Bombay HC Rules Housing Societies Cannot Decide Flat Ownership Disputes, Limits Role to Membership Only

Court rules cooperative housing societies can grant membership for administration, but title and inheritance disputes must be settled in civil court.

In an important ruling for flat owners and housing society members, the Bombay High Court has said cooperative housing societies cannot decide ownership, succession or title disputes among family heirs.

The court clarified that a housing society’s role is limited to granting membership for administrative purposes and maintaining records, not deciding who legally owns a flat.

Justice Amit Borkar passed the order while dismissing a petition filed by a Malad-based cooperative housing society that had challenged an earlier decision granting deemed membership of a flat to one of the legal heirs.

The dispute involved a flat originally held jointly by late Ramlal Dhanuka and Pannadevi Dhanuka. After family litigation over ownership was later withdrawn, one of their sons, Radheshyam Dhanuka, applied to the society for membership as a legal heir.

When no decision was taken, he approached authorities, and the Divisional Joint Registrar granted relief in his favour.

The society challenged the order, arguing that there were multiple legal heirs and that membership could not be granted without consent of all family members. It also raised procedural objections regarding the form of the application.

Rejecting these arguments, the High Court observed, “A cooperative housing society is not a forum constituted for adjudicating title disputes, succession claims or proprietary entitlements between legal heirs.”

The court further said the society only needs to identify, on a prima facie basis, the person who appears to be the heir or legal representative for membership purposes.

“The recognition granted by the society neither creates title nor extinguishes title,” the court said.

It added that any real dispute over ownership must be resolved before a competent civil court.

On technical objections, the court held that procedure should not defeat justice. Even if the wrong form or bye-law was mentioned, the application was clearly based on inheritance and could not be rejected only on technical grounds.

“Procedural forms… are not intended to become instruments of injustice,” the court noted.

The bench also considered that no serious objections had been raised by other heirs at the relevant time and that earlier litigation over the flat had already been withdrawn.

Finding no illegality in the registrar’s order, the High Court dismissed the society’s petition.

The judgment is significant for thousands of cooperative housing societies, as it reinforces that societies manage membership and administration, but cannot act as courts in family property disputes.

Disclaimer: Property disputes depend on individual facts and documents. Readers should seek qualified legal advice for specific cases.