In a hearing that stretched through the morning at the Bombay High Court, Justice Amit Borkar delivered a detailed judgment that finally brought clarity to a long-standing tussle between two cooperative societies in Navi Mumbai. The Court restored the bifurcation of Balaji Tower CHS-located on Plot No.8 in Sector 22-from Shree Ganesh CHS, which sits about a kilometre away on Plot No.1 in Sector 28. The judgment, pronounced on 11 November 2025, effectively overturns the State Minister’s earlier decision that had stalled the separation.
Background
The dispute goes all the way back to the 1990s. Although both plots were initially registered under one umbrella society, the ground reality, as the Court noted, was very different. Plot No.1 has 18 residential buildings and two commercial blocks, while Plot No.8 contains 80 flats whose residents had, for decades, been managing things independently-right from accounts to maintenance to repairs.
Over the years, friction kept growing. Notices for general body meetings allegedly never reached Balaji Tower residents. Their names slowly vanished from membership records. An audit even flagged that the reduction happened without following mandatory legal steps. Confusion increased during Covid years, culminating in a formal application for bifurcation under Section 18 of the Maharashtra Cooperative Societies Act.
A Joint Registrar approved the division in March 2022. But soon after, the then Chairman of Shree Ganesh CHS challenged it before the State Minister, allegedly using a “fabricated” resolution. The Minister accepted the appeal and set aside the bifurcation-leading to the writ petitions now decided by the Court.
Court’s Observations
The bench took a close look at the physical, administrative, and financial realities of the two plots. “The two plots have no functional, financial, or administrative linkage,” the Court noted in what became the central finding. Justice Borkar pointed out that everything-from water connections to electricity meters to bank accounts-had always been separate.
Significantly, the Court commented on the exclusion of Balaji Tower residents from the affairs of the parent society. “Members residing on Plot No.8 have been deprived of participation rights for years,” the bench observed, adding that their names were removed without following the law.
On the argument raised by some respondents that bifurcation amounted to “transfer of property” requiring CIDCO’s prior approval, the Court was unequivocal. It pointed directly to Sections 17(2) and 18(5) of the MCS Act, noting that once a new society is registered after division, the law itself transfers assets and liabilities automatically. “No external permission can be introduced unless the Legislature says so,” the bench observed.
Interestingly, the Court also highlighted that Shree Ganesh CHS itself had recently passed resolutions supporting the bifurcation, suggesting the opposition had lost its base.
Decision
The Court quashed the Minister’s order of January 2023 and restored the Joint Registrar’s March 2022 decision directing bifurcation. It ordered that Balaji Tower CHS (Petitioner No.1) continue to function independently and directed Shree Ganesh CHS and authorities to complete all consequential steps, including handing over accounts and records. A request to stay the judgment was rejected immediately.
Case Title: Balaji Tower Cooperative Housing Society Ltd. & Anr. v. State of Maharashtra & Ors.
Case Numbers:
- Writ Petition No. 1218 of 2023
- Writ Petition No. 1228 of 2023
- Connected Interim Applications
Court: High Court of Judicature at Bombay
Bench: Justice Amit Borkar
Type of Jurisdiction: Civil Appellate Jurisdiction
Date Reserved: 07 November 2025
Date of Judgment: 11 November 2025