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2025 Supreme(Online)(Bom) 351767

Suman Shyam, Manjusha Deshpande, JJ
Devendra Kumar Jain – Appellant
Versus
State of Maharashtra – Respondent
WRIT PETITION (L) NO.7536 OF 2025



Advocates:
For the Appellants/Petitioners: Manoj Upadhyay, Rakesh Mishra
For the Respondents: Rakesh Pathak, Mukesh Vashi, Vaishali Sanghavi, Pratik Shetty, Palak Mehta, Prachi Parmar, Ameet Mehta, Abhishek Sawant, Karan Bhargava

Government guidelines issued under Section 79(A) of the Maharashtra Co-operative Societies Act, 1960, regarding redevelopment are directory in nature; therefore, material compliance and a majority decision of the society's general body are sufficient to validate the redevelopment process.

Headnote:(A) Maharashtra Co-operative Societies Act, 1960 - Section 79(A) - Government Resolution dated 04.07.2019 - Redevelopment of Co-operative Housing Society - Guidelines issued under Section 79(A) are directory and not mandatory - Material compliance and majority decision of the General Body Meeting suffice - Court will not interfere with the democratic decision of the society’s majority members absent perversity or clear violation of statutory mandate. (Paras 24, 25, 26, 27)

Facts of the case:
The Petitioner, an ex-chairman of the respondent society, challenged the society’s decision to appoint the respondent-developer for redevelopment, alleging failure to follow the tender process mandated by the 04.07.2019 Government Resolution. The society contended that the project is part of a larger cluster redevelopment agreed upon by the majority of members, and that the procedure followed was in accordance with the guidelines and supervised by an authorized officer.

Findings of Court:
The court held that the guidelines under the GR dated 04.07.2019 are directory, not obligatory. Since the majority of members consented in a properly convened meeting, the court refused to interfere in the internal democratic process of the society.

Issues: Whether the guidelines issued under Section 79(A) of the MCS Act (GR dated 04.07.2019) are mandatory, and whether the court should interfere with a redevelopment process approved by the majority of society members.

Ratio Decidendi: The legal framework guiding redevelopment is a 'broad road map' rather than a rigid code. Adherence to principles of participation, notice, and disclosure satisfies the requirements of law, and majority decisions within a co-operative society must be respected absent a violation of the object of the directives.

Result: Writ Petition dismissed.

Table of Content
1. petitioner challenges redevelopment procedures for contravening government notifications. (Para 1 , 2 , 3 , 4 , 5)
2. petitioner's argument regarding mandatory tender processes in redevelopment. (Para 6 , 7 , 8)
3. respondents' arguments confirming majority consent and regulatory compliance. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
4. court reiterates that redevelopment guidelines are directory, prioritizing democratic majority decisions. (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29)

JUDGMENT :- (PER MANJUSHA DESHPANDE, J.)

1. The Petitioner has raised a challenge to the redevelopment process undertaken by the Respondent No.3-Society, by issuing Letter of Intent favoring the Respondent No.4-Developer, without following the mandatory process of issuing tenders as contemplated in the notification issued by the State Government dated 04.07.2019.

2. The Petitioner further prays to issue directions to the Respondent No.2-Deputy Registrar to carry out fresh redevelopment process for the Respondent No.3-Society under his supervision, in accordance with the guidelines framed by the Respondent No.1, as contained in the notification dated 04.07.2019.

3. The Petitioner is an Ex-Chairman of the Respondent No.3-Society, who has been removed from the post of Chairman in the meeting of the Co-operative Housing Society held on 03.10.2023. During the tenure of the Petitioner as a Chairman, the Respondent No.3-Society approached the Respondent No.4- Landlord-Cum Developer of the plot, for granting development rights of the Respondent No.3-Society. The Petitioner, who was not in favour of the proposed redevelopment being undertaken purportedly without following the due procedure of law, opposed it. It is alleged by him that, after his removal as a Chairman of the Respondent No.3-Society on 03.10.2023, the Respondent No.3-Society, without following the mandatory procedure in order to favour the Respondent No.4, has issued Letter of Intent to the Respondent No.4 without following the tender process.

4. The Petitioner has raised grievance before the Respondent No.2-Deputy Registrar, bringing to his notice that the Respondent No.3-Society has failed to follow the procedure while awarding the redevelopment contract to the Respondent No.4. The Respondent No.2-Deputy Registrar issued a notice to the Respondent No.3-Society on 13.02.2024. The Petitioner filed complaint under Sections 75(5), 77(A) and 78(1) of the Maharashtra Co-operative Societies Act, 1960 (for short “the MCS Act”). Pursuant to the complaint filed by the Petitioner, the Deputy Registrar issued Show Cause Notice, to the Members of Managing Committee of the Respondent No.3.

5. It is alleged that during pendency of such proceedings, the Respondent No.3-Society passed illegal resolutions, during the Special General Body Meeting dated 29.09.2024, wherein a draft Letter of Intent was circulated by the Respondent No.3, favoring the Respondent No.4. According to the Petitioner, the Respondent No.3-Society, with mala fide intention, without following the Model Bye Laws No.175(a) and (b) of the Housing Society, and without adhering to the directives issued by the State Government, vide Government Resolution (for short “GR”) dated 04.07.2019, under Section 79(A) of the MCS Act, is in the process of appointing Respondent No.4 as a Developer, which needs to be interfered with by this Court.

6. Mr. Manoj Upadhyay, learned Counsel appearing for the Petitioner submits that the Respondent No.3-Society is bent upon appointing the Respondent No.4 as a Developer of the Society without adhering to the mandatory directions, issued under Section 79(A) of the MCS Act vide GR dated 04.07.2019, which provides for the modalities to be observed while undertaking redevelopment of Co-operative Housing Societies. After removal of petitioner from the post of Chairman, the Managing Committee Members are resorting to a procedure, giving a go-by to the tender process, which is mandat

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