The court quashes a revisional order, reinstating the status of a flat purchaser as a member of a cooperative society, emphasizing the statutory rights under the Maharashtra Ownership Flats Act.
In a significant ruling, the Bombay High Court has quashed a revisional order that annulled the deemed membership of a flat purchaser in a cooperative society, underscoring the statutory protections under the Maharashtra Ownership Flats Act, 1963 (MOFA). The case involved Digant Parekh (HUF) and others, who had challenged a decision by the Divisional Joint Registrar, which revoked an earlier order granting them membership status in the society for Unit No.601.
Justice Amit Borkar, presiding over the matter, highlighted that the petitioners had entered into a registered agreement for sale in the prescribed Form No.5 under MOFA. This agreement, executed in 2013, conferred upon them the rights and status of individuals who had 'taken' flats, thus entitling them to membership in the cooperative society under the Maharashtra Co-operative Societies Act, 1960 (MCS Act).
Despite the pending civil suit filed by the respondents, Akruti Kailash Construction and others, seeking enforcement of the sale agreement, the High Court found that such pendency does not automatically bar the conferment of deemed membership. Justice Borkar emphasized that the Registrar's authority under the MCS Act allows for provisional decisions on membership, which do not preclude the resolution of title disputes by civil courts.
The court also addressed jurisdictional concerns raised by the respondents, following a government notification that shifted appellate powers to the Joint Registrar, Co-operative Societies (Slum Rehabilitation Authority, Mumbai). However, Justice Borkar clarified that the notification effectively transferred jurisdiction, rendering the previous appellate authority's order void.
The judgment reinstates the Registrar's initial order from August 2022, granting deemed membership to the petitioners, and allows the ongoing civil suit to proceed independently of the society membership issue. The court's decision reinforces the legislative intent of MOFA to protect flat purchasers and facilitate their participation in cooperative society management.
Bottom Line:
Maharashtra Ownership Flats Act, 1963 (MOFA) - A purchaser under a valid MOFA agreement in Form No.5 is entitled to be treated as a person who has 'taken' a flat for the purpose of membership of a co-operative society under the Maharashtra Co-operative Societies Act, 1960 (MCS Act).
Statutory provision(s): Maharashtra Ownership Flats Act, 1963, Maharashtra Co-operative Societies Act, 1960, Transfer of Property Act, 1882, Constitution of India Article 226.
Digant Parekh (HUF) v. Akruti Kailash Construction, (Bombay) : Law Finder Doc id # 2839616
