Mumbai, June 13: In a ruling that underscores the importance of following due process in co-operative housing societies, the Bombay High Court has set aside a no-confidence motion passed against the chairperson of a Goregaon-based co-operative housing society, holding that the removal was illegal as a committee member was denied an opportunity to participate and vote.
The court held that the omission vitiated the proceedings and invalidated both the chairperson’s removal and the subsequent election held to fill the post.
HC Restores Chairperson
Justice Sandeep Marne, on June 12, restored Madhuri Nyayadhish as chairperson of Padmavati Nagar Co-operative Housing Society in Goregaon (East). The court also quashed the subsequent election held to appoint a new chairperson.
The dispute arose amid the long-pending redevelopment of the society, whose building was demolished in 2020. Members have since been awaiting completion of the project. The society had earlier resolved to terminate the appointment of the developer, citing lack of progress despite agreements executed over a decade ago.
No-Confidence Motion Challenged
Soon after the general body resolved to terminate the developer’s appointment, six members of the managing committee moved a no-confidence motion against Nyayadhish. In a special meeting held on April 15, 2026, six of the nine committee members present voted in favour of the motion, while three opposed it. The Deputy Registrar subsequently declared that Nyayadhish had ceased to be the chairperson.
However, the petitioners argued that Madhavi Gosavi had been inducted as the tenth member of the managing committee three days before the meeting but was neither issued notice nor allowed to participate in the voting process.
Gosavi and Nyayadhish had approached the HC. Gosavi challenged non-communication by other managing committee members about the special meeting and Nyayadhish challenged her removal.
Court Finds Voting Process Flawed
Allowing the petition, the court observed that Gosavi had a right to vote and her exclusion rendered the proceedings invalid.
“Passing of no-confidence motion against any managing committee member of a society may amount to stigma against such member and thus… has to be construed strictly,” the court said.
Justice Marne noted that had Gosavi been allowed to vote, the tally would have been six votes in favour and four against. “This would not constitute a two-thirds majority contemplated under Section 154B-24(1) of the MCS Act,” the judgment stated.
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Fresh Motion Still Permitted
The court held that the no-confidence resolution and the Deputy Registrar’s decision were “illegal and void ab initio”. It also struck down the resolution passed on May 2 appointing a new chairperson.
At the same time, the court clarified that other managing committee members remain free to initiate a fresh no-confidence motion in accordance with law.
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