Case Note & Summary
The petitioner, Karan Vishnu Khandelwal, filed a writ petition under Article 227 of the Constitution of India challenging an order passed by the Revisional Joint Registrar Cooperative Societies, Mumbai Division, which dismissed his revision application and confirmed the order dated 8th February 2021 passed by the Deputy Registrar Cooperative Societies under Section 23(2) of the Maharashtra Cooperative Societies Act, 1960. The dispute arose from the nomination made by the deceased member, Mannalal Surajmal Khandelwal, in favor of the petitioner, his grandson. The nomination was acknowledged by the managing committee of the Vaikuntha (Andheri) Co-operative Housing Society Ltd. in its meeting held on 14th March 2004 and entered in the nomination register. Upon the death of Mannalal Khandelwal on 20th March 2004, the petitioner claimed membership and shares of the deceased. The society refused to transfer the shares and admit the petitioner as a member, insisting on a succession certificate. The Deputy Registrar, under Section 23(2), directed the society to transfer the shares and admit the petitioner as a member. The society's revision against this order was dismissed by the Revisional Joint Registrar. The petitioner then approached the High Court. The court analyzed the provisions of Section 23(2) of the Maharashtra Cooperative Societies Act, 1960, which deals with nomination. The court held that the nomination under the Act is a statutory right that prevails over general succession laws. The nominee is entitled to be admitted as a member and to the shares of the deceased member without the need for a succession certificate. The society's insistence on a succession certificate was invalid. The court dismissed the petition, upholding the orders of the Deputy Registrar and the Revisional Joint Registrar, and directed the society to transfer the shares and admit the petitioner as a member within four weeks.
Headnote
A) Cooperative Societies - Nomination - Section 23(2) of Maharashtra Cooperative Societies Act, 1960 - Nominee's Right to Membership - The court considered whether a nominee under Section 23(2) is entitled to membership and shares of the deceased member without a succession certificate. Held that the nomination under the Act prevails over general succession laws, and the society cannot insist on a succession certificate for transfer of shares to the nominee. (Paras 1-11) B) Cooperative Societies - Transfer of Shares - Section 23(2) of Maharashtra Cooperative Societies Act, 1960 - Succession Certificate - The court held that the nominee is entitled to be admitted as a member and to the shares of the deceased member, and the society's refusal based on lack of succession certificate is invalid. (Paras 2-10)
Issue of Consideration
Whether the nominee under Section 23(2) of the Maharashtra Cooperative Societies Act, 1960 is entitled to be admitted as a member of the society and to the shares of the deceased member without producing a succession certificate?
Final Decision
Petition dismissed. Orders of Deputy Registrar and Revisional Joint Registrar upheld. Society directed to transfer shares and admit petitioner as member within four weeks.
Law Points
- Nomination under Section 23(2) of Maharashtra Cooperative Societies Act
- 1960
- prevails over succession laws
- Society cannot insist on succession certificate
- Nominee entitled to membership and shares
- Revisional authority's order upheld
