Case Note & Summary
The petitioner, The New India Cooperative Housing Society Ltd., challenged concurrent orders of the Divisional Joint Registrar and Deputy Registrar under the Maharashtra Cooperative Societies Act, 1960, which declared respondent No.2, Unmesh Kamdar, as a deemed member of the society in respect of plot No.25. The society had originally leased the plot to Dr. Randip O. Shah, who assigned the lease to Harshad Patel. Due to non-payment of municipal charges, the Bombay Municipal Corporation auctioned the plot and building. Respondent No.2, a tenant in the building, negotiated with Harshad Patel, and a consent decree in Suit No.5393/2004 before the Bombay City Civil Court led to a deed of assignment dated 10th December 2004 transferring the leasehold rights to respondent No.2. The society refused to admit him as a member, citing its bye-laws. The Deputy Registrar allowed respondent No.2's application for deemed membership, which was upheld by the Divisional Joint Registrar. The High Court considered whether the respondent was entitled to deemed membership under Sections 22, 23, and 24 of the Maharashtra Cooperative Societies Act, 1960. The court held that the statutory provisions override bye-laws, and a person who acquires interest in the property of a society is entitled to be admitted as a member. The court dismissed the writ petition, affirming the orders of the lower authorities.
Headnote
A) Cooperative Law - Deemed Membership - Transfer of Interest - Section 22, 23, 24 of Maharashtra Cooperative Societies Act, 1960 - The court considered whether a transferee of leasehold rights from a member is entitled to deemed membership. Held that the provisions of the Act override bye-laws, and a person who acquires interest in the property of a society is entitled to be admitted as a member, subject to compliance with the Act. (Paras 1-21) B) Cooperative Law - Bye-laws vs. Statute - Supremacy of Act - Section 22, 23, 24 of Maharashtra Cooperative Societies Act, 1960 - The court held that bye-laws cannot override the statutory provisions of the Act. The society's refusal to admit the respondent as a member based on its bye-laws was invalid as the Act provides for deemed membership upon transfer of interest. (Paras 10-15) C) Cooperative Law - Leasehold Rights - Assignment - Section 22, 23, 24 of Maharashtra Cooperative Societies Act, 1960 - The court examined whether an assignee of a leasehold interest from a member is entitled to membership. Held that the assignment of leasehold rights is a transfer of interest in the property of the society, and the assignee is entitled to be admitted as a deemed member under the Act. (Paras 5-9)
Issue of Consideration
Whether a person who acquires leasehold interest in a plot from a member of a cooperative housing society is entitled to be admitted as a deemed member under the Maharashtra Cooperative Societies Act, 1960, and whether the society can refuse such admission based on its bye-laws.
Final Decision
The High Court dismissed the writ petition, upholding the orders of the Deputy Registrar and Divisional Joint Registrar declaring respondent No.2 as a deemed member of the petitioner society.
Law Points
- Deemed membership
- Transfer of interest
- Leasehold rights
- Assignment
- Cooperative society
- Bye-laws
- Section 22
- Section 23
- Section 24
- Maharashtra Cooperative Societies Act
- 1960
