In Brief
A cooperative housing society (Anand Darshan) comprising three wings in two buildings was divided into two separate societies at the request of A Wing members. The Deputy Registrar consulted the Federal Society on the draft scheme, then issued a draft order for member objections. The High Court held this violated statutory procedure, finding the final draft order should have been sent to the Federal Society for consultation. The Supreme Court reversed, holding that Section 18 of the Maharashtra Co-operative Societies Act, 1960 requires Federal Society consultation only at the draft scheme stage, not at the draft order stage. The sequential procedure—scheme consultation, then order circulation—complies with law.
The lawyer headnote and full judgment text are available to registered users.