The Lunias, on the other hand, contended that the definition of 'flat' now includes godown, that the occupation certificate and separate tax assessment showed the godown as a separate unit, that there was independent access, and that the statutory scheme under Section 154B-7 differs from Section 29 of the Act. The court noted the sequence of events and quoted the undertaking given by Daphalapurkar in clause 12 of the 2005 deed to transfer membership and share certificate. It observed that the Society initially objected only on the ground of non-procurement of consent and later raised the composite unit objection. However, the provided excerpt of the judgment ends before the court's analysis and final decision, and therefore the final holding and operative directions are not available in the text. The judgment was reserved on 14 August 2026 and pronounced on 20 August 2026, but the concluding portion is not included.
Headnote
A) Cooperative Society Law - Transfer of Flat and Society's NOC - Requirement of No Objection Certificate for transfer and membership - Maharashtra Co-operative Societies Act, 1960, Section 23(2) and Section 29 - The Society contended that the original sale of godown by Daphalapurkar to Bandals and subsequent sale to Lunias were made without its NOC, rendering transfers illegal and barring membership. Respondents argued that the statutory scheme for acquisition of interest under Section 154B-7 differs from Section 29. The Divisional Joint Registrar had directed membership, and the Society challenged this direction. The excerpt does not contain the final holding (Paras 2, 5, 6, 10). B) Cooperative Society Law - Definition of Flat and Inclusion of Godown - Whether godown is a separate flat eligible for membership - Maharashtra Co-operative Societies Act, 1960, Section 154B-1(13) - Society argued godown is part of shop No.8 and not a flat; Respondents argued definition of flat now includes godown and occupation certificate showed separate unit. The court examined these contentions but outcome not provided (Paras 4, 6). C) Cooperative Society Law - Sanctioned Plan and Membership Limit - Restriction on number of members and structures not approved in sanctioned plan - Maharashtra Co-operative Societies Act, 1960, Section 154B-5 and bye-law No.46 - Society argued membership cannot exceed sanctioned plan and godown not independently sanctioned; Respondents relied on occupation certificate and separate tax assessment. The excerpt does not contain final ruling (Paras 4-6). D) Revision Jurisdiction - Divisional Joint Registrar - Consideration of new material not before Deputy Registrar - Maharashtra Co-operative Societies Act, 1960 - The Society objected that occupation certificate produced later should not be considered, relying on Usha Kiran Cooperative Housing Society v. State of Maharashtra and Uday Dalal v. Divisional Joint Registrar; Respondents argued the certificate evidenced separate sanction. The excerpt does not contain final ruling (Paras 5-6). E) Procedural History - Membership Application Under Section 23(2) - Deputy Registrar's Rejection and Divisional Joint Registrar's Revision - Maharashtra Co-operative Societies Act, 1960, Section 23(2) - Respondents applied for membership in 2013, Deputy Registrar rejected on 6 March 2019, Divisional Joint Registrar allowed revision on 12 May 2022 and directed membership; High Court stayed that order on 21 February 2024. The final outcome of the Writ Petition is not included in the text (Paras 1-3).
Issue of Consideration
Whether godown purchased without society's No Objection Certificate and not separately sanctioned in the sanctioned plan can be treated as a flat eligible for membership under Section 23(2) and Section 154B-1(13) of the Maharashtra Co-operative Societies Act, 1960; whether Divisional Joint Registrar erred in setting aside Deputy Registrar's order and directing admission of respondents as members
Law Points
- Membership under Maharashtra Co-operative Societies Act
- 1960 requires flat to be approved in sanctioned plan
- statutory restriction on number of memberships cannot exceed sanctioned plan under Section 154B-5
- definition of flat under Section 154B-1(13) includes godown
- society's No Objection Certificate required for transfer of flat
- Divisional Joint Registrar cannot consider new material not produced before Deputy Registrar
