As per case facts, a developer failed to register a cooperative society under MOFA. A petitioner, appointed Chief Promoter by flat purchasers, applied for registration. Subsequently, a developer's proposal led ...
wp11982-2025 & connected-J- final.doc
Shabnoor
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.11982 OF 2025
WITH
WRIT PETITION (ST.) NO.29872 OF 2025
Sandeep Bhausaheb Shelar,
Age 45 years, Occupation Service,
R/at: Falt No.C/2-501, Urban Gram,
Survey No.134, Village Jalochi,
Taluka Baramati, Pune 413 102… Petitioner
V/s.
1.The State of Maharashtra,
through its Principal Secretary,
Ministry of Cooperation, having
office at Mantralaya, Mumbai.
2.The Divisional Joint Registrar of
Cooperative Societies, Pune Division,
Pune, office at Ground Floor,
Sakhar Sankul, Shivajinagar,
Pune 05
3.The Assistant Registrar of Coop.
Societies, Baramati, Taluka Baramati,
District Pune.
3A.Pramod Durgude, Assistant Registrar
of Cooperative Societies, Baramati,
Taluka Baramati, Pune.
4.R.V. Realty, a partnership firm,
registered under the Partnership Act,
1932, having its registered office at
101/102, Lotus Plaza, Opp. Sangam
Press, Karve Road, Kothrud,
Pune 411 038, through it’s partner
1
SHABNOOR
AYUB
PATHAN
Digitally signed by
SHABNOOR AYUB
PATHAN
Date: 2026.02.03
11:38:49 +0530
wp11982-2025 & connected-J- final.doc
5.Dhananjay Shivajirao Nimbalkar,
R/at: Row House No.14, Swapnashilp,
Near City Pride Multiplex,
Ganeshnagar, Kothrud, Pune 411 038
6.Milind Dhansingh Jadhav,
R/at H-01, Pinak Memories, Phase 02,
Rahulnagar, Kothrud, Pune 411 038.
7.Rohit Dhansingh Jadhav,
R/at: ‘Dhanashri’, Malegaon Colony,
Baramati, Pune 413 115.
8.Sachin Balkrishna Kulkarni,
R/at: Bhuvi 304, Mahatma Society,
Kothrud, Pune.
9.Sanyukt Coop. Housing Society,
registered under the MCS Act, 1960
Reg. No.PNA/BAI/HSG/TO/4558/
1999-2000, Gat No.134/A, Jalochi,
Taluka Baramati, District Pune
10.Sanmitra Coop. Housing Society,
registered under the MCS Act, 1960
Reg. No.PNA/BAI/HSG/TO/4559/
1999-2000, Gat No.134/A, Jalochi,
Taluka Baramati, District Pune
11.Mahesh J. Shirke,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
12.Sanjay Jadhav,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
13.Shalan K. Pawar,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
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District Pune 413 102
14.Surrendar S. Raina,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
15.Savita A. Kharche,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
16.Nikhil S. Honrao,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
17.Shahanur J. Mulani,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
18.Vijay J. Kale,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
19.Kalpana C. Bhosale,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
20.Abhijeet S. Shende,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
21.Tambare Sachin Dhananjay,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
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22.Pratik G. Shende,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
23.Nikhil V. Gowand,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
24.Sana Irfan Kazi,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
25.F.A. Patel,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
26.Urban Gram Baramati Sahakari
Grihanirman Sanstha Maruadit (Urban
Gram Coop. Housing Society Ltd.,)
Add.: Survey No.134/1/1,
Jalochi, Taluka Baramati,
District Pune 413 102… Respondents
WITH
WRIT PETITION NO.11988 OF 2025
Sandeep Bhausaheb Shelar,
Age 45 years, Occupation Service,
R/at: Falt No.C/2-501, Urban Gram,
Survey No.134, Village Jalochi,
Taluka Baramati, Pune 413 102… Petitioner
V/s.
1.The State of Maharashtra,
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through its Principal Secretary,
Ministry of Cooperation, having
office at Mantralaya, Mumbai.
2.The Divisional Joint Registrar of
Cooperative Societies, Pune Division,
Pune, office at Ground Floor,
Sakhar Sankul, Shivajinagar,
Pune 05
3.The District Deputy Registrar of Coop.
Societies, Pune Gramin
4.The Assistant Registrar of Coop.
Societies, Baramati, Taluka Baramati,
District Pune
4A.Pramod Durgude, Assistant Registrar
of Cooperative Societies, Baramati,
Taluka Baramati, Pune.
5.R.V. Realty, a partnership firm,
registered under the Partnership Act,
1932, having its registered office at
101/102, Lotus Plaza, Opp. Sangam
Press, Karve Road, Kothrud,
Pune 411 038, through it’s partner
6.Dhananjay Shivajirao Nimbalkar,
R/at: Row House No.14, Swapnashilp,
Near City Pride Multiplex,
Ganeshnagar, Kothrud, Pune 411 038
7.Milind Dhansingh Jadhav,
R/at H-01, Pinak Memories, Phase 02,
Rahulnagar, Kothrud, Pune 411 038.
8.Rohit Dhansingh Jadhav,
R/at: ‘Dhanashri’, Malegaon Colony,
Baramati, Pune 413 115.
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9.Sachin Balkrishna Kulkarni,
R/at: Bhuvi 304, Mahatma Society,
Kothrud, Pune.
10.Sanyukt Coop. Housing Society,
registered under the MCS Act, 1960
Reg. No.PNA/BAI/HSG/TO/4558/
1999-2000, Gat No.134/A, Jalochi,
Taluka Baramati, District Pune
11.Sanmitra Coop. Housing Society,
registered under the MCS Act, 1960
Reg. No.PNA/BAI/HSG/TO/4559/
1999-2000, Gat No.134/A, Jalochi,
Taluka Baramati, District Pune
12.Mahesh J. Shirke,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
13.Sanjay Jadhav,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
14.Shalan K. Pawar,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
15.Surrendar S. Raina,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
16.Savita A. Kharche,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
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17.Nikhil S. Honrao,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
18.Shahanur J. Mulani,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
19.Vijay J. Kale,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
20.Kalpana C. Bhosale,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
21.Abhijeet S. Shende,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
22.Tambare Sachin Dhananjay,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
23.Pratik G. Shende,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
24.Nikhil V. Gowand,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
25.Sana Irfan Kazi,
R/at Urgan Gram, Survey No.134,
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Jalochi, Taluka Baramati,
District Pune 413 102
26.F.A. Patel,
R/at Urgan Gram, Survey No.134,
Jalochi, Taluka Baramati,
District Pune 413 102
27.Urban Gram Baramati Sahakari
Grihanirman Sanstha Maruadit (Urban
Gram Coop. Housing Society Ltd.,)
Add.: Survey No.134/1/1,
Jalochi, Taluka Baramati,
District Pune 413 102… Respondents
Mr. Shrivallabh S. Panchpor with Mr. Nilesh Angad
Chaudhari for the petitioner.
Mr. Y.D. Patil, AGP for respondent Nos.1 to 4-State in
WP/11982/2025.
Mr. S.H. Kankal, AGP for respondents-State in
WP/11988/2025.
Mr. P.V. Nelson Rajan, AGP for respondent Nos.1to 4-State
in WPST/29872/2025.
Mr. Shailendra S. Kanetkar with Mr. Shubham
Suryawanshi for respondent Nos.5, 7, 13 to 23 & 25.
Mr. Mahesh Shirke for respondent No.11
Ms. Laurdu Agnes Merlin for respondent No.24.
CORAM :AMIT BORKAR, J.
RESERVED ON :DECEMBER 28, 2025
PRONOUNCED ON:FEBRUARY 3, 2026
JUDGMENT:
1.Since the factual matrix, the surrounding circumstances, and
the questions of law arising in all these petitions are substantially
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identical, they are being disposed of by this common judgment.
2.In Writ Petition No.11982 of 2025, the petitioner assails the
order dated 21 August 2025 passed by the Divisional Joint
Registrar in Revision Application No.217 of 2025, whereby the
order dated 9 June 2025 passed by the Assistant Registrar
permitting the Chief Promoter of respondent No.9 society to open
a bank account in the name of the proposed society came to be
confirmed.
3.In Writ Petition No.11988 of 2025, the challenge is to the
order dated 21 August 2025 passed by the Divisional Joint
Registrar in Appeal No.61 of 2025, by which the order dated 17
June 2025 passed by the District Deputy Registrar was affirmed.
By the said order dated 17 June 2025, the District Deputy
Registrar rejected the petitioner’s application under sub section (1)
of Section 10 of the Maharashtra Ownership Flats Act, 1963 on the
ground that the developer had already initiated steps for formation
of a cooperative society and that permission had been granted by
the Assistant Registrar to open a bank account for that purpose.
4.In Writ Petition (ST) No.29872 of 2025, the petitioner
challenges the order dated 21 August 2025 passed by the
Divisional Joint Registrar in Appeal No.62 of 2025, confirming the
order dated 18 June 2025 of the Assistant Registrar, whereby
registration was granted to respondent No.9 society.
5.The background facts giving rise to the present petitions are
as follows. Land bearing Gat Nos.134/1 and 134/2, ad measuring
26,000 square meters, situated at Village Jalochi within the
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jurisdiction of Baramati Municipal Council, forms the subject
matter of agreements executed under Section 4 of MOFA. The
promoter obtained construction permission on 18 June 2015.
Thereafter, between the years 2015 and 2021, agreements under
Section 4 of MOFA were executed in favour of various flat
purchasers.
6.As the developer failed to take steps for registration of a
cooperative society within the time stipulated under Section 10 of
MOFA, a meeting of flat purchasers was convened on 26 February
2025. In the said meeting, the petitioner was appointed as Chief
Promoter. Pursuant thereto, on 12 March 2025, the petitioner
submitted an application before the District Deputy Registrar
seeking registration of a cooperative society under the first proviso
to Section 10(1) of MOFA. On 21 March 2025, the District Deputy
Registrar issued notice to the promoter and fixed Application
No.36 of 2025 for hearing on 7 April 2025.
7.On 8 April 2025, the petitioner addressed a representation to
the Assistant Registrar stating that the developer had failed to form
the society within the prescribed period and informing that
Application No.36 of 2025 had already been filed before the
District Deputy Registrar in his capacity as duly appointed Chief
Promoter.
8.On 13 May 2025, one Rohit Jadhav, claiming to be the Chief
Promoter, submitted a proposal before the Assistant Registrar for
reservation of the name of a proposed society. A hearing on the
said proposal was conducted on 3 June 2025. By communication
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dated 4 June 2025, the Assistant Registrar returned the proposal
pointing out certain objections. On 5 June 2025, Rohit Jadhav
informed the Assistant Registrar that the objections had been
complied with and stated that a meeting of flat purchasers had
been held on 21 April 2025.
9.Thereafter, on 9 June 2025, the Assistant Registrar permitted
Rohit Jadhav to open a bank account in the name of the proposed
society, without adverting to the petitioner’s objection regarding
the pendency of his earlier application before the District Deputy
Registrar. On 10 June 2025, Rohit Jadhav submitted a fresh
proposal accompanied by an affidavit and declarations purportedly
executed by 84 flat purchasers.
10.On 10 June 2025, the District Deputy Registrar conducted a
hearing on the petitioner’s proposal. By order dated 17 June 2025,
the petitioner’s application was rejected solely on the ground that
permission had already been granted on 9 June 2025 by the
Assistant Registrar to open a bank account in the name of the
proposed society. Subsequently, by order dated 18 June 2025, the
Assistant Registrar granted registration to respondent No.9 society
on the basis of the proposal submitted by Rohit Jadhav.
11.Being aggrieved, the petitioner preferred Revision
Application No.217 of 2025 challenging the order dated 9 June
2025, Appeal No.61 of 2025 assailing the order dated 17 June
2025, and Appeal No.62 of 2025 questioning the order dated 18
June 2025 granting registration of the society. By a common order
dated 21 August 2025, the Divisional Joint Registrar dismissed the
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said revision and appeals. The present petitions arise from the said
common order.
12.Mr. Panchpor, learned counsel for the petitioner, contended
that the petitioner’s proposal dated 12 March 2025 was prior in
point of time to the proposal submitted by the developer on 13
May 2025. He submitted that the pendency of the petitioner’s
proposal had been specifically brought to the notice of the
Assistant Registrar. In spite of such disclosure, the Assistant
Registrar permitted the developer to open a bank account and
thereafter proceeded to reject the petitioner’s proposal by placing
reliance upon the said permission. He further submitted that until
the petitioner’s earlier proposal was adjudicated and decided in
accordance with law, it was not open to the Assistant Registrar to
grant permission to the developer to open a bank account in the
name of the proposed society.
13.Learned counsel submitted that the total land covered by
agreements executed under Section 4 of MOFA ad measured
26,000 square meters. However, the proposal submitted by the
developer referred only to an area of 7,903.86 square meters,
thereby substantially curtailing the area proposed to be included
within the society. He contended that in the meeting of flat
purchasers held on 26 February 2025, the petitioner was duly
appointed as Chief Promoter. In view of such appointment, any
subsequent appointment of another person, and particularly of the
developer himself, as Chief Promoter was wholly without authority
and contrary to law.
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14.It was further submitted that 84 flat purchasers had filed
affidavits before the Assistant Registrar asserting that their
signatures were obtained by fraud and misrepresentation and that
no general body meeting had in fact been convened for appointing
the developer as Chief Promoter. Despite these serious objections,
the Assistant Registrar proceeded to grant registration to
respondent No.9 society by order dated 18 June 2025 at the
instance of the developer. According to the petitioner, the
developer filed the subsequent proposal with a view to restrict the
area of the society, especially when part of the construction was
yet to be completed. By permitting registration on the basis of such
proposal, the area to vest in the society stood substantially
reduced. On these grounds, it was urged that the impugned orders
passed by the Assistant Registrar and the District Deputy Registrar
are liable to be quashed and set aside.
15.In reply, Mr. Kanetkar, learned counsel appearing for
respondent Nos.5, 7, 13, 23 and 25, submitted that neither the
provisions of MOFA nor those of the Maharashtra Cooperative
Societies Act, 1960 impose any bar on simultaneous proceedings
under Sections 9 and 10. He contended that the proposal dated 13
May 2025 submitted by the developer bore the signatures of 142
out of 252 flat purchasers, thereby reflecting the support of a clear
majority.
16.He further submitted that among the 84 persons who had
filed affidavits alleging fraud, several were not flat purchasers and
some had not even signed the original proposal. Their affidavits,
therefore, could not be accorded evidentiary value. It was also
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submitted that the petitioner had remained present before the
Assistant Registrar on 3 June 2025 and had expressed willingness
to withdraw his proposal subject to the developer signing the
requisite Z form. Upon removal of the objections raised, the
Assistant Registrar was justified in permitting the developer to
open the bank account.
17.It was lastly submitted that under the scheme of MOFA, the
promoter has the initial right to take steps for formation of the
cooperative society. The petitioner has failed to demonstrate any
legal prejudice merely on the ground that registration was granted
at the instance of the developer. On this basis, dismissal of the
petitions was sought.
18.Respondent No.3A has placed on record a personal affidavit
in support of the order passed by him. In the said affidavit, it is
contended that Sections 10 and 11 of the Maharashtra Ownership
Flats Act cast a statutory obligation upon Respondent Nos.4 to 7,
being the promoter and concerned parties, to take steps for
formation and registration of the cooperative society upon sale of
flats. According to Respondent No.3A, the said obligation stood
duly discharged by Respondent Nos.4 to 7, and therefore the
action taken by him was in conformity with the statutory mandate.
19.With regard to the allegations of forgery and fabrication of
documents, Respondent No.3A has stated that the petitioner has
not annexed the specific documents alleged to have been forged. It
is further stated that the authority does not possess investigative
powers to verify the authenticity of signatures or documents, and
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therefore the allegation of forged documents cannot be accepted in
the absence of cogent material placed on record. It is also asserted
in the affidavit that registration of the society at the instance of
Respondent Nos.4 to 7 does not result in any legal prejudice to the
petitioner. According to Respondent No.3A, the petitioner’s rights
remain unaffected merely because the society has been registered
on the proposal submitted by the said respondents.
Reasons and analysis:
20.A quasi judicial authority, though not bound by the strict
rules of procedure applicable to civil courts, is still required to act
in a manner that is fair, transparent and consistent with the basic
principles of natural justice. It cannot adopt a course of action that
extinguishes the rights of parties without first adjudicating upon a
pending claim that directly concerns the same subject matter.
When a statutory authority is apprised that an application has
already been filed and is under consideration, it is incumbent upon
that authority to deal with such application in accordance with law
before taking any step that may render the adjudication
infructuous.
21.Where two competing proposals are placed before the
authority and one of them is admittedly prior in point of time, the
chronology assumes importance. An earlier proposal which
discloses a prima facie claim under the statute cannot be ignored.
The authority must first examine whether such proposal satisfies
the statutory requirements and whether it has been validly filed.
Only after recording a reasoned conclusion on that proposal can
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the authority proceed to consider any subsequent proposal. This
procedure ensures fairness in quasi judicial decision and prevents
quasi judicial proceedings from superseding earlier proceedings.
22.If, instead, the authority permits the later applicant to
undertake consequential steps such as opening a bank account,
completing formalities, or securing registration, and thereafter
uses those very steps as a ground to reject the earlier application,
the process becomes self defeating. The earlier claimant is
effectively denied a real opportunity of consideration. Such action
amounts to supersession of a pending statutory application. It
creates a fait accompli and shifts the balance arbitrarily in favour
of the subsequent applicant. The law does not countenance such a
course.
23.This principle is rooted in the broader requirement of fair
adjudication. Fairness in administrative law demands that parties
who invoke a statutory remedy must receive an effective hearing
and a effective consideration of their case. The authority must
avoid creating circumstances that predetermine the outcome
before adjudication is complete. The duty to act judicially becomes
more significant where the rights of numerous flat purchasers are
involved and where the decision affects substantive or statutory
rights.
24.The statutory scheme under the first proviso to Section 10(1)
of the Maharashtra Ownership Flats Act strengthens this position.
The legislature has consciously provided that where the promoter
fails to take steps to form a cooperative society within the
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prescribed period, the flat purchasers may themselves initiate the
process. This provision is safeguards purchasers from inaction or
delay on the part of the promoter. To give full effect to this
statutory remedy, the authority must ensure that an application
filed by purchasers under the proviso is legally examined. If a
subsequent proposal by the promoter is allowed to override or
neutralize such earlier application without adjudication, the very
purpose of the proviso stands diluted.
25.Therefore, in a situation of competing proposals, adherence
to sequence is a substantive safeguard. The earlier proposal must
be taken up, heard and decided on its own merits. Only thereafter
can the authority consider the rival proposal in accordance with
law. Any deviation from this course would defeat the legislative
intent underlying Section 10 of MOFA.
26.The record indicates that the petitioner submitted his
proposal on 12 March 2025 invoking the first proviso to Section
10(1) of MOFA. It is also borne out from the material placed
before this Court that the pendency of the said proposal was
specifically brought to the notice of the Assistant Registrar. There is
no dispute on this factual aspect. Once such pendency was within
the knowledge of the authority, it cast upon him a duty to ensure
that no subsequent step was taken which would render ineffective
the earlier statutory application.
27.Despite this position, the Assistant Registrar, by order dated
9 June 2025, granted permission to the developer to open a bank
account in the name of the proposed society. Opening of a bank
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account is an essential stage in the process of registration. It
confers a degree of recognition upon the proposal and enables
further steps to be completed. When such permission is granted in
favour of one claimant while another claimant’s application
remains pending and undecided, the authority must exercise
caution and record reasons demonstrating why such course is
justified.
28.The matter did not end there. The District Deputy Registrar,
while deciding the petitioner’s application on 17 June 2025,
rejected it solely on the ground that permission to open a bank
account had already been granted to the developer on 9 June
2025. Thus, the very quasi judicial act of permitting the bank
account, which was undertaken during the pendency of the
petitioner’s proposal, became the decisive factor for rejecting that
proposal. This reveals that subsequent step was treated as a fait
accompli and then relied upon to non suit the earlier applicant.
Such a course cannot withstand judicial scrutiny.
29.The sequence of events demonstrates that the earlier filed
claim was sidelined by preference shown to a developer’s
proposal. The statutory right conferred upon flat purchasers under
the proviso to Section 10(1) is an important statutory right. Once
exercised, it must receive prior consideration. The Act does not
contemplate that such right may be defeated by permitting a
developer to complete preliminary steps and then citing those very
steps as a reason to reject the earlier claim.
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30.The permission to open the bank account had a direct
impact. It altered the balance between the purchasers and
developer. It enabled the developer to advance his proposal to a
stage where it appeared more complete and therefore more
acceptable. In substance, it curtailed the petitioner’s opportunity to
have his proposal examined on merits. An authority acting in a
quasi judicial capacity is expected to avoid precisely this situation.
It must ensure that its orders do not predetermine the outcome of
a pending adjudication.
31.The Assistant Registrar ought to have first addressed the fact
of pendency and the existence of competing claims. He was
required to either await the decision of the District Deputy
Registrar on the earlier application or to call upon both parties and
consider their rival contentions in a coordinated manner before
granting any consequential permission. By failing to do so, and by
proceeding in a manner that rendered the petitioner’s remedy
ineffective, the authority acted in breach of fairness.
32.The petitioner’s objection raised a dispute regarding
entitlement to initiate registration of the society. Such dispute
required careful examination. Instead, the course adopted
foreclosed legal consideration. In these circumstances, the action
of the Assistant Registrar amounts to impropriety. It also resulted
in denial of an meaningful hearing to the petitioner, since the
rejection of his proposal was based not on its merits but on a
development brought about during its pendency. This approach
cannot be sustained in law.
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Submission on area and reduction of society land:
33.The petitioner has drawn attention to a legal prejudice in the
form of extent of land proposed to be included in the society.
According to the petitioner, the agreements executed under
Section 4 of MOFA pertain to land ad measuring 26,000 square
meters. In contrast, the proposal submitted by the developer
proceeds on the basis of an area of only 7,903.86 square meters.
The difference is substantial and cannot be brushed aside as a
clerical variation.
34.If such reduction in area is accepted without proper
adjudication, the consequence would not be confined to mere
description in documents. The area of the society determines the
corpus of property that ultimately vests in the cooperative society.
It has a direct bearing on the common amenities, open spaces,
development potential, and the collective rights of the flat
purchasers. The extent of land forms the foundation of the
society’s title and its future governance.
35.The purchasers who executed agreements under Section 4
did so on the understanding that the development and the
appurtenant land would form part of the overall project. Their
rights are linked with that larger parcel of land. If, at the stage of
registration of the society, the area is reduced to a fraction of what
was originally represented, the impact would be felt by all such
purchasers. It may exclude certain portions from the society’s
domain. It may alter entitlement to common areas. It may also
affect future conveyance and transfer of title. They go to the core
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of the statutory protection intended under MOFA.
36.In these circumstances, it becomes the duty of the District
Deputy Registrar and the Assistant Registrar to undertake a careful
scrutiny of the material relating to the area. They must call for the
sanctioned plans, the layout approvals, the development
permissions, and the agreements executed with purchasers. They
must ascertain whether the proposed 7,903.86 square meters
represents the entirety of the developed portion intended to form
the society or whether it reflects an division of a larger project. The
authority cannot proceed on assumptions. It must record clear
findings based on documentary evidence.
37.A discrepancy of this magnitude, on the face of it, raises a
prima facie issue requiring full and reasoned inquiry. It cannot be
resolved by preferring one proposal over another on the basis of
chronology or numerical strength of signatories. The scope and
area of the society must be determined based on material and in
accordance with the statutory scheme. Any decision taken without
addressing this core issue would be legally unsustainable.
Therefore, before granting registration or rejecting a competing
proposal, the authorities are bound to satisfy themselves that the
area proposed to be included in the society truly reflects the
development undertaken and the rights flowing from the
agreements executed under Section 4 of MOFA.
Submission on affidavits alleging fraud:
38.It has come on record that eighty four individuals have filed
affidavits asserting that their signatures were procured by fraud
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and misrepresentation and that no valid general body meeting was
convened for appointing the developer as Chief Promoter. These
assertions are serious in nature. If they are ultimately found to be
true, they affect the foundation of the developer’s proposal. The
legality of the proposal depends upon the free and informed
consent of the flat purchasers. Any allegation that such consent
was vitiated by deception cannot be treated lightly.
39.The respondents, on the other hand, dispute these affidavits.
It is contended that several deponents are not genuine flat
purchasers and that some of them had not signed the original
proposal at all. According to the respondents, the affidavits have
been filed only to create an artificial controversy. These rival
contentions clearly give rise to disputed questions of fact. They
cannot be resolved merely by reading the affidavits or by accepting
the respondents’ denial at face value.
40.An affidavit is a piece of evidence. It is not conclusive proof.
Its credibility depends upon the surrounding circumstances and
supporting material. Equally, an affidavit cannot be brushed aside
simply because it creates inconvenience to one side. The authority
exercising quasi judicial powers must scrutinize the contents of
affidavit, examine whether the deponents are in fact flat
purchasers, verify whether their names appear in the relevant
records, and ascertain whether their alleged signatures exist on the
proposal documents relied upon by the developer.
41.The District Deputy Registrar is, therefore, required to
conduct a proper inquiry. This would necessarily involve calling for
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the original proposal papers, attendance sheets of the alleged
meeting, minutes of the meeting, and the individual agreements
executed under Section 4. Such exercise need not assume the
character of a full fledged civil trial but it must be sufficient to
satisfy the authority that the decision is based on reliable material.
42.The determination of who among the signatories are genuine
purchasers is a initial step. Only after identifying the genuine
group of flat purchasers and ascertaining their true intent can the
authority conclude which proposal is in accordance with law. A
proposal supported by signatures obtained through
misrepresentation cannot be a legal proposal, even if it appears to
have been signed by majority of members.
43.Therefore, before arriving at any final conclusion regarding
registration of the society, the District Deputy Registrar must
record clear findings on the authenticity of the signatures and the
status of the signatories. Only after such reasoned inquiry can it be
determined which proposal truly reflects the majority of the flat
purchasers.
Respondents’ plea of majority and promoter’s initial right:
44.The developer has placed considerable emphasis on the fact
that his proposal carries 142 signatures out of a total of 252 flat
purchasers. In matters concerning formation of a cooperative
society, the extent of support among purchasers is a relevant
consideration. A cooperative society is formed on collective
participation, and the authority is justified in taking note of the
strength of representation behind a particular proposal.
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45.At the same time, the statutory scheme cannot be reduced to
a mechnical exercise. MOFA recognises the role of the promoter in
initiating the formation of a society. Ordinarily, it is the promoter
who is expected to take timely steps to register the society once the
requisite number of flats are sold. However, this right is not
unfettered. The legislature, by incorporating the first proviso to
Section 10(1), has consciously provided a safeguard. Where the
promoter fails to act within the stipulated period, the flat
purchasers themselves are empowered to move the competent
authority for registration. This proviso confers a substantive right
upon the purchasers to protect their interest in the event of
inaction or delay on the part of the promoter.
46.In the present case, the petitioner’s proposal dated 12 March
2025 is founded upon that proviso. It shows effort of the
purchasers to exercise the statutory right that arises upon the
promoter’s default. Once such a proposal is validly filed, it cannot
be stepped aside only because the promoter subsequently produces
a proposal claiming majority support. The earlier proposal has an
independent legal basis. It demands consideration on its own
merits.
47.It is also necessary to bear in mind that the claim of majority
itself is under challenge. Allegations have been made that certain
signatures were obtained by misrepresentation and that the
meeting appointing the developer as Chief Promoter was not
validly convened. Until these issues are examined, the claim of
majority remains provisional. The authority cannot assume that
the claim of majority is unquestionable.
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48.The District Deputy Registrar must examine whether the
petitioner’s earlier application satisfies the statutory conditions. He
must also scrutinize the developer’s claim of majority support,
verify the authenticity of the signatures and consider the
allegations of fraud. Only after evaluating all these aspects
together can he arrive at a reasoned finding as to which proposal
has support of majority of the flat purchasers.
49.The majority claim by developer does not validate steps
granting permission to open bank account that were taken without
addressing a pending registration application. Even a proposal
supported by a large number of purchasers must pass the test of
legality. Quasi judicial orders that bypass an earlier registration
application cannot be justified merely by pointing to majority
figures. The statutory remedy conferred upon purchasers must be
given meaningful effect, and that requires careful adjudication
rather than reliance on mechanical exercise.
Defense raised by respondent No. 3A:
50.Respondent No.3A has filed a personal affidavit seeking to
justify the order passed by him. In the said affidavit, he has placed
reliance upon Sections 10 and 11 of the Maharashtra Ownership
Flats Act and has contended that the promoter is under a statutory
obligation to take steps for formation and registration of a
cooperative society once the requisite number of flats are sold.
According to him, Respondent Nos.4 to 7 had initiated such steps
and had thus discharged the statutory obligation cast upon them.
It is, therefore, asserted that the action taken by him in permitting
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the process to move forward at the instance of the promoter was in
furtherance of the statutory scheme and not in derogation thereof.
51.This submission, though attractive at first glance, cannot be
accepted in its entirety. The obligation of the promoter under
Sections 10 and 11 is not in dispute. However, the statute does not
confer an exclusive or unqualified right upon the promoter in all
circumstances. The first proviso to Section 10(1) expressly enables
the flat purchasers to step in where the promoter fails to form the
society within the prescribed time. In the present case, the
petitioner’s application dated 12 March 2025 was filed invoking
that very statutory right. Once such application was made and its
pendency was brought to the notice of Respondent No.3A, the
situation ceased to be a simple case of promoter compliance. It
became a contested proceeding requiring careful adjudication.
52.The record reveals that the petitioner’s proposal was kept
pending while, in the meantime, permission was granted to the
developer to open a bank account and complete consequential
steps. Thereafter, the pendency of such steps was cited as a ground
to reject the petitioner’s application. This sequence has the effect
of conferring a undue advantage upon the developer. The authority
was expected to maintain impartiality between competing
claimants. Instead, the manner in which the proceedings were
disposed of indicates that the promoter’s proposal was allowed
while the earlier application of the purchasers remained
undecided. Even if there was no conscious bias, the perception of
undue favour cannot be ignored when an earlier statutory
application is effectively rendered redundant by subsequent order
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favouring devloper to gain advantage claiming alleged less area.
53.Respondent No.3A has further contended that the petitioner
has not annexed specific forged documents and that the authority
no powers to verify authenticity of signatures. It is correct that the
Registrar is not conducting a criminal trial. However, when 84
affidavits are placed on record alleging that signatures were
obtained by fraud, the authority cannot decline inquiry on the
ground of lack of power. A quasi judicial authority is empowered
to call for original documents, compare signatures on the proposal
with those on registered agreements and satisfy itself about prima
facie authenticity. To reject such affidavits summarily on the
ground that it has no poer would amount to failure of adjudicatory
responsibility.
54.The submission relating to absence of legal prejudice to the
petitioner also cannot be accepted. Registration of a society on the
basis of a proposal that excludes substantial land area, namely
reduction from 26,000 square meters to 7,903.86 square meters,
has civil consequences. It affects the area of property that will
ultimately vest in the society. It determines the collective rights of
members in respect of common areas, amenities, and future
conveyance. If such reduction is accepted without adjudication,
purchasers who entered into agreements under Section 4 on the
footing of a larger development stand to be prejudiced. The
assertion that the petitioner’s rights remain unaffected merely
because registration has been granted is not borne out by the
statutory scheme.
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55.The respondents have also relied upon majority support and
the promoter’s initial right to initiate formation. As already
discussed, majority support is a relevant factor. It must be
considered against the earlier statutory application filed by the
purchasers and against the allegations of fraud in procuring
signatures. The promoter’s initial obligation under Section 10
cannot override the statutory safeguard provided to purchasers
when the promoter fails to act within time. In the present case, the
authority was required to consider these rival claims in accordance
with law. Instead, the manner adopted created an impression that
the promoter’s proposal was given precedence without first
resolving the objections raised by the purchasers.
56.In this backdrop, while this Court refrains from recording
any finding of misconduct, it considers it appropriate that the
conduct of the Assistant Registrar, who has been impleaded by
name as respondent No.3A, be examined by the competent
authority.
57.This Court is conscious that every erroneous order does not
amount to misconduct. At the same time, where the material
suggests that a statutory remedy invoked by flat purchasers was
made infructuous by order favouring a developer, the matter
cannot be treated as a mere error of judgment. The authority was
under a duty to first address the pending application of the
purchasers. Instead, concrete steps were permitted in favour of the
developer, and those very steps were later relied upon to reject the
purchasers’ claim. Whether such conduct reflects only a mistaken
understanding of law or discloses something more, including
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possible abuse of quasi judicial power, is a matter that requires
examination by the competent disciplinary authority.
58.For the reasons stated above I pass following order.
59.The orders dated 9 June 2025 and 18 June 2025 passed by
the Assistant Registrar, the order dated 17 June 2025 passed by the
District Deputy Registrar and the common order dated 21 August
2025 of the Divisional Joint Registrar are quashed insofar as they
rest on the procedural sequence that precluded decision of
Application No.36 of 2025.
60.Application No.36 of 2025 filed by the petitioner shall be
restored to the file of the District Deputy Registrar and decided
afresh on merits. The District Deputy Registrar shall consider the
competing proposal filed by the developer and the affidavits filed
by the 84 purchasers. The inquiry shall include verification of
signatures, examination of whether deponents are genuine flat
purchasers, inspection of original documents where necessary and
assessment of the correct area to be included in the society. The
District Deputy Registrar shall record reasons for acceptance or
rejection of any document or affidavit.
61.Pending final decision by the District Deputy Registrar, the
Assistant Registrar shall not take any further step to give effect to
the developer’s bank account permission or to the registration so
as to prejudice the outcome of Application No.36 of 2025. If any
transactions have been effected in the bank account opened on 9
June 2025 those transactions shall be frozen to the extent
necessary to preserve the rights of parties pending final
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adjudication. The District Deputy Registrar may direct limited
access for purposes of maintenance subject to adequate safeguards,
if required.
62.The District Deputy Registrar shall conclude the inquiry and
pass a reasoned order within eight weeks from the date on which
the record is placed before him.
63.Accordingly, while setting aside the impugned orders, this
Court directs that the State Government, through the office of the
Registrar of Cooperative Societies, shall place the entire original
record of Application No.36 of 2025, all connected proceedings,
roznama, and a copy of this judgment before the competent
disciplinary authority within a period of four weeks from today.
The disciplinary authority shall independently scrutinize the record
and determine whether a prima facie case exists for initiation of
departmental enquiry against the Assistant Registrar, respondent
No.3A, Mr. Pramod Durgude, in the light of the principles laid
down by the Supreme Court in
Union of India v. K.K. Dhawan,
(1993) 2 SCC 56
.
64.The competent authority shall consider whether the material
discloses elements such as recklessness, deliberate disregard of
statutory provisions, bias, or extraneous consideration. Such
determination shall be made strictly in accordance with the
applicable service rules and on the basis of the record. The
decision as to whether departmental proceedings are to be
initiated shall be taken within eight weeks thereafter and
communicated to the concerned authority in accordance with law.
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65.The petitions are disposed of in above terms.
66.List the petitions for compliance on 28 April 2026.
67.Pending interlocutory application(s), if any, stands disposed
of.
(AMIT BORKAR, J.)
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