High Court Dismisses Petition by Petitioner Challenging Membership Grant Under Maharashtra Co-operative Societies Act, 1960 -- Lease Conditions and Statutory Amendments Upheld in Favor of Respondents

Sub Category: Bombay High Court Bench: BOMBAY
  • 18
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner society filed a Writ Petition under Article 227 of the Constitution of India, challenging orders that granted membership to respondent Nos. 4 and 5 for Plot No. 26 under the Maharashtra Co-operative Societies Act, 1960. The society argued that the assignment of the plot breached lease conditions from 1963, which required prior written consent and payment of lease premium. Respondent Nos. 4 and 5 had applied for membership after acquiring the plot through a deed of assignment dated 01 August 2024, which the society rejected. The Deputy Registrar allowed their appeal, and the Divisional Joint Registrar dismissed the society's revision. The petitioner contended that authorities ignored binding lease terms and that statutory amendments under Section 154(B)(7) altered the legal landscape, making prior judgments and government directions inapplicable. The High Court analyzed the lease conditions, statutory provisions, and amendments, concluding that the authorities acted within jurisdiction and that the petition lacked merit. The court dismissed the petition, confirming the membership grant.

Headnote

The High Court of Judicature at Bombay, in its civil appellate jurisdiction, heard a Writ Petition under Article 227 of the Constitution of India -- The petitioner, challenged orders dated 15 October 2025 and 08 May 2025 under the Maharashtra Co-operative Societies Act, 1960 -- The orders directed grant of membership to respondent Nos. 4 and 5 for Plot No. 26 -- The petitioner contended that the assignment of the plot violated lease conditions requiring prior written consent and payment of lease premium -- The court examined Section 154(B)(7) of the Act, which obliges societies to enforce lease conditions not inconsistent with the Act -- It considered the impact of statutory amendments on the judgment in New India Co-operative Housing Society Ltd. v. State of Maharashtra and government directions under Section 79A -- The court held that the authorities did not commit jurisdictional error in granting membership -- The petition was dismissed, upholding the impugned orders

Issue of Consideration: The Issue of whether the authorities under the Maharashtra Co-operative Societies Act, 1960, erred in directing grant of membership to respondents despite alleged breach of lease conditions, particularly the absence of prior written consent and non-payment of lease premium, and the applicability of statutory amendments to override previous judicial and governmental directives

Final Decision

The High Court dismissed the Writ Petition, upholding the orders dated 15 October 2025 and 08 May 2025 that granted membership to respondent Nos. 4 and 5 under the Maharashtra Co-operative Societies Act, 1960

2026 LawText (BOM) (02) 3

Writ Petition No. 461 of 2026

2026-02-03

Amit Borkar J.

2026:BHC-AS:5363

Mr. Venkatesh Dhond with Preteek Pai, Vinodini Shrinivas, Shashwat Rai, Aditya Shete i/b Keystone Partners for Petitioner, Dr. Dhruti Kapdia, AGP for State-Respondent Nos. 1 to 3, Mr. Surel Shah, Senior Counsel with Ms. Kausar Banatwala i/b Tushar A. Goradia for Respondent Nos. 4 and 5

Vallabh Nagar Co-operative Housing Society Limited

State of Maharashtra, Divisional Joint Registrar, Co-operative Societies, Mumbai Division, Deputy Registrar, Co-operative Societies, K/W-ward, Mumbai, Mr. Vijay S. Khetan, Mrs. Meena Vijay Khetan

Nature of Litigation: Writ Petition under Article 227 of the Constitution of India challenging orders under the Maharashtra Co-operative Societies Act, 1960

Remedy Sought

The petitioner society seeks setting aside of orders dated 15 October 2025 and 08 May 2025 that granted membership to respondent Nos. 4 and 5

Filing Reason

Alleged breach of lease conditions requiring prior written consent and payment of lease premium for assignment of Plot No. 26

Previous Decisions

Order dated 08 May 2025 by Deputy Registrar allowed appeal for membership, Order dated 15 October 2025 by Divisional Joint Registrar dismissed revision application

Issues

Whether the authorities under the Maharashtra Co-operative Societies Act, 1960, committed jurisdictional error in granting membership despite alleged breach of lease conditions Whether statutory amendments under Section 154(B)(7) override previous judgments and government directions regarding lease premium and consent requirements

Submissions/Arguments

Petitioner argued that lease conditions mandating prior written consent and lease premium payment were violated, Authorities failed to consider binding lease terms, Section 154(B)(7) obliges enforcement of lease conditions not inconsistent with the Act, Statutory amendments alter legal position, making prior judgment in New India Co-operative Housing Society Ltd. v. State of Maharashtra inapplicable, Government direction under Section 79A is contrary to statutory mandate Respondents likely argued that the assignment was valid, membership application was proper, and authorities acted within jurisdiction under the Act

Ratio Decidendi

The authorities under the Maharashtra Co-operative Societies Act, 1960, did not commit jurisdictional error in granting membership, as they properly considered the lease conditions and statutory provisions, including Section 154(B)(7), and the statutory amendments did not necessitate setting aside the impugned orders based on the alleged breach of lease terms

Judgment Excerpts

By this Petition filed under Article 227 of the Constitution of India, the petitioner Housing Society challenges the judgment and order dated 15 October 2025 passed by respondent No. 2 in Revision Application No. 192 of 2025 The lease contained conditions. It provided that the lessees shall not assign, underlet, or part with possession of the plot without prior written consent of the lessor Inviting attention to Section 154(B)(7) of the Maharashtra Cooperative Societies Act, he submitted that the proviso to the said provision obliges a housing society to enforce lease conditions, so long as they are not inconsistent with the Act

Procedural History

Lease executed on 29 July 1963 for Plot No. 26 -- Assignment proposed in 2012-2013 -- Deed of assignment executed on 01 August 2024 without prior written consent or lease premium payment -- Membership application by respondents on 11 October 2024 rejected by society -- Appeal No. 33 of 2024 filed before Deputy Registrar, allowed on 08 May 2025 -- Revision Application No. 192 of 2025 filed before Divisional Joint Registrar, dismissed on 15 October 2025 -- Writ Petition No. 461 of 2026 filed in High Court, dismissed on 03 February 2026

Related Judgement
High Court High Court Dismisses Petition by Petitioner Challenging Membership Grant Under M...
Related Judgement
High Court High Court Allows Writ Petition Challenging Rejection of Vivad Se Vishwas Scheme...