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The Bombay High Court adjudicated a writ petition filed by co-operative housing societies challenging orders that directed them to admit certain individuals as members based on agreements for sale of purported flats. The dispute arose when private purchasers claimed membership rights in respect of five units allegedly purchased through registered agreements dated April 30, 2019. These agreements were executed by a developer in respect of areas located on the 8th and 15th floors of a residential complex. The societies contended that the said units were not actual flats but unconstructed open spaces designated as refuge areas in the building plans. The occupancy certificate issued in 2009 contained an error that incorrectly depicted parts of these refuge areas as flats, although no constructed or even partially constructed flats existed at those locations. The societies further asserted that these spaces had always been in their possession and were treated as refuge areas, with no property tax levied on them. It was also noted that the developer had already been divested of its rights in the property upon issuance of a deemed conveyance certificate in May 2017. Consequently, any subsequent agreements executed by the developer in 2019 were argued to be without authority and legally unenforceable. The societies refused membership to the purchasers on this basis, and the Deputy Registrar upheld this refusal in October 2020. However, the Divisional Joint Registrar later allowed the purchasers’ revision applications and directed the societies to admit them as members. This order was followed by an execution order appointing an authorized officer to enforce compliance. The societies challenged both orders before the High Court. Upon examining the record, the Court found that the floor plans annexed to agreements of other validly constructed flats clearly showed the disputed areas as refuge spaces and not residential units. The Court also noted that the developer had not joined the societies as a member at the time of their formation, indicating that there were no unsold flats available. Additionally, the municipal authority had consistently treated the disputed areas as refuge spaces and not taxable residential units. The Court held that the agreements for sale relied upon by the purchasers pertained to non-existent flats and were therefore invalid. It further observed that admitting such purchasers as members would violate statutory provisions that prohibit societies from exceeding the number of available flats for membership. The Court distinguished earlier precedent cited by the purchasers, stating that while societies cannot refuse membership on grounds of unauthorized construction, the present case involved non-existent flats rather than disputed legality of construction. The Court also rejected reliance on a private architect’s certificate, noting that it contradicted official records and was based on erroneous plans. In conclusion, the Court held that the societies were justified in refusing membership and that the impugned orders directing admission were legally unsustainable. Accordingly, the High Court quashed the orders of the Divisional Joint Registrar and the execution authority, and restored the original order rejecting membership. FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
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