Mumbai, August 2024: In a significant ruling, the Bombay High Court has provided clarity on the applicability of guidelines related to society redevelopment under the Maharashtra Cooperative Societies Act, 1960 (MCS Act). The judgment, delivered by Single Judge Sharmila Deshmukh J on July 15, 2024, in the case of Vilas Vishnu Jadhav and Anr. vs. the State of Maharashtra Through Secretary and Ors., addresses the disqualification of managing committee members for non-compliance with government resolutions (GR) related to society redevelopment.
The case revolved around two orders issued under Section 79A (3) of the MCS Act, which disqualified the Petitioners from membership in the Managing Committee of their society for six years. The disqualification was based on a complaint filed on January 9, 2020, by other society members, who alleged that the Petitioners had failed to comply with a GR dated July 4, 2019, concerning society redevelopment.
Respondent No.2, after reviewing the complaint and adjudicating the matter, concluded that the Petitioners did not adhere to the stipulations of the GR, leading to their disqualification under Section 79A (3) of the MCS Act.
Court’s Observations and Judgment
The Bombay High Court reviewed the GR dated July 4, 2019, which superseded earlier guidelines issued on January 3, 2009. The Court referenced the Kamgar Swa Sadan Co-operative Housing Society Ltd. case, wherein the guidelines of January 3, 2009, were deemed directory and not mandatory. The Court noted that the GR dated July 4, 2019, does not include any consequences for non-compliance, similar to the earlier guidelines.
Justice Sharmila Deshmukh stated, “Nothing has been pointed out from the Government Resolution dated 4th July 2019 which would deviate from the finding rendered by the learned Single Judge in Kamgar Swa Sadan Housing Society Ltd. (supra) in the context of the Government Resolution dated 3rd January 2009 and can be considered as mandatory.”
The Court further held that since the GR dated July 4, 2019, is not mandatory, the Petitioners’ non-compliance does not warrant disqualification under Section 79A (3) of the MCS Act. The Court found that the operative part of the impugned order was inconsistent with its findings and therefore had to be read as disqualifying the Petitioners only from being members of the Managing Committee, not from society membership as a whole.
Implications of the Ruling
This ruling is pivotal for cooperative housing societies in Maharashtra as it clarifies that government guidelines related to redevelopment, unless explicitly stated as mandatory, are considered directory. This means that non-compliance with such guidelines cannot automatically result in the disqualification of managing committee members under Section 79A (3) of the MCS Act.
The judgment is likely to impact future cases involving society redevelopment and the interpretation of government resolutions, providing a clearer legal framework for managing committee members and society members alike.
