In a significant ruling for cooperative housing societies, the Bombay High Court has held that a housing society federation cannot prevent an individual society from undertaking redevelopment by withholding a No Objection Certificate (NOC). The court directed a federation in Thane to issue an unconditional NOC to facilitate the redevelopment of an ageing housing society, despite the federation holding the conveyance title of the larger layout.
The case involved Vijay Nagari Cooperative Housing Society Buildings 1 to 4 and the Vijay Nagari Cooperative Housing Societies Federation Limited in Thane. The federation comprises seven buildings. The housing society was represented by advocates S. Parthasarathy, Madhurani, and Divya K.
The dispute arose after the society, whose buildings were constructed in 1996, sought to redevelop its deteriorating structures. However, the federation delayed granting the required NOC, citing issues such as road frontage, recreational open spaces, and pending dues. In August 2023, it issued a conditional NOC valid for only three months, which the society argued was inadequate to proceed with redevelopment.
During the hearing, the High Court observed that the society was not challenging the joint conveyance of the overall layout but was seeking cooperation from the federation to redevelop its allotted portion of the land. The court noted that the objections regarding road frontage were misplaced, as the society’s buildings already had adequate frontage, while the sale of land had been approved through an earlier order.
Justice Sandeep V. Marne directed the federation to issue an unconditional NOC within two weeks after the society clears its outstanding dues of approximately Rs 19 lakh. The court also instructed that redevelopment be carried out only on the society’s designated 21.62% share of the land, with the project design to be finalised through mutual consent.
The High Court also set aside an order passed by the Divisional Joint Registrar relating to a complaint filed by the housing society. It was observed that the withdrawal of a criminal complaint by the society would help facilitate the redevelopment process.
At the same time, the court upheld the 2022 order granting the federation unilateral deemed conveyance of the entire layout land, making it clear that the decision would remain unaffected. It ruled that once the pending dues are settled and necessary approvals are obtained, the society should be allowed to proceed independently with the redevelopment of its buildings.
Source: Hindustan Times
