Bombay High Court: Pending Civil Suit, No Bar to Deemed Membership in Housing Societies
Court says Registrar can grant membership despite disputes over sale agreements
Ruling strengthens rights of flat buyers under Maharashtra Co-operative Societies Act
By Our Legal Correspondent
In a landmark judgment, the Bombay High Court has held that the mere pendency of a civil suit relating to an agreement for sale or recovery of consideration does not prevent the Registrar from granting deemed membership in a co-operative housing society.
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The ruling, delivered by Justice Amit Borkar on January 16, 2026, came in the case of Digant Parekh (HUF) & Anr. v. Akruti Kailash Construction & Ors., involving disputes over membership in the Hubtown Viva Premises Co-operative Housing Society Ltd. in Mumbai.
The Court clarified that while civil courts alone can decide questions of title and contractual enforcement, the Registrar under the Maharashtra Co-operative Societies Act, 1960 (MCS Act) has the authority to grant provisional membership to flat purchasers, subject to the outcome of civil proceedings.
Case Background
- Agreement for sale: Petitioners entered into a registered agreement for sale in 2013 for flats in Hubtown Viva.
- Application for membership: The housing society failed to act on their membership application.
- Registrar’s order: In 2022, the Assistant Registrar granted deemed membership under Section 22(2) of the MCS Act.
- Developer’s revision: The developer challenged the order, arguing that a civil suit filed in 2016 for enforcement of the agreement was pending.
- Revisional authority’s order: The Divisional Joint Registrar cancelled the deemed membership solely on the ground of the pending civil suit.
- High Court ruling: Justice Borkar quashed the revisional order, restoring the deemed membership granted to the petitioners.
Court’s Observations
The Bombay High Court made several important points:
- Pendency of suit not a bar: A pending civil suit does not automatically prevent the Registrar from granting membership. Only if the civil court passes a restraining order should the Registrar hold back.
- Statutory rights of purchasers: A purchaser under a registered agreement in Form No. 5 under the Maharashtra Ownership Flats Act (MOFA) is deemed to have “taken” a flat and is entitled to apply for membership.
- Civil remedies separate: Disputes over unpaid consideration or enforcement of contractual terms give developers remedies under civil law but cannot block statutory membership rights.
- Provisional determination: Membership under the MCS Act is provisional and does not finally decide ownership. It only recognizes the applicant as a member for society purposes.
Broader Implications
This ruling has significant implications for housing societies and flat purchasers in Maharashtra:
- Strengthens buyers’ rights: Ensures that flat purchasers are not denied membership due to pending disputes.
- Limits developer influence: Developers cannot use civil suits as a tactic to block membership applications.
- Clarifies Registrar’s powers: Confirms that the Registrar can grant membership subject to civil court outcomes.
- Reduces uncertainty: Provides clarity for thousands of buyers facing delays in society membership due to litigation.
Related Developments
- In earlier rulings, the Bombay High Court has emphasized that membership in co-operative societies is a statutory right linked to ownership under MOFA agreements.
- The Court has also held that societies cannot arbitrarily deny membership to flat purchasers, reinforcing transparency and fairness in housing governance.
Public and Expert Reactions
- Legal experts: Welcomed the ruling as a progressive step protecting flat buyers from arbitrary denial of membership.
- Flat purchasers: Saw the judgment as reassurance that their rights will not be blocked by pending suits.
- Developers: Expressed concern that the ruling may weaken their leverage in disputes over consideration.
- Housing societies: Acknowledged that the ruling places greater responsibility on them to act fairly and transparently.
Conclusion
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The Bombay High Court’s ruling that pending civil suits do not bar deemed membership in co-operative housing societies is a landmark clarification in housing law. By restoring membership rights to flat purchasers, the Court has strengthened statutory protections under the Maharashtra Co-operative Societies Act and ensured fairness in housing governance.
For buyers, the judgment offers relief and clarity. For developers and societies, it underscores the need to respect statutory rights and avoid using litigation as a tool to block membership.
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