Bombay HC – Developer Cannot Unilaterally opt for Condominium – Cooperative Housing Society Registration by members Upheld
Judgment dated 16.12.2025 of the High Court of Bombay in Writ Petition No.538 of 2015 of Rachana Developers Vs. State of Maharashtra and others
By the development agreement dated 2.12.2000, the owners of the plots at Malad were given to the respondents for development. The petitioners executed several agreements of sale in favour of respondent nos.5 to 46, reserving the right to form either a condominium or a cooperative housing society.
On 18.12.2004, the petitioners and the owners executed declaration under Section 2 read with Section 11 of Maharashtra Apartment Ownership Act, 1979 and it was registered on 18.2.2005 for formation of condominium. This was signed by seven persons including six family members of the promoter.
On 21.12.2006, the respondent no.11 made an application for registration of cooperative housing society. This was allowed by the order dated 21.2.2007.
HELD that a condominium by its very nature rests on consent and participation of all apartment owners. A unilateral or selective declaration defeats the statutory scheme. A declaration must conform strictly to Sections 11 and 19 of the MAO Act. Anything short of that has no legal efficacy.
The rights and obligations arising under the MOFA and MAO are not left entirely to contractual discretion. They are regulated by mandatory statutory provisions enacted to protect flat purchasers and to ensure transparency in the formation of associations.
