The Bombay High Court has reaffirmed the legal principle that all unit owners—whether of commercial offices, shops, or residential flats—have equal rights in managing a housing society. This landmark ruling came after a group of shopkeepers challenged their exclusion from society management, arguing that they were unfairly classified as “nominal members.”
The ruling is expected to have a significant impact on housing societies across Maharashtra, ensuring that all property owners can actively participate in decision-making processes.
Case Background: Shopkeepers vs. Housing Society
A group of shopkeepers approached the Bombay High Court after being denied full membership in their housing society. They argued that they had ownership rights over their units but were only given “nominal membership” status based on a consent term with the builder. As nominal members, they were barred from participating in meetings, voting on key decisions, or being elected to the society’s managing committee.
Court’s Observations and Ruling
After hearing senior advocate Vijay D Patil, who represented the housing society, the Bombay HC emphasized that:
Legislative Intent Supports Equal Participation
The court stated that the legislature’s intent is for all unit owners to have a role in society management. The exclusion of shop and office owners contradicts this principle.
Shop Owners Cannot Be Denied Participation
The court found it “inconceivable” that the society allowed the developer to construct and sell 16 commercial shops but later refused to let the shopkeepers participate in managing the society.
Membership Rights Apply Equally to All Property Types
Legal experts noted that this ruling reinforces a settled legal position: unit ownership—whether residential or commercial—grants equal rights within a housing society.
Legal Expert Opinions
According to Nilesh Gala, a practicing lawyer at the Bombay HC, “The right to participate in society management cannot be determined by the type of ownership. Membership, attending meetings, or becoming a committee member in housing societies cannot be differentiated based on the kind of unit owned.”
This judgment provides clarity on membership rights under the Maharashtra Co-Operative Societies Act, ensuring that commercial unit owners are not deprived of their legal rights.
Understanding Housing Society Formation in Maharashtra
Housing societies in Maharashtra are typically structured in two ways:
- Society Registration Model
When a housing society is registered under the Maharashtra Co-Operative Societies Act, ownership is transferred from the developer to a managing committee formed by the society’s members.
- Land Share Model
Some societies operate under a land share system, where each flat or unit owner holds a proportionate share in the property, and an association manages the society’s affairs.
Impact of the Judgment on Housing Societies
The Bombay HC ruling has far-reaching consequences for housing societies across Maharashtra:
- Shop and office owners can no longer be denied full membership.
- Societies must allow commercial unit owners to attend meetings and vote.
- Builders cannot impose restrictions on membership through consent terms.
- Housing societies must align their bye-laws with this legal principle to avoid legal challenges.
Conclusion
The Bombay High Court’s ruling establishes an important legal precedent, reinforcing that housing societies cannot discriminate between different types of unit owners. Whether one owns a residential flat, an office, or a shop, the right to participate in society management is now firmly protected under law. This decision will bring greater transparency and inclusivity to housing society governance in Maharashtra.
