Bombay High Court settles jurisdiction in Mumbai housing society’s redevelopment dispute
The Bombay High Court has clarified that a dispute over the redevelopment of a cooperative housing society's property in Mumbai falls under the jurisdiction of the Cooperative Court. The ruling, made by Justice Amit Borkar, settles a long-standing debate over where such cases should be heard.
The dispute, which has been ongoing since 2005, centers around a redevelopment agreement between the cooperative housing society and Pancharatna Properties. The society's Administrator approved the redevelopment without holding elections, sparking a controversy. The developer was granted a power of attorney and a development agreement for Rs 11.74 crore.
Petitioners argued that the entire controversy 'touches the business of the society' under Section 91 of the Maharashtra Cooperative Societies (MCS) Act, 1960. They challenged the redevelopment as 'illegal' due to the lack of authority by the Administrator. Justice Borkar agreed with the petitioners, stating that the dispute directly concerns the society's management and business.
Initially, the Cooperative Court ruled it had jurisdiction, but this was later set aside by the Cooperative Appellate Court. The developer contended that the Cooperative Court had no jurisdiction as it acquired interest in the property prior to the dispute. However, the High Court quashed the Appellate Court's 2019 order and restored the Cooperative Court's jurisdiction to hear the case on all issues.
The Bombay High Court's ruling brings clarity to the jurisdiction of such disputes, ensuring that they are heard by the appropriate court. The case will now return to the Cooperative Court for further proceedings.
