2026High CourtLatestLegalMarch 2026Real Estate

Bombay HC – Purchasers of refuge areas sold as flats cannot claim society membership – statutory safety spaces are non-saleable.

Judgment dated 25.3.2026 of the High Court of Bombay in Writ Petition No.973 of 2023 of Dheeraj Dreams Building No.1 CHS Ltd and others  Vs.  Divisional Joint Registrar and others

Section 22(2) & 154B-5 of MC Societies Act – Membership for Refuge Vacant Spaces described as flats and beyond number of constructed flats

The petitioners are cooperative housing societies.

The respondent nos.3 and 4 are purchasers of open spaces on 8th and 15th floors, described as five flats in the registered agreements for sale with respondent no.7 developer. 

The respondent nos.3 and 4 have applied for membership. The petitioners did not admit them as members.

The petitioners objected membership on the grounds –

the flats are in fact open vacant in its possession since the issuance of full occupancy certificate,

respondent no.7 developer is not a member of any of the societies and that there does not exist any unsold flats.

Respondent no.7 has taken advantage of error in the plant annexed to the occupancy certificate showing the said open refuge area as “flats” and illegally sold the same as flats.

The so-called flats are in fact “refuge areas”.  Moreover, after the issuance of certificate of entitlement of deemed conveyance, the respondent no.7 developer stood divested of its rights for subsequent agreements of sale in favour of respondent nos.3 and 4.

In case the respondent nos.3 and 4 are made members, it would violate section 154B-5 that a housing society shall not admit to its membership, the persons exceeding the number of flats.

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