High Court Dismisses Petition Challenging Allotment of Flats in Housing Society Due to Non-Payment. Petitioners Failed to Fulfill Financial Obligations Leading to Allotment to Non-Members.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The case involved a dispute between members of a housing society and its management regarding the allotment of additional flats. The petitioners, Dr. Omprakash B. Soniminde and Mrs. Chandrakala Omprakash Soniminde, challenged the decision of the Le Chateau Co-operative Housing Society to allot flats 701 and 702 to directors of the contractor, Jet Speed Developers Pvt. Ltd., instead of themselves. The petitioners claimed they were deprived of their legitimate rights to these flats, which they had initially been allotted after paying a substantial amount. The society had decided to construct additional floors and allot the flats only to existing members, but the petitioners alleged that they were not properly notified of meetings where the allotment was discussed and that the resolution to cancel their allotment was illegal. The society contended that the petitioners failed to make necessary payments, which justified the cancellation of their allotment. The court analyzed the procedural history, including the resolutions passed and the correspondence between the parties, ultimately finding that the petitioners had not fulfilled their financial obligations and that the society acted within its rights to allot the flats to others. The court dismissed the petition, affirming the decisions of the lower courts.

Headnote

A) Co-operative Society Law - Allotment of Flats - Legitimacy of Allotment - Maharashtra Co-operative Societies Act, 1960, Section Not Mentioned - The petitioners challenged the allotment of flats to non-members, arguing it violated the society's resolution to allot only to existing members. The court held that the resolution was valid and the petitioners failed to fulfill payment obligations, justifying the allotment to others (Paras 1-31).

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Issue of Consideration

Whether the allotment of flats to the directors of the contractor was valid and whether the petitioners were deprived of their legitimate rights.

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Final Decision

The court dismissed the petition, affirming the decisions of the Co-operative Court and Appellate Court, stating that the petitioners failed to fulfill their payment obligations, justifying the allotment to others.

Law Points

  • Co-operative Society Law
  • Allotment of Flats
  • Rights of Members
  • Resolution Validity
  • Payment Obligations
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Case Details

2026 LawText (BOM) (09) 124

Writ Petition No. 751 of 2019

2026-09-24

Sandeep V. Marne

Dr. Veerendra Tulzapurkar, Mr. Vishal Kanade

Dr. Omprakash B. Soniminde, Mrs. Chandrakala Omprakash Soniminde

Le Chateau Co-operative Housing Society Limited, Jet Speed Developers Pvt. Ltd.

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Nature of Litigation

Dispute regarding allotment of flats in a housing society.

Remedy Sought

Petitioners sought to challenge the allotment of flats to the contractor's directors.

Filing Reason

Petitioners claimed deprivation of their rights to flats due to improper allotment.

Previous Decisions

Co-operative Court dismissed the dispute; Appellate Court upheld the dismissal.

Issues

Validity of allotment to non-members Petitioners' payment obligations

Submissions/Arguments

Petitioners argued illegal allotment and lack of notice Respondents contended non-payment justified allotment

Ratio Decidendi

The court held that the society acted within its rights to allot flats to others due to the petitioners' failure to meet payment obligations, validating the resolutions passed.

Judgment Excerpts

The case involves a bizarre situation where the chairman of the housing society... is left with no flat, whereas the contractor engaged... has received a windfall gain in the form of allotment of four flats. Petitioners are those members who are deprived of their legitimate right to receive additional flats in the society’s building.

Procedural History

Petitioners filed a dispute in the Co-operative Court challenging the cancellation of allotment, which was dismissed. They appealed to the Co-operative Appellate Court, which upheld the dismissal. The petitioners then filed the present writ petition.

Acts & Sections

  • Maharashtra Co-operative Societies Act:
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