Bombay HC: Collector Cannot Insist On Housing Society NOC To Register Court-Approved Consent Decree

Mumbai, August 18, 2026: The Bombay High Court has held that revenue authorities cannot insist on a housing society’s ‘No Objection Certificate’ (NOC) as a pre-condition for registering a court-approved consent decree, when there is no statutory provision requiring such permission.

A bench of Justices Suman Shyam and Advait Sethna passed the order on August 17 while allowing a petition filed by Sanjay Narang, businessman and founder of Mars Hospitality Group, and his sister Rachna Narang.

The dispute concerned commercial premises at Soona Mahal Cooperative Housing Society at Marine Drive, comprising a 186 sq ft shop and an adjoining restaurant premises measuring around 2,530 sq ft.

Consent Decree At Centre Of Dispute

The petitioners had entered into an agreement concerning the shop in 2018. A dispute later reached the High Court and was settled through consent terms in December 2022.

The court subsequently passed a consent decree stating that the terms would operate as a conveyance in favour of the petitioners. The petitioners also paid stamp duty of Rs 91.58 lakh on the decree.

However, when the petitioners sought registration of the decree, the Sub-Registrar said that an NOC from the Collector was required. The Collector, in turn, sought an NOC from the housing society. The society objected to issuing the NOC and said there were issues concerning the premises.

HC Rejects State’s Argument

The petitioners challenged the requirement, arguing that the consent decree had already attained finality and that there was no legal requirement for the society’s NOC. The State opposed the plea, relying on restrictions under Section 37A of the Maharashtra Land Revenue Code.

The High Court rejected the State’s argument. It said the revenue authorities should have acted in furtherance of the court decree instead of creating obstacles to its implementation.

“Revenue Authorities ... ought to have acted in furtherance of and in deference to such Decree of this Court and not create any obstacles and/or road blocks,” the bench observed.

Collector Asked To Process Application

The court further noted that the respondents could not point to any statutory provision, rule or notification requiring the society’s NOC before registration. Insisting on such a requirement amounted to an “obstructionist approach” in implementing a legally binding decree, it said.

The bench also held that the petitioners were willing to pay the prescribed transfer fee and applicable premium. It directed the Collector to decide their August 2024 application without insisting on an NOC from the society and to facilitate registration of the consent decree.

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The court clarified that the society would not be held responsible by the Collector for the absence of an NOC. It left any separate dispute regarding alleged encroachment open to be decided in appropriate proceedings.

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