SC – Society Cannot Arbitrarily Defeat Membership
Membership of Housing Society
Malboro House Cooperative Housing Society Limited
Malboro House at Peddar Road, Mumbai. The building comprises of seven residential flats and all seven occupants were tenants under M/s Kamani Brothers Pvt Ltd.
On 11..2005, the Society passed the resolution in its AGM to admit the original occupier of flat no.7 as member of the society on payment of Rs.5 lakhs. However, he did not deposit the said amount.
Thereafter, the appellants purchased the said flat from original occupier Narendra Patel.
The appellants made an application dated 11.3.2025 to the Authorised Officer & Administrator of the Society and also deposited Rs.5 lakhs with 9% interest. However, it was not considered since he was not authorized to take policy decision.
By the order dated 4.4.2025, the Deputy Registrar disposed of the appeal of the appellants and directed the Authorised Officer to hold Special General Body Meeting for decision on the appellants’ application for membership within 30 days.
The Divisional Joint Registrar has, however, allowed the revision and noted that in the AGM Meeting of 11.8.2005, it was decided to admit Shri Narendra Patel as a member on receipt of requisite payment of Rs.5 lakhs. It was also noted that the Deputy Registrar failed to verify the relevant record and overlooked the fact that the premises of the society were acquired for and on behalf ot he tenants.
The Divisional Joint Registrar concluded that the appellants being the bona fide occupants of flat no.7 were entitled to membership.
This was challenged in the High Court.
In the meanwhile, the appellants conveyed the flat to the appellant M/s. Capital Mind Advisory Services Private Limited in connected matter vide registered sale deed and NOC of the Administrator vide letter dated 26.5.2025.
The High Court partly allowed the writ petition vide order dated 19.11.2025 and quashed the decision of enrolment of the appellants as owner.
The short controversy which falls for consideration of this Court in these appeals is whether the belated prayer of the appellants in Civil Appeal @ SLP (Civil) No.36106 of 2025, being the successors-in-interest of Shri Narendra Patel, to gain membership in the Society by making payment at a highly belated stage, could have been accepted by the Joint Registrar.
In such a situation, the determinative issue would be whether the appellants in Civil Appeal @ SLP(Civil) No. 36106 of 2025 could be denied the benefit of seeking membership of the Society while continuing to remain in occupation of the premises. Moreover, no proceedings for their eviction were initiated. It is not the case of the respondents that the occupation of Narendra Patel and thereafter, purchasers – appellants were illegal.
Advisory Services Private Limited (appellant in Civil Appeal @ SLP(Civil) No. 36057 of 2025) under a duly registered Deed of Transfer, pursuant to which M/s. Capital Mind Advisory Services Private Limited was admitted as a member of the Society. The General Body recorded that the said transfer and admission were in accordance with the Society’s bye-laws and the provisions of the MCS Act, and accordingly C.A.@SLP (C) No(s). 36106 of 2025 & connected matter 25 accepted and approved the membership of M/s. Capital Mind Advisory Services Private Limited, in respect of Flat No. 7. We have not been informed about the minutes of the AGM dated 30th September, 2025, being challenged before any forum.
Judgment dated 5.2.2026 of the Supreme Court in SLP (Civil) Nos.36106 of 2025 of Shashin Patel and another Vs. Uday Dalal and others with connected matter
