Mumbai Deputy Registrar Grants Relief to Legal Heir in Landmark Co-operative Housing Society Membership Dispute
In a significant relief for flat purchasers and legal heirs in Maharashtra, the Office of the Deputy Registrar, Co-operative Societies, Mumbai, has declared Mr. Nitin Raghunath Kamat as a “Deemed Member” of Ketaki Co-operative Housing Society Ltd., Dahisar, after the society failed to decide his membership application for more than 11 years.
The order, passed under Sections 22 and 23 of the Maharashtra Co-operative Societies Act, 1960, reiterates that housing societies cannot indefinitely delay transfer of membership rights by citing internal disputes among family members.
The matter assumes importance because thousands of flat purchasers and legal heirs across Mumbai often face harassment and arbitrary delays from co-operative housing societies while seeking transfer of shares and membership rights.
Background of the Case
The dispute revolved around Flat No. 104-B situated at Ketaki Co-operative Housing Society Ltd., Dahisar East, Mumbai.
According to the proceedings, the flat originally belonged to Mr. Raghunath Anant Kamat and his wife Mrs. Jayanti Raghunath Kamat. Following the demise of Mrs. Jayanti Kamat in 2013, her legal heirs included her husband and two sons — Mr. Nitin Raghunath Kamat and Mr. Sudin Raghunath Kamat.
Thereafter, Mr. Raghunath Anant Kamat executed a registered Gift Deed dated 31 May 2014 in favour of his son Mr. Nitin Kamat, transferring 66.66% rights in the flat. The applicant subsequently applied to the society for transfer of membership and shares in June 2014.
However, despite receipt of the application and supporting documents, the society allegedly failed to take any final decision on the membership application.
Society Opposed Transfer Citing Family Dispute
Ketaki Co-operative Housing Society opposed the transfer primarily on the ground that disputes existed between the two brothers regarding ownership and succession rights over the flat.
The society argued before the Deputy Registrar that since civil disputes were pending between the parties, it was maintaining a “neutral stand” and therefore refrained from transferring the membership solely in favour of the applicant.
The society further contended that the applicant approached the authority after an unexplained delay of nearly 11 years and therefore the application deserved rejection on the ground of limitation.
Deputy Registrar Rejects Society’s Defence
Rejecting the stand of the society, the Deputy Registrar observed that under Section 22(2) and Section 23 of the Maharashtra Co-operative Societies Act, a society is obligated to communicate its decision on a membership application within the statutory period.
The authority noted that failure to communicate any decision within three months results in “deemed membership” under the law.
The order records that the society admittedly received the application in June 2014 but failed to communicate any rejection or approval within the prescribed period.
Importantly, the Deputy Registrar held that internal disputes between family members cannot be used as a ground to indefinitely stall membership applications when no court injunction restraining transfer existed.
Key Findings Recorded in the Order
The Deputy Registrar made several important observations:
1. Failure to Decide Membership Application Leads to Deemed Membership
The authority relied upon Sections 22 and 23 of the Maharashtra Co-operative Societies Act and held that if a society does not communicate its decision within the prescribed time, the applicant is entitled to be treated as a deemed member.
2. Housing Societies Cannot Act Arbitrarily
The order emphasised that co-operative housing societies are bound by statutory obligations and principles of fairness and transparency.
3. Internal Family Disputes Are Not Sufficient Grounds
The authority observed that unless restrained by a competent court order, societies cannot refuse transfer merely because disputes exist between legal heirs.
4. Delay Caused by Society Cannot Prejudice Applicant
The Deputy Registrar rejected the limitation objection raised by the society and observed that the cause of action was continuous because the society never communicated its final decision to the applicant.
Final Directions Issued by the Deputy Registrar
After considering the material on record, the Deputy Registrar allowed the application and directed the society to:
- Recognise Mr. Nitin Kamat as a member of the society;
- Record his name in the share certificate and society records;
- Effect necessary mutation entries;
- Reflect his membership in the “I” and “J” Registers maintained by the society.
The order effectively grants statutory recognition to the applicant’s membership rights after more than a decade of delay.
Important Legal Implications of the Order
This ruling carries significant implications for co-operative housing societies across Maharashtra.
Strengthening Rights of the Legal Heirs and Flat Purchasers and Legal Heirs
The order reinforces that societies cannot arbitrarily sit over applications for years together and later raise technical objections.
Reaffirmation of Deemed Membership Principle
The Deputy Registrar has once again clarified that deemed membership is not merely procedural but a substantive statutory right available to applicants when societies fail to act within prescribed timelines.
Warning Against Abuse of Administrative Powers
The ruling sends a strong message that managing committees cannot misuse “neutrality” as an excuse to indefinitely delay transfer processes.
Growing Trend of Membership Disputes in Mumbai Housing Societies
Mumbai has witnessed a sharp rise in disputes relating to:
- Transfer of shares;
- Nomination rights;
- Succession claims;
- Deemed conveyance;
- Redevelopment-related membership conflicts;
- Arbitrary refusal of transfer applications.
Legal experts believe this order may become an important precedent in cases where societies deliberately avoid taking decisions to pressure members or legal heirs.
Role of Legal Representation
The applicant was represented by The Law Suits, a Mumbai-based law firm known for handling co-operative housing society disputes, redevelopment litigation, consumer matters, and property disputes.
The arguments in the matter were effectively led by Adv. Sulaiman Bhimani along with Adv. Mitali, who represented the applicant before the Deputy Registrar and highlighted the prolonged inaction of the society in deciding the membership application despite compliance with statutory requirements.
The legal team argued that a co-operative housing society cannot indefinitely withhold membership transfer merely by citing internal family disputes, especially when no restraining order from a competent court exists.
The matter ultimately resulted in a favourable order declaring the applicant as a deemed member under the Maharashtra Co-operative Societies Act, 1960.
Conclusion
The Deputy Registrar’s order in favour of Mr. Nitin Raghunath Kamat is a strong reminder that co-operative housing societies are not above the law and must act within statutory timelines.
The ruling strengthens the legal position of flat purchasers, nominees, and legal heirs facing arbitrary delays in membership transfer by housing societies.
As redevelopment disputes and succession conflicts continue to rise across Mumbai, this order may serve as an important precedent for protecting genuine members from administrative inaction and harassment.
Source: Deputy Registrar, Co-operative Societies, R/North Ward, Mumbai Order in Nitin Raghunath Kamat vs Ketaki Co-operative Housing Society Ltd.
About The Law Suits
This article is posted in public interest and awareness by Adv. Sulaiman Bhimani, Founder of The Law Suits and President of Citizens Justice Forum (NGO).
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