The mandatory condition for membership in a cooperative housing society requires that all dues be cleared before any transfer of membership is effective, regardless of the buyer's prior obligations.

JUDGMENT :

Amit Borkar, J.

1. The petitioner housing society has invoked the writ jurisdiction of this Court under Articles 226 and 227 of the Constitution of India. The challenge is to the Judgment and Order dated 14 July 2025 passed by respondent No.2. By the said order, respondent No.2 confirmed the Judgment and Order passed by respondent No.3 under Section 23(2) of the Maharashtra Cooperative Societies Act, 1960.

2. The material facts are as follows. Gala No.103 in the petitioner society belonged to one Mrs. Saroj Mehta. She was a member of the petitioner society. She did not pay maintenance charges and property taxes for a long period. The petitioner society issued several notices to her calling upon her to clear the dues. She did not comply. The default continued and the arrears remained unpaid.

3. Indian Overseas Bank took physical possession of Gala No.103 under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The petitioner society, by letter dated 25 May 2017, informed the Bank that an amount of Rs.57,96,197 was outstanding towards maintenance in respect of the said premises up to 30 June 2012. Indian Overseas Bank thereafter executed a sale certificate dated 15 March 2021 and sold the premises to respondent No.4 under a sale deed dated 27 April 2021. The sale was completed without obtaining a no objection certificate from the petitioner society.

4. Respondent No.4, on 19 June 2021, applied to the petitioner society for transfer of membership. He enclosed a cheque towards transfer fees. The petitioner society, through its Advocate, addressed a notice to respondent No.4 stating that the amounts of Rs.100 and Rs.500 tendered towards membership would not be deposited until clearance of all outstanding dues related to the premises. The notice dated 15 September 2021 also called upon respondent No.4 to pay the arrears and informed him that membership could not be granted unless dues were cleared. The communication was issued within ninety days and therefore amounted to a refusal under Section 23(2) of the Maharashtra Cooperative Societies Act, 1960.

5. Respondent No.4 thereafter filed an appeal under Section 22(2) registered as Appeal No.15 of 2021 before respondent No.3. Respondent No.3 allowed the appeal by order dated 22 July 2022. The petitioner society challenged that order by filing Revision Application No.421 of 2022 before respondent No.2. Respondent No.2 dismissed the revision by order dated 14 January 2025. The petitioner has therefore approached this Court by filing the present writ petition.

6. Learned Advocate for the petitioner submitted that the petitioner society had communicated its refusal within the statutory period. He pointed out that the society informed respondent No.4 on the eighty seventh day that his request for membership could not be accepted unless the outstanding dues of the previous member were cleared. He submitted that once such refusal was communicated within ninety days, an appeal under Section 22(2) was not maintainable. He further submitted that Section 154B 7 mandates that no transfer of shares becomes effective unless all dues of the housing society are paid. He argued that even when a purchaser acquires a unit