Pune court stays society resolution banning owners from giving flats on rent to students

ByNadeem Inamdar

Jul 18, 2023 12:40 AM IST

The court ruling came when it was hearing a case between Swapnil Arthamwar versus Vanraj Cooperative Housing Society

In a ruling that could benefit many students who seek flats to stay and pursue education in the city, a co-operative court in Pune has stayed a resolution passed by a residential society which had made it binding for a flat owner to seek written permission from the society management before renting out the flat to a student. The court in its order issued on July 6, although it was made available this week, termed the action by the housing society in Pune as “illegal” to prohibit renting out flats to students.

The court in its order issued on July 6, although it was made available this week, termed the action by the housing society in Pune as “illegal” to prohibit renting out flats to students. (REPRESENTATIVE PHOTO)

The court ruling came when it was hearing a case between Swapnil Arthamwar versus Vanraj Cooperative Housing Society. Arthamwar had approached the court seeking temporary injunction against the housing society to restrain it from execution and implementation of a resolution passed in the annual general meeting (AGM) during July 2022 that barred petitioner from renting out flat to students.

Co-operative Court Judge AS Wanve in the judgement stated that Maharashtra Co-operative Societies (MCS) Act, 1960, MCS Rules 1961 and bye-laws of society does not give any power to housing society to decide who will be tenant in its building. The court observed that the residential society has no power to ban a particular person or group of persons to be tenant in its building.

“The resolution No. 8 passed in Annual General Meeting dated 17/07/2020 is prima facie illegal, and the opponent society is not permitted to pass any resolution which is not in consonance with its bye-laws and the existing laws. The opponent society is not permitted to impose reasonable restrictions upon the minority member on the strength of majority,” stated Wanve in his judgement.

The court while staying the society rule till it issues a final order gave reference of late Prime Minister Pandit Jawaharlal Nehru who gave Pune the sobriquet of Oxford of the East during his visit to the city. “It is no doubt true that Pune is the city of knowledge and in view of this many students from all over India came to Pune for learning and education. In order to get education in Pune, accommodation is required for such students and if all co-operative housing societies prevent their members to give flats to students on rent then the purpose of the city of knowledge will not be served.” the court observed.

The housing society in its argument had submitted that there are a few members like disputants (petitioner), who are not residing in society but using their flats for commercial purposes by letting it out to outsiders particularly for the occupation by a group i.e. minimum 4-5 students for commercial gains.

The occupation of students in respective flats is otherwise illegal and contrary to the provision of bye-laws of the opponent society, said the housing society in its argument. It had further submitted that even though it is mandatory for flat owners to give details of tenants who occupy the flat, including Aadhaar Card, most of the disputants fail to do so even after demanding for the same by the manager of the society, thereby put the residential society at security risk.

The court, however, observed that, “The opponent society by giving individual notice November 22, 2022, has peremptorily instructed concerned flat holders/disputants that they cannot exploit the prime and peaceful situation of the society for fabulous commercial gain. Such an act is contrary to the co-operative principles and encroaches upon the civil rights of the members and residents in the society.”

https://www.hindustantimes.com/cities/pune-news/pune-court-stays-society-resolution-banning-owners-from-giving-flats-on-rent-to-students-101689621027518.html