Case Note & Summary
The Writ Petition arises from a dispute concerning deemed membership in a cooperative housing society. The petitioner, The Sopan Baug Cooperative Housing Society Ltd., is a cooperative housing society registered under the Maharashtra Cooperative Societies Act, 1960. It is the owner of several survey numbers and had allotted plot no.31 on a 99-year lease to original members, Smt. Indira Baldev Lulla and Mr. Baldev Lulla. The original members constructed a building named 'Suraj' on the plot. They later stood as personal guarantors for a loan availed by M/s M. Baker Refinishing Pvt. Ltd. from Janakalyan Sahakari Bank Ltd. The loan defaulted, leading to recovery certificates and attachment of the property. The Special Recovery Officer sold part of plot no.31 in auction, which was purchased by respondent no.3, Mr. Shaukat Musa Shaikh. Respondent no.3 then applied under Section 22(2) of the Maharashtra Cooperative Societies Act, 1960, seeking deemed membership in the petitioner society. The Dy. Registrar, respondent no.2, allowed the application on 05.03.2015, directing the petitioner to admit respondent no.3 as a co-member with the original member. The petitioner's revision application before the Dy. Joint Registrar, respondent no.1, was dismissed on 23.05.2017. The petitioner filed the present Writ Petition challenging these orders and seeking a stay on further proceedings. The petitioner argued that the original member held only leasehold rights and could not transfer or assign the plot without prior consent under clause (h) of the lease deed. The society's byelaws also prohibited transfer without approval of the managing committee. The bank's sale was without such consent, and the description of the property in the auction notice was erroneous. The Court's analysis and final decision are not available in the provided text.
Issue of Consideration
Whether the orders of the Dy. Registrar and Dy. Joint Registrar allowing deemed membership under Section 22(2) of the Maharashtra Cooperative Societies Act, 1960 are valid in light of lease deed restrictions and society byelaws requiring prior permission for transfer.
Case Details
2019 LawText (BOM) (06) 60
Writ Petition No. 10738 of 2017
Mr. Hassnain Kaazi, Mr. Raeed Kazi, Mr. S. D. Rayrikar, Mr. Vaibhav Ugle, Mr. Sumant Deshpande
The Sopan Baug Cooperative Housing Society Ltd.
Dy. Joint Registrar of Cooperative Society Pune, Dy. Registrar of Cooperative Society Pune (2), Mr. Shaukat Musa Shaikh
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petition challenging orders of cooperative authorities regarding deemed membership of an auction purchaser.
Remedy Sought
Petitioner seeks to quash the orders dated 23.05.2017 and 05.03.2015 and to stay further proceedings.
Filing Reason
Petitioner society claims that respondent no.3 is not entitled to deemed membership because the transfer of part of plot no.31 was in violation of lease deed conditions and society byelaws requiring prior permission.
Previous Decisions
Dy. Registrar allowed respondent no.3's application under Section 22(2) on 05.03.2015, directing petitioner to admit him as co-member. Dy. Joint Registrar dismissed revision application on 23.05.2017. Civil Application No. 1354 of 2018 pending.
Issues
Whether respondent no.3 is entitled to deemed membership under Section 22(2) of the Maharashtra Cooperative Societies Act, 1960 despite the lease deed prohibiting assignment without prior consent and society byelaws restricting transfer.
Submissions/Arguments
The petitioner argued that the original member held only leasehold rights and could not mortgage or assign the plot without prior consent under clause (h) of the lease deed. The bank's sale of part plot to respondent no.3 was void as no permission was obtained. The society's byelaws (clause xi(a)) expressly prohibit transfer without managing committee approval. The description of the property as 'adjacent land' in the auction notice was erroneous; the area sold was part of plot no.31.
Procedural History
The petitioner Society is the owner of certain survey numbers and had allotted plot no.31 on a 99-year lease to original members. The original members guaranteed a loan for a company; upon default, recovery certificates were issued, and the property was attached and auctioned. Respondent no.3 purchased part of plot no.31 in auction. He applied for deemed membership under Section 22(2) of the Maharashtra Cooperative Societies Act, 1960. The Dy. Registrar allowed the application on 05.03.2015. The petitioner's revision application was dismissed by the Dy. Joint Registrar on 23.05.2017. The petitioner then filed the present Writ Petition. Civil Application No. 1354 of 2018 was filed during pendency challenging a subsequent order under Section 79(2).
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 22(2), 101, 154, 79(2)
