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2025 Supreme(Bom) 1398

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
AMIT BORKAR, J.
Foreshore Co-operative Housing Society Ltd. – Appellant
Versus
Divisional Joint Registrar of Cooperative Societies – Respondent
Civil Writ Petition No. 7834 of 2025
Decided On : 09-12-2025

Advocates Appeared:
For the Appellants : N.N. Bhadrashete, Viresh Bhadrashete, Priyanka Bhadrashete
For the Respondents: Hamid D. Mulla, Ramesh Ramamurthy, Aalim N. Pinjari, Saikumar Ramamurthy

A nominee of a deceased member in a co-operative housing society must be admitted as a member under mandatory statutory provisions, provided there are no competing claims.

Headnote:(A) Maharashtra Co-operative Societies Act - Sections 154B-12 and 154B-13 - Membership of co-operative housing society - The Court underscores the necessity for society to recognize the transfer of shares upon the death of a member, entitling the nominee to full membership if there is no rival claim (Paras 12, 24).

(B) Membership eligibility - Court asserts the mandatory duty of the society to admit the nominee or heir of a deceased member, emphasizing that the statutory continuity must be respected (Paras 14, 20).

(C) Provisional Members - Once admitted as a provisional member, the nominee must be granted full membership as per the legislative framework post the introduction of Chapter XIII-B (Paras 16, 22).

Facts of the case:
The petitioner, a housing society, challenged the admission of Respondent No.3 as a member following the death of his mother, a prior member. The society argued Respondent No.3 was unqualified based on prior nominal membership and the nature of the premises he sought membership for (Paras 2-10).

Findings of Court:
The Court found that the petitioner society was obligated under the Act to admit Respondent No.3 who had a legitimate claim as the nominee of a deceased member (Paras 23-24).

Issues: Central issues included the applicability of statutory provisions regarding membership transfer and the eligibility of Respondent No.3 based on prior admissions of his predecessors (Paras 2, 11).

Ratio Decidendi: The Court highlighted that the society’s discretion is limited post-death of a member, underscoring that without a competing claim, the nominee must be recognized and admitted as per statutory requirements (Paras 18, 20-21).

Result: Writ petition dismissed.

Table of Content
1. challenge to membership eligibility and historical ownership (Para 2 , 3 , 4 , 5 , 6)
2. arguments on the automatic transfer of membership and eligibility (Para 8 , 10 , 17)
3. court analysis of statutory transfer obligations (Para 11 , 12 , 13 , 14 , 15)
4. examination of eligibility versus statutory obligations for membership (Para 19 , 20)
5. recognition of membership lineage and legal entitlement (Para 21 , 22 , 23)
6. statutory obligation to admit based on inheritance laws (Para 24)
7. final ruling and dismissal of the petition (Para 25 , 26)

JUDGMENT :

AMIT BORKAR, J.

1. Rule. Rule is made returnable forthwith with consent of the parties.

2. The petitioner housing society has invoked the supervisory jurisdiction of this Court under Article 227 of the Constitution of India. The petitioner challenges the judgment and order dated 27 January 2025 passed by Respondent No.1 in Revision Application No.518 of 2023. Respondent No.1 confirmed the order passed by Respondent No.2 directing the petitioner society to admit Respondent No.3 as a member.

3. The material facts giving rise to the present petition are stated hereinafter. On 21 December 1949, the Municipal Corporation of Greater Mumbai leased Plot Survey No.9/89426 at G.J. Bhosale Marg, Mumbai to K.F. Golwalla and others. With effect from 1 April 1963, the Corporation restricted the use of the basement to storage of household goods of flat owners. On 29 August 1963, Advent Corporation Pvt. Ltd. constructed a building comprising a basement and nine floors and sold flats and basement units. One such basement unit, marked B-1, was sold to late Gopal H. Sippy. According to the petitioner, Mr. Sippy was not the owner of any flat in the building. On 11 April 1966, the petitioner society was registered, and Mr. Sippy was admitted to its membership and issued shares. On 20 October 1987, the City Civil Court restrained commercial use of any premises within the society. After Mr. Sippy’s demise, his wife Mrs. Katy Sippy was admitted as a member on the basis of nomination. She nominated Respondent No.3. On 29 July 2007, she passed away. Respondent No.3, being her son and nominee, applied on 2 September 2016 to the petitioner society for transfer of shares. On 26 April 2018, the petitioner society admitted him as a nominal member. On 6 July 2018, he applied for full membership. The petitioner society received this application on 2 August 2018.

4. On 4 November 2019, Respondent No.3 addressed a communication to the petitioner society stating that no decision had been taken on his application dated 6 July 2018 and that he had, therefore, acquired the status of a deemed member.

5. In March 2023, Respondent No.3 filed an application for membership before Respondent No.2. He asserted that he had been using the said premises as a godown or office for 23 years. He also stated that between 2016 and 2021, he submitted seven applications to the petitioner society but received no response. He therefore sought conferment of deemed membership. The petitioner society filed a reply before Respondent No.2. The petitioner stated that Respondent No.3 does not own any flat or unit in the building except the basement unit B-1. The basement is restricted to storage or parking. The petitioner contended that such premises cannot confer eligibility for membership and that the application deserved rejection.

6. Respondent No.2 held that Mr. Gopal Sippy purchased unit B-1 on 29 August 1963 under a registered sale deed. He nominated the mother of Respondent No.3. Her name appeared in the society records as a member. She in turn nominated Respondent No.3. After her death, Respondent No.3 applied for membership. Respondent No.2 concluded that Respondent No.3, being the nominee of a deceased member, was entitled to membership and directed the petitioner society to admit him.

7. The petitioner society challenged this order by filing Revision Application No.518 of 2023. The Revisional Authority heard both sides an

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