In a landmark ruling that strengthens the autonomy of cooperative housing societies, the Bombay High Court (Justice N.J. Jamadar) partly allowed Writ Petition No. 9470 of 2025 and quashed the Divisional Joint Registrar’s order that had directly admitted Shashin Patel and Bhavini Patel (or their subsequent buyer) as members of the elite seven-flat Malboro House Cooperative Housing Society Ltd on Peddar Road.
Background of the 30-Year Dispute
The building originally belonged to Kamani Brothers Pvt Ltd, which went into liquidation in the 1990s. In 1995, six out of seven original tenants collectively paid ₹15 lakh to the Official Liquidator and an additional ₹61.36 lakh to clear other dues to acquire ownership and form the society. The seventh tenant, late Narendra R. Patel (father of respondents 6 & 7), refused to contribute his share of ₹5 lakh and allegedly informed the promoters in writing that he wished to remain a tenant only.
For nearly three decades, the society functioned with just six members. No elections were held; the same six members continued the managing committee through resolutions passed every few years. In February 2025, the Deputy Registrar appointed an Administrator (Authorized Officer) under Section 77A and directed elections, a decision upheld by both the Joint Registrar and the High Court.
In March 2025, the legal heirs of Narendra Patel (Shashin & Bhavini Patel) suddenly applied for membership, tendering ₹5 lakh (the 1995 amount). When the Administrator refused to decide the application, they approached the Registrar. On 23 April 2025, the Divisional Joint Registrar directly admitted them as joint members by invoking Section 23(2) of the Maharashtra Cooperative Societies Act, 1960 – an order the High Court has now set aside as illegal and without jurisdiction.
Key Findings & Directions of the High Court (19 Nov 2025)
- Society alone has the primary and exclusive right to admit members. The Registrar cannot bypass the society and directly admit anyone, even under Section 23(2). The Court held: “Admission to membership is the prerogative of the society.”
- The 23 April 2025 order of the Divisional Joint Registrar directly admitting the Patels is quashed along with all consequential actions (share certificates, record changes, etc.).
- The earlier order of the Deputy Registrar (4 April 2025) is restored: The Administrator must convene a Special General Meeting within 4 weeks where only the existing six members can vote on the membership application of the Patels (or their buyer, Capital Mind Advisory Services Pvt Ltd).
- Shashin Patel, Bhavini Patel and their transferee (Respondent No. 9) are not entitled to participate or vote in the SGM or any electoral process as members.
- The society is free to:
- Admit them on the old 1995 terms (₹5 lakh), or
- Impose reasonable additional conditions/premium, or
- Refuse membership altogether. Any refusal, if arbitrary or mala fide, can later be challenged before the Registrar.
- The appointment of the Administrator and the direction to hold elections remain intact.
What Rights Do Cooperative Housing Societies Now Enjoy?
- Absolute first right to decide who becomes a member.
- Registrar’s power under Section 23(2) is only appellate and remedial – it cannot be used to force membership without the society first taking a decision.
- Long-delayed claims (here 30 years) do not create an automatic or vested right to membership on original terms.
- Existing members retain full voting control until new members are lawfully admitted.
The Court stayed its order for 4 weeks to enable an appeal, but continued the interim protection barring the Patels/their buyer from participating in society affairs.
Legal experts hail the judgment as a major victory for cooperative democracy and a clear message that Registrars cannot act as “super societies”.
Also Read: Bombay HC: Maintenance Charges Must Match Your Flat Size
