Swa-Griha CHS Ltd. Vs State of Maharashtra and Ors. (Bombay High Court)
Summary: The Bombay High Court held that where a cooperative housing society is already registered in respect of a building, residents or flat purchasers seeking a separate society cannot directly obtain registration of another society under Section 9 of the Maharashtra Co-operative Societies Act, 1960 (“MCS Act”).
Their remedy lies in statutory bifurcation under Sections 17 or 18. Swa-Griha CHS Ltd., originally registered in 1968, undertook redevelopment involving its land and adjoining MHADA lands. The redeveloped project comprised Wings A, B, C and D, and agreements contemplated purchasers becoming members of the existing society. Nevertheless, 71 purchasers from Wings A and B sought registration of Atharva CHS Ltd. The Deputy Registrar granted registration on 20 February 2025, and the Joint Registrar and Minister subsequently rejected Swa-Griha’s challenge.
The High Court found that the Deputy Registrar proceeded without properly appreciating that an existing society already covered the building and that 72 purchasers in Wings A and B had already become its members. The Court held that Sections 17 and 18 prescribe comprehensive mechanisms for division of an existing society, including consideration of property rights, liabilities, amenities and objections.
Permitting a second society under Section 9 without following that process would bypass statutory safeguards and create overlapping rights over the same building and property. Relying inter alia on Sarita Cooperative Housing Society Ltd., the Court reiterated that Section 9 cannot indirectly fragment an existing society. The Court additionally found that the four wings formed an integrated structure with common amenities, including an underground water tank, access, recreational ground, utilities, terrace and a separate common ten-floor parking block, making independent management problematic. It also noted contractual provisions in the Development Agreement and Agreements for Sale requiring purchasers to become members of Swa-Griha and prohibiting formation of a new independent society.
