Bombay HC Reinforces autonomy of flat buyers to form own society in the area of parent society

Judgment dated of the High Court of Bombay in Writ Petition No.7830 of 2022 of Dilip Bobde Patil   Vs.  Laksons India Private Limited and others

Limits the control of developers and parent societies over independent buildings in society area

Nominal Membership is transitional and not permanent

Reinforces the autonomy of flat purchasers to form their own society within the area of parent society

The concept of “sub-society” is not recognised in law; what matters is legal ownership and autonomy

NOC of parent society is not a statutory requirement once legal conditions for registration are fulfilled

Respondent No.2 is the cooperative housing society of 28 plots in JVPD Scheme.

Respondent no.1 Developer holds plot no.12 under the lease agreement dated 15.8.2000.   Respondent No.1 permitted respondent no.2 developer to construct a residential building on plot no.12 as per its bye-laws and on the undertaking that it would be for personal use of its directors and not for  commercial purpose.  In case of sale of flats, respondent no.1 was to take prior written consent of the society and to make flat purchasers nominal members as per the society rules.

The petitioner is Chief Promoter of a proposed housing society of 7 out of 10 flat purchasers of the said building.

On 13.6.2019, the petitioner applied for registration of the proposed society. 

It was rejected on the grounds that the flat purchasers are entitled only as nominal members of society, the registration of the new society cannot be given in the absence of NOC of respondent no.2 society and that formation of a sub-society within a tenant – ownership society is impermissible in law.

HELD that the flat purchasers who have paid full consideration for their flats and occupy them as lawful owners cannot be treated as nominal members indefinitely.  To do so would be to deny them their rightful ownership status and participation in management.