Mumbai: In a significant ruling clarifying the limits of the Registrar’s powers under the Maharashtra Cooperative Societies (MCS) Act, the Bombay High Court quashed orders that had directed a Grant Road housing society to recognise private parties as holders of a shop and to issue maintenance bills in their names.
Scope of Section 154B-27
Justice Amit Borkar ruled that Section 154B-27 of the MCS Act is only meant to enforce existing duties and cannot be used to decide disputed ownership or membership.
Petition Before High Court
The HC passed the ruling while deciding a petition by Petit Mansion C-Wing Cooperative Housing Society Ltd and member Heena Gala. They challenged orders of the Deputy Registrar dated December 28, 2022 and December 19, 2023, along with their confirmation by the Divisional Joint Registrar. The authorities had directed that four persons – respondents 5 to 8 – be included in documents relating to Shop No. C/S/06 and that maintenance bills be issued in their names on the basis of a conveyance claiming a 4% undivided share.
Society’s Objections
The society argued that the claim was based on unregistered consent terms and a disputed conveyance on which proper stamp duty had not been paid. It contended that such documents could not automatically confer membership or liability and that the Registrar had exceeded his powers.
Court’s Interpretation
Agreeing with the society, the HC said Section 154B-27 is an enforcement provision and not a forum to resolve disputes. “It allows the Registrar to ensure that a society performs duties already fixed by law. It does not create new rights or permit adjudication,” the court observed.
Adjudication vs Enforcement
Justice Borkar explained the difference between adjudication and enforcement, stating: “Adjudication means deciding who is right after examining rival claims. Enforcement only compels performance of an undisputed duty.” The court noted that directing the society to issue maintenance bills in the respondents’ names effectively accepted their ownership claim and imposed financial liability, which amounts to adjudication.
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Limits of Registrar’s Authority
The judge also held that the Registrar has no authority under this section to direct a Chief Promoter during the registration stage and that estoppel cannot give jurisdiction where the statute does not.
Liberty to Approach Civil Court
Quashing all earlier orders and show-cause notices, the HC clarified that the parties are free to approach the competent civil forum to decide ownership and membership issues.
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