The Hon’ble Bombay High Court has upheld such disqualification in a landmark judgment Nair Pushpa v. State of Maharashtra, 2025 SCC OnLine Bom 5201.
It is a well-settled principle of law that deliberate misinterpretation or misrepresentation of a court order amounts to gross contempt of court, as it interferes with the administration of justice and undermines the authority of the Court.
In view of the above, such legal provisions—along with other applicable provisions relating to criminal prosecution and contempt proceedings—are being invoked by members of Azad Nagar Society, Wadala and Aram Nagar Tenant Welfare Association (ATWA), Varsova, Andheri against the Management Committee Members.
Adv. Nilesh Ojha, Chairman of the Indian Bar Association and counsel for certain members who are using this provision, has welcomed this decision.
It is pertinent to note that the Court of the Charity Commissioner has already directed prosecution against Sh. Rakesh Shreshtha, Ms. Shabnam Kapoor and others, who were holding positions of President, Secretary, and Treasurer of ATWA, for allegedly making false and misleading statements on affidavit before the Court.
Similarly, in the Azad Nagar matter, Secretary Deepak Warang and certain Management Committee members are likely to face prosecution and proceedings which are said to be initiated by society members for allegedly withholding correct information and providing false, distorted, and misleading disclosures. They have also been accused of committing fraud upon the Court by filing false affidavits.
In a landmark judgment in Nair Pushpa v. State of Maharashtra, 2025 SCC OnLine Bom 5201, the Hon’ble Bombay High Court has emphatically upheld the right of society members to transparency and access to records, and the corresponding strict duty of the Managing Committee to act openly and honestly.
The Court held as under:
- Under Section 154B-8, every member has a statutory right to inspect records and obtain copies within the prescribed time, and the Society is under a mandatory obligation to provide such information promptly.
The Court observed that the functioning of a Society must be transparent, and members are entitled to know how decisions are taken and how affairs are conducted.
Any silence, delay, or refusal to provide documents is impermissible and defeats the very purpose of the law. - Under Section 154B-23, the Court held that members of the Managing Committee occupy a position of trust, and any act of withholding information, denying documents, or obstructing statutory rights renders such members unfit to continue in office.
The Legislature has therefore empowered the Registrar to disqualify such members, to prevent misuse of power and to ensure proper governance of cooperative institutions.
The Court categorically emphasized that:
The duty to supply documents is not optional, but a binding legal obligation. A committee that withholds information raises serious doubt about its integrity and functioning. Transparency and accountability are the foundation of cooperative governance, and any deviation invites statutory consequences, including disqualification.
In the case of Azad Nagar Co-operative Housing Society, Wadala, it is alleged that several material facts were not disclosed to all members, and that certain information provided was false, distorted, or incomplete.
It is specifically alleged that the Management Committee failed to inform members that the redevelopment project was subject to the outcome of proceedings before the High Court.
Further, during the High Court proceedings on 11.02.2026, it is alleged that certain Society members, along with their advocates, raised objections to the hearing of Appeal No. 20 of 2020 by contending that the Appeal could not be restored. However, as per the order dated 11.08.2020, the said Appeal had already been duly restored, and thereafter the matter has been listed and heard on multiple occasions over the past six years, with the Management Committee actively participating in such proceedings.
It is therefore alleged that the statement made before the Hon’ble High Court on 11.02.2026 was factually incorrect and misleading, and appears to have been made with the intent to delay the hearing of the matter. The said submission has also been recorded in the High Court’s order dated 11.02.2026.
It is further alleged that similar false and misleading information was communicated to Society members, thereby affecting their decision-making and rights.
Making false statements on affidavit or before the Court may attract penal consequences under Sections 192, 193, 209, 120B, 34 of the IPC, as well as provisions of the Contempt of Courts Act, 1971 (Sections 2(c) and 12).
There are also broader allegations that, in multiple instances, relevant information was suppressed and misleading disclosures were made. Appropriate legal action is stated to be underway, and the outcome will be determined by the competent Court and statutory authorities in accordance with law.
The order dated 11.08.2020 can be downloaded here:
