In a significant ruling for housing society redevelopment projects, the Maharashtra State Co-operative Appellate Court has held that an ownership dispute involving a single flat cannot be used to stall the redevelopment of an entire housing society. The court allowed the redevelopment of Mulund Sahakar Vishwa Co-operative Housing Society in Mulund West to proceed, observing that hundreds of residents should not suffer because of litigation concerning one flat.
The order was passed on June 22, 2026, by Member-2 AS Wanve, who dismissed an appeal filed by the legal heirs of late Rekha Gangadhar Pagare and upheld an earlier order rejecting interim relief against redevelopment.
What the heirs claimed
The appellants argued that:
>> Rekha Pagare had paid the full consideration amount.
>> Flat was allotted through an allotment letter.
>> She was given possession of the flat.
>> The society later demanded an additional R3.67 lakh.
>> Redevelopment could create third-party rights and prejudice their ownership claim.
Rival ownership claim
The appellants also challenged a consent award obtained by Pushpa B Garud, alleging:
>> Garud claimed ownership rights over the same flat.
>> Society, Garud entered into consent terms.
>> A consent award and allotment letter were issued in Garud's favour.
>> The award was allegedly obtained through fraud.
These allegations remain part of the pending main dispute.
Why this ruling matters
>> Individual ownership disputes can continue separately.
>> Redevelopment projects should not ordinarily be stopped because of disputes involving a single member or flat.
>> Courts are likely to weigh the interests of the larger body of residents before granting stays that could delay redevelopment.
What the court said
“Other society members should not suffer because of litigation relating to a single flat.”
“Granting the injunction would effectively halt the entire redevelopment project.”
“Redevelopment serves the collective interests of all members.”
Why the court refused to stop redevelopment
>> The dispute concerns ownership of Flat No. E-26, not redevelopment project.
>> A dispute involving one flat cannot hold up a project affecting all society members.
>> The appellants failed to establish a prima facie case for an injunction.
>> Redevelopment does not extinguish ownership claims, which can be decided separately.
>> The balance of convenience favoured the society, as delaying redevelopment would affect numerous residents.
What the court decided
>> Redevelopment of the society can continue.
>> Appeal filed by Rekha Pagare’s legal heirs has been dismissed.
>> Interim relief sought to stop redevelopment has been rejected.
>> Ownership dispute over Flat No. E-26 will continue separately before the Co-operative Court.
>> Each party will bear its own costs.
Timeline of the dispute
February 1994: Rekha Pagare allegedly pays Rs 1.20 lakh, the full consideration amount for the flat.
May 29, 1994: Flat No. E-26 allegedly allotted to Pagare.
1994: Pagare claims possession and keys were handed over.
Later: She was allegedly asked to vacate after being informed the flat was involved in litigation.
2000: Society allegedly demands an additional Rs 3.67 lakh, which Pagare challenges.
2005: Dispute filed before the Co-operative Court.
December 4, 2025: Co-operative Court rejects interim relief sought by Pagare’s heirs.
June 22, 2026: Appellate Court dismisses appeal and clears redevelopment to proceed.
* This article was originally published here
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