Megha 17_wp_2122_2000 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.2122 OF 2000 Ashok K. Shetty and Ors. ...Petitioners V/s. Dnyaneshwar B. Khandge since deceased through his only heir and and legal representative 1(a) Smt. Sudnyanka Kandge and Ors. ...Respondents ________________ Mr. B.K. Bali with Ms. Veena Nair i/b. M/s. Bali & Associates for the Petitioners Ms. M.S. Srivastav, AGP for Respondent -State. ________________ CORAM: SANDEEP V. MARNE, J. DATED: 31 JULY 2026. P.C.: 1) The Petition is >led challenging the order dated 21 January 2000 passed by the Secretary (Co-operation) (the Secretary) allowing the Revision >led against order dated 12 June 1997 passed by the Divisional Joint Registrar, Co-operative Societies, M.D. (Appeal) Mumbai (Divisional Joint Registrar). The Secretary has set aside order dated 12 June 1997. By order dated 12 June 1997, the Divisional Joint Registrar had set aside the registration and certi>cate dated 9 April 1997 in respect of Respondent No.5-Society. Page No. 1 of 6 31 July 2026 2026:BHC-AS:31950 Megha 17_wp_2122_2000 2) Respondent No.5- Society has been registered on 9 April 1997. It is formed by allottees of the plots. It is the grievance of the Petitioners that the Society was fraudulently formed and registered by only 12 members without taking on board group of 33 members, of which Petitioners are a part. Accordingly, registration of the Society was challenged by the Petitioners before the Divisional Joint Registrar and they succeeded in setting aside the registration certi>cate dated 9 April 1997 by virtue of order dated 12 June 1997 passed by the Divisional Joint Registrar.In Revision, the Secretary has set aside the order of the Divisional Joint Registrar. This has resulted in revival of registration of Respondent No.5-Society. 3) By interim order dated 3 May 2000, this Court recorded statement made on behalf of Respondent No.5-Society that 74 members were already allotted plots and construction of houses on said plots after obtaining development permission was underway. In view of the position that obtained on 3 May 2000, this Court Court did not stay the order of the Secretary. However, an undertaking was directed to be >led by Respondent No.5-Society not to claim equity in respect of the construction raised by the members on their respective plots and that such construction would be subject to outcome of this Petition. Additionally, Respondent No.5-Society was also directed to deposit an amount of Rs.10,00,000/- in this Court. Accordingly, an undertaking has been >led by Respondent No.5 -Society, which has also deposited amount of Rs.10,00,000/- as directed by this Court. The Petition came to Page No. 2 of 6 31 July 2026 Megha 17_wp_2122_2000 be admitted on 17 August 2001. The Petition is called out for >nal hearing. 4) I have heard Mr. Bali, the learned counsel appearing for the Petitioners and Ms. Srivastav, the learned AGP appearing for the Respondent-State and have considered the submissions canvassed by them. 5) It must be observed that formation of a co-operative Society is ultimately for collective management of the property and affairs by the members. Whether Petitioners could have formed their society or whether contesting Respondents were right in forming Respondent No.5-Society makes no difference. Ultimately, only one co-operative Society could have been registered in respect of the plots. 6) Real grievance of the Petitioners, who form part of 33 members, is non-allotment of plots to them despite acceptance of amount by Respondent No.1. Mr. Bali submits that Respondent No.1 collected monies from proposed members and purchased land in his name with the aim of allotment of land to all 107 members. It is submitted that Respondent No.1 however allotted plots only to 74 members leaving in lurch the balance 33 members. It is the contention of the Petitioners that their proposed society would have comprised 107 members, in which ultimately only 74 members are admitted. It appears that the Petitioners had >led proposal for registration of society and it also secured an order for reservation of name. It is the grouse of the Petitioners that 12 members clandestinely registered Respondent No.5-Society. Thus, the Page No. 3 of 6 31 July 2026 Megha 17_wp_2122_2000 real grievance of the Petitioners is about non-allotment of the plot for which they ought to have adopted necessary remedies possibly before the Co-operative Court. Petitioners are denied plots as well as membership in the Society. 7) In such circumstances, instead of challenging formation of the Society, it would have been appropriate for the Petitioners to seek membership of the Society and direction for allotment of plot. It appears that the Secretary has made an observation in his order that some land was still left out with Respondent No.1 in which remaining 33 members could also be allotted plot. However, it appears that no land is available for allotment of plots to the Petitioners. By now, period of 29 long years has elapsed since formation and registration of Respondent No.5- Society. During those 29 years, the members have been managing affairs of the Society as well as looking after common amenities on collective basis. If at this stage Society’s registration is cancelled, the same would result in utter chaos. 8) As observed above, cancellation of registration is sought essentially for ensuring allotment of plots to 33 members. The correct remedy in such circumstances was to seek membership to the Society and allotment of plot from court of competent jurisdiction. True it is that by interim order dated 3 May 2000 it is ensured that undertaking is >led by the Society not to claim any equity in respect of the construction raised by Respondent No.5 Society over the plot in question. However, after passing of that order, period of 26 long years has elapsed. It is now too late in a day to examine correctness of the order passed by the Page No. 4 of 6 31 July 2026 Megha 17_wp_2122_2000 Secretary (Co-operation) for the purpose of ensuring cancellation of registration of the Society. Even if the Petition is to be allowed and registration of Respondent No.5-Society is cancelled, the same may not yield a favaourable result for the Petitioners. 74 members are already occupying plots allotted to them and constructed houses thereon. Therefore, mere registration of another Society would not create any land for allotment to the Petitioners. In such circumstances, it is necessary to give a quietus to the entire litigation. It will be for the Petitioners and other similarly situated persons to seek appropriate remedy for allotment of plots if they are so advised. I am therefore not inclined to interfere in the order passed by the Secretary (Co-operation). 9) At this stage, Mr. Bali submits that an amount of Rs.10,00,000/- was directed to be deposited by this Court in pursuance of order dated 3 May 2000. Said amount essentially represents the amounts deposited by 24 persons with Respondent No.1 under a hope of securing allotment of plots. Individual af>davits of those 24 persons alongwith proof of payment of amount are >led on record. Mr. Bali submits that deposited amount alongwith accrued interest be permitted to be withdrawn for the bene>t of said 24 persons. He makes an earnest request that Petitioner No.1 be permitted to withdraw the entire amount for the purpose of distribution thereof amongst 24 members. The suggestion appears to be fair. 10) Accordingly, I proceed to pass the following order:- (i) Writ Petition is dismissed. Page No. 5 of 6 31 July 2026 Megha 17_wp_2122_2000 (ii) Petitioner No.1 is permitted to withdraw the entire deposited amount alongwith accrued interest. (iii) Petitioner No.1 shall distribute the withdrawn amount amongst 24 persons, who have >led af>davits in the present Petitions. (iv) Petitioners would be at liberty to adopt appropriate proceedings for allotment of plots before the appropriate forum. 11) With the above directions, Writ Petition is disposed of. Rule is discharged. There shall be no order as to costs. [SANDEEP V. MARNE, J.] Page No. 6 of 6 31 July 2026 Signed by: Megha S. Parab Designation: PA To Honourable Judge Date: 04/08/2026 15:33:30