Appellate Court Directs Equal Maintenance for Every Flat, Stays Arbitrary Wing-Wise Hike in Goregaon Society
In a clear ruling that maintenance charges in a cooperative housing society must be levied equally across all flats and not on a wing-wise basis that burdens a minority, the Maharashtra State Co-operative Appellate Court has partly allowed an appeal filed by two members of Aurum Tower Co-operative Housing Society Ltd., Goregaon (West). The Court stayed the society’s resolution and circular that had raised maintenance for the only two flats in its D wing nearly four times, while directing the society to recalculate and charge all flats in wings A, B, C and D equally after a transparent process.
The order, passed on 3 November 2026 by President Sau. S.S. Sapatnekar in Appeal against Order No. 31 of 2026 (arising from Dispute No. 178/2023 in Co-operative Court No. 4, Mumbai), sets aside the trial court’s rejection of interim relief and substitutes a fresh direction protecting the minority members.
Background of the Dispute
The appellants are Shri Ramawadh Devnandan Jayaswal (age 71), Flat No. D/101, and his son Shri Nishit Ramawadh Jayaswal (age 44), Flat No. D/201. Both flats measure 1,300 sq.ft. each in the D wing of Aurum Tower CHS Ltd. (earlier linked to Goregaon Unnat Nagar-2, Plot Nos. 51-55 CHS Ltd.).
After redevelopment by M/s Kabra Associates, the society has four wings: A wing (82 flats), B wing (55 flats), C wing (76 flats) and D wing (only two flats). The original 40 members grew to about 215 after redevelopment. Until June 2022 the two D-wing flats were charged approximately ₹7,867 each per month. From July 2022 the society raised this to ₹27,166 and ₹29,266 respectively—nearly four times—while flats in the larger wings continued at roughly ₹2,300–₹2,600.
The increase stemmed from an Annual General Meeting held on 27 March 2022. Agenda No. 4 authorised recalculation of billing and recovery of actual maintenance expenses wing-wise for members holding flats in wings A, B, C and D. The resolution proposed appointment of an independent Chartered Accountant, display of calculations on the notice board, and finalisation after addressing members’ concerns. However, the society issued a circular on 5 June 2022 implementing the revised charges from 1 July 2022 without holding a further general body meeting to consider objections or formally adopt the figures.
The disputants challenged this as arbitrary, contrary to the Model Byelaws 2014 (which the society had adopted), and prejudicial to the minority. They also sought a stay on a separate Special General Meeting resolution of 10 July 2022 under agenda No. 3(d) that authorised legal action, including possible expulsion under Section 35 of the Maharashtra Co-operative Societies Act, 1960, against named members if found involved in anti-social, illicit or criminal acts.
Trial Court Rejection and Appeal
The Co-operative Court No. 4, Mumbai, had rejected the interim application on 23 February 2026. The Appellate Court noted that the scope of appeal against an interim order is limited, but interference is warranted where the trial court has not exercised its discretion judiciously.
Court’s Analysis of Byelaws and Process
The Appellate Court examined Model Byelaws 2014 in detail. Byelaw 65 lists the heads under which contributions can be collected. Byelaw 66 covers service charges. Byelaw 67 requires the committee to apportion the share of each member towards the charges of the society and to fix society charges in respect of every flat on the basis laid down in the byelaws. The Court held that the society is required to charge maintenance per flat or unit-wise and not wing-wise in a manner that creates extreme disparity.
It observed that while A, B and C wings have dozens of flats (making per-flat charges lower), D wing has only two. The wing-wise approach therefore produced an exorbitant burden on the two flats—₹21,180 per month as per one set of calculations on record—while other wings paid far less. This was held to be arbitrary and prejudicial to the minority members.
The Court further found that the 27 March 2022 resolution itself required Chartered Accountant verification, display on the notice board, and consideration of members’ objections before finalisation. The society skipped this step. The managing committee meeting of 20 May 2022 (which allegedly approved the figures) was not properly documented as a general body decision. Policy decisions on maintenance must be approved by the general body; the committee cannot implement them unilaterally. The society also failed to produce minutes of the 30 September 2018 AGM that it claimed as the foundation for wing-wise revision. Several managing committee members had resigned that day, and no business appeared to have been transacted.
Relying on the principle in Venus Co-operative Housing Society Ltd. vs. D.Y. Detvani, the Court reiterated that the general body, though supreme, cannot pass arbitrary or unreasonable resolutions merely because it has a majority, if such resolutions cause prejudice to minority members.
Findings on Prima Facie Case, Balance of Convenience and Irreparable Loss
The Court held that the disputants had established a prima facie case and balance of convenience in their favour on the maintenance issue. Continuing the four-times hike without following the byelaws and the procedure contemplated in the society’s own resolution would cause them irreparable loss. The society’s contentions that D wing has separate water, electricity, lift and compound arrangements did not justify the differential charging, as these facilities were part of the approved plan and the society’s own decision on the layout of the four wings.
On the separate SGM resolution of 10 July 2022, the Court refused relief. It noted that the resolution merely authorised legal action if members were found engaged in anti-social, illicit or criminal acts, which the society is entitled to pursue under the byelaws and the Act.
The Final Operative Order
The Appellate Court partly allowed the appeal and set aside the trial court’s order, substituting the following:
- The resolution passed by the society in its AGM dated 27 March 2022 vide Agenda No. 4 is stayed till final disposal of the dispute.
- The circular dated 5 June 2022 implementing the said resolution is also stayed till final disposal.
- The society is directed to revise or increase maintenance charges after considering the actual expenses for each wing with the help of an independent Chartered Accountant, after considering the objections of members, if any, for all the flats situated in the wings A, B, C and D equally.
- The prayer for staying the resolution passed in the SGM dated 10 July 2022 under Agenda No. 3(d) is rejected.
- A copy of the order is to be sent to the trial court.
Implications for Housing Societies
The order reinforces that maintenance in a cooperative housing society must be structured according to the Model Byelaws and charged equally across flats rather than through an arbitrary wing-wise system that disproportionately burdens members of a smaller wing. While societies may consider actual expenses of different wings and use a Chartered Accountant, the final levy must be equal for all flats and must follow a transparent process of verification, display and consideration of objections. Majority resolutions cannot override these requirements or impose unfair burdens on minority members.
The main dispute will continue for final adjudication on the quantum of expenses and other issues. Until then, the stayed resolution and circular cannot be enforced against the two members, and the society must proceed with the directed equal revision process.
(Based on the judgment dated 3 November 2026 in A.O. No. 31 of 2026 of the Maharashtra State Co-operative Appellate Court, Mumbai.)
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