In a significant ruling that may benefit many students seeking accommodation for their education in Pune, a co-operative court has stayed a resolution passed by a residential society that imposed restrictions on flat owners from renting out their flats to students. The court deemed the society’s action as “illegal” and issued the order on July 6, though it became available this week.
The court ruling came in response to a case between Swapnil Arthamwar and the Vanraj Cooperative Housing Society. Arthamwar had sought a temporary injunction against the housing society, aiming to prevent the execution and implementation of a resolution passed during the July 2022 annual general meeting (AGM) that prohibited him from renting out his flat to students.
Judge AS Wanve of the Co-operative Court, in the judgment, stated that the Maharashtra Co-operative Societies (MCS) Act of 1960, MCS Rules of 1961, and the society’s bye-laws do not grant the housing society the power to determine tenants in its buildings. The court emphasized that residential societies do not have the authority to ban specific individuals or groups from becoming tenants.
“The resolution No. 8 passed in the 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 the majority,” stated Judge Wanve in the judgment.
While temporarily staying the society’s rule until a final order is issued, the court referred to former Prime Minister Pandit Jawaharlal Nehru, who famously dubbed Pune as the “Oxford of the East” during his visit to the city. The court observed, “Pune is the city of knowledge, and many students from all over India come here for learning and education. Accommodation is required for such students, and if all co-operative housing societies prevent their members from renting flats to students, the purpose of the city of knowledge will not be served.”
In its argument, the housing society claimed that certain members, including the petitioner, were not residing in the society but were using their flats for commercial purposes by renting them out to outsiders, particularly groups of 4-5 students, for financial gain. The society argued that accommodating students in their flats was illegal and violated the society’s bye-laws. Additionally, the society stated that despite demanding details of tenants, including Aadhaar Card information, many members, including the petitioner, failed to provide such information, which posed security risks to the residential society.
However, the court noted, “By giving individual notice on November 22, 2022, the opponent society 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.”
The court’s decision to stay the resolution provides relief to students seeking accommodation in Pune and upholds their rights to rent flats in residential societies. It also serves as a reminder to housing societies to adhere to the existing laws and not impose unreasonable restrictions on tenants.
