Case Note & Summary
The dispute arose between a cooperative housing society and a newly registered society concerning the registration of the latter for certain wings of a building. The Petitioner, a cooperative housing society, challenged the registration order dated 20 February 2025, which allowed the formation of a new society by flat purchasers of Wings A and B. The Petitioner argued that the Deputy Registrar had erred in granting registration without recognizing the existing society and that the only remedy available was bifurcation under the Maharashtra Co-operative Societies Act, 1960. The Petitioner contended that there were contractual obligations for flat purchasers to become members of the existing society and that common amenities made it impractical to form a separate society. The Respondent, representing the new society, argued that the Deputy Registrar's decision was valid and that the MCS Act allowed for the formation of multiple societies. The court analyzed the provisions of the MCS Act, particularly Sections 9, 17, and 18, concluding that the Deputy Registrar had acted without proper jurisdiction by not considering the existing society. The court emphasized that the statutory scheme required a comprehensive process for bifurcation, which was not adhered to in this case. Ultimately, the court held that the registration of the new society was impermissible and directed that the proper procedure for bifurcation should be followed.
Headnote
A) Cooperative Societies - Registration of New Society - Jurisdictional Error - Maharashtra Co-operative Societies Act, 1960, Sections 9, 17, 18 - The Deputy Registrar erred in granting registration to a new society without acknowledging the existence of the Petitioner-Society, which had already been formed for the same building. The court held that the proper procedure for forming a new society involves bifurcation of the existing society under Sections 17 and 18 of the MCS Act, which was not followed in this case. Held that the registration of the new society was impermissible (Paras 22-28).
Issue of Consideration
Whether the Deputy Registrar could entertain and decide the application for registration of a new society in light of the existence of the Petitioner-Society.
Final Decision
The court held that the registration of the new society was impermissible as it was granted without acknowledging the existence of the Petitioner-Society. The court directed that the proper procedure for bifurcation under Sections 17 and 18 of the MCS Act must be followed.
Law Points
- Cooperative housing society
- registration of new society
- bifurcation
- Maharashtra Co-operative Societies Act
- 1960
- jurisdictional error
