A landmark ruling by a local Co-operative Court in Mumbai’s Lower Parel has delivered a significant victory for flat owners, ordering the Trader World Premises Cooperative Housing Society to cease charging maintenance fees based on the size of individual units. The court’s decision, driven by a petition filed by advocate Abha Singh, reinforces the principle of equitable maintenance charges based on per-unit billing, aligning with a 2000 Maharashtra government statutory order and a Bombay High Court ruling.
The dispute arose when the Trader World Premises Cooperative Housing Society levied a maintenance charge of ₹10,77,740 on advocate Abha Singh’s office premises in 2023, calculated on a per-square-foot basis. Singh challenged this billing practice, arguing that it violated the Maharashtra Co-operative Societies Act and the Bombay High Court’s directive against charging maintenance based on flat size.
Singh’s petition highlighted that she utilized the same common facilities as other members, including security, common roads, and passage lighting. She contended that charging her based on square footage was discriminatory and undermined the principle of equity and fairness in cooperative housing societies.
Key Arguments and Court Ruling
Advocate Abha Singh argued that:
- Violation of State Order: The society’s practice directly contradicted the Maharashtra government’s 2000 statutory order, which mandates maintenance charges on a per-unit/flat basis.
- Bombay High Court Precedent: She cited a Bombay High Court ruling stating that there is “absolutely no rational basis” for charging maintenance based on the size of flats.
- Equal Usage of Facilities: Singh emphasized that all members utilize common facilities equally, regardless of the size of their units.
- Discriminatory Billing: The society’s varying monthly bills without clear justification were deemed arbitrary and discriminatory.
The Co-operative Court, presided over by Judge SK Devkar, meticulously reviewed the documents and noted the inconsistency in the 13 maintenance bills presented by Singh. The court concluded that charging maintenance on a per-square-foot basis was illegal and ruled that the society must issue and collect bills on a per-unit/flat basis.
Legal Implications and Significance
This ruling serves as a crucial precedent for cooperative housing societies across Maharashtra, reinforcing the importance of adhering to statutory orders and judicial directives. It clarifies that:
- Maintenance charges must be based on per-unit/flat basis, not on the size of the unit.
- Cooperative societies cannot arbitrarily charge varying maintenance fees without clear justification.
- The principle of equity and fairness must prevail in the administration of cooperative housing societies.
This decision empowers flat owners to challenge discriminatory billing practices and ensures that maintenance charges are levied transparently and equitably.
