Bombay High Court · Division Bench · 14.10.2021
An administrator appointed to hold elections cannot take up redevelopment
The Bombay High Court set aside a notice issued by a Board of Administrators calling a special general body meeting to appoint a developer, because the Board had been appointed only to conduct the society’s elections.
Key points
- The Deputy Registrar had appointed the Board of Administrators for six months, only to conduct elections.
- The Board therefore could not call a meeting to appoint a developer, issue an LOI or complete redevelopment formalities.
- This holds even if the majority of members want the Board to do so; the notice and its agenda were set aside.
The facts
The Deputy Registrar, R/North Ward, appointed a Board of Administrators for Borivali Anand CHS by an order of 30 August 2021, for the purpose of conducting the society’s elections. The Board then issued a notice dated 11 October 2021 calling a special general body meeting to discuss redevelopment, appoint a developer and issue a letter of intent, authorise the Board to complete the formalities, and appoint an architect and advocate. Some members challenged the notice.
What the Court held
In a short order, the Court held that a Board appointed for six months only to conduct elections could not call a meeting for redevelopment or take steps to finalise it, whatever the majority of members wanted. The notice and its agenda were set aside.
Why it matters
An administrator’s powers depend on the order appointing them. Where the appointment is limited to holding elections, major decisions such as redevelopment should wait for an elected committee. Members and developers dealing with a society under an administrator should read the appointment order first.
Two-page order 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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