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2025 Supreme(Telangana) 813

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
T. MADHAVI DEVI, J.
Y. Krishna Rao and others - Appellants 
Versus 
State of Telangana and others - Respondents 
WP No.10010 of 2024
Decided on : 18-03-2025

Advocates Appeared:
For the Appellant : Srinivasa Rao Putluri
For the Respondent: Government Pleader for Cooperation; K. Buchi Babu (SC for Housing), Velagapudi Srinivas

Registration of a society requires a minimum of 21 members under the Telangana Mutually Aided Cooperative Societies Act, and failure to meet this requirement renders the registration invalid.

Headnote:(A) Telangana Mutually Aided Cooperative Societies Act, 1995 - Section 4 - Writ of Mandamus sought to declare registration of society as illegal and arbitrary - The petitioners contended the society was formed without proper representation from all owners and violated constitutional rights and the provisions of the Act. (Paras 1-2)

(B) Procedural Requirements - The registration of the society under the Act requires a minimum of 21 members with common binding interests - The court found registration invalid as only 11 members had applied contrary to Statutory requirement. (Paras 9-10)

(C) Rights of Membership - Court elucidated that all flat owners are entitled to participate as members upon payment of share capital and adhering to bye-laws. (Para 11)

Facts of the case:
Petition filed by flat owners against unilateral registration of a welfare association and conducted elections without due representation of all flat owners following a housing project initiated by the government in 2010.

Findings of Court:
The registration certificate was set aside as it did not meet the requisite of 21 members for a legitimate formation under the relevant Act, mandating a new application.

Issues: Whether the registration process adhered to legislative requirements regarding membership and representation in the formation of the society.

Ratio Decidendi: The court held that the formation of the society was invalid due to non-compliance with the statutory requirements of member registration, emphasizing the necessity of a sufficient number of members for valid registration.

Result: Writ Petition allowed; registration certificate set aside.

Table of Content
1. petitioners challenge society registration due to procedural issues. (Para 1 , 2)
2. respondents present counterarguments on society registration process. (Para 4 , 5 , 6)
3. court analyzes formal requirements for society registration. (Para 8 , 9 , 10 , 11)
4. court sets aside registration due to insufficient membership. (Para 12)
5. court issues final order and disposes of the petition. (Para 13 , 14)

ORDER :

T. MADHAVI DEVI, J.

In this Writ Petition, the petitioners are seeking a Writ of Mandamus declaring the action of the 2nd respondent in registering the 4th respondent society in R.C.No.3602762-12762 dt.21.02.2023 and issuing a registered certificate dt.21.02.2024 for formation of society with unilateral approval of bye-laws of the society as Sampoornam Flat Owners/Residents Welfare Association contrary to the permission granted by the 3rd respondent dt.25.05.2023 for formation of Ad hoc Committee for maintenance of association and in further allowing to conduct elections for it without consideration of their representation dt.03.04.2024 as illegal, arbitrary, unconstitutional, violative of Articles 19(1) and 300A of the Constitution of India and contrary to the provisions of the Telangana Mutually Aided Cooperative Societies Act, 1995 and consequently to direct the 2nd respondent to cancel the registration certificate dt.21.02.2024 and to pass such other order or orders.

2. Brief facts leading to the filing of the present Writ Petition are that the Telangana Housing Board has taken up a project in the Government land to develop a residential community in the year 2010. The Board invited applications and allotted the flats. Some of the flats were completed in the year 2014 and some in the year 2016. However, all the flats are not occupied by the allottees. In the meantime, the Board has addressed a letter to the allottees to form a residents welfare association and take over the maintenance of the flats. The flat owners have submitted representations to continue the maintenance of their flats. However, the Board has informed that the maintenance would be taken up only till 31.07.2023 and the maintenance would be handed over to the welfare association with effect from 01.08.2023 and to form an Ad hoc Committee to take over such maintenance job. It is alleged that an Ad hoc Committee was formed without informing all the other flat owners and they themselves submitted representation/application before the 2nd respondent authority for registration of the society and the same was registered on 21.02.2024 and thereafter, elections were also sought to be held on 21.04.2024. The petitioners, however, submitted representations to postpone the elections since all the flat owners have not yet become members of the society and when the same was not considered, the petitioners have filed the present Writ Petition challenging the registration of the 4th respondent society itself as bad in law and also as contrary to the provisions of the Telangana Mutually Aided Cooperative Societies Act.

3. Initially, this Court, vide order dt.18.04.2024, had directed all the parties to maintain status quo as on the date of the order in all respects and subsequently, vide order dt.03.05.2024, the same was modified to the extent of allowing the Ad hoc Committee to manage the day-to-day affairs of the society. Thereafter, the 4th and 2nd respondents have filed their respective counter affidavits along with stay vacate petitions in I.A.Nos.2 and 3 of 2024 respectively and the 3rd respondent has also filed its counter.

4. The 2nd respondent has filed counter affidavit on behalf of the 1st and 2nd respondents stating that the members of the 4th respondent society have made an application online on 07.08.2023 for registration of the society with the District Cooperative Registrar, Medchal-Malkajgiri and it was submitted by 11 members/promoters along with approved bye-laws in the meeting held on 05.08.2023 and thereafter, they submitted proposals o

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