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2007 Supreme(Bom) 292

B.H.MARLAPALLE, J.H.BHATIA
Mont Blanc Co-operative Housing Society Ltd. – Appellant
Versus
State of Maharashtra – Respondent


Judgement Key Points

Certainly. Based on the provided legal document, here are the key points:

  • The petition challenges the order issued by the State Government under Section 79-A of the Maharashtra Co-operative Societies Act, 1960, which restricts non-occupancy charges to a maximum of 10% of service charges (!) .

  • The core contention is that the order is arbitrary, against the interest of co-operative housing societies, and not in public interest. The petitioners argue that the order violates provisions of the Act and is illegal and void ab initio (!) .

  • Historically, the Commissioner for Co-operative Societies issued a circular allowing levying non-occupancy charges up to 25%, which was later challenged and withdrawn. Subsequently, the State Government issued orders limiting these charges, which were also challenged (!) (!) .

  • The government justified the order as a measure to prevent profiteering by majority members from non-occupying members, to curb disputes, and to promote uniformity across the state. The aim was to prevent arbitrary and exorbitant charges and to protect minority members from oppression (!) (!) (!) (!) (!) .

  • The order was also intended to address misuse of the power to impose non-occupancy charges, which in some societies had become a source of profit-making rather than a nominal contribution for services (!) (!) .

  • The statutory provisions, including Sections 14 and 79-A, grant powers to the Registrar and the State Government respectively, to direct amendments and issue directions in public interest, provided these do not prejudice the interests of the societies (!) (!) .

  • The order specifies that non-occupancy charges should not exceed 10% of service charges (excluding municipal taxes) and should not be levied on certain close relatives of the member, such as parents, children, and spouses, but not on relations like brother-in-law or sister-in-law unless they are part of the immediate family (!) (!) (!) .

  • The order applies uniformly to all residential and commercial flats in co-operative housing societies in the state, and societies are required to amend their bye-laws accordingly. Failure to comply may result in penalties or directives from the Registrar (!) .

  • The challenge to the order was dismissed on the grounds that it was issued in a bona fide manner to ensure proper management, prevent exploitation, and bring uniformity. The court found no arbitrariness or violation of constitutional guarantees (!) .

  • The court clarified that certain relations, like son-in-law, brother-in-law (sister’s husband), sister-in-law (wife’s sister), and their husbands, do not qualify for exemption from non-occupancy charges under the order, but immediate family members, including married daughters and grandchildren, do (!) .

  • An interim order was extended for eight weeks to allow petitioners to seek further remedies, but the main petition was dismissed (!) (!) (!) .

Please let me know if you need a detailed analysis or specific legal advice related to this document.


B. H. MARLAPALLE, J.:- This petition filed under Article 226 of the Constitution of India prays for a writ of certiorari or an order/direction in the like nature to quash and set aside the Government Order dated 1/8/2001 issued in public interest under Section 79-A of the Maharashtra Co-operative Societies Act, 1960 (for short the Act) thereby directing the co-operative housing societies registered under the Act not to charge non occupancy charges beyond 10% of the service charges (excluding municipal taxes).

2. The factual matrix leading to this petition could be briefly stated as under :-

The Commissioner for Co-operative Societies, Maharashtra State, issued a Circular on 13/3/1992 laying down that the co-operative housing societies may levy non occupancy charges upto a maximum limit of 25% of the service charges collected from the member and accordingly the first sentence in Clause (c) of bye-law No.45(2)(iii) to be replaced with the following words,

"He shall pay non occupancy charges to the society at a rate not exceeding 25% of the service charges as will be determined by the meeting of the General Body of the society." This Circular came to be challenged by the petitioner-soci
























































































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