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2025 Supreme(Bom) 1578

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
AMIT BORKAR, J.
Samir Narain Bhojwani – Appellant
Versus
The Assistant Registrar C.S. (Eastern & Western Suburban), Mumbai – Respondent
Writ Petition Nos. 16261, 16634 of 2025
Decided On : 12-12-2025

Advocates Appeared:
For the Appellants : S.U. Kamdar, Gauraj Shah, Ritika Rajeev
For the Respondents: Sulbha D. Chipade, Pradeep Thorat, R.U. Deo, Hrutvi Narvekar, Aditya Lele, Prashant P. Kulkarni, Rachana Mamnani

The jurisdiction under Section 23(2) of the Maharashtra Cooperative Societies Act is limited to membership qualification, not ownership disputes, with parties needing to pursue civil or arbitration channels for proprietary claims.

Headnote:(A) Maharashtra Cooperative Societies Act, 1960 - Section 23(2) - Membership dispute in cooperative society - The appellate authority is limited to determining whether an applicant qualifies for membership according to the Act and society's rules, and not to resolve ownership rights. Petitioner’s reliance on an arbitral award and interim orders was misplaced, as the award was set aside, and no vested rights for participation in membership proceedings were established. The society's inaction in terms of filing a revision against the appellate order resulted in the dismissal of its writ petition. (Paras 10-11, 14, 20, 25)

(B) Locus standi - The participation in another party's appeal does not confer a right to challenge an independent order when statutory remedies exist and have not been pursued. (Paras 21, 24)

Table of Content
1. procedural history and membership issues (Para 1 , 2 , 3 , 4 , 5 , 6)
2. parties’ arguments on membership rights (Para 7 , 8 , 9)
3. legal nature of section 23(2) proceedings (Para 10 , 11 , 12 , 13)
4. locus standi and intervention rights in membership proceedings (Para 14 , 15 , 16 , 17 , 18 , 19)
5. society’s locus and maintainability of writ petition (Para 20 , 21 , 22)
6. effect of ongoing arbitration on membership (Para 23 , 24 , 25)
7. final judgment and effect of arbitration (Para 26)

JUDGMENT :

AMIT BORKAR, J.

1. The petitioner has questioned the Judgment and Order dated 18 November 2025 passed by the revisional authority. The revisional authority confirmed the Judgment and Order dated 7 August 2025 passed by the appellate authority under Section 23 (2) of the Maharashtra Cooperative Societies Act, 1960. By the said order, membership was conferred on respondent No.2.

2. The facts giving rise to the present writ petition may be stated in brief. The petitioner submits that by an allotment letter, flat No. B-3 situated on the 22nd floor of respondent No.3 society known as Bay View CHS was allotted to Mr. Priyank Hemani. On 5 November 2015, Mr. Priyank Hemani purchased the flat under an agreement for sale dated 5 November 2016. An arbitral dispute arose between the petitioner and Bombay Slum Redevelopment Corporation Limited. The Arbitrator by Award dated 7 September 2018 directed that if within four months the respondent failed to pay Rs.54.03 crore or failed to surrender 3.63 flats in Wing B, the claimant would be entitled to sell 0.63 flat in Wing B and three flats out of nine flats. These nine flats consisted of two flats allegedly transferred by the respondent to Mr. Kiran H. Hemani and seven flats allegedly transferred to Mr. Priyank Hemani. The petitioner contends that despite the Award, and with an intent to defeat the petitioner's claim in the arbitral proceedings, Mr. Priyank Hemani sold the flat to respondent No.2 by a registered agreement dated 19 September 2019.

3. The arbitral Award dated 7 September 2018 was challenged by BSRCL in Commercial Arbitration Petition No. 527 of 2019. This Court set aside the Award. The petitioner preferred Commercial Appeal No. 30 of 2023. This Court by order dated 7 July 2023 set aside the order dated 13 September 2019. BSRCL filed Civil Appeal No. 7247 of 2024 before the Supreme Court. The Supreme Court on 8 July 2024 set aside the Judgment and Order dated 7 July 2023. The Supreme Court clarified that the interim order passed in the Commercial Appeal under Section 37 would continue during the pendency of the appeal. The matter was remanded to this Court for adjudication under Section 37.

4. Respondent No.2 on 23 March 2021 submitted a membership application to respondent No.3 on the basis of the registered agreement dated 19 September 2019 executed by Mr. Priyank Hemani in his favour. Respondent No.3 society on 14 May 2021 rejected the application. Respondent No.2 thereafter filed an appeal under Section 23 (2) on 27 February 2025 before respondent No.1 seeking membership of flat No.3 on the 22nd floor of Wing B.

5. After learning about the pendency of the appeal, the petitioner filed an intervention application. The appellate authority, without considering the intervention application, allowed the appeal filed by respondent No.2 by Judgment and Order dated 7 August 2025.

6. Aggrieved by the order dated 7 August 2025, the petitioner filed Revision Application No.176 of 2025 before respondent No.4. Respondent No.4 by order dated 18 November 2025 dismissed the revision. The petitioner has therefore approached this Court by filing the present writ petition. The society has also filed Writ Petition No.16634 of 2025 challenging the order dated 7 August 2025 passed by the appellate authority.

7. Mr. Kamdar, learned Senior Advocate for the petitioner, invited attention to recital A(vii) of the agreement for sale executed by Mr. Priyank Hemani in favour of respondent No.2. The r

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