Case Note & Summary
The Petitioner, Mistry Park CHS Ltd., a co-operative housing society, challenged the orders of the Deputy Registrar and Divisional Joint Registrar directing it to admit Respondents No.1 and 2 (Dr. Bharat and Dr. Haresh Shivdasani) as full members. The respondents inherited a garage from their father, Dr. Prem Kalyandas Shivdasani, who was a nominal member. The society's bye-laws restricted membership to flat owners, and the lease deed prohibited using garages for purposes other than parking. The court analyzed Section 22 of the Maharashtra Co-operative Societies Act, 1960, which mandates that any person acquiring an interest in the society's property must be admitted as a member. It held that the garage constitutes an interest in the society's property, entitling the respondents to full membership. The society's bye-law cannot override the statutory provision. The court also noted that nominal membership is not a permanent status and that the society's remedy for breach of lease conditions is separate. The petition was dismissed, upholding the orders of the authorities below.
Headnote
A) Co-operative Law - Membership Rights - Garage Owner's Right to Membership - Maharashtra Co-operative Societies Act, 1960, Section 22 - The court held that a person who owns a garage in a co-operative housing society is entitled to membership under Section 22 of the Act, which provides that every person who acquires any share or interest in the society's property shall be admitted as a member. The society's bye-law restricting membership to flat owners cannot override the statutory right. (Paras 1-24) B) Co-operative Law - Nominal Membership - Conversion to Full Membership - Maharashtra Co-operative Societies Act, 1960, Section 22 - The court held that nominal membership is not a permanent bar to full membership. Once a person acquires an interest in the society's property (e.g., a garage), they are entitled to full membership. The society cannot continue nominal membership indefinitely to deny statutory rights. (Paras 10-18) C) Co-operative Law - Use of Garage for Professional Purposes - Lease Deed Restriction - The court held that the lease deed restriction on using garages only for parking cars does not affect the membership rights of the garage owner. The society's remedy for breach of lease conditions lies elsewhere, not in denying membership. (Paras 19-22)
Issue of Consideration
Whether a person who owns only a garage (not a residential flat) in a co-operative housing society can claim membership as of right under the Maharashtra Co-operative Societies Act, 1960, and whether the society can refuse membership based on its bye-laws restricting membership to flat owners.
Final Decision
The court dismissed the writ petition, upholding the orders of the Deputy Registrar and Divisional Joint Registrar. The society is directed to admit Respondents No.1 and 2 as full members and record their names in the Membership Register and issue Share Certificate.
Law Points
- Membership rights of garage owners in co-operative housing societies
- Interpretation of bye-laws
- Section 22 of Maharashtra Co-operative Societies Act
- 1960
- Nominal membership
- Right to use garage for professional purposes
