'Residents Of Integrated Redeveloped Wings Cannot Form Separate CHS By Bypassing Statutory Procedure': Bombay HC

Mumbai, September 19, 2026: The Bombay High Court has ruled that residents of different wings of an integrated redeveloped building cannot form a separate cooperative housing society by bypassing the statutory procedure for dividing an existing society.

Court Quashes Separate Society

Justice Sandeep Marne, on September 18, quashed the registration of Atharva Cooperative Housing Society Ltd., formed by flat purchasers in Wings A and B of a Prabhadevi complex, holding that their grievances with the existing society could not be used to circumvent the Maharashtra Cooperative Societies (MCS) Act, 1960.

The court said residents seeking separation from an existing housing society must follow the division mechanism under Sections 17 and 18 of the Act, rather than seek fresh registration under Section 9.

“Registration under Section 9 cannot be used as a means to indirectly fragment an existing society,” Justice Marne observed, adding that permitting such a course could defeat the scheme of the Act and result in overlapping jurisdictions over the same property.

Dispute Over Redeveloped Complex

The judgment, delivered on September 18, came on a petition filed by The Swa-Griha Cooperative Housing Society Ltd., challenging the registration of Atharva CHS. The registration was granted by the Deputy Registrar in February 2025 and was subsequently upheld by the Joint Registrar and the State Cooperation Minister.

The dispute relates to a redevelopment project in Prabhadevi. Swa-Griha CHS was originally formed in 1968 on MHADA land and later undertook redevelopment along with adjoining plots. Developer M/s Sugee Developers Pvt. Ltd. constructed a multi-wing building comprising 240 flats across Wings A, B, C and D.

While original members and MHADA allottees occupied Wings C and D, purchasers of flats in Wings A and B sought to form a separate society, citing management issues and differences between the two groups of residents.

Common Facilities Shared

The High Court noted that all four wings continued to share several common facilities, including a 10-level podium parking area, entry gates, water tanks, electricity connections and recreational spaces.

“In view of the detailed procedure contemplated for division of the existing society under Sections 17 and 18 of the MCS Act, it is difficult to accept a proposition that residents of a building for which a housing society is already formed, can apply under Section 9 of the MCS Act for registration of a new society,” the court said.

Sale Agreements Cited

The court also relied on the agreements executed by the flat purchasers. It noted that the sale agreements required purchasers of Wings A and B to become members of Swa-Griha CHS.

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“The flat purchasers of Wings A and B have thus purchased the flats with their eyes wide open,” the court said, observing that they could not later seek to create a separate society on the ground of social or economic differences between the residents.

While setting aside the orders permitting registration of Atharva CHS, the court granted a six-week stay on its judgment to enable the society to pursue an appeal.

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