Mumbai, 2nd September 2025 – The Bombay High Court has dismissed a writ petition filed by M/s. Tirthankar Darshan Co-operative Housing Society Ltd. challenging the directives of the cooperative authorities to admit two shop owners as members of the society.
Background of the Case
Respondents No. 4 and 5 had purchased Shop No. 4 in the society’s premises through a registered deed dated July 24, 2019. Following the purchase, they applied for membership of the society. When the society failed to communicate its decision within the time frame prescribed under Section 22(2) of the Maharashtra Co-operative Societies Act, 1960, the respondents approached the District Deputy Registrar.
On November 17, 2023, the Deputy Registrar allowed their appeal, holding that the respondents had fulfilled all requirements, including the payment of the statutory transfer fee. The society’s revision before the Divisional Joint Registrar was also dismissed in February 2025.
Society’s Argument
Before the High Court, counsel for the petitioner society argued that the respondents had not complied with a precondition to pay a “welfare fee” mandated by a 2017 general body resolution. The society maintained that this justified their refusal to admit the respondents as members.
Court’s Findings
Justice N. J. Jamadar rejected the society’s contentions, observing that:
- The respondents had duly submitted their application and paid the statutory transfer fee of ₹25,000.
- Societies are prohibited from levying any additional charges beyond the prescribed transfer fee.
- The so-called “welfare fee” was nothing but a camouflage to extract amounts beyond what is legally permitted.
The Court held that the authorities under the Co-operative Societies Act had rightly directed the admission of the respondents, as the society’s grounds for refusal were unsustainable.
Outcome
The writ petition was dismissed, with the Court refusing to interfere under its supervisory jurisdiction.
This judgment reaffirms that co-operative housing societies cannot impose arbitrary or additional financial burdens on incoming members beyond what is sanctioned by law.