The Bombay High Court has ruled that a flat buyer cannot be denied membership in a housing society just because a payment dispute with the developer is pending in court. The court restored deemed membership granted to Digant Parekh in a slum rehabilitation project at Juhu.
Petition Allowed By HC
Justice Amit Borkar, on January 16, allowed a petition filed by Digant Parekh and his HUF challenging an order of the Divisional Joint Registrar passed on November 25, 2024. That order had cancelled the deemed membership earlier granted to the petitioners for a flat in Hubtown Viva in Jogeshwari east.
Background Of The Case
Parekh had entered into a registered agreement for sale with developers Akruti Kailash Construction and Wellgroomed Venture in September 2013. A rectification deed in 2014 corrected the purchaser’s name. After the housing society failed to act on his membership application filed in 2021, he approached the Registrar under Section 22(2) of the Maharashtra Co-operative Societies Act and obtained deemed membership in August 2022. An authorised officer was later appointed to implement it.
Developers Challenge Membership
The developers challenged this before the Divisional Joint Registrar, arguing that their civil suit filed in 2016 over unpaid balance consideration was still pending. The revisional authority accepted this and set aside the membership.
HC Flags Legal Errors
The HC found the revisional order illegal on two grounds. First, a State notification dated October 8, 2024 had already transferred appellate powers for SRA societies to the Joint Registrar (SRA), so the Divisional Joint Registrar had no authority to pass the order. Second, the Court held that a buyer with a valid registered MOFA agreement is treated as a person who has “taken” the flat and is entitled to society membership.
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Payment Dispute Not A Bar
Justice Borkar clarified that even if some payment remains, the developer’s remedy lies in civil proceedings and “cannot be used to block membership”. The Court also held that mere pendency of a civil suit is not a bar unless there is a specific stay order.
Membership Restored, Suit Continues
The HC quashed the November 2024 order and restored the deemed membership granted in 2022. The civil suit will continue separately. The developers’ request for stay was rejected.
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