LAWS(BOM)-2026-2-10

VALLABHNAGAR CO-OPERATIVE HOUSING SOCIETY LIMITED Vs. STATE OF MAHARASHTRA

Decided On February 03, 2026
Vallabhnagar Co-Operative Housing Society Limited Appellant
V/S
STATE OF MAHARASHTRA Respondents

JUDGEMENT

(1.) By this Petition filed under Article 227 of the Constitution of India, the petitioner Housing Society challenges the judgment and order dtd. 15/10/2025 passed by respondent No. 2 in Revision Application No. 192 of 2025. By the said order, respondent No. 2 confirmed the order dtd. 8/5/2025 passed by respondent No. 3 under Sec. 23(2) of the Maharashtra Cooperative Societies Act. Respondent No. 3 had allowed the Appeal preferred by respondent Nos. 4 and 5 and directed that they be granted membership of the petitioner society in respect of Plot No. 26. The present petition arises from these orders. The facts necessary for deciding the petition are set out below.

(2.) By an indenture of lease dtd. 29/7/1963 executed between the petitioner society and Shri Jayantilal Vadilal Gandhi and Smt. Pramila Jayantilal Gandhi, Plot No. 26 was leased to them for a period of 999 years. The lease contained conditions. It provided that the lessees shall not assign, underlet, or part with possession of the plot without prior written consent of the lessor. It further provided that in the event of any permitted transfer, a lease premium at the prescribed rate payable to the society would be a condition precedent for such transfer.

(3.) On 20/10/2012, the assignees of the original lessees addressed a letter to the petitioner seeking permission to sell the plot to a prospective purchaser. By letter dtd. 5/4/2013, the petitioner informed them that for processing transfer of Plot No. 26, the predecessor of respondent Nos. 4 and 5 was required to submit the necessary documents and pay transfer charges. Thereafter, on 3/7/2024, the predecessors of respondent Nos. 4 and 5 sought a No Objection Certificate to assign the plot to respondent Nos. 4 and 5 in terms of a settlement recorded in Suit No. 224 of 2021. They also requested confirmation that they were bona fide members and that the society had no objection to the proposed sale. By communication dtd. 12/7/2024, the society acknowledged them as bona fide members and lease holders. According to the petitioner, despite this position, a deed of assignment dtd. 1/8/2024 was executed in favour of respondent Nos. 4 and 5 without obtaining prior written permission of the society and without payment of lease premium as required under clause 2(14) of the lease. The petitioner contends that such assignment amounts to breach of the lease conditions.