The legal dispute primarily concerns whether flat owners of two societies had the right to form cooperative housing societies under the relevant Maharashtra laws, or if their efforts were legally barred due to prior declarations executed by the landowner and developer under the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act (MOFA Act) and the Maharashtra Apartment Ownership Act (Apartment Act).

Key points include: - The original authority had granted registration of the societies as cooperative entities, recognizing the flat purchasers’ intent to form such societies (!) (!) . - The appellate and revisional authorities reversed this decision, relying on the execution and registration of a declaration under Section 10(2) of MOFA, which prohibits the formation of cooperative societies once such a declaration has been executed and registered (!) (!) . - The courts examined whether the declaration executed by the developer and landowner complied with the provisions of the Apartment Act, which requires specific disclosures and formalities for such declarations (!) (!) . - It was held that the declaration was hurriedly executed and did not fully comply with the statutory requirements, especially regarding the disclosure of common areas and the terms of lease, thus invalidating its effect to prohibit the formation of cooperative societies (!) (!) . - The court emphasized that the flat purchasers had entered into agreements with the developer, which explicitly promised the formation of a cooperative society, and a large majority of flat owners were members of the societies for over 17 years (!) (!) . - The orders cancelling the societies' registration were found to be based on an incorrect application of the law, particularly by relying solely on the declaration under Section 10(2) of MOFA, without considering the substantive compliance issues and the rights of the flat owners under the relevant laws and constitutional provisions (!) (!) . - The court also noted that the recent constitutional amendments and legal principles favor the protection and encouragement of cooperative societies, especially when the majority of flat owners have chosen and established such societies (!) (!) . - Consequently, the court set aside the appellate and revisional orders, restored the registration of the societies, and declared that the earlier cancellation orders were unsustainable, affirming the legal right of the flat owners to form and operate cooperative housing societies (!) .

In summary, the legal reasoning underscores that a declaration executed without full compliance with the statutory requirements cannot be used to bar the formation of cooperative societies, especially when the flat owners have relied on agreements and representations that promised such formation. The protections under constitutional and cooperative laws favor the flat owners' right to self-organize into cooperative societies, overriding the earlier legal prohibitions based solely on the executed declaration.