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Majority Rules, Legally – Bombay HC Upholds General Body Supremacy in Housing Society Resolution

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Judgment dated 25.9.2025 of the High Court of Bombay in Writ Petition No.236 of 2025 of Nyati Environ Cooperative Housing Limited   Vs.   Shrradha Anant Pandit and others

The respondents – 14 members out of 481 members of the petitioner – society filed dispute application for declaration that the Resolution dated 10.9.2023 is illegal and resulted in discrimination among the members.   

The General Body of the petitioner society passed the resolution dated 10.9.2023 to obtain conveyance directly from the promoter.   Out of 143 members who attended the meeting, 120 favoured the resolution and 14 members opposed the same. 

The dissenting members were of the view that the conveyance should be sought under section 10 of MOFA.

The Cooperative Court granted temporary injunction vide order dated 21.6.2024.  This was confirmed by the Cooperative Appellate Court.  They were of the view that the general body was led to pass the resolution on the basis of saving of Rs.50 lakhs. This factor weighed in granting injunction that the majority suppressed the voice of minority.

HELD that the Court has no authority to substitute its own wisdom for the general body which is supreme authority under Section 72 of the MCS Act.  The principle of “suppression of minority” applicable in company law cannot be bodily imported in the scheme of MCS Act. The concept of minority suppression, though relevant in corporate jurisprudence, has limited application in the cooperative field. If the decision of the majority of cooperative society does not violate the Act, Rules or Byelaws, the resolution must prevail even if minority members are not agreeable.

Whether to obtain conveyance from the promoter directly or to invoke the remedy under Section 10 of MOFA is a matter of policy and wisdom of the genral body.

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