In a significant order for homebuyers involved in cluster redevelopment projects, the Maharashtra State Co-operative Appellate Court has rejected a revision application filed by STS Co-operative Housing Federation Society Ltd., allowing a flat owner’s dispute to proceed in the Co-operative Court.
The judgment, delivered by Dr. S. Neelkanth, Member-1, on 25 June 2026 in Revision Application No.07 of 2026, upholds the right of individual members to question the functioning and election process of apex federations formed for large-scale redevelopment.
Background of the Case
STS Co-operative Housing Federation Society Ltd. is an umbrella body comprising five co-operative housing societies, including Shree Giriraj Dharan CHS Ltd. in Bangur Nagar, Goregaon (West). The federation was formed to undertake cluster redevelopment of the properties under the Development Control and Promotion Regulations, 2034, with M/s. Narang Realty Pvt. Ltd. as the proposed developer.
Kajal A. Rajani, an associate member and flat owner of Flat No.108 in Giriraj Dharan CHS Ltd., filed Dispute No.CC/I/448/2023 before the Co-operative Court No.I, Mumbai. She alleged that the federation’s managing committee election held on 06.11.2023 was conducted in an arbitrary and illegal manner. She claimed that important agendas and minutes of meetings were not disclosed to members of the constituent societies. Rajani sought to restrain the federation from signing the Development Agreement with the developer without proper consent of all 252 members, declaration of the election as null and void, dissolution of the managing committee, and appointment of an administrator for fresh elections.
Federation’s Attempt to Dismiss the Case
During the pendency of the dispute, the STS Federation filed an application under Order 7 Rule 11 of the Code of Civil Procedure, 1908, seeking outright rejection of the dispute. The federation argued that Rajani, being only an associate member of one society and not a direct member of the federation, had no locus standi to challenge the election. They contended that her name did not appear in the voters’ list, no cause of action was disclosed, and redevelopment-related matters fell outside the jurisdiction of the Co-operative Court.
The Co-operative Court rejected the federation’s application on 11.11.2025, prompting the federation to file the present revision application.
Appellate Court’s Ruling
After hearing both sides, the Appellate Court held that the revision application was devoid of merit. The court observed that under Section 91 of the Maharashtra Co-operative Societies Act, a “member or a person claiming through a member” can approach the Co-operative Court. Since Kajal Rajani is a flat owner in one of the constituent societies and the federation’s decisions directly impact her proprietary and occupancy rights, she has a direct stake in the matter.
The court clarified that while considering an application under Order 7 Rule 11 CPC, only the averments in the plaint/dispute are to be examined. If any cause of action is disclosed, the plaint cannot be rejected. Questions involving mixed issues of fact and law — such as the validity of the election process and jurisdiction over redevelopment matters — cannot be decided summarily without evidence.
The judgment relied upon relevant precedents, including judgments of the Supreme Court and Bombay High Court, emphasizing that rejection of a plaint is a drastic measure and must be exercised with great caution. The court also noted that an application for deletion of one of the prayers is still pending before the trial court.
Final Order: The Revision Application was rejected. Parties to bear their own costs.
Implications for Homebuyers
This order is being seen as a boost for transparency and accountability in cluster redevelopment projects. It reinforces that individual flat owners cannot be sidelined in decisions taken by federations that affect their homes and investments. Legal experts believe the ruling will encourage greater scrutiny of election processes and decision-making in multi-society redevelopment schemes across Maharashtra.
The main dispute will now proceed before the Co-operative Court for a full hearing on merits.
Also Read: This ONE Change Will Benefit Thousands of Societies Awaiting Redevelopment on Govt Land!
