Case Note & Summary
The petitioners, Apna Sahakari Bank Ltd. and its Deputy General Manager, filed a writ petition under Article 226 of the Constitution of India challenging an order dated 23 November 2009 passed by the Divisional Joint Registrar, Cooperative Societies, Mumbai (Revisional Authority). The Revisional Authority had set aside an order of the Deputy Registrar under Section 23(2) of the Maharashtra Cooperative Societies Act, 1960 (MSC Act) directing Respondent No.1, Matulya Centre Premises Coop. Society Ltd., to grant membership to the petitioners. The facts are that the petitioner bank purchased the first floor premises admeasuring 3216 sq. ft. in the building 'Matulya Centre' from Capstan Trading Pvt. Ltd. by a registered sale deed dated 30 December 2002 for a consideration of Rs.1,65,00,000. The petitioner has been in possession since 2003. The society initially rejected the petitioner's application for membership. The Deputy Registrar, under Section 23(2) of the MSC Act, directed the society to grant membership. However, the Revisional Authority set aside that order. The legal issue was whether the society could refuse membership to a person who has a registered sale deed and is in possession, on the ground that the developer objected. The court held that the society cannot refuse membership in such circumstances. The court noted that the petitioner had an unimpeachable title and possession, and the society's refusal was at the instance of the developer. The court found that the Revisional Authority's order was perverse and ignored the clear provisions of Section 23(2) of the MSC Act. The court allowed the petition, set aside the Revisional Authority's order, and restored the Deputy Registrar's order directing the society to grant membership to the petitioners.
Headnote
A) Cooperative Societies - Membership - Right of Purchaser - Section 23(2) of Maharashtra Cooperative Societies Act, 1960 - A person who has purchased a flat by a registered sale deed and is in possession is entitled to be admitted as a member of the society, and the society cannot refuse membership on the ground of a dispute between the purchaser and the developer. The revisional authority erred in setting aside the Deputy Registrar's order directing membership. (Paras 1-10) B) Cooperative Societies - Revisional Authority - Scope of Powers - Section 154 of Maharashtra Cooperative Societies Act, 1960 - The revisional authority cannot ignore the clear provisions of Section 23(2) and the fact of registered sale deed and possession. The order of the revisional authority was perverse and set aside. (Paras 8-10)
Issue of Consideration
Whether a society can refuse membership to a person who has purchased a flat by a registered sale deed and is in possession, on the ground that the developer objects to such membership.
Final Decision
The court allowed the writ petition, set aside the order of the Divisional Joint Registrar dated 23 November 2009, and restored the order of the Deputy Registrar dated 30 June 2009 directing the society to grant membership to the petitioners.
Law Points
- Right of purchaser of a flat to membership of cooperative society
- Section 23(2) of Maharashtra Cooperative Societies Act
- 1960
- registered sale deed confers title
- society cannot refuse membership on grounds of dispute with developer
- revisional authority's order set aside for ignoring statutory provisions
