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Society Bifurcation Upheld : Bombay HC No Need for CIDCO Permission – Section 18 of the MC Societies Act.

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Judgment dated 11.11.2025 of the High Court of Bombay in Writ Petition No.1218 of 2023 with I.A. No.11989 of 2025 of Balaji Tower Coop. Housing Soc. Ltd and another   vs.  The State of Maharashtra and others with connected matters.

Section 18 of the MC Societies Act – permits bifurcation only when it promotes collective welfare, better administration, stability and harmony.

Bifurcation of the petitioner no.1 Cooperative Housing Society.

Respondent No.3 was registered on 17.2.1993 for two different plots at a distance of one kilometer i.e. plot No.1 in Sector 28 and plot no.8 of Sector 22 allotted vide separate lease agreements dated 21.4.1993 by the Cidco.

Plot No.1 of 18 residential and 2 commercial buildings, whereas, plot no.8 of 80 residential flats, completed in 1997.   However, the construction of petitioner no.1 Balaji society was not completed.  The members of said society completed the construction and obtained occupation certificate in 2004.

HELD that the facts show that the arrangement of keeping both the plots under a single society only exists on paper.   In reality, the residents of Balaji Tower have been functioning and maintaining their affairs separately for so many years.

Sections 17(2) and Section 18(5) of the Societies Act are clear. The prior permission of the CIDCO for bifurcation of the societies is not necessary.  These provisions override the Transfer of Property Act and the Registration Act for bifurcation of cooperative society.

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