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Bombay HC – Monetary Claims Cannot Block Membership of Cooperative Housing Society

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Judgment dated 12.12.2025 of the High  Court of Bombay in Writ Petition No.16261 of 2025 of Samir Narain Bhojwani  Vs.  The Assistant Registrar, Cooperative Societies and others with connected writ petition.

Pending Arbitration, No Bar to Housing Society Membership – Bombay HC

Housing Society Membership Rights Are Statutory – Not Collateral to Civil Disputes

Section 23(2) of the Maharashtra Cooperative Societies Act, 1960 –

Flat No.B3 of B Wing in Bay View CHS was purchased by Priyank Hemant on 5.11.2016 and became member of the respondent no.3 society.

However, the said flat was sold to respondent no.2 on 19.9.2019 in order to defeat arbitral award of the petitioner.

On 14.5.2021, the Respondent 3 society rejected the membership application dated 23.3.2021 of the respondent no.2 purchaser.

Respondent No.3 purchaser of the flat No.3 on 22nd Floor of B Wing of Bay View CHS, from Priyank Hemani submitted the membership application on 23.3.2021.  This was rejected.

In the appeal of the respondent no.3, the petitioner filed revision.  However, the appeal was allowed.   The revision of the petitioner was dismissed.

HELD that the membership proceedings cannot decide questions of title, possession, enforcement of security or monetary claims.  There is a distinction between membership rights and ownership rights. Entitlement to membership is a statutory matter.  The authority must ensure that the inquiry remains confined to whether the applicant has complied with the requirements for membership and whether any legal bar exists.   The authority must resist any attempt by either party to introduce disputes of civil or arbitral proceedings.

If a person objecting to the membership of a housing society has only a monetary claim on the outcome of some other future proceedings, same interest is not enough.   The mere fact that arbitration or civil proceedings are pending does not, by itself, give someone a right to intervene in the membership proceedings under section 23(2).

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