Minority Members Cannot Use Society Bifurcation to Derail Majority-Approved Redevelopment: Bombay High Court

Case Overview

Case Name: Madhur Naina Co-operative Housing Society Limited Vs State of Maharashtra (Bombay High Court)
**Writ Petition No.😗* 850 of 2026
Date of Order: 22 July 2026
Court: Bombay High Court

The Bombay High Court, in a significant ruling concerning co-operative housing society governance, set aside a remand order issued by the Minister (Co-operation) and restored the concurrent decisions of two lower authorities that had rejected a bifurcation proposal. The judgment reinforces the principle that minority members of a co-operative housing society cannot weaponise the bifurcation mechanism under Section 18 of the Maharashtra Co-operative Societies Act, 1960 to obstruct a redevelopment process that has been duly sanctioned by a majority of members.

Background and Factual Matrix

Madhur Naina Co-operative Housing Society Limited (the Petitioner-Society) was registered in 1974 and has operated continuously for over 50 years. The Society comprises two residential buildings — Naina and Veena — situated on a plot bearing Survey No. 55, Hissa No. 1A (Part), corresponding CTS No. 239/B, admeasuring 1571.90 sq.m. at Village Kanheri, Taluka Borivali, Mumbai Suburban District. Each building contains 16 flats, making a total membership of 32 across the combined society.

Redevelopment History

The Society commenced its redevelopment initiative by issuing a Letter of Intent dated 26 January 2022 to M/s. Narayan Shelter. However, the appointed developer failed to make meaningful progress. While the Society was in the process of terminating M/s. Narayan Shelter's engagement, a parallel move emerged from within — a group of members proposed splitting the Society into two independent entities along building lines.

A Special General Meeting was convened on 5 May 2024 to deliberate on this bifurcation proposal. Of the 25 members who attended and voted, 18 members opposed bifurcation while only 7 voted in favour. The proposal was thus conclusively rejected through a democratic majority process.

Subsequently:

  • The Society issued a notice of termination dated 24 June 2024 to M/s. Narayan Shelter.
  • A fresh Special General Body Meeting was held on 28 July 2024, at which M/s. Navkarmik Infra and Development Private Limited (Navkarmik) was selected as the new developer.
  • A fresh Letter of Intent dated 5 September 2024 was issued to Navkarmik.

The Bifurcation Proposal and Its Contested Foundation

Despite the democratic rejection at the Special General Meeting, the proposed society for the Veena building (Respondent No. 4) claimed to have held a separate meeting on 9 June 2024, purportedly attended by 9 of the 16 Veena building members, in which a Chief Promoter (Shri Govind Bodke) was elected and authority granted to file for bifurcation. On this basis, a proposal dated 6 August 2024 was filed before the Deputy Registrar under Section 18 of the Maharashtra Co-operative Societies Act, 1960.

Critical Defect Noted: The Deputy Registrar specifically found that no documentary evidence was produced to establish that notices for the alleged 9 June 2024 meeting had been served on all 16 residents of Veena building. This finding — that the very foundation of the bifurcation proposal was procedurally defective — became a central issue in the High Court's analysis.

Proceedings Before Lower Authorities

Deputy Registrar's Order (23 January 2025)

The Deputy Registrar issued a draft order on 11 October 2024 under Section 18(1) of the Maharashtra Co-operative Societies Act, 1960 read with Rule 17 of the Maharashtra Co-operative Societies Rules, 1961, inviting suggestions and objections. The Mumbai District Co-operative Housing Federation Limited (Federation) submitted its opinion on 14 November 2024, recommending bifurcation on the basis of separate entrance gates, independent electricity meters, and separate water tanks.

However, after considering all material on record, the Deputy Registrar rejected the bifurcation proposal through his order dated 23 January 2025. Key findings included: