A Contract Between Flat Purchasers & Promotor Cannot Override Or Derogate From Statutory Mandates

INTRODUCTION:

The Bombay High Court in its decision in Rameshwar Cooperative Housing Society Limited & Ors vs. Divisional Joint Registrar & Ors.¹, held that any clause in the agreement of sale between the flat purchaser and the developer which is inconsistent with the rights and obligations flowing under the Maharashtra Cooperative Societies Act, 1960 ("MCS Act") and Maharashtra Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 ("MOFA") is void to the extent of such inconsistency.

FACTS:

The Petitioners are Cooperative Housing Societies registered under the MCS Act who have challenged the legality of the order dated 28^th February, 2025 ("Impugned Order") passed by Respondent No. 1 being the Divisional Joint Registrar, Cooperative Societies in Application No. 14 of 2024, deregistering the cooperative housing association formed by the Petitioners – namely, Neelkanth Heights Cooperative Housing