In a major decision, which upholds the legal rights of cooperative housing societies, the Bombay High Court has made it clear that there should be more to conveyance of property than just the plot of land on which the building stands. The Bombay High Court ruled that cooperative housing societies would be entitled to the lands, open areas, and other amenities without which the property cannot be enjoyed to its full benefit.
Background of the Case
This decision has been passed during the hearing of a writ petition filed by Rashesh Cooperative Housing Society situated in Bhayandar West. This society had moved the court against an order issued by the District Deputy Registrar (DDR), Cooperative Societies, Thane.
Origin of the Dispute
The dispute has its origin since October 2023, during which period the DDR approved deemed conveyance to the society; but it was only in respect to plinth area ownership, which means ownership was restricted to only built-up area. The society being dissatisfied approached the case again after it came up before the high court. In light of the previous case, the society again raised the issue for the inclusion of open areas along with common facilities and undivided proportionate right in recreation areas.
However, the DDR refused again to comply with the society’s request and hence the society moved on to the high court again. As far as the issue is concerned, the fact remains that though the society was registered in 2015, yet no conveyance deed was prepared in favor of society from developer Shreeji Developers.
Arguments Presented by the Society
Appearing for the society, Advocate Bhavin Gada cited a June 2018 Government Resolution as justification for the claim. According to him, housing societies have legal rights not only to the structure but also to open spaces, internal roads, playing fields, and other common amenities. These facilities were critical for the effective use of the residential complex.
The claim made by the society was based on an area of 3,987.16 sq m, which included proportionate rights over a 703.62 sq m playing field. However, the developer sought to restrict the transfer to an area of 1,050 sq m only.
High Court’s Observation and Interpretation
A single-judge bench headed by Justice Amit Borkar agreed with the arguments made by the petitioner. According to the judgment, the right of a housing society is not restricted to just the building but includes other areas which are “appurtenant” or annexed to it.
Role of Development Control Regulations
It was important for the court to highlight the significance of the planning controls in deciding the scope of conveyance. While discussing the Development Control Regulations, the judge highlighted that such controls guide the construction and location of buildings, including the requirement of:
- Minimum front, side, and rear margins
- Distance between buildings
- Internal roads and access pathways
- Recreational and amenity spaces
- Parking provisions and drainage systems
“They define how the building can exist,” the judge observed. “Therefore, while deciding the extent of conveyance, the court must examine sanctioned plans and applicable regulations. Land which planning law links to the use of the building may constitute part of the appurtenant entitlement, subject to layout and rights of other buildings” as per HT.
This judgment assumes added significance in case of housing societies situated in multi-blocks where infrastructure and common spaces form an essential part of their day-to-day life. It becomes all the more significant when one realizes that the judgment treats these spaces and facilities as essential parts of their property rights.
Final Order and Relief Granted
In its order passed in the final hearing, it was opined by the court that the Rashesh Cooperative Housing Society is entitled to get the transfer of the plot of land covering the area of 2,201.56 square metres together with the undivided share in the recreational plot of land, covering the area of 703.62 square metres.
This is an appreciable increase from the restricted areas allowed to it previously. The court has ordered the issuance of a new certificate for deemed conveyance of the above mentioned areas.
Impact of the Verdict
The verdict creates a very significant legal precedent that can be set by other similar cases throughout Maharashtra and elsewhere. Ownership in cooperative societies cannot be just based on individual units but must include all parts of property that constitute the building legally and functionally. In fact, there are thousands of housing societies waiting to get their share of the land conveyed through such legal processes, and the decision in the case can greatly help them.
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