Case Note & Summary
The petitioner, Bhagwati Bhuvan Co-operative Housing Society Limited, challenged two orders passed by the Divisional Joint Registrar (respondent no.2) dated 9th May 2019 and the Deputy Registrar (respondent no.3) dated 29th August 2019. The dispute arose when the father of respondent nos.5 and 6, a member of the society, died. In his nomination form, he had nominated his wife (mother of respondent nos.5 and 6) jointly with respondent no.5. The society rejected the nomination, leading to proceedings before the Registrar. The Registrar directed the society to admit the nominee as a member. The society filed a writ petition under Article 226 of the Constitution of India. The court examined the scope of Section 30 of the Maharashtra Co-operative Societies Act, 1960, which deals with nomination. The court held that nomination under Section 30 does not confer automatic membership; it only creates a trust for the benefit of legal heirs. The society's by-laws govern the admission of members, and the Registrar cannot direct admission without considering those by-laws. The court quashed the orders of the Registrar and directed the society to consider the application for membership in accordance with its by-laws. The petition was allowed.
Headnote
A) Co-operative Law - Membership - Nomination - Section 30 of the Maharashtra Co-operative Societies Act, 1960 - Nomination does not confer automatic membership; it only creates a trust for the benefit of legal heirs. The society must consider the nominee's application for membership in accordance with its by-laws. The Registrar cannot direct admission without such consideration. (Paras 4-6) B) Co-operative Law - By-laws - Admission of Members - Society's by-laws govern the procedure for admission of members. The Registrar's order directing the society to admit the nominee as a member without considering the by-laws is unsustainable. (Paras 5-6) C) Constitutional Law - Writ Jurisdiction - Article 226 of the Constitution of India - Maintainability - A writ petition is maintainable against an order of the Registrar under the Maharashtra Co-operative Societies Act, 1960, as the Registrar is a statutory authority. (Para 2)
Issue of Consideration
Whether a nominee under Section 30 of the Maharashtra Co-operative Societies Act, 1960 is entitled to automatic membership of the society without complying with the society's by-laws regarding admission of members.
Final Decision
The court allowed the writ petition, quashed the orders of the Divisional Joint Registrar dated 9th May 2019 and the Deputy Registrar dated 29th August 2019, and directed the society to consider the application for membership in accordance with its by-laws.
Law Points
- Nomination under Section 30 of the Maharashtra Co-operative Societies Act
- 1960 does not confer automatic membership
- Society's by-laws govern admission of members
- Registrar cannot direct admission without considering by-laws
- Writ petition maintainable against Registrar's order
