Case Note & Summary
The dispute arose from the interpretation of voting rights within the Merry Niketan Cooperative Housing Society, where the managing committee adopted a bye-law limiting voting rights to one vote per family, despite multiple family members being members of the society. The Bombay High Court ruled that each member was entitled to vote, leading to the appeal by the society's member challenging this interpretation. The Supreme Court examined the provisions of the Maharashtra Cooperative Housing Societies Act, 1960, particularly Section 27, which mandates one member one vote. The court noted that while the bye-law aimed to prevent family members from dominating votes, it could not override the statutory requirement. The court emphasized that legislative acts take precedence over subordinate legislation, and thus, the bye-law was invalid. The Supreme Court dismissed the appeal, affirming the High Court's decision and ordering costs to be paid to the respondents.
Headnote
A) Cooperative Law - Voting Rights - One Member One Vote Principle - Maharashtra Cooperative Housing Societies Act, 1960, Section 27 - The court held that each member of a cooperative housing society is entitled to vote, irrespective of family membership, as the bye-law restricting voting rights contravenes the statutory provision of one member one vote. The bye-law cannot prevail over the legislative act, which clearly states the voting rights of members (Paras 12-14).
Issue of Consideration
Whether the bye-laws of a cooperative housing society can restrict voting rights contrary to the provisions of the Maharashtra Cooperative Housing Societies Act, 1960.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's decision that each member of the cooperative housing society is entitled to vote, regardless of family membership, and ordered costs of Rs. 10,000 to be paid.
Law Points
- Interpretation of statutes
- Cooperative housing society laws
- Voting rights
- Bye-laws compliance
