As per case facts, petitioners, members of a cooperative housing society, challenged the functioning of its office bearers, leading to expulsion proceedings by Respondent No.1 society for allegedly making false ...
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AGK
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.13736 OF 2025
1.Abhay Manohar Paranjape,
Age 64 years, Occupation: Business,
R/at: C-14, Shivnagari Society,
Survey No.70, Kothrud, Pune 411 038
2.Shailendra Suresh Bagal,
Age 49 years, Occupation: Service,
R/at: K-8, Shivnagari Society,
Survey No.70, Kothrud, Pune 411 038
3.Narendra Yashwant Phatak,
Age 61 years, Occupation: Retired,
R/at: D-7-8, Shivnagari Society,
Survey No.70, Kothrud, Pune 411 038
4.Hrushikesh Sunil Deshmukh,
Age 47 years, Occupation: Service,
R/at: M-6, Shivnagari Society,
Survey No.70, Kothrud, Pune 411 038
5.Krishna Champatrao Deshpande,
Age 75 years, Occupation: Retired,
R/at: A-4, Shivnagari Society,
Survey No.70, Kothrud, Pune 411 038… Petitioners
V/s.
1.Shivnagari Cooperative Housing Society
Limited, O/at Survey No.70, Kothrud,
Pune 411 038.
2.The State of Maharashtra,
through Ministry of Cooperation,
Mantralaya, Mumbai – 400 032
1
ATUL
GANESH
KULKARNI
Digitally signed by
ATUL GANESH
KULKARNI
Date: 2026.02.12
18:43:27 +0530
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3.Divisional Joint Registrar, Cooperative
Societies, Pune Division, Pune,
O/at: Ground Floor, Sakhar Sankul,
Shivajinagar, Pune 411 005
4.Deputy Registrar, Cooperative Societies,
Pune, O/at: Krishna Plaza, Office
582/D, Gultekdi, Market Yard,
Pune 411 001… Respondents
Mr. Adwait Bhonde with Mr. Atharva Bhosale for the
petitioners.
Mr. Shrivallabh S. Panchpor with Ms. Mahima Sharma
for respondent No.1.
Mr. A.C. Bhadang, AGP for respondent Nos.2 to 4-
State.
CORAM:AMIT BORKAR, J.
DATED:FEBRUARY 11, 2026
JUDGMENT:
1.The petitioners have instituted the present writ petition
assailing the judgment and orders passed by the Revisional
Authority, whereby the revisions preferred by the petitioners came
to be dismissed and the action of respondent No.1 society in
expelling the petitioners from its membership was confirmed. The
expulsion has been upheld on the ground that the petitioners had
allegedly indulged in acts prejudicial and detrimental to the
normal and smooth functioning of the society.
2.The factual matrix giving rise to the present proceedings is as
follows. Respondent No.1 is a co operative housing society
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registered under the provisions of the Maharashtra Cooperative
Societies Act, 1960. The petitioners are members of the said
society and owners of residential flats therein. Between the years
2017 and 2021, the petitioners had actively questioned the
functioning of the office bearers of the society and had raised
various grievances before statutory and administrative authorities,
including the authorities under the Cooperative Department, the
office of the Sub Registrar, appellate forums, and the Pune
Municipal Corporation.
3.On 24 May 2021, respondent No.1 claims to have received a
complaint purportedly signed by 26 members of the society
seeking expulsion of the petitioners from membership. The
allegation in the said complaint was that the petitioners were
making false and defamatory complaints against the office bearers,
thereby damaging the reputation of the society and creating
obstacles in its day to day functioning. Thereafter, on 2 September
2023, the office bearers of respondent No.1 issued a show cause
notice to the petitioners under Section 35 of the Maharashtra
Cooperative Societies Act, alleging that the conduct of the
petitioners had adversely affected the reputation and working of
the society. By the said notice, the petitioners were informed that a
Special General Meeting would be convened on 22 October 2023
to consider a resolution for their removal from membership.
4.The petitioners, on 12 September 2023, submitted an
interim reply to the show cause notice and called upon the society
to furnish certain documents in support of the allegations. On 22
October 2023, a Special General Meeting of the society was
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convened. The petitioners were afforded an opportunity to present
their explanation to the charges levelled against them. Upon
consideration of the matter, a resolution for expulsion of the
petitioners from the membership of the society was passed by a
three fourth majority of the members present and voting.
5.On 4 December 2023, respondent No.1 submitted an
application before the Deputy Registrar seeking approval of the
resolution dated 22 October 2023, as required under the Act. The
petitioners filed their reply to the said proceedings on 15 February
2024. By order dated 27 June 2024, the Deputy Registrar granted
approval to the resolution and confirmed the removal of the
petitioners from membership of the society.
6.Being aggrieved by the order of the Deputy Registrar, the
petitioners preferred an appeal before the Divisional Joint
Registrar, which came to be dismissed by order dated 7 November
2024. The petitioners thereafter invoked the revisional jurisdiction,
which too was dismissed by order dated 20 August 2025. It is in
these circumstances that the present writ petition has been filed
challenging the concurrent orders passed by the authorities under
the Act.
7.Mr. Adwait Bhonde learned Advocate appearing for the
petitioners submitted that the show cause notice issued to the
petitioners enumerated nine distinct and specific charges. These
charges pertained to complaints regarding the construction of an
office room of Shrimant Shivanagari Ganesh Mandal Trust;
objections to inclusion of the name of the said Trust in the deemed
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conveyance and consequential mutation entry; objections to
installation of a generator at the cost of the society; institution of
Election Dispute No. 61 of 2018 before the Co operative Court at
Pune; institution of proceedings under Section 91 of the
Maharashtra Co operative Societies Act challenging the Annual
General Meeting and Special General Meeting; complaints lodged
with Kothrud Police Station; complaints addressed to the statutory
Auditor; complaints made to individual auditors namely Mr.
Hargapure and Mr. Salunke; and objections raised to recording of
the name of the society in the 7/12 extract.
8.It was submitted that insofar as the complaints lodged before
Kothrud Police Station are concerned, the Police Authorities did
not treat the same as false or frivolous. On the contrary, the Police
Authorities recorded that the dispute appeared to be of a civil
nature falling within the jurisdiction of the Co operative Court and
advised the petitioners to seek appropriate remedy before the
competent forum. According to the petitioners, this itself
demonstrates that the complaints cannot be branded as
mischievous or malicious.
9.Learned counsel further submitted that with regard to the
issue of installation of generator backup at the cost of the society,
the material on record indicates that several other members had
supported the stand taken by the petitioners. It was contended that
the impugned orders have completely overlooked such material
support and have erroneously treated the raising of such grievance
as misconduct attributable solely to the petitioners.
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10.In respect of the complaints made to the auditors, it was
submitted that out of four issues raised by the petitioners, two
were accepted by the auditors themselves. The auditors recorded
that certain concerns raised by the petitioners required attention.
It was contended that despite such findings, the authorities have
characterized the actions of the petitioners as frivolous, without
adverting to the auditors’ observations, thereby rendering the
impugned orders perverse and contrary to the record.
11.It was further submitted that a plain reading of the orders
passed by the Deputy Registrar, the Divisional Joint Registrar, and
the Learned Minister for Cooperation would show that the
documentary material placed on record by the petitioners was
neither examined nor discussed. According to the petitioners, the
orders do not reflect consideration of the evidence relied upon by
them.
12.Learned counsel contended that the authorities proceeded on
the premise that the allegations made by the respondent society
were correct, without subjecting them to independent scrutiny. On
that basis, it was concluded that the acts of the petitioners were
defamatory and obstructive to the functioning of the society. It was
urged that such approach discloses non application of mind and
failure to consider relevant material placed by the petitioners.
13.It was also submitted that the appellate and revisional
authorities did not undertake any independent examination of the
individual charges attributed to each petitioner. According to the
petitioners, unless each charge is assessed separately with
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reference to the role of each individual member, there can be no
proper adjudication. The absence of such scrutiny, it was urged,
constitutes a serious infirmity affecting the validity of the
impugned orders.
14.Learned counsel further submitted that the impugned orders
are non speaking and unreasoned. The authorities have largely
reproduced the submissions of the parties and have, in brief terms,
affirmed the expulsion. There is no detailed discussion of the
charges or analysis of the material on record. It was contended
that such mechanical exercise of jurisdiction is contrary to the
settled principle that every authority exercising quasi judicial
powers must record reasons in support of its conclusions.
15.It was submitted that even if the charges are considered
cumulatively, they do not amount to acts detrimental to the
interests or proper functioning of the society. It was urged that
expulsion from a housing society has serious consequences, as it
affects the member’s proprietary interest in the flat and thereby
implicates the protection under Article 300A of the Constitution of
India. According to the petitioners, special and compelling
circumstances must exist before resorting to such drastic action.
The allegations, at the highest, amount to grievances raised
against the managing committee and cannot be equated with acts
prejudicial to the society itself. In support of these submissions,
reliance was placed on the judgment of this Court in
Vishwas
Laxman Karande vs. The Minister for Cooperation, State of
Maharashtra & Ors., Writ Petition No.11078 of 2024, decided on 6
November 2025, and the decision of the Gujarat High Court in
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Rajendra S. Reddy vs. Additional Registrar (Appeals) & Others,
reported in (2008) 4 GLR 2772
.
16.Per contra, Mr. Panchpor, learned Advocate for respondent
No.1 society submitted that the action of expulsion was taken as a
measure of last resort, in view of repeated complaints lodged by
the petitioners against the managing committee and the society. It
was contended that the charges are self explanatory and that the
resolution for expulsion was passed by the requisite three fourth
majority of the members. The procedure prescribed under Section
35 of the Maharashtra Co operative Societies Act read with Rules
28 and 29 of the Maharashtra Co operative Societies Rules, 1961
was duly followed. It was further submitted that the complaints
filed by the petitioners compelled the society to incur unnecessary
legal expenses, as the society was arrayed as a party in several
proceedings concerning individual unit holders. According to the
society, the acts of the petitioners squarely fall within the
expression of acts detrimental to the interests of the society. It was
also pointed out that the petitioners had objected to the deemed
conveyance in favour of the society and had approached the
Talathi to restrain entry of the society’s name in the revenue
record, thereby obstructing the implementation of the deemed
conveyance. On these grounds, dismissal of the writ petition was
sought.
Reasons and analysis:
17.This court has considered the submissions advanced on
behalf of the petitioners and on behalf of respondent No.1, and the
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material placed on record.
18.The core questions are as follows. Were the petitioners
afforded a fair and reasoned decision before being deprived of
membership? Were the decisive findings supported by material on
record? Did the authorities apply their minds to the evidence
placed by the petitioners?
19.The show cause notice refers to nine categories of
complaints. A careful reading of those charges shows that many of
them relate to steps taken by the petitioners before statutory
authorities and courts. Some complaints were lodged before the
police. The police did not record that the complaints were false or
mischievous. On the contrary, the police advised the petitioners to
approach the competent civil forum, observing that the dispute
appeared to be civil in nature. This is a significant circumstance.
When the police does not find criminality or abuse of process, and
instead directs the parties to seek civil remedies, it becomes
difficult to brand the act of filing such complaint as malicious.
Mere recourse to a forum which ultimately turns out to be
inappropriate cannot, by itself, establish mala fides. If that
standard is accepted, every litigant who chooses a wrong forum
would run the risk of punishment. That is not the scheme of Act.
20.The auditors examined the issues raised by the petitioners.
Out of four points, two were found to have substance. The auditors
noted that certain matters required attention. These findings were
part of the record. Yet, the authorities have dismissed the entire
conduct of the petitioners as frivolous. This approach is
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unsustainable. An independent auditor performs a statutory
function. If the auditor acknowledges merit in some complaints,
the adjudicating authority must deal with that observation. It may
agree or disagree, but it must give reasons. Silence on this aspect
suggests that the material was not properly evaluated. A finding
rendered in disregard of relevant evidence is perverse in law.
21.The orders passed by the Deputy Registrar, the Divisional
Joint Registrar and the Minister do not show any meaningful
discussion of the documents produced by the petitioners. The
record indicates that written submissions and supporting papers
were placed on file. However, the orders do not analyse them. A
quasi judicial authority cannot decide a matter by merely
reproducing the rival contentions and recording a conclusion. It
must indicate, even briefly, how the material was appreciated.
Reasons are not a formality. They are the link between the
evidence and the conclusion. In the absence of such reasoning, the
decision cannot be said to be the result of proper adjudication. The
manner in which the authorities have approached the matter gives
an impression that the allegations of the society were accepted as
established facts at the outset. There is no clear exercise of
weighing the petitioners’ explanation against the accusations.
Allegations require proof. The role of the authority is to assess both
sides. When the decision reflects acceptance of one version
without scrutiny of the other, it amounts to non application of
mind. Such an approach is contrary to basic principles of fairness.
The impugned orders do not contain any distinct analysis of the
individual charges against each petitioner. Expulsion affects
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individual membership and individual proprietary rights. Each
petitioner is entitled to a finding on the specific acts attributed to
him. A collective conclusion that all petitioners acted detrimentally,
without charge wise examination, falls short of the standard
required in law. Individual culpability cannot be presumed. It must
be established on material. The orders are brief and largely
reproduce the submissions advanced by the parties. The reasoning
portion is minimal. There is no detailed discussion of how the
ingredients of Section 35 are satisfied. An order which affects civil
rights must disclose reasons that enable the affected party to
understand why the decision has gone against him. Absence of
reasons also deprives the appellate or supervisory court of the
ability to test the correctness of the decision. This defect strikes at
the root of the decision-making process.
22.Even if the charges are taken at face value, they do not
disclose special or compelling circumstances warranting expulsion.
Expulsion from a housing society is a drastic step. It has the effect
of depriving a member of his position in the society that governs
his residential premises. Such power must be exercised with
caution and only when the conduct is clearly destructive of the
collective interest. The material on record does not demonstrate
such destruction.
23.Section 35 vests the society with a drastic power. Expulsion
from a housing society has far-reaching civil consequences. A
member does not merely lose voting rights. He stands to lose his
status in the society that owns or manages the very building in
which his flat is situated. His right to reside peacefully in that flat
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becomes uncertain. His proprietary interest is directly affected.
Such a consequence cannot be treated lightly. When a statute
confers a power of this nature, the court must read it with caution.
The provision cannot be interpreted in a wide manner. It must be
confined to situations that clearly fall within its language and
purpose. Expulsion from a housing society carries grave
consequences. It cannot be invoked to curb legitimate dissent or
lawful litigation. Only those acts which are harmful to the
functioning of the society, and which go beyond mere assertion of
legal rights, can fall within its scope.
24.The expression “acts detrimental to the interest of the
society” cannot be stretched to cover every disagreement, every
complaint, or every dispute between a member and the managing
committee. A cooperative housing society is built on mutual trust
and collective participation. Members contribute funds. They elect
representatives. They are entitled to question decisions that affect
their money, property, or rights. Differences of opinion are natural.
Disputes may arise. That, by itself, does not damage the society. In
fact, constructive criticism can strengthen governance. Therefore,
lawful steps taken by a member to assert his rights cannot be
equated with conduct harmful to the society.
25.The scope of Section 35 must be limited to acts that are
clearly destructive of the collective interest. For example, acts
involving fraud, misappropriation, violence, persistent obstruction
of essential services, or conduct that makes the functioning of the
society practically impossible may fall within its ambit. There must
be clear and convincing material to show that the member’s
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conduct has crossed the line from dissent to disruption. Mere
assertion of legal remedies does not satisfy that test.
26.If lawful litigation or complaints are treated as grounds for
expulsion, it would create a chilling effect. Members would
hesitate to raise genuine grievances. The managing committee
would operate without accountability. That result would defeat the
purpose of cooperative legislation, which aims at democratic
management and transparency. For these reasons, the power under
Section 35 must be exercised sparingly and only in clear cases
where the conduct of a member is demonstrably harmful to the
collective functioning of the society. It cannot be used as a
response to legitimate dissent or lawful pursuit of remedies.
27.The very foundation of the action taken against the
petitioners is that they approached different forums and
authorities against the office bearers of the society. This Court is
unable to accept that such conduct, by itself, can be branded as an
act detrimental to the interest of the society. A member of a
cooperative housing society does not surrender his legal rights at
the time of taking membership. He remains a citizen with full
access to remedies available under law. If he believes that the
affairs of the society are being conducted in a manner contrary to
law, or contrary to the bye laws, he has a legitimate right to seek
redress before a competent forum. To treat the act of approaching
a court or statutory authority as misconduct would amount to
penalizing the very exercise of a legal remedy. That cannot be the
object of Section 35 of the Act. The expression “acts detrimental to
the interest of the society” cannot be stretched to include lawful
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invocation of judicial or statutory remedies. If such an
interpretation is accepted, every dissenting voice within a
cooperative society can be silenced by threat of expulsion. That
would defeat the basic character of a cooperative body, which is
founded on participation, accountability and collective functioning.
28.In a democratic system, access to justice is not a privilege. It
is a right. A citizen cannot be placed in a disadvantageous position
merely because he has knocked at the doors of a court seeking
adjudication of his grievance. If the law were to discourage such
recourse at the threshold, it would weaken the very structure of
rule of law. Courts exist to examine disputes. They may accept or
reject the claims. They may even impose costs if a claim is found to
be frivolous. But that determination lies within the domain of the
judicial forum. It is not for the opposite party in the litigation to
punish the person for having filed the case. The office bearers of a
society, who are themselves parties to disputes, cannot claim that
the mere filing of proceedings against them amounts to
defamation or obstruction. Accountability is inherent in any
democratic institution. Members are entitled to question decisions.
They are entitled to seek scrutiny of accounts, elections and
administrative acts. If every such challenge is treated as hostile to
the society, the managing committee would function without any
effective oversight. That would create a situation where opposition
is suppressed and compliance is enforced through fear of
expulsion.
29.In the present case, the principal allegations against the
petitioners arise from complaints and proceedings initiated by
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them before competent authorities. There is no finding that such
proceedings were held to be malicious or that any forum imposed
penalty upon them for abuse of process. In the absence of such
finding, the society cannot assume that the petitions or complaints
were inherently destructive of its interests. Therefore, this Court
holds that the act of approaching a court or statutory authority, by
itself, cannot be characterized as detrimental to the interest of the
society. To hold otherwise would strike at the root of democratic
functioning within cooperative institutions and would amount to
reading into Section 35 a power that the legislature never intended
to confer.
30.The society has strongly urged that the petitioners attempted
to stall and obstruct the effect of the deemed conveyance executed
in favour of the society. According to the society, the petitioners
raised objections before the revenue authorities and questioned
the mutation entries arising out of the deemed conveyance. It is
contended that such conduct was aimed at frustrating the
collective benefit secured by the society and therefore squarely
falls within the expression “acts detrimental to the interest of the
society.”
31.This submission requires careful examination. A deemed
conveyance, once granted by the competent authority, enables the
society to secure legal title to the land and building. It is
undoubtedly an important step in the life of a cooperative housing
society. However, the fact that a deemed conveyance has been
executed does not mean that every member is precluded from
questioning the manner in which it has been processed. The record
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does not show that the petitioners fabricated documents or
indulged in unlawful acts to prevent implementation of the
deemed conveyance. What is alleged is that they approached the
Talathi and other authorities requesting that certain entries should
not be made or should be examined. That step, by itself,
constitutes recourse to a legal remedy. Whether the objection is
ultimately accepted or rejected is a matter for the competent
authority to decide. The act of raising an objection cannot
automatically be equated with sabotage of the society’s interests.
Disagreement over the manner in which a deemed conveyance is
processed cannot be treated as hostility towards the society itself.
For conduct to fall within the mischief of Section 35, there must be
clear material to show that the member acted with the intent to
harm the society or that his acts caused substantial injury to its
functioning. Mere objections before revenue authorities, in the
absence of proof of malicious conduct, do not meet that threshold.
Therefore, the submission of the society that the petitioners tried
to stall the effect of the deemed conveyance cannot, on the facts
placed before this Court, be accepted as sufficient ground to justify
expulsion under Section 35.
32.The society has emphasized that the procedural
requirements under Section 35 and the relevant Rules were
followed and that a three fourth majority approved the resolution.
Compliance with procedure is necessary. However, it does not cure
defects in the reasoning process. A resolution passed by majority
must still withstand scrutiny on grounds of legality and fairness.
Majority support cannot validate a decision taken without proper
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consideration of evidence. Procedure cannot become a shield for
an arbitrary outcome.
33.On an overall assessment of the material, the impugned
orders therefore suffer from non application of mind, absence of
proper reasoning and failure to consider relevant material. On
these ground, the orders cannot be sustained.
34.Hence, following order is passed:
(i) The orders dated 27 June 2024, 7 November 2024 and
20 August 2025 that approved and upheld the expulsion of
the petitioners are quashed and set aside.
(ii) The petitioners are restored to the membership register
of respondent No.1. Respondent No.1 shall reinstate the
petitioners in the society records and permit them to exercise
all membership rights with immediate effect.
35.No order is made as to costs.
36.At this stage, learned Advocate for respondent No.1-Society
seeks stay of the order. However, for the reasons recorded in this
order, oral application for stay is rejected.
(AMIT BORKAR, J.)
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