The court said that under section 154B (7) of the Maharashtra Cooperative Societies Act, no transfer becomes effective unless outstanding dues pertaining to the tenement are cleared
MUMBAI: Flat buyers and purchasers of commercial tenements cannot become members of the cooperative housing society in which their premises are located without clearing outstanding dues pertaining to their premises, the Bombay High Court ruled on Thursday.
“Membership in a cooperative society is not an unconditional right,” justice Amit Borkar said while striking down orders passed by the divisional joint registrar and the deputy registrar of cooperative societies, R/N ward, compelling a cooperative society in Dahisar to accept a commercial tenement buyer as a member although the buyer did not clear the previous owner’s outstanding dues worth ₹58 lakh.
The case dates back to April 2021 when T&M Services Consulting Pvt Ltd purchased a commercial tenement in Tanvi’s Diamoda cooperative housing society in Dahisar at an auction conducted by Indian Overseas Bank. In June 2021, the firm applied to the society for transfer of membership of the tenement in its favour.
The society, however, refused to admit the firm as a member, saying the earlier owner of the premises, a certain Saroj Mehta, had not cleared outstanding dues worth ₹58 lakh, encompassing maintenance charges and property tax. T&M Services Consulting would be granted membership in the housing society only after they paid ₹58 lakh, the society conveyed to the firm.
T&M Services Consulting then approached the deputy registrar of cooperative societies, who allowed the firm’s appeal in July 2022, prompting the society to approach the divisional joint registrar. On July 14, 2025, divisional joint registrar dismissed the society’s plea, prompting it to approach the high court.
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