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Section 18 of the MC Societies Act – Division of Societies

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Judgment dated 11.11.2025 of the High Court of Bombay in Writ Petition No.1126 of 2022 of Abdul Rehman Adam Dawa and 81 others   Vs.   District Deputy Registrar of Coop. Societies and 13 others.

 

Bifurcation of Cooperative Housing Societies

 

Section 18 of the MC Societies Act

 

Respondent No.4 society has 844 members – 830 residential and 14 commercial units in 14 buildings with multiple wings, constructed on 13 separate plots.

The petitioners occupy the building of three wings A, B and C with 94 members.

HELD that the powers of the Registrar for division of the Societies are not to be mechanically.  The expression “it is essential in the public interest” in Section 18(1) of the Societies Act that the power of division of societies can be exercised only when the decision benefits the public at large and not a few individuals.   Public interest refers to the welfare of a larger community that is connected with the functioning of the society.  It includes safety, accountability and efficient use of resources.  The Registrar must examine the tangible and practical factors laid down in paras 22 and 29 of the judgment.

Bifurcation or division of societies does not require majority approval of the entire parent society if statutory conditions of section 18 of the Societies Act are fulfilled.

Bombay HC Interpreted Section 18 of the Societies Act broadly to include welfare of members and functional autonomy in the matter of division or bifurcation of housing societies.

Separate Plot, Separate Life of Housing Society & Its Members : Bombay HC Says that the Society’s bifurcation reflects ground reality.

 

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