Bombay HC: Mextech's Automatic Membership in Thane Society Upheld

In a recent decision, the Bombay High Court ruled in favor of Mextech Realty Pvt. Ltd., allowing them to become members of the Shivraj Nagar Co-op Housing Society in Thane. The court dismissed the requests filed by the society against Mextech's membership claim.

The Background: Bungalows and Membership

This case began when Mextech Realty bought five bungalows in the Shivraj Nagar Co-op Housing Society back on April 7, 2008. After the purchase, Mextech applied for membership in the society. When the society didn't decide on their application in time, Mextech claimed they automatically became members.

Legal Battles: From 2008 to 2025

The society wasn't happy with this and filed a dispute in 2008, challenging the sale agreements. Anil Mutha, representing Mextech, appealed against the society's decision, but his appeals were initially rejected in 2005. However, in 2014, a higher authority allowed Mextech's appeals, prompting the society to file more requests.

Fresh Applications and Court Orders

On February 14, 2024, the court allowed Mextech to submit new applications for membership. Mextech did so on February 25, 2024, but the society rejected these applications in May 2024. Mextech appealed again, and by April 17, 2025, the appeal was allowed. The society's further appeals were dismissed on July 18, 2025.

Key Arguments: Shares and Society Rules

The society argued that Mextech's purchase broke a rule of the Maharashtra Co-operative Societies Act, which limits how many shares a member can hold. They also claimed the sale agreements were against public policy. Mextech's lawyer argued that the rule only applies when share certificates are given out, and that the law had changed to exclude these rules for housing societies.

Court's Decision: No Rule Breaking Found

Justice Amit Borkar ruled that the limits of the rule did not apply to housing societies under the new legal setup. The court noted that the law now focuses on managing residential properties rather than shares. Mextech's willingness to follow society rules was also a factor in the decision.

Summary of Verdict

The court dismissed the society's requests, confirming Mextech's membership, but emphasized that Mextech must follow certain conditions set by the society. This case shows how legal rules can change and affect property and membership rights in housing societies.

"The requests are to be dismissed," stated Justice Amit Borkar, confirming the legality of Mextech's membership.