Bombay High Court on Registration of Cooperative Housing Societies: Reasoned Order is Mandatory Before Issuing Certificate.

Headnote:

The Bombay High Court held that registration of a cooperative housing society under Section 9 of the Maharashtra Cooperative Societies Act, 1960 is invalid if the Registrar issues only a certificate without a proper, reasoned order. Recording reasons is mandatory because the Registrar performs a quasi-judicial function requiring satisfaction of statutory conditions. Since the Registrar failed to record findings regarding compliance with Sections 154B-2 and 154B-3, the registration was defective. The Court clarified that although the Appellate Authority rightly noted the absence of reasons, it should have remanded the matter for fresh decision instead of deciding the merits.

Background:

• The petitions involved a dispute over the registration of a proposed cooperative housing society under Section 9 of the Maharashtra Cooperative Societies Act, 1960.

• The Deputy Registrar granted registration by issuing only a certificate, without a speaking order or recorded reasons.

• Appeals were filed contending that such registration was invalid because the Registrar must demonstrate satisfaction of mandatory statutory requirements, especially for housing societies governed by Sections 154B-2 and 154B-3.

• The Appellate Authority held that the registration suffered from lack of reasons but proceeded to decide the merits instead of sending the matter back to the Registrar.

Court’s Observations:

• Registration under Section 9 requires a reasoned order, not merely a certificate; the Registrar must apply his mind to documents, membership eligibility, statutory compliance, and policy directives.

• Since an appeal remedy is available, the original order must contain reasons to enable effective appellate scrutiny.

• Verification of documents under Section 154B-2(2) (such as layout plan, commencement/completion certificates, 51% flat purchasers' requirement, architect certification, society resolution, etc.) must be expressly recorded by the Registrar.

• The satisfaction required under the Act is quasi-judicial in nature and cannot be presumed.

• The Registrar’s certificate did not disclose any findings, documents examined, or consideration of relevant statutory conditions.

• While the Appellate Authority correctly found the order deficient, it erred by not remanding the matter; adjudicating on merits without a proper first-stage order was impermissible.

• The Court therefore held that the appropriate course was to quash the defective order and direct reconsideration by the original authority.

Legal Provisions Discussed:

• Section 9, Maharashtra Cooperative Societies Act, 1960 – Registration of societies and requirement of Registrar’s satisfaction.

• Sections 154B-2 & 154B-3, Maharashtra Cooperative Societies Act, 1960 – Special provisions for housing societies including mandatory documents and membership conditions.

• Section 4, Maharashtra Cooperative Societies Act, 1960 – State policy directives regarding formation of societies.

• Relevant Cooperative Societies Rules and natural justice requirements concerning reasoned orders in quasi-judicial proceedings.

Citation: 2025:BHC-AS:50978

Case: Shree Jagrutti Cooperative Housing Society Ltd. & Anr. v. Shree Jagruti CHS (Proposed) & Ors.

Court: High Court of Judicature at Bombay

Coram: Justice Amit Borkar

Date of Decision: 24 November 2025

Writ Petition No.: WP 11339 of 2025, WP 10120 of 2025, IA 13401 of 2025