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Corporate Law

Registrar Cannot Reserve Separate Society Right Contrary to Promoter’s Undertaking: Bombay HC

Case Law Details

TaxGuru Citation
2026 taxguru.in 14068
Case Name
Kritika Jewels Coop. Housing Society Vs State of Maharashtra & Ors. (Bombay High Court)
Date of Judgement/Order
Only available for paid members
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Kritika Jewels Coop. Housing Society Vs State of Maharashtra & Ors. (Bombay High Court)

Summary: Bombay High Court allowed the writ petition filed by Kritika Jewels Coop. Housing Society challenging the reservation inserted by the Registrar while registering the petitioner society, whereby the promoter was granted liberty to form a separate cooperative society for 14 commercial shops situated on the first floor above the stilt parking. The sanctioned plan showed three buildings comprising 120 residential units and 14 commercial shops, and the petitioner maintained that the shops formed part of the same building blocks, shared sewage and water facilities and were not an independent commercial structure.

The Court noted that Clauses 4(g), 20, 28, 30 and 44 of the registered agreements recorded the promoter’s undertaking to establish one common cooperative society covering residential flat purchasers as well as commercial shop purchasers. Although the promoter relied upon Section 2(16) and Section 12 of the Maharashtra Cooperative Societies Act and Rule 10 of the Maharashtra Cooperative Societies Rules, 1961, the Court held that the Registrar’s classification powers did not permit creation or reservation of a future right to form another society unless supported by the statutory framework and material demonstrating an independently registrable unit. The promoter had not sold the commercial shops to outsiders and the requisite independent members for a separate society did not exist.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,351

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