Co-operative Court No. 2, Pune · Order below Exh. 5 · 06.07.2023
A society cannot decide who its members may let their flats to
The Co-operative Court at Pune stayed a general body resolution that barred members from letting their flats to students, ordered existing student tenants out and threatened penalties and cancellation of membership.
Key points
- The Act, Rules and bye-laws give a society no power to choose its members’ tenants or to ban a class of persons, such as students, from being tenants.
- A resolution imposing a ₹10,000 per month penalty and threatening cancellation of membership for letting to students was prima facie illegal.
- Nuisance by any occupant must be dealt with under the existing civil or criminal law; the majority cannot impose unreasonable restrictions on the minority.
The facts
At its AGM of 17 July 2022, Vanraj CHS in Pune resolved (Resolution No. 8) that members could not let their flats to students, that existing student tenants must be removed by 30 October 2022, that a penalty of ₹10,000 per month would be charged after that, and that the society would proceed to cancel the membership of defaulting members. It also required prior written permission for any letting. Non-resident members who had let their flats on leave and licence filed a dispute and sought a temporary injunction. The society alleged that groups of students caused nuisance, wasted water, misused parking and posed security risks, and that tenant details had not been given.
What the Court held
The Court held that the society’s bye-laws give it no right to decide who will or will not be a tenant; members may let their flats as they wish, subject to complying with the bye-laws (such as informing the society and giving tenant details). Neither the Act, the Rules nor the bye-laws permit a society to ban a particular group as tenants, and the resolution would affect students who had done nothing wrong. Allegations of nuisance did not justify such discrimination; the society had to use the ordinary civil and criminal remedies. Finding a prima facie case, balance of convenience and irreparable loss in the members’ favour, the Court restrained the society from implementing the resolution until the dispute was decided, with costs.
Why it matters
Many societies are tempted to bar students, bachelors or other groups as tenants. This order, though an interim decision of a Co-operative Court and not binding precedent, reflects the general position: the society may insist on intimation, police verification and tenant details under the bye-laws, and may act against actual nuisance, but it cannot choose or exclude tenants as a class. See also the circular on online tenant verification.
Eleven-page interim order in English, with the Marathi resolution quoted. 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.
Have a question about your society?
Write to the office with a brief description of the matter. Meetings are by prior appointment.