Co-operative Societies – Membership – Belated payment of contribution – AGM resolution admitting member never revoked – Occupant continuing in possession – Membership cannot be defeated solely on delay – Paras 41–45

advocatemmmohan

Co-operative Societies – Membership – Belated payment of contribution – AGM resolution admitting member never revoked – Occupant continuing in possession – Membership cannot be defeated solely on delay – Paras 41–45

Maharashtra Co-operative Societies Act, 1960 – Sections 23, 152, 154 – Statutory remedies exhausted – Revisional authority competent – Paras 23–24, 44

Writ Jurisdiction – Interference with revisional order – High Court erred in quashing membership despite subsisting AGM resolution – Paras 44–46

Equitable Relief – Recognition of membership subject to liberty to claim enhanced interest – Para 47

Subsequent Transfer – Validity of transfer dependent on valid membership – Ratification by General Body – Paras 43, 45

---

FACTUAL BACKDROP

The dispute concerns Flat No. 7, Malboro House Co-operative Housing Society Ltd., Mumbai, formed by erstwhile tenants after liquidation of the landlord company.

The original occupant, Shri Narendra Patel, predecessor of the appellants, was:

• A long-standing tenant.

• Offered membership subject to payment of ₹5,00,000.

• Resolved to be admitted by AGM resolution dated 11.08.2005 upon payment.

• However, payment was not made at that time.

Years later:

• Legal heirs deposited ₹5,00,000 with 9% interest.

• Divisional Joint Registrar directed admission as members.

• High Court set aside that order and directed fresh consideration in Special General Meeting.

• Flat was thereafter sold to M/s. Capital Mind Advisory Services Pvt. Ltd.

• AGM dated 30.09.2025 ratified membership and transfer.

---

CORE ISSUE

Whether successors of an original tenant could be denied membership of a co-operative housing society solely on the ground of delayed payment, despite:

1. A subsisting AGM resolution admitting the predecessor, and

2. Continued undisputed occupation of the flat?

---

SUPREME COURT’S ANALYSIS

I. Occupation Never Disputed

The Court noted:

• No eviction proceedings were initiated for decades.

• Occupation of Flat No.7 was never treated as illegal.

• Society’s offer of membership (1995) was never withdrawn.

Thus, the occupant’s status remained recognised.

---

II. AGM Resolution of 2005 Was Never Revoked

The Court emphasized:

• AGM dated 11.08.2005 resolved to admit Shri Narendra Patel upon payment.

• This resolution was never rescinded or challenged.

• Therefore, entitlement remained alive.

A subsisting resolution cannot be ignored merely due to delay in payment.

---

III. Revisional Authority Acted Within Jurisdiction

The appellants:

• Applied before Authorised Officer.

• Filed appeal under Section 23(2).

• Filed revision under Section 154.

Thus, statutory remedies were properly invoked.

The High Court’s view that the Joint Registrar lacked jurisdiction was held erroneous.

---

IV. Avoiding Anomalous Situation

Denial of membership would create:

• Continued occupation without membership,

• Institutional friction,

• Perpetual dispute.

The Court held such anomaly must be avoided.

---

V. AGM Ratification (30.09.2025)

The Society:

• Reaffirmed 2005 resolution,

• Recognised membership of legal heirs,

• Approved transfer to purchaser,

• Admitted purchaser as member.

This ratification was unchallenged.

---

RATIO DECIDENDI

Where:

• An AGM resolution admitting a member remains subsisting,

• The occupant’s possession is undisputed,

• Statutory remedies are exhausted,

• Payment (though delayed) is ultimately made,

Membership cannot be defeated solely on account of delay.