Bombay High Court (Aurangabad Bench) · Judgment · 04.09.2023
A bye-law the Registrar never approved does not bind members
The Aurangabad Bench of the Bombay High Court held that a plot-owners’ society could not stop a member from building a flatted building on the strength of a bye-law that had not been approved by the registering authority.
Key points
- Bye-laws need the approval of the registering authority; only approved bye-laws are valid and binding on members.
- The society relied on Bye-law 165(a) to refuse permission for a flatted building, but only Bye-laws 1 to 165 had been approved; 165(a) bore no signature or seal of the authority.
- The orders of the Taluka Deputy Registrar and the Divisional Joint Registrar allowing the construction (with flat owners as nominal members) were upheld.
The facts
The society bought land and divided it into plots for its members. The respondents acquired Plot No. 13 from the original allottee in 2012 and asked the society for permission to put up a flatted building. The society refused, relying on a bye-law that barred members from doing so. The Taluka Deputy Registrar granted a no-objection for a residential flatted building, with the flat owners to be admitted as nominal members, and the Divisional Joint Registrar upheld that order. The society argued that its bye-laws had been approved in 2015, and that the members should have challenged the bye-law through a dispute under Section 91.
What the Court held
The Court dismissed the petition. Bye-laws require approval from the authority under the Act, and only approved bye-laws bind members. The record showed that Bye-laws 1 to 165 were before the authority when it approved them; the restriction relied on, Bye-law 165(a), appeared on a separate page with no signature or seal of the authority. The society had also allowed other members to build flatted buildings. Since no grievance committee contemplated by the bye-laws had been formed, the members were entitled to approach the Deputy Registrar. The Court distinguished Wadala Shri Ram Industrial Premises CS v. Kotecha (2001), which concerned a challenge to the validity of a registered bye-law amendment.
Why it matters
Before a committee enforces a restriction in its bye-laws, it should check that the provision was actually registered or approved, and keep the certified copy. A resolution or an amendment that never received approval cannot be used against members.
Thirteen-page judgment in English. This page summarises the decision for general information; it is not a substitute for the full text and not legal advice. Check whether the decision has since been appealed, modified or overruled.
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