Shashin Patel & Anr. v. Uday Dalal & Ors.(with Capital Mind Advisory Services Pvt. Ltd. v. UdayDalal & Ors.)

 A long-standing occupant’s belated payment for cooperative society membership cannot defeat an unrevoked resolution admitting him; equitable recognition of membership must follow, subject to adjustment by enhanced interest for delay.

 

Background

Flat No. 7 in Malboro House, Mumbai, was occupied for decades by Shri Narendra Patel as a tenant. When tenants collectively formed a cooperative housing society during liquidation of the owner-company, all but Shri Patel paid their apportioned contribution. Despite an offer letter (1995) and an AGM resolution dated 11.08.2005 resolving to admit him upon payment of ₹5 lakhs, he continued in occupation without depositing the amount. After appointment of an Administrator due to mismanagement, his legal heirs (the appellants) deposited the amount with interest and sought membership. The Divisional Joint Registrar allowed their claim, which the High Court set aside, directing the Society to reconsider. The appellants and a subsequent purchaser appealed.

 

Issues Framed

1. Whether successors of a long-standing occupier could be denied society membership solely due to belated payment despite an unrevoked resolution admitting him.
2. Whether the Joint Registrar exceeded jurisdiction in directing grant of membership.
3. Whether the High Court was justified in interfering with the revisional order.
 

Court’s Reasoning

• Binding effect of prior resolution: The Court held that the AGM resolution dated 11.08.2005, resolving to admit Shri Narendra Patel upon payment, was never withdrawn or challenged and continued to operate.
• Equity and anomaly: Denying membership while permitting continued lawful occupation would create an inequitable and anomalous situation, perpetuating friction within the Society.
• Statutory remedies and jurisdiction: The appellants had properly invoked statutory remedies under the Maharashtra Co-operative Societies Act, 1960 after the Administrator declined to decide. Hence, the Joint Registrar did not act without jurisdiction.
• Subsequent ratification: The Society’s AGM dated 30.09.2025 ratified the appellants’ membership and the subsequent transfer to the purchaser; this ratification had not been challenged.
• Delay not fatal: While delay in payment could not defeat membership, equities warranted that objecting members be left free to seek enhanced interest/charges for the belated contribution.
 

Decision 

The appeals were partly allowed. The High Court’s order was set aside insofar as it quashed the revisional order and consequential actions. Membership of the appellants and the subsequent purchaser was recognised, subject to liberty for the Society/members to seek determination of additional interest for delay. No costs. 

 

Ratio

Where a cooperative society has passed and never revoked a resolution admitting an occupier as a member subject to payment, belated deposit by his successors cannot defeat that entitlement; equitable recognition of membership must follow, with delay remediable only through adjustment by enhanced interest, not denial of membership.

 

Case Details

• Citation: 2026 INSC 125
• Decided on: 05 February 2026
• Case Title: Shashin Patel & Anr. v. Uday Dalal & Ors.(with Capital Mind Advisory Services Pvt. Ltd. v. UdayDalal & Ors.)
• Court: Supreme Court of India
• Bench: Vikram Nath, J.; Sandeep Mehta, J.

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