Bombay HC  Clarifies Membership Law – Unregistered Transfers Cannot Confer Housing Society Rights and Ownership

Respondent Nos.4 and 5 sought membership of the petitioner on the basis of transfer of interest by the original member.  However, the Managing Committee did not grant on the ground of absence of registered document in respect of transfer of interest and ownership.

Under the Transfer of Property Act and the Registration Act, a transfer of immovable property of value exceeding one hundred rupees requires a registered instrument. Without registration, no right, title or interest passes in the eyes of law.

It is correct that once a registered instrument is produced, the society cannot sit in judgment over its validity. The society cannot examine allegations of fraud or coercion. That is the domain of a civil court. However, this principle presupposes the existence of a registered instrument. Where no such document is produced at all, the situation is entirely different. In that case, the society is not adjudicating validity. It is merely insisting upon compliance with a statutory requirement.

In the present case, respondent No. 4 did not place on record any registered conveyance evidencing transfer of ownership from the original member. In the absence of such document, the society was justified in declining membership on the ground of transfer. The appellate and revisional authorities overlooked this basic legal requirement and proceeded as if proof of possession or execution of an unregistered writing was sufficient. A direction to grant membership without proof of lawful transfer amounts to compelling the society to recognize a title which the law itself does not recognize.

Judgment dated 10.2.2026 of the High Court of Bombay in Writ Petition No.10333 of 2011 of Khar Seven Stars Cooperative Housing Society thr Chairman   Vs.   State of Maharashtra and Others