Quick Summary: The Bombay High Court dismissed petitions by Shivaji Nagar Co-op Housing Society against Maxtech Realty regarding membership issues after property purchases in Thane.
The case involves Shivaji Nagar Co-op Housing Society in Thane and Maxtech Realty, also known as Nandivardhan Constructions. The disagreement began when Maxtech bought five bungalows from different owners on April 7, 2008. They applied to join the society, claiming they should automatically become members when the society didn't respond in time.
Shivaji Nagar questioned the property sales and refused membership. Anil Mutha, representing Maxtech, appealed to the Deputy Registrar, but the appeals were rejected in 2005. Maxtech then filed revisions, which were approved in 2014, leading to fresh applications in 2024.
Judge Amit Borkar decided on December 24, 2025, that the old rules didn't apply because the law had changed. The court found that Section 28, which limits ownership in societies, doesn't apply to housing societies after updates to the law.
"The law makes a clear distinction between owning property and holding shares," the judgment noted, emphasizing the difference between property ownership and shareholding.
Petitioner (Shivaji Nagar): Argued that Maxtech's purchase broke Section 28 of the Maharashtra Co-operative Societies Act, claiming it owned more than one-fifth of the society's shares.
Respondent (Maxtech): Responded that the law changed, and Section 28 no longer applied to housing societies. They were willing to meet the conditions for membership.
The court looked at several legal rules, including Section 28 and Chapter XIII-B of the Maharashtra Co-operative Societies Act, which removes certain limits for housing societies.
The court dismissed the petitions, stating that the law supports Maxtech's membership. The society must grant membership once Maxtech meets the specified conditions.
