Shashin Patel and Bhavini Patel's membership affirmed; Society's AGM ratifies transfer of flat to new owner
In a significant ruling, the Supreme Court of India has resolved a prolonged membership dispute in the Malboro House Co-operative Housing Society, located in Mumbai. The apex court, in its judgment dated February 5, 2026, recognized the entitlement of Shashin Patel and Bhavini Patel, legal heirs of the original tenant Narendra Patel, to the society's membership. This decision came after a protracted legal battle that involved multiple appeals and a writ petition.
The controversy centered around Flat No. 7 in the Malboro House, which was occupied by Narendra Patel for several decades. Following the liquidation of the original property owners, M/s. Kamani Brothers Pvt. Ltd., the tenants, including Narendra Patel, had resolved to form a cooperative society to acquire ownership of the building. However, a delay in the payment of the required contribution by Narendra Patel led to his exclusion from membership, a decision that was contested by his successors.
The appellants, Shashin and Bhavini Patel, argued that their predecessor was ready and willing to make the necessary payment, provided the basis for the calculation was furnished. Despite the society's AGM in 2005 resolving to admit Narendra Patel as a member upon receipt of payment, the dispute lingered due to alleged mismanagement within the society and other complicating factors.
In its judgment, the Supreme Court set aside the earlier decision of the Bombay High Court, which had quashed the Joint Registrar's order admitting the appellants as members. The apex court noted that the society's AGM held on September 30, 2025, reaffirmed the membership of the Patels and approved the subsequent transfer of the flat to M/s. Capital Mind Advisory Services Private Limited, which was executed through a registered deed.
The court directed that any aggrieved society members could seek determination of any additional amount payable by the appellants as enhanced interest for the delayed contribution. Furthermore, it allowed for any challenges to the AGM's decision regarding membership to be addressed through appropriate legal channels.
This judgment underscores the court's emphasis on equitable solutions in cooperative society disputes and highlights the importance of AGM resolutions in determining membership rights.
Statutory provision(s): Maharashtra Co-operative Societies Act, 1960 Sections 23(2), 152, 154
Shashin Patel v. Uday Dalal, (SC) : Law Finder Doc Id # 2849455
