The reconstruction of the 84-year-old Matunga Kapol Co-operative Housing Society under M/s Vallabh Developers has been approved by the Bombay High Court. A Divisional Joint Registrar (DJR) order dated September 30 that revoked the assistant registrar’s no-objection certificate (NOC) for the society’s renovation in December 2022 was overturned by the court.
37 members of the society filed a petition contesting the DJR’s order, which led to the case. At a special general meeting (SGM) on August 14, 2022, the disagreement focused on whether the quorum and voting conditions under the Maharashtra Co-operative Societies (MCS) Act were fulfilled. Three people each own two of the 62 apartments in the complex. A total of 28 members voted in favour of the redevelopment, reaching the 51% criterion, while 39 members attended the meeting, meeting the 2/3 quorum requirement.
The governing committee, however, contended that the attendance was insufficient because the quorum should be determined using 62 members (including those who have passed away and those who own two apartments).
On September 2, the DJR was ordered by the High Court to examine society documents and ascertain the quorum, voting requirements, and membership count. The petitioner members provided the death certificates of seven members who had passed away, claiming that section 25 of the MCS Act states that membership ends upon death.
As required by law, their advocate Bhavin Gada contended that the managing committee of the society neglected to amend documents to reflect the decreased membership. He went on to say that the legal heirs of deceased members were not eligible to join, hence their inclusion in the member count was void.
Senior counsel Dinyar Madon, speaking on behalf of the managing committee, argued that membership does not immediately end with death. Membership lasts until the deceased’s interest is passed to their rightful successors following sections 30 and 33 of the MCS Act. Bhushan Deshmukh, a supporter of the society, further contended that the overall strength remained 62, necessitating a quorum of 42 members, absent proof of decreased membership.
The court observed that there were 52 members overall after excluding seven members who had passed away and making adjustments for three members who owned two apartments. The SGM thereby satisfied the necessary voting threshold and quorum.
The court cleared the path for reconstruction by reversing the DJR’s judgement and restoring the assistant registrar’s NOC. According to Justice Deshmukh, “the managing committee’s failure to update society records cannot negate the fact that membership has decreased following the deaths of seven members.”
Source: The Free Press Journal
