IMPORTANT POINT
The court upheld the validity of bifurcation orders under the Maharashtra Co-operative Societies Act, confirming that procedural compliance with consultation requirements was met.

JUDGMENT:

1) Petitioner-Society and its Secretary have filed the present Petition challenging the Order dated 29 August 2024 passed by Minister-Co-operation dismissing their Revision Application and confirming Order dated 16 April 2024 passed by Divisional Joint Registrar as well as Order dated 18 September 2023 passed by District Deputy Registrar sub-dividing the Petitioner-Society thereby resulting in formation and registration of Respondent Nos. 4 and 5-Societies.

2) Brief facts leading to filing of the present Petition are that the then Maharashtra Housing Board constructed 18 blocks/buildings consisting of 144 tenements in the year 1960 for providing residential accommodation to Lower Income Group and dishoused persons on plot of land bearing CTS Nos. 79, 80 and 43 (part) Unnat Nagar No. 3, M.G. Road, Goregaon (West) Mumbai - 400 062. Maharashtra Housing and Area Development Authority (MHADA), which took over functions of erstwhile Maharashtra Housing Board, offered residential tenements to the occupants on ownership basis by accepting the agreed amount of consideration in the year 1992. Accordingly, on payment of the consideration suggested by MHADA, the occupiers of the tenements became owners of their respective tenements. Petitioner-Society was formed on 30 December 1996 by all 144 tenement owners. MHADA thereafter executed Deed of Sale dated 14 June 2000 in favour of the Petitioner-Society and sold all the 144 tenements to the Petitioner- Society. It appears that a separate Indenture of Lease dated 14 June 2000 was executed in favour of Petitioner-Society granting lease in respect of the land underneath and appurtenant to the said 18 blocks in favour of the Petitioner-Society.

3) It appears that Special General Body Meeting of the Petitioner-Society was held on 1 March 2015, which was attended by 78 Members and Managing Committee of the Society was authorized to initiate the process of redevelopment of the 18 blocks. Another Special General Body Meeting of the Society was held on 2 October 2022 which was attended by 115 members and 104 members voted for adoption of resolution for initiation of redevelopment process as per procedure established under Section 79A of the Maharashtra Co-operative Societies Act, 1960 (MCS Act) and one M/s. Ellora Project Consultant Private Ltd. was appointed as Project Management Consultant. The said Consultant prepared a feasibility report and also draft of tender to be floated. In the above backdrop, some of the members of the Petitioner- Society preferred application dated 9 April 2023 for convening the Special General Body Meeting of the Society for its sub-division. Two applications were addressed to the Deputy Registrar, Co-operative Societies on 21 April 2023 by Chief Promoters of Respondent Nos. 4 and 5-Societies for bifurcation of the Petitioner-Society. The Deputy Registrar entertained applications preferred by Respondent Nos. 4 and 5-Societies and prepared a draft order on 24 April 2023 in respect of Block Nos. 1 to 3 and draft order dated 25 April 2023 in respect of Block Nos. 4 to 6. A draft Scheme of sub-division was appended to the draft orders dated 24 and 25 April 2023. The draft order was served on Petitioner-Society on 20 May 2023. The Petitioner-Society filed its objections and reply to the draft orders on 21 June 2023 and 17 July 2023. The Deputy Registrar consulted the Mumbai District Co- operative Housing Federation (Federal Society) which gave its recommendations for bifurcation of Petitioner-Society on 4 September 2023. The Deputy Registrar thereafter proceeded to pass orders dated 18 September 2023 along with applications filed by Respondent Nos. 4 and 5-Societies and ordered for bifurcation of Petitioner-Society by forming Respondent No.4-Society in respect of 24 tenement situated in Block Nos. 1 to 3 by directing its registration. Similarly, Respondent No. 4-Society was directed to be formed and registered in respect of 24 tenements situated in Block Nos. 4 to 6.

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