Case Note & Summary
The plaintiff, Santacruz Prakash Coop. Hsg. Society Ltd., a cooperative society registered under the Maharashtra Cooperative Societies Act, 1960, filed a suit for possession of Flat No. 9 on the 2nd floor of Prakash Building against the legal heirs of Sitabai Shewaram, the original member. The society claimed that Sitabai had purchased the flat from the builders on ownership basis and was a member, but she ceased to be a member due to non-payment of dues and transfer of shares. The defendants, being her legal heirs, were alleged to be trespassers. The court examined the evidence, including the conveyance deed and membership records, and found that Sitabai was shown as a member in the society's records. The society failed to produce any resolution or notice terminating her membership. The court held that under Section 22 of the MCSA, membership continues until validly terminated, and upon death, it devolves upon legal heirs. The society's suit was dismissed with costs, as the defendants were entitled to occupy the flat as members.
Headnote
A) Cooperative Societies - Membership - Termination - Section 22 of Maharashtra Cooperative Societies Act, 1960 - The plaintiff society sought possession of a flat from legal heirs of deceased member Sitabai Shewaram, claiming she ceased to be a member upon non-payment of dues and transfer of shares. The court held that membership of a deceased member continues in favor of legal heirs until validly terminated by the society in accordance with Section 22 of MCSA. The society failed to prove any resolution or notice terminating membership. Consequently, the legal heirs are entitled to occupy the flat as members. (Paras 1-20) B) Ownership Flats - Succession - Section 5 of Maharashtra Ownership Flats Act, 1963 - The court held that upon the death of a flat owner, the flat devolves upon legal heirs by succession. The society cannot claim possession without first terminating the membership of the deceased or the heirs. The society's suit for possession was dismissed as the membership of Sitabai and her heirs continued. (Paras 21-30) C) Evidence - Burden of Proof - The plaintiff society failed to produce any documentary evidence such as minutes of meetings, resolutions, or notices to show that Sitabai's membership was terminated. The court held that the burden of proof lies on the society to establish cessation of membership, which it failed to discharge. (Paras 31-40)
Issue of Consideration
Whether the plaintiff cooperative society is entitled to possession of the suit flat from the legal heirs of the deceased original member without having terminated the membership of the deceased member in accordance with law.
Final Decision
The suit is dismissed with costs. The plaintiff society is not entitled to possession of the suit flat from the defendants.
Law Points
- Cooperative society cannot evict legal heirs of deceased member without proving valid termination of membership under Section 22 of MCSA
- Succession to membership governed by Section 22 of MCSA and Section 5 of MOFA
- Burden of proof on society to show membership ceased
- Membership continues until validly terminated
- Legal heirs entitled to occupy flat as members
