The Bombay High Court has cleared the way for the redevelopment of the 84-year-old Matunga Kapol Co-operative Housing Society through M/s Vallabh Developers. The court set aside a September 30 order by the Divisional Joint Registrar (DJR), which had quashed the no-objection certificate (NOC) issued by the assistant registrar for the society’s redevelopment in December 2022.
The case arose from a petition by 37 society members challenging the DJR’s order. The dispute centered on whether the quorum and voting requirements under the Maharashtra Co-operative Societies (MCS) Act were met during a special general meeting (SGM) held on August 14, 2022. The specify has 62 flat and three members hold two flats each. At the meeting, 39 members were present, meeting the 2/3rd quorum requirement, and 28 members voted in favour of the redevelopment, satisfying the 51% criteria.
However, the managing committee argued that the quorum should be calculated based on 62 members (including deceased members and those holding double flats), making the attendance insufficient.
The High Court had, on September 2, directed the DJR to review society records and determine the number of members, quorum, and voting requirements. The petitioner members submitted death certificates of seven deceased members, arguing that membership ceases upon death under section 25 of the MCS Act. Their Advocate Bhavin Gada argued that the society’s managing committee failed to update records to reflect the reduced membership, as mandated by law. He added that deceased members’ legal heirs had not applied for membership, making their inclusion in the member count invalid.
The managing committee, represented by senior advocate Dinyar Madon, contended that membership does not automatically cease upon death. Under sections 30 and 33 of the MCS Act, membership continues until the deceased’s interest is transferred to legal heirs. Society’s advocate Bhushan Deshmukh further argued that without evidence of reduced membership, the total strength remained 62, requiring a quorum of 42 members.
Justice Sharmila Deshmukh rejected these arguments, emphasising that “for a person to be considered as a member of the society, admission to membership is a must.” She clarified that deceased members could not be counted toward the quorum and that the managing committee’s failure to update records could not override this fact.
The court noted that, with seven deceased members excluded and adjustments for three members holding double flats, the total strength of members was 52. Hence, the SGM met the required quorum and voting threshold.
Quashing the DJR’s order, the court restored the assistant registrar’s NOC, paving the way for redevelopment. Justice Deshmukh said, “The non-updation of society records by the managing committee cannot take away the fact of reduction of membership upon the death of seven members.”
