Supreme Court of India
SHASHIN PATEL AND ANR.versusUDAY DALAL AND ORS.
- Citation
- 2026 INSC 125
- Decided
- 5 February 2026
- Disposal
- Case Partly allowed
- Bench
- VIKRAM NATH
Holding
The Supreme Court held that the appellants’ membership, ratified by the Society’s AGM resolutions, is valid and the Joint Registrar’s direction was beyond his jurisdiction.
Summary
The appellants, Shashin Patel and Bhavini Patel, heirs of the original occupier of Flat No.7 in Malboro House Co‑operative Housing Society, sought admission as members of the Society by paying the required contribution many years after the Society’s formation. Their application was initially rejected by the Society’s Authorised Officer, leading them to invoke statutory remedies under the Maharashtra Co‑operative Societies Act, 1960, resulting in a Special General Body Meeting being ordered and later a revision by the Divisional Joint Registrar admitting them as members. Three existing members of the Society challenged this admission in a writ petition, and the High Court set aside the revision order, holding that the Joint Registrar had exceeded his jurisdiction. On appeal, the Supreme Court examined whether the belated payment could be accepted and whether the Joint Registrar’s direction was valid. It held that the Society’s AGM resolutions of 11 August 2005 and reaffirmed on 30 September 2025 ratified the appellants’ membership, and that the Joint Registrar’s earlier direction could not invalidate this ratification. Consequently, the Court set aside the High Court’s order in part and partially allowed the appeals, confirming the appellants’ membership and the subsequent transfer of the flat to Capital Mind Advisory Services.
Issues considered
- The legality of admitting the appellants as members of the co‑operative housing society despite the belated payment of the membership contribution.
- Whether the Joint Registrar had jurisdiction to direct the Society’s Authorised Officer to grant membership to the appellants.
- Whether the resolutions passed in the Society’s AGMs ratify the appellants’ membership and subsequent transfer of the flat.
Legislation cited
- Maharashtra Co-operative Societies Act, 1960s. 152, s. 154, s. 23(2)
Headnote
Issue for Consideration Whether the belated prayer of the appellants in Civil Appeal No. 795 of 2026, being the successors-in-interest of ‘NP’, to gain membership in the Society by making payment at a highly belated stage, could have been accepted by the Joint Registrar. – ‘NP’- Predecessor-in-interest of the appellants was in occupation of Flat No.7 in the building in the Co-operative Housing Society (Society-respondent No.7) as a tenant thereof – Dispute inter se parties pertains to Flat No.7 and the claim of the appellants for grant
Subjects
Co-operative Housing SocietyMembership in the Co-operative Housing SocietyMembership ratifiedMembers of the Co-operative Housing SocietyDelayed payment of the membership feePayment at a highly belated stageGeneral Body in the AGMPeaceful possession and occupationDeputy Registrar, Co-operative SocietiesAuthorised Officer of the Co-operative Housing SocietyJoint Registrar of the Co-operative Housing SocietySpecial General Body Meeting (SGBM) of the Co-operative Housing Society
Judgment
[2026] 2 S.C.R. 381 : 2026 INSC 125
Shashin Patel and Anr.
v.
Uday Dalal and Ors.
(Civil Appeal No. 795 of 2026)
05 February 2026
[Vikram Nath and Sandeep Mehta,* JJ.]
Issue for Consideration
Whether the belated prayer of the appellants in Civil Appeal
No. 795 of 2026, being the successors-in-interest of ‘NP’, to
gain membership in the Society by making payment at a highly
belated stage, could have been accepted by the Joint Registrar.
Headnotes†
Maharashtra Co-operative Societies Act, 1960 – ‘NP’-
Predecessor-in-interest of the appellants was in occupation
of Flat No.7 in the building in the Co-operative Housing
Society (Society-respondent No.7) as a tenant thereof –
Dispute inter se parties pertains to Flat No.7 and the claim
of the appellants for grant of membership of the society –
Allegedly there was disinclination on the part of ‘NP’ to make
the requisite contribution be admitted as a member thereof
and he conveyed his intention to continue as a tenant of the
Society – Appellants in Civil Appeal No. 795 of 2026 initiated
steps for being admitted as members of the Society and filed
an application before the Authorised Officer of the Society –
However, the Authorised Officer informed the appellants
that he was not empowered to take any policy decision
and, therefore, could not decide the appellants’ application
for membership – Appellants filed appeal before the Deputy
Registrar, Co-operative Societies u/s.23(2) – Deputy Registrar
directed the Authorised Officer to convene a Special General
Body Meeting (SGBM) of the Society for taking a decision
on the appellants’ application for membership within thirty
days – Appellants filed Revision before the Divisional Joint
Registrar, allowed and the appellants were inter alia directed
* Author
382 [2026] 2 S.C.R.
Supreme Court Reports
to be admitted as joint-members of the Society in respect of
Flat No.7 – Challenged by three members of the erstwhile
society (respondent Nos.1-3 herein), Writ Petition filed
before the High Court – In the interregnum, the appellants
conveyed the flat in question to one M/s. Capital Mind
Advisory Services Private Limited (appellant in Civil Appeal
@ SLP (Civil) No.36057 of 2025) – High Court partly allowed
the writ petition:
Held: Peaceful possession and occupation of ‘NP’ and, thereafter,
his legal heirs, i.e. the appellants in Civil Appeal 795 of 2026,
over Flat No.7 has never been in question – The Society, in its
AGM held on 30.09.2025, resolved to re-affirm the proceedings
and decisions of the AGM dated 11.08.2005, and the membership
of the appellants in Civil Appeal 795 of 2026 was accepted by
the General Body as being legal and valid – Furthermore, it also
accepted and approved the membership of M/s. Capital Mind
Advisory Services Private Limited, in respect of Flat No.7 in its AGM
held on 30.09.2025 – High Court, while allowing the writ petition
filed by respondent Nos.1-3, reasoned that the Joint Registrar
had acted in excess of his jurisdiction in directing the Authorised
Officer of the society to grant membership to the appellants in
Civil Appeal 795 of 2026 – However, such a conclusion cannot
be countenanced in view of the fact that the appellants in the
said appeal had initially approached the Authorised Officer of
the society by way of an application seeking membership, which
was refused on the ground that he did not have the jurisdiction to
take policy decisions – It was only thereafter that the appellants
in the said civil appeal availed of the statutory remedies of appeal
and revision provided under the MCS Act, 1960 – Furthermore,
in view of the decision taken by the General Body in the AGM
dated 30.09.2025, the membership of the appellants in the said
civil appeal has already been ratified – Hence, the reasoning
adopted by the High Court is unsustainable in law and cannot
be upheld – The entitlement of the appellants as members of
the Society is recognized – Thus, the subsequent transfer of Flat
No.7 in favour of M/s. Capital Mind Advisory Services Private
Limited, by a registered Deed of Transfer and the consequential
admission of the said transferee as a member of the Society,
which has already been ratified by the General Body in its AGM
held on 30.09.2025, must necessarily stand recognised in law –
[2026] 2 S.C.R. 383
Shashin Patel and Anr. v. Uday Dalal and Ors.
Impugned judgment of the High Court set aside to the extent of
Para Nos.58 (ii) to (i). [Paras 42-46]
List of Acts
Maharashtra Co-operative Societies Act, 1960.
List of Keywords
Co-operative Housing Society; Membership in the Co-operative
Housing Society; Membership in the Co-operative Housing Society
ratified; Members of the Co-operative Housing Society; Delayed
payment of the membership fee; Payment at a highly belated stage;
General Body in the AGM; Peaceful possession and occupation;
Deputy Registrar, Co-operative Societies; Authorised Officer of the
Co-operative Housing Society; Joint Registrar of the Co-operative
Housing Society; Special General Body Meeting (SGBM) of the
Co-operative Housing Society.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 795 of 2026
From the Judgment and Order dated 19.11.2025 of the High Court
of Judicature at Bombay in WP No. 9470 of 2025
With
Civil Appeal No. 796 of 2026
Appearances for Parties
Advs. for the Appellant(s):
Shyam Divan, Rudreshwar Singh, Balbir Singh, Sr. Advs., Ms.
Tushita Ghosh, Aniruddha Choudhury, Rohit, Pranav Deshmukh, Ms.
Tanishka, Mahesh Agarwal, Rishi Agrawala, Himanshu Saraswat,
Ms. Bedotroyi Gupta, Ms. Pratima Mishra, E. C. Agrawala.
Advs. for the Respondent(s):
Dhruv Mehta, Neeraj Kishan Kaul, Aniruddha Joshi, Sr. Advs.,
Deeptakirti Verma, Ms. Neha Sharma, Ms. Nishi Sangtani,
Subhoday Banerjee, Aayush Agarwala, Yash Dhruva, Shlok Parekh,
Aman Shekhar, Deeptakirti Verma, Ms. Neha Sharma, Subhoday
Banerjee, Aayush Agarwala, Yash Dhruva, Shlok Parekh, Aman
Shekhar, M/s. PBA Legal.
384 [2026] 2 S.C.R.
Supreme Court Reports
Judgment / Order of the Supreme Court
Judgment
Mehta, J.
1. Heard.
2. Leave granted.
3. At the outset, it is apposite to note that Shri Neeraj Kishan Kaul,
learned senior counsel representing respondent Nos.1 to 3, namely,
Uday Dalal, Ajay Biyani and Rina Pritish Nandy, and Shri Dhruv
Mehta, learned senior counsel representing respondent No.7-Malboro
House Co-operative Housing Society Limited1, entered appearance
before this Court on caveat and were accordingly heard.
4. Shri Neeraj Kishan Kaul, learned senior counsel representing the
contesting respondent Nos. 1-3 (writ petitioners before the High
Court), emphatically submitted that the said respondents are not
desirous of filing any reply/counter affidavit and that the matter may
be heard as it stands. Accordingly, we have heard the arguments
advanced by the learned counsel for the appellants as well as learned
counsel for the contesting respondents on merits.
5. These two appeals by special leave call into question the judgment
dated 19th November, 2025 passed by the learned Single Judge of
the High Court of Judicature at Bombay2 in Writ Petition No.9470 of
2025. The dispute inter se parties pertains to Flat No. 7 situated in
the building known as Malboro House, located at 3-D, Dr. Gopalrao
Deshmukh Marg, Peddar Road, Mumbai - 400026, and the claim of
the appellants for grant of membership of the society.
6. Malboro House Co-operative Housing Society Limited (respondent
No.7) stands on a parcel of land situated at 3-D, Dr. Gopalrao
Deshmukh Marg, Peddar Road, Mumbai - 400026. The building
comprises of seven residential flats. The property was originally
owned by Smt. Soonabai Seervai, who conveyed her right, title, and
interest therein to M/s. Kamani Brothers Pvt. Ltd. The occupants of
1 Hereinafter, referred to as ‘the Society’.
2 Hereinafter, referred to as the “High Court”.
[2026] 2 S.C.R. 385
Shashin Patel and Anr. v. Uday Dalal and Ors.
all seven flats, including Shri Narendra Patel (predecessor-in-interest
of the appellants in Civil Appeal @ SLP(Civil) No. 36106 of 2025),
were tenants under M/s. Kamani Brothers Pvt. Ltd.
7. M/s. Kamani Brothers Pvt. Ltd. went into liquidation, and consequential
proceedings were initiated before the learned Company Judge of
the High Court. The company had outstanding liabilities, particularly
towards the KEC International Ltd. Employees’ Gratuity Fund,
approximately to the tune of Rs.61,36,000/-, which were required to
be settled in the course of the liquidation proceedings. The subject
building was under charge for recovery of the said amount.
8. The tenants occupying the seven flats collectively resolved to form
a cooperative housing society and submitted a proposal before the
learned Company Judge seeking conveyance of the said land and
building to the society. The proposal was accepted and, pursuant
to the order passed by the Company Judge and upon payment of a
sum of Rs.15 Lacs by the Society, the Official Liquidator executed
a deed of conveyance dated 31st May, 1995 in favour of the Chief
promoters, namely, Shri S. Agarwal and Shri Ashwin Parekh of the
proposed Kamani House Co-operative Housing Society Limited,
which was later rechristened as Malboro House Co-operative Housing
Society Limited (respondent No.7).
9. Indisputably, Shri Narendra Patel, being the predecessor-in-interest
of the appellants (Shashin Patel and Bhavini Patel) in Civil Appeal
@ SLP(Civil) No. 36106 of 2025, was in occupation of Flat No.7 as
a tenant thereof. The occupants of the remaining six flats, excluding
Shri Narendra Patel, made a collective contribution as mentioned
above to be paid to the Official Liquidator towards settlement of the
claims of KEC International Ltd. Employee’s Gratuity Fund. The Chief
Promoter of the Society addressed repeated communications to Shri
Narendra Patel, calling upon him to contribute his share, quantified
at Rs.5,00,000/-, towards induction in the Society and informing him
that upon payment of the said amount, he would be admitted as a
member thereof.
10. It is the case of the promoters that Shri Narendra Patel expressed
his disinclination to make the requisite contribution and conveyed
his intention to continue as a tenant of the Society. This assertion is
disputed by the appellants in Civil Appeal @ SLP(Civil) No. 36106
of 2025, being the successors of Shri Narendra Patel, who contend
386 [2026] 2 S.C.R.
Supreme Court Reports
that he had expressed readiness and willingness to make the said
contribution, subject to the promoters furnishing necessary particulars
and justification for the quantification of the amount so demanded.
11. The administration of the Society ran into heavy weather and
elections to the Managing Committee were not conducted regularly
whereupon, one of the members of the Society namely, Rina Pritish
Nandy (respondent No.3 herein), raised a grievance before the
Deputy Registrar, Cooperative Societies, D Division, Mumbai, alleging
that new committee had not been elected upon expiry of the term
of the Managing Committee which was perpetuating itself illegally.
The Deputy Registrar, acting on the aforesaid complaint, issued a
show cause notice on 17th February, 2025, and eventually passed
an order on 28th February, 2025, appointing an Authorised Officer
as Administrator to manage the affairs of the Society for the reason
that the erstwhile Committee had ceased to function and there was
a vacuum in the management. The Authorised Officer was further
directed to hold elections for constituting the Managing Committee
within a period of three months from the date of the said order.
12. Aggrieved by the aforesaid order, respondent Nos.1 and 2, along
with Raghu Palat, another member of the Society, preferred an
appeal before the Divisional Joint Registrar under Section 152 of the
Maharashtra Co-operative Societies Act, 19603. The said appeal came
to be dismissed by order dated 11th March, 2025 with the Divisional
Joint Registrar finding no infirmity in the order passed by the Deputy
Registrar, particularly in view of the fact that elections to constitute
the Managing Committee had not been held in accordance with the
provisions of the MCS Act, the Rules framed thereunder, and the
Bye-laws of the Society.
13. In the meanwhile, the appellants in Civil Appeal @ SLP(Civil) No.
36106 of 2025 initiated steps for being admitted as members of
the Society and, to that end, filed an application dated 11th March,
2025, before the Authorised Officer of the Society. Cheques drawn
towards the share capital, admission fee, and the contribution of
Rs.5,00,000/- were enclosed with the said application. However,
by a communication dated 17th March, 2025, the Authorised Officer
3 For short, ‘MCS Act’.
[2026] 2 S.C.R. 387
Shashin Patel and Anr. v. Uday Dalal and Ors.
informed the appellants that he was not empowered to take any policy
decision and, therefore, could not decide the appellants’ application
for membership.
14. Aggrieved thereby, the said appellants preferred an appeal before
the Deputy Registrar, Co-operative Societies under Section 23(2) of
the MCS Act. By order dated 4th April, 2025, the Deputy Registrar
disposed of the said appeal with a direction to the Authorised Officer
to convene a Special General Body Meeting (SGBM) of the Society
for taking a decision on the appellants’ application for membership
within a period of thirty days.
15. Dissatisfied with the aforesaid disposition, the appellants preferred
Revision Application No.138 of 2025 before the Divisional Joint
Registrar under Section 154 of the MCS Act. Upon hearing the
appellants and the Authorised Officer appearing for and on behalf
of the Society, the Divisional Joint Registrar, by order dated 23rd
April, 2025, allowed the revision. While doing so, the Revisional
Authority noted, inter alia, that the material on record indicated that
in the Annual General Meeting (AGM) of the Society held on 11th
August, 2005, a resolution had been passed to admit Shri Narendra
Patel as a member upon receipt of the requisite payment. It was
further observed that the Deputy Registrar had failed to verify the
relevant record and had overlooked the fact that the premises of
the Society had been acquired for and on behalf of the tenants.
For these reasons, the Divisional Joint Registrar concluded that
the appellants, being the bona fide occupants of Flat No. 7, were
entitled to be admitted as members of the Society. Consequently, the
appellants, namely, Shashin Patel and Bhavini Patel were directed to
be admitted as joint-members of the Society in respect of Flat No.7,
and the Respondent No. 7-Society/Authorised Officer was directed
to issue the share certificate in their favour by making the requisite
entries in the “I” and “J” Registers and other relevant books and
records of the Society.
16. It would be apposite to mention here that after the order dated 23rd
April, 2025, passed by the Divisional Joint Registrar allowing the
revision filed by appellants in Civil Appeal @ SLP(Civil) No. 36106
of 2025, respondent Nos. 1 to 3 also instituted an eviction suit,
being RAE No. 590 of 2025 in the Court of Small Causes, Mumbai,
praying for a decree of eviction and injunction. The foundation of
388 [2026] 2 S.C.R.
Supreme Court Reports
the said suit was allegedly a forged and fabricated letter, written by
Shri Narendra Patel way back in 1995, which stated that he had
declined to accept the membership and expressed his willingness to
continue as a tenant. The appellants claim that they became aware
of these facts only upon receipt of the copy of the plaint and the
accompanying documents. The said suit is still pending before the
Court of Small Causes, Mumbai.
17. Being aggrieved by the orders dated 11th March, 2025 and 23rd April,
2025 passed by the Divisional Joint Registrar, three members of the
erstwhile society, namely, Uday Dalal, Ajay Biyani and Rina Pritish
Nandy (respondent Nos. 1-3 herein) filed the captioned Writ Petition
No. 9470 of 2025 before the High Court impleading the Divisional
Joint Registrar, the Deputy Registrar, Malboro House Co-operative
Housing Society Limited, the Administrator, and the appellants
(Shashin Patel and Bhavini Patel) as party respondents.
18. It may also be noted that, in the interregnum, the appellants (Shashin
Patel and Bhavini Patel) conveyed the flat in question to M/s. Capital
Mind Advisory Services Private Limited (appellant in Civil Appeal @
SLP (Civil) No.36057 of 2025) by a registered sale deed. The No
Objection Certificate of the Society for the said transfer was obtained
by the appellants through the Administrator by communication/letter
dated 26th May, 2025.
19. The High Court, by the impugned order dated 19th November, 2025,
partly allowed the writ petition in the following terms: -
“Hence, the following order:
(i) The Petition stands partly allowed.
(ii) The impugned order dated 23rd April 2025 passed by
the Joint Registrar in Revision Application No. 138 of 2025
admitting the Respondent Nos. 6 and 7 jointly as member
of the Society (R4) stands quashed and set aside.
(iii) All consequential actions taken pursuant to the
aforesaid order dated 23rd April 2025 also stand quashed
and set aside.
(iv) The order passed by the Deputy Registrar in the Appeal
No. 34 of 2025 dated 4 April 2025 stands restored.
[2026] 2 S.C.R. 389
Shashin Patel and Anr. v. Uday Dalal and Ors.
(v) A Special General Meeting of the Society (R4) be
convened by the Authorised Officer and the Society (R4)
shall take a decision on the Application of the Respondent
Nos. 6 and 7 to grant the membership of the society (R-4),
within a period of four weeks from today.
(vi) The said meeting shall be presided over by the
Authorised Officer. However, only the members of the
society (R4) shall be entitled to vote in the said meeting.
Respondent Nos. 6 and 7 jointly or Respondent No. 9 shall
not be eligible to participate in the said Special General
Body Meeting.
(vii) The challenge to the order dated 11th March 2025 in
Appeal No. 69 of 2025 stands dismissed.
(vii) The original Minute Book produced by the Assistant
Registrar/Authorised Officer, be returned to the Authorised
Officer after keeping a true copy of the Resolution dated
11th August 2005 on record.
(ix) Rule made absolute to the aforesaid extent.
No costs.”
20. The aforesaid order dated 19th November, 2025 passed by the learned
Single Judge of the High Court is the subject matter of challenge in
Civil Appeal @ SLP (Civil) No.36106 of 2025 preferred by the original
respondent Nos.6 and 7 before the High Court, namely, Shashin
Patel and Bhavini Patel, and Civil Appeal @ SLP (Civil) No.36057
of 2025 preferred by the subsequent purchaser M/s. Capital Mind
Advisory Services Private Limited.
Submission on behalf of the appellants
21. Learned counsel appearing on behalf of the appellants in Civil Appeal
@ SLP (Civil) No.36106 of 2025, being the legal heirs of late Shri
Narendra Patel, vehemently and fervently urged that the Society had
already taken a decision on 11th August, 2005, to admit Shri Narendra
Patel, the original occupier of Flat No.7 and predecessor-in-interest
of the appellants as a member of the society. He was at all times
ready and willing to make the requisite contribution towards acquiring
membership of the Society. It was urged that the bona fide request
390 [2026] 2 S.C.R.
Supreme Court Reports
made by Shri Narendra Patel for being furnished the particulars and
basis of calculation of the amount demanded was not acceded to by
the chief promoters and, as a result, the payment could not be made.
22. It was urged that although the High Court noticed the aforesaid
contentions, it failed to appreciate the same in the correct perspective.
It was further submitted that the factum of mismanagement in the
affairs of the Society is not in dispute and, in fact, stands affirmed
in the impugned judgment. Attention of the Court was drawn to the
complaint lodged by one of the members of the Society, namely, Rina
Pritish Nandy (respondent No.3), to the Deputy Registrar, alleging that
despite the expiry of the term of the Managing Committee, elections
were not being conducted and that the existing members were
illegally continuing to run the affairs of the Society. Acting thereon, the
Deputy Registrar issued a show cause notice and, upon conducting
an enquiry, found the allegations to be substantiated. Consequently,
by order dated 28th February, 2025, an Authorised Officer was
appointed to manage the affairs of the Society. These findings
have been affirmed by the High Court. It was, therefore, contended
on behalf of the appellants that in view of the mismanagement by
those at the helm of the affairs of the Society and failure to furnish
the requisite details to Shri Narendra Patel, the amount demanded
towards securing membership in respect of Flat No.7 could not be
deposited.
23. It was submitted that the appellants in Civil Appeal @ SLP (Civil)
No.36106 of 2025, being the legal heirs of late Shri Narendra Patel,
approached the Authorised Officer seeking permission to deposit the
requisite amount towards share money and admission fee. Upon the
Authorised Officer expressing his inability to take a decision on the
issue, the appellants approached the Deputy Registrar by preferring
an appeal under Section 23(2) of the MCS Act.
24. The Deputy Registrar disposed of the said appeal by order dated
4th April, 2025, issuing a positive direction to the Authorised Officer
to convene a Special General Board Meeting of the Society for
taking a decision on the appellants’ application seeking the grant of
membership. However, the fact remains that the affairs of the Society
were in a disarray, and the meeting could not be convened. Thus,
aggrieved, the appellants preferred a revision before the Divisional
Joint Registrar, which came to be allowed by order dated 23rd April,
2025, taking note of the fact that the AGM of the Society held on
[2026] 2 S.C.R. 391
Shashin Patel and Anr. v. Uday Dalal and Ors.
11th August, 2005 had already resolved to admit Shri Narendra Patel
as a member.
25. It was urged by learned counsel for the appellants in Civil Appeal @
SLP (Civil) No.36106 of 2025 that once the Society itself had drawn
a conscious and considered resolution dated 11th August, 2005, to
admit Shri Narendra Patel as a member, and since the said resolution
had never been revoked, recalled or challenged before any forum,
the delay in depositing the requisite amount could not be used to
defeat the rights flowing therefrom. It was further submitted that
the appellants have already deposited the amount of Rs.5,00,000/-
along with interest calculated at the rate of 9% per annum and, as a
consequence, their membership in the Society stood duly affirmed.
26. It was also contended that the objections raised by the writ petitioners
and certain other members of the Society to the admission of the
appellants as members were misconceived and legally untenable. It
was urged that, at the highest, the Society could only seek payment of
some additional amount or enhanced interest from the said appellants
in order to compensate for the delay in making the payment.
27. Shri Balbir Singh, learned senior counsel appearing on behalf of
the appellant-M/s. Capital Mind Advisory Services Private Ltd.
(subsequent purchaser) in Civil Appeal @ SLP (Civil) No.36057 of
2025, contended that, indisputably, Shri Narendra Patel had been
in occupation of Flat No.7 as a tenant under M/s. Kamani Brothers
Private Limited for several decades and, therefore, his right to seek
admission to membership of the Society could not be defeated
merely on the ground that he had sought particulars of calculation
of the amount of Rs.5,00,000/- demanded from him.
28. It was further submitted on behalf of the appellants in both the civil
appeals that by effect of the order of the High Court, the registered
sale deed executed in favour of M/s. Capital Mind Advisory Services
Private Limited (the appellant in Civil Appeal @ SLP(Civil) No.
36057 of 2025) has been nullified, a consequence which cannot be
countenanced in the eyes of law.
29. Learned counsel for the appellants vehemently contended that the
factum of the eviction suit filed before the Court of Small Causes,
Mumbai, was not disclosed by respondent Nos.1-3 (writ petitioners
before the High Court) in the pleadings of the writ petition, and on
this ground alone, the writ petition ought to have been dismissed.
392 [2026] 2 S.C.R.
Supreme Court Reports
Without prejudice to the above contention, it was further submitted
that the issues relating to the status of Shri Narendra Patel, his legal
heirs, and the subsequent purchaser of Flat No.7 ought to have been
adjudicated in the eviction suit itself, which would necessarily have
to be decided on the basis of evidence led by the parties therein.
It was argued that the High Court was not justified in entertaining
the writ petition involving serious disputed questions of fact, which
required evidence to be adduced by the parties, and therefore, the
impugned order is unsustainable in the eyes of the law.
30. It was, thus, urged by the learned counsel for the appellants that the
impugned order is arbitrary and unjust, as the same fails to strike a
balance in equities. On these grounds, they implored the Court to
set aside the impugned order and allow the appeals.
Submission on behalf of the respondents
31. Per contra, Shri Neeraj Kishan Kaul, learned senior counsel appearing
on behalf of respondent Nos.1 to 3, being the writ petitioners before the
High Court, vehemently and strenuously contested and countered the
submissions advanced on behalf of the appellants. He submitted that
the case set up by the appellants is full of falsehoods and is tainted
by concealment of material facts. It was urged that Shri Narendra
Patel, the original occupant of Flat No.7 and predecessor-in-interest
of the appellants in Civil Appeal @ SLP (Civil) No.36106 of 2025,
had consciously avoided depositing the contribution amount, which
had been equitably apportioned amongst the flat-occupants towards
acquisition of the building through the Society. The argument raised
that the amount was not paid as the account details had not been
provided, is flimsy, far-fetched, and untenable.
32. It was further urged that since Shri Narendra Patel did not deposit
his contribution to gain membership of the society, the remaining six
members of the Society were constrained to contribute amounts in
excess of their respective shares for the purpose of acquiring the
building which they were occupying as tenants of the Company M/s.
Kamani Brothers Private Limited, which had gone into liquidation.
These six members acted in a bona fide manner to save the building
which faced imminent likelihood of being auctioned for recovery of the
statutory dues of the company. It was contended that Shri Narendra
Patel tried to wriggle out his obligations towards the collective
[2026] 2 S.C.R. 393
Shashin Patel and Anr. v. Uday Dalal and Ors.
contribution by using a subterfuge of seeking the account details
and, in that manner, avoided payment of the amount for induction
as a member of the Society for over two decades.
33. Shri Kaul further submitted that the grant of membership to the
appellants by the Revisional Authority virtually tantamounts to
encroachment on the autonomy of the Society and grants immunity
to the fraudulent stand of Shri Narendra Patel, who continued to
remain in occupation of Flat No.7 without contributing a dime towards
his share in the collective acquisition of the property, the burden
whereof was borne by the remaining members under compulsion.
It was urged that the belated attempt on the part of the appellants
to deposit the originally quantified amount of Rs.5,00,000/- towards
gaining membership ought to have been repelled outright, as such
payment was made only with a view to secure and safeguard their
future interest in the property and to keep alive a speculative claim
over the same, rather than in bona fide compliance with the demand
raised in the year 2005. He submitted that the cost of the property
has risen exponentially over the years and thus, the appellants
cannot be allowed to walk away with the membership of the Society
by merely making payment of the original amount of Rupees Five
Lakhs with paltry interest.
34. He urged that the Joint Registrar lacked jurisdiction to grant
membership to the appellants in Civil Appeal @ SLP (Civil) No.36106
of 2025, the same being a matter falling exclusively within the domain
of the Society. It was further submitted that the judgment rendered by
the High Court, whereby the order passed by the Joint Registrar was
set aside, is just and proper and does not call for any interference in
exercise of the extraordinary jurisdiction conferred upon this Court
under Article 136 of the Constitution of India.
35. Shri Kaul, responding to the plea set up by the appellant-M/s. Capital
Mind Advisory Services Private Ltd. in Civil Appeal @ SLP(Civil)
No.36057 of 2025 submitted that the said appellant is nothing but
a speculative property dealer and had consciously purchased the
property under litigation with full knowledge of the pending disputes in
relation to the membership of the Society. It was contended that the
belated and time-barred deposit of the membership amount was made
at the instance of the said appellant and, in these circumstances, it
could not claim any equitable relief to validate the sham transaction.
394 [2026] 2 S.C.R.
Supreme Court Reports
36. Respondent No.7-Society, acting through the Administrator, is
represented by Shri Dhruv Mehta, learned senior counsel, who
on instructions, fully supported the cause of the appellants. Shri
Mehta urged that there was no illegality in the order admitting the
successors of Shri Narendra Patel as members of the Society and,
as a consequence thereof, the conveyance deed dated 26th May,
2025, executed by Shashin Patel and Bhavini Patel in favour of
M/s. Capital Mind Advisory Services Private Limited is valid in the
eyes of law.
37. He further submitted that, as law does not prohibit admission of the
appellants as members at a belated stage, the Society may raise a
claim for higher interest or penal charges on the amount originally
determined in the year 1995 for the grant of membership. Since
the appellants in Civil Appeal @ SLP (Civil) No.36106 of 2025 have
already deposited the membership amount, calculating interest at
the rate of 9%, there is no difficulty in accepting their membership
claim. He urged that, at best, the members of the Society, objecting
to the claim for membership made by the said appellants, may have
a cause to agitate for enhanced interest on the delayed payment of
the membership fee. Such issues can be raised and settled in the
AGM of the Society.
Discussion and Analysis
38. We have given our thoughtful consideration to the submissions
advanced at bar and have gone through the material placed on
record. We have also carefully perused the impugned judgment.
39. The short controversy which falls for consideration of this Court in
these appeals is whether the belated prayer of the appellants in Civil
Appeal @ SLP (Civil) No.36106 of 2025, being the successors-in-
interest of Shri Narendra Patel, to gain membership in the Society
by making payment at a highly belated stage, could have been
accepted by the Joint Registrar.
40. The fact that the said appellants are the legal heirs of Shri Narendra
Patel, who was admittedly in occupation of Flat No.7 for several
decades, is not in dispute. It is also undisputed that in the year 1995,
occupants of the flats, being the erstwhile tenants of M/s. Kamani
Brothers, collectively resolved to form a co-operative housing society
to stake a claim of ownership on the building. They filed an application
[2026] 2 S.C.R. 395
Shashin Patel and Anr. v. Uday Dalal and Ors.
to that effect before the learned Company Judge of the Bombay
High Court, before whom the liquidation proceedings were pending.
41. The said application was accepted, and the Society was conveyed
the right, title, and interest in the building in question in accordance
with law. Shri Narendra Patel, however, did not make payment of
the contribution derived towards his induction as a member of the
society in respect of Flat No.7 and took shelter behind a plea that
the necessary particulars and justification for the quantification of
the amount were not provided. For the present, it is not necessary
to delve into the merits of the said contention. The crucial fact which
remains undisputed is that the peaceful possession and occupation
of Shri Narendra Patel and, thereafter, his legal heirs, i.e., Shashin
Patel and Bhavini Patel, the appellants in Civil Appeal @ SLP (Civil)
No.36106 of 2025, over Flat No.7 has never been in question. The
erstwhile members of the Society issued a letter dated 13th June,
1995 to Shri Narendra Patel offering him admission to the society
membership subject to payment of Rs.5,00,000/-. The said offer letter
is undisputed and does not appear to have ever been withdrawn.
Further, at the Annual General Meeting (AGM) of the Society held
on 11th August 2005, a resolution was passed resolving to admit Shri
Narendra Patel, the original occupier of Flat No. 7 and predecessor-
in-interest of the appellants in Civil Appeal @ SLP (Civil) No.36106
of 2025, as a member of the Society upon receipt of the requisite
payment.
42. In such a situation, the determinative issue would be whether the
appellants in Civil Appeal @ SLP(Civil) No. 36106 of 2025 could
be denied the benefit of seeking membership of the Society while
continuing to remain in occupation of the premises. It is not the case
of the writ petitioners before the High Court (respondent Nos.1 to
3 herein) that the occupation of Shri Narendra Patel or that of his
successors, namely, the appellants herein, in respect of Flat No.7 is
illegal, nor is it their case that any proceedings were initiated by the
Society before any competent forum prior to 2025 for evicting them
from the premises. In this backdrop, denial of the appellants’ request
for grant of membership would create a serious anomaly inasmuch
as the appellants would continue to occupy Flat No.7 without being
conferred membership of the Society, creating a subsisting tussle
and friction with the remaining occupants of the building/members
of the Society.
396 [2026] 2 S.C.R.
Supreme Court Reports
43. It is apposite to mention here that the Society, in its AGM held on 30th
September, 2025, resolved to re-affirm the proceedings and decisions
of the AGM dated 11th August, 2005, and that the membership of
the appellants in Civil Appeal @ SLP(Civil) No. 36106 of 2025, i.e.,
Shashin Patel and Bhavini Patel was accepted by the General Body
as being legal and valid. It was further resolved that the appellants
in Civil Appeal @ SLP(Civil) No. 36106 of 2025 had thereafter
transferred Flat No. 7 to M/s. Capital Mind Advisory Services Private
Limited (appellant in Civil Appeal @ SLP(Civil) No. 36057 of 2025)
under a duly registered Deed of Transfer, pursuant to which M/s.
Capital Mind Advisory Services Private Limited was admitted as a
member of the Society. The General Body recorded that the said
transfer and admission were in accordance with the Society’s bye-
laws and the provisions of the MCS Act, and accordingly accepted
and approved the membership of M/s. Capital Mind Advisory Services
Private Limited, in respect of Flat No. 7. We have not been informed
about the minutes of the AGM dated 30th September, 2025, being
challenged before any forum.
44. The High Court, while allowing the writ petition filed by respondent
Nos. 1-3, reasoned that the Joint Registrar had acted in excess of his
jurisdiction in directing the Authorised Officer of the society to grant
membership to the appellants in Civil Appeal @ SLP (C) No.36106
of 2025. However, such a conclusion cannot be countenanced in
view of the fact that the appellants in the said appeal had initially
approached the Authorised Officer of the society by way of an
application seeking membership, which came to be refused on the
ground that he did not have the jurisdiction to take policy decisions.
It was only thereafter that the appellants in the said civil appeal
availed of the statutory remedies of appeal and revision provided
under the MCS Act, 1960. Furthermore, in view of the decision taken
by the General Body in the AGM dated 30th September, 2025, the
membership of the appellants in the said civil appeal has already
been ratified. Hence, the reasoning adopted by the High Court is
unsustainable in law and cannot be upheld.
45. In this backdrop, the only equitable solution would be to recognise
the entitlement of Shashin Patel and Bhavini Patel as members of the
Society. Once such entitlement is recognised, the subsequent transfer
of Flat No.7 in favour of M/s. Capital Mind Advisory Services Private
Limited, by a registered Deed of Transfer and the consequential
[2026] 2 S.C.R. 397
Shashin Patel and Anr. v. Uday Dalal and Ors.
admission of the said transferee as a member of the Society, which
has already been ratified by the General Body in its AGM held on
30th September, 2025, must necessarily stand recognised in law.
46. In the wake of the discussion made hereinabove, we hereby set
aside the impugned judgment of the High Court to the extent of
Para Nos. 58 (ii) to (vi).
47. We, however, provide that the aggrieved members of the Society,
if so advised, would be at liberty to move an application before the
appropriate authority/body for the determination of a suitable additional
amount payable by the appellants by way of enhanced interest, as
may be determined, having regard to the significant delay in making
payment of the contribution for the acquisition of membership in the
Society. If any challenge is laid to the decision taken in the AGM
dated 30th September, 2025, as to the membership of the appellants,
the same would be examined as per law without being prejudiced
by the above observations.
48. It is further made clear that the parties will be at liberty to work out
their remedies before the appropriate forum(s) in accordance with law.
49. The appeals are partly allowed in these terms. No order as to costs.
50. Pending applications, if any, shall also stand disposed of.
Result of the case: Appeals partly allowed.
†
Headnotes prepared by: Divya Pandey
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