
Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration
Date: 03.11.2026
Bombay High Court Sets Aside Registrarβs NOC for Commercial Use of Residential Society Flat
This Short Article has been prepared & written by Advocate Madhumita Jha. The views expressed are based on her interpretation of the law. She can be reached at her mob no- +91 8726929060 and email id jhamadhumita27@gmail.com .

The Bombay High Court has held that a Deputy Registrar of Co-operative Societies cannot issue, or compel a housing society to issue, a no-objection certificate (NOC) for converting a residential flat to commercial use when no such statutory duty exists.
The dispute
Surya Lok Co-operative Housing Society Ltd., a Mumbai housing society whose sanctioned building plan contained only residential flats, challenged an administrative NOC that supported commercial use of Flat No. 3 on the ground floor.
The flat had changed hands several times before being transferred in January 2016 to Fazal Abbas Sayed and Aafreen Fatima Fazal Abbas Sayed. The purchasers sought membership in the society and were ultimately admitted after an undertaking that the flat would be used for residential purposes. They later pursued permission to use it commercially.
Because the society declined to issue an NOC, the purchasers approached the Deputy Registrar. On 8 December 2016, the Deputy Registrar issued a letter stating that the office had no objection to commercial use of the flat. The societyβs challenge to that letter was rejected in revision by the Divisional Joint Registrar in January 2018, leading to the writ petition before the High Court.
What the society argued
The society contended that the Deputy Registrar had no power under the Maharashtra Co-operative Societies Act, 1960 to approve a change in the use of a flat from residential to commercial. It also argued that:
- Flat No. 3 was sanctioned for residential use under the municipal plan.
- The purchasers had expressly undertaken to use the premises only for residential purposes.
- The society had withdrawn an earlier 2000 resolution allowing commercial use of ground-floor flats through later resolutions in 2007 and 2014.
- The NOC was issued without notice to, or a hearing for, the society.
What the flat owners argued
The flat owners submitted that ground-floor premises in the area were commonly used commercially and that Flat No. 3 had allegedly been used for commercial activity in the past. They relied on municipal assessment records, electricity bills, stamp-duty valuation and transfer-deed recitals to support that position.
They also argued that the membership order issued in 2016 had already addressed the commercial-use issue, and that the society was improperly withholding its consent.
The Courtβs ruling on the Registrarβs powers
Justice Sandeep V. Marne held that the Deputy Registrar lacked jurisdiction to issue the NOC.
At the time of the 2016 NOC, Section 79 of the Maharashtra Co-operative Societies Act applied. That provision permits the Registrar to enforce action that a society is legally required to take under the Act, rules or bye-laws. The Court found that it does not create a duty requiring a society to issue an NOC for conversion from residential to commercial use.
The Court also examined Section 154B-27, introduced later for co-operative housing societies. It concluded that this provision similarly does not give the Registrar broad authority to resolve every dispute between a member and a society or to compel support for planning-related changes. Its scope is limited to enforcing obligations already created by co-operative law, rules or bye-laws.
The judgment emphasized a key distinction: even if a Registrar could direct a society to perform a legally mandated act, that would not empower the Registrar to issue the societyβs NOC personally.
Why the NOC was invalid
The Court identified several defects in the Deputy Registrarβs action:
- No statutory authority: The Act, rules and bye-laws did not obligate the society to issue an NOC for change of user.
- Registrar acted beyond supervisory power: The Deputy Registrar directly stated that the office had no objection to commercial use, effectively substituting the Registrarβs view for the societyβs decision.
- No hearing for the society: The NOC was issued after the purchasersβ request without giving the society notice or an opportunity to be heard.
- Lack of application of mind: The Court noted that the Registrar did not verify whether the building contained commercial premises or whether the society supported the proposed conversion.
The Court described the NOC as arbitrary, without jurisdiction and void from the outset.
Membership did not authorize commercial use
The Court rejected the argument that the 2016 membership order had conclusively allowed commercial use. That order dealt with admission to membership, not permission to alter the use of the premises.
The Court found that membership and use of a flat are distinct issues. Observations in the membership order about commercial activity in other flats or municipal assessments did not amount to legal permission for commercial use of Flat No. 3.
The ownersβ residential-use undertaking was also material. The Court recorded that membership was granted after an undertaking that the flat would be used exclusively for residential purposes and that no change of use would occur without the societyβs prior written permission.
Municipal records and utility connections are not enough
The judgment clarified that commercial municipal assessment, a commercial electricity connection or payment of stamp duty based on commercial valuation do not automatically convert a residential flat into commercial premises.
The Court held that, in a tenant co-partnership housing society, the society owns the land and building while members hold rights to occupy allotted premises. Therefore, a change in use from residential to commercial requires the societyβs NOC where the building consists exclusively of residential premises.
Final order and legal remedy
The High Court allowed the writ petition and set aside:
- The Deputy Registrarβs letter/NOC dated 8 December 2016; and
- The Divisional Joint Registrarβs revisional order dated 15 January 2018.
The flat owners remain free to pursue a dispute under Section 91 of the Maharashtra Co-operative Societies Act before the appropriate Co-operative Court to seek the societyβs NOC. Any such dispute must be decided independently on its merits, without being influenced by the High Courtβs observations in this case.
Key takeaway for housing societies and members
A Deputy Registrar cannot be used as a substitute decision-maker for a housing society on a proposed change from residential to commercial use. Where a member disputes a societyβs refusal to grant an NOC, the proper course is adjudication before the legally competent forum, rather than an administrative NOC issued by the Registrar.
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Source: Bombay High Court
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