Case Note & Summary
The writ petition was filed under Article 226 of the Constitution of India before the High Court of Judicature at Bombay. The petitioners, Sanjay Narang and Rachna Narang, sought directions to the Collector, Mumbai City, to decide their application dated 22 August 2024 without insisting on a no-objection certificate from Soona Mahal Co-operative Housing Society Ltd., and to enable the Joint Sub-registrar to register a consent decree dated 16 December 2022, upon payment of transfer fee and premium. The dispute concerned shop premises known as 'Pushp Milan' admeasuring 186 sq. ft. and adjoining restaurant premises of 2530 sq. ft. at Soona Mahal, 143 Marine Drive, Mumbai. Khorshed Tehemton Udwadia and Dr. Adi Nazir, members of the society, held five fully paid-up shares and were owners. On 9 January 2018, Khorshed entered into an agreement to sell the shop premises to Mars Enterprises & Hospitality Private Limited, a company promoted by the petitioners. A power of attorney was executed in favour of a nominee. Disputes arose, leading to Suit No.621 of 2019 filed on 26 March 2019 by the owners against the company and the petitioners; the society was a formal party. On 13 December 2022, consent terms were executed between the plaintiffs and the present petitioners. The court decreed the suit in terms of the consent terms on 16 December 2022. The consent decree was forwarded for stamp duty adjudication; the Collector of Stamps determined stamp duty of Rs.91,58,300, which the petitioners paid on 24 May 2024. The decree was sealed and sent for registration on 3 July 2024. Petitioners paid document handling charges and registration charges. However, the Joint Sub-registrar by letter dated 16 July 2024 required a no-objection from the Collector because the premises stood on government land. The petitioners applied to the Collector on 22 August 2024, offering to pay transfer fee. The Collector by letter dated 2 September 2024 required various documents, including a no-objection letter from the society; the petitioners provided all except the society's no-objection. The society by letter dated 26 September 2024 objected to transfer to the petitioners. Aggrieved, petitioners filed the writ petition on 10 October 2024. During pendency, their application under Section 22/23 of the Maharashtra Co-operative Societies Act, 1960 for deemed membership was allowed on 21 April 2025 but challenged and pending. The petitioners argued that the Collector's insistence on society no-objection was arbitrary and illegal, that the consent terms had attained finality and operated as conveyance, that stamp duty had been paid, and that after amendment of Section 37A of Maharashtra Land Revenue Code, 1966, there was no requirement for such no-objection. They relied on Aspi Chinoy & Anr. v. State of Maharashtra & Ors., 2009 SCC OnLine Bom 2541 and State of Maharashtra & Ors. v. Aspi Chinoy & Anr., (2023) 20 SCC 402, Section 17 of the Registration Act, 1908, and Government Resolution dated 7 July 2017. The State respondents argued that Section 37A MLRC imposed restrictions on transfer of government land and nazul land, and relied on Section 23 of the Registration Act.
Issue of Consideration
Whether the Collector can insist on a no-objection certificate from the co-operative society as a pre-requisite for registration of the consent decree dated 16 December 2022; whether Section 37A MLRC and Registration Act provisions mandate such no-objection.
Law Points
- Writ jurisdiction under Article 226
- mandatory registration of consent decree as conveyance under Section 17 of Registration Act
- 1908
- restrictions under Section 37A of Maharashtra Land Revenue Code
- 1966
- transfer fee under Government Resolution dated 7 July 2017
- deemed membership under Section 22/23 of Maharashtra Co-operative Societies Act
- 1960
Case Details
2026 LawText (BOM) (08) 118
Writ Petition No. 5225 of 2024
Suman Shyam, Advait M. Sethna
Mr Zal Andhyarujina, Senior Counsel, with Aurup Dasgupta, Revati Desai, Drshika Hemnani and Rishad Mehta instructed by Jhangiani Narula and Associates for Petitioners; Mr Himanshu Takke, AGP for Respondent Nos.1 to 3 - State; Mr Sachin Gawade with Ramon Abrol (Chairman of Society) for Respondent No.4
Sanjay Narang and Rachna Narang
Joint Sub-registrar City No.1 of Assurance Mumbai, The Collector and District Magistrate Mumbai City, State of Maharashtra through Government Pleader Original Side, Soona Mahal Co-op. Housing Society Ltd.
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Nature of Litigation
Writ petition under Article 226 of Constitution of India challenging the Collector's insistence on a no-objection certificate from the co-operative society as a pre-condition for registration of a consent decree.
Remedy Sought
Petitioners sought direction to Respondent No.2 Collector to decide their application dated 22 August 2024 without insisting on a no-objection from Respondent No.4 Society, and enabling Respondent No.1 to register the Consent Decree dated 16 December 2022 upon payment of transfer fee and premium.
Filing Reason
Aggrieved by Respondent No.1's letter dated 16 July 2024 requiring no-objection from Collector and Respondent No.2's subsequent requirement for no-objection from society, and society's objection to transfer.
Previous Decisions
Suit No.621 of 2019 was decreed in terms of Consent Terms dated 13 December 2022 by order dated 16 December 2022; stamp duty of Rs.91,58,300 was determined and paid on 24 May 2024; Petitioners' application under Section 22/23 of Maharashtra Co-operative Societies Act, 1960 for deemed membership was allowed by Deputy Registrar on 21 April 2025, but challenged and pending.
Issues
Whether the Collector can insist on a no-objection certificate from the co-operative society as a pre-requisite for registration of a consent decree under Section 37A of the Maharashtra Land Revenue Code, 1966.
Whether a consent decree operating as conveyance must be registered under Section 17 of the Registration Act, 1908, and whether payment of stamp duty and transfer fee suffices.
Submissions/Arguments
Petitioners argued that the Collector's insistence on society no-objection was arbitrary and illegal; the consent terms dated 13 December 2022 had attained finality and operated as conveyance; stamp duty was paid; no statutory requirement under Section 37A MLRC mandated society no-objection; relied on Aspi Chinoy case and Supreme Court affirmation.
Petitioners relied on Section 17 of Registration Act, 1908 and Government Resolution dated 7 July 2017, offering to pay transfer fee.
State respondents argued Section 37A MLRC imposed restrictions on sale, transfer, redevelopment, change of use of government land and nazul land, and relied on Section 23 of Registration Act.
Judgment Excerpts
The Writ Petition is filed under Article 226 of the Constitution of India.
The Petitioners are primarily seeking directions to the Respondent No.2 – Collector, to decide the Application of the Petitioners dated 22nd August 2024 without insisting on a ‘No-Objection’ from the Respondent No.4 - Society, in accordance with law and upon payment of the transfer fee with premium as applicable, so as to enable Respondent No. 1 to register the Consent Decree dated 16th December 2022.
Heard. Rule. Rule made returnable forthwith with the consent of the parties.
This Court on 16th December 2022 passed an order decreeing the said Suit in terms of the Consent Terms dated 13th December 2022.
Procedural History
Suit No.621 of 2019 filed on 26 March 2019; Consent Terms dated 13 December 2022; suit decreed on 16 December 2022; stamp duty adjudicated by Collector of Stamps and paid on 24 May 2024; decree sealed on 12 June 2024; forwarded for registration on 3 July 2024; Joint Sub-registrar required no-objection on 16 July 2024; petitioners applied to Collector on 22 August 2024; Collector sought documents on 2 September 2024; society objected on 26 September 2024; writ petition filed on 10 October 2024; application under Section 22/23 of Maharashtra Co-operative Societies Act allowed on 21 April 2025 and challenged.
Acts & Sections
- Constitution of India: Article 226
- Maharashtra Co-operative Societies Act, 1960: Section 22/23
- Maharashtra Land Revenue Code, 1966: Section 37A
- Registration Act, 1908: Section 17, Section 23
