Case Note & Summary
The petitioner, Punam Cooperative Housing Society Ltd., challenged an order dated 31.3.2019 passed by the Divisional Joint Registrar, Cooperative Societies, Mumbai, which confirmed an earlier order dated 10.10.2008 passed by the Deputy Registrar under Section 23(2) of the Maharashtra Cooperative Societies Act, 1960 (MCS Act) granting membership of the society to respondent nos.1 and 2. Respondent no.1 had purchased flat no.1 in the society's premises under a registered Deed of Transfer dated 30.5.2007 from the erstwhile owners. The society refused to admit respondent no.1 as a member, leading to proceedings before the Deputy Registrar who directed admission. The society's revision under Section 154 was dismissed by the Joint Registrar. The High Court examined the mandatory nature of Section 23(2), which requires a society to admit a transferee of share and interest in property as a member. The court noted that the provision uses the word 'shall' and is unambiguous. The court also considered the scope of revisional jurisdiction under Section 154, holding that the Joint Registrar correctly did not re-appreciate evidence but only examined legality and propriety. The court found no jurisdictional error or perversity in the impugned orders. The petition was dismissed, and all pending applications were disposed of. The court held that the society's refusal was unjustified and the orders granting membership were valid.
Headnote
A) Cooperative Societies - Membership - Section 23(2) Maharashtra Cooperative Societies Act, 1960 - Mandatory Admission - The provision mandates that upon transfer of share and interest in property, the society must admit the transferee as a member. The court held that the language is mandatory and the society has no discretion to refuse membership once the transfer is valid. (Paras 1-10)
B) Cooperative Societies - Revision - Section 154 Maharashtra Cooperative Societies Act, 1960 - Scope - The revisional authority cannot re-appreciate evidence or substitute its own findings unless there is perversity or jurisdictional error. The court held that the Joint Registrar correctly limited review to legality and propriety. (Paras 1-10)
C) Constitutional Law - Writ Jurisdiction - Article 226 of Constitution of India - Scope - High Court in writ jurisdiction does not act as an appellate authority over findings of fact unless they are perverse or based on no evidence. The court held that the petition lacked merit as the orders were consistent with the mandatory provision. (Paras 1-10)
Issue of Consideration
Whether the Divisional Joint Registrar erred in confirming the order granting membership to respondent nos.1 and 2 under Section 23(2) of the Maharashtra Cooperative Societies Act, 1960, and whether the petitioner's challenge is maintainable.
Final Decision
Writ Petition dismissed. All pending applications disposed of. No order as to costs.
Law Points
- Section 23(2) of MCS Act is mandatory
- Transfer of share and interest in property entitles purchaser to membership
- Revision under Section 154 does not permit re-appreciation of evidence
- Writ jurisdiction under Article 226 limited to jurisdictional errors
Case Details
WRIT PETITION NO.1480 OF 2010
Mr. Deepak Chitnis with Ms.Sonali Dalvi i/b M/s Deepak Chitnis Chiporkar & Co for Petitioner, Ms.Malika Taly with Mr.Nikhil Varma i/b M/s S.Mohamedbhai & Co for Respondent nos.1 and 2, Mr.M.A.Sayed Assistant Government Pleader for State
Punam Cooperative Housing Society Ltd.
Alok Agarwal, Shibani Alok Agarwal, The Divisional Joint Registrar Cooperative Societies, Mumbai, The Deputy Registrar,Cooperative Societies,Mumbai, Officer, Grade 2 having his office at D Ward, Mumbai, S.H.More then Administrator of Punam Coop Housing Society Ltd, The State of Maharashtra
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Nature of Litigation
Writ petition under Article 226 challenging order of Divisional Joint Registrar confirming membership grant under Section 23(2) of MCS Act.
Remedy Sought
Petitioner sought quashing of order dated 31.3.2019 and order dated 10.10.2008 granting membership to respondent nos.1 and 2.
Filing Reason
Petitioner society refused to admit respondent no.1 as member despite purchase of flat under registered deed, leading to proceedings under Section 23(2).
Previous Decisions
Deputy Registrar on 10.10.2008 granted membership; revision by society dismissed by Joint Registrar on 31.3.2019.
Issues
Whether Section 23(2) of MCS Act is mandatory and requires society to admit transferee as member.
Whether the revisional authority under Section 154 can re-appreciate evidence.
Whether the impugned orders suffer from jurisdictional error or perversity.
Submissions/Arguments
Petitioner argued that the society has discretion to refuse membership and that the transfer was not valid.
Respondents argued that Section 23(2) is mandatory and the society must admit the purchaser as member upon transfer of share and interest.
Ratio Decidendi
Section 23(2) of the Maharashtra Cooperative Societies Act, 1960 is mandatory and requires a cooperative society to admit a transferee of share and interest in property as a member. The revisional authority under Section 154 cannot re-appreciate evidence but only examine legality and propriety. The High Court under Article 226 will not interfere unless there is jurisdictional error or perversity.
Judgment Excerpts
This petition under Article 226 of the Constitution of India, challenges an order dated 31.3.2019 passed by the Divisional Joint Registrar, Coop. Societies, Mumbai Division, Mumbai whereby a Revision Application filed by the petitioner under section 154 of the Maharashtra Cooperative Societies Act, 1960 against an order dated 10.10.2008 passed by the Deputy Registrar, Cooperative Societies, 'D' Ward, under section 23 (2) of the MCS Act granting membership of the petitioner's society to respondent nos.1 and 2, stands confirmed.
Procedural History
Respondent no.1 purchased flat under registered deed dated 30.5.2007. Society refused membership. Deputy Registrar on 10.10.2008 granted membership under Section 23(2). Society filed revision under Section 154 which was dismissed by Joint Registrar on 31.3.2019. Society then filed writ petition under Article 226 on 26.7.2019.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 23(2), 154
- Constitution of India: 226
