Case Note & Summary
The petitioner, Shantiniketan Cooperative Housing Society Ltd., a registered cooperative housing society under the Maharashtra Cooperative Societies Act, 1960, filed two writ petitions challenging orders passed by the Assistant Registrar and the Divisional Joint Registrar, Cooperative Societies, Latur. The society had its own bylaws approved under Section 13 of the Act. The first respondent, Shivkant Brijwasi, claimed membership in the society, which the society disputed. The Assistant Registrar, in Appeal No. 7 of 2008 and Appeal No. 6 of 2008, allowed the appeals filed by Brijwasi, directing the society to admit him as a member. The Divisional Joint Registrar, in Revision Petition No. 13 of 2009 and Revision Petition No. 14 of 2009, upheld those orders. The society challenged these orders in the High Court, arguing that the authorities failed to consider the binding nature of the society's bylaws, which governed membership. The High Court, after hearing the parties, held that the bylaws of a cooperative society, once approved, have the force of law and are binding on the society, its members, and the authorities. The court found that the Assistant Registrar and Divisional Joint Registrar had acted beyond their jurisdiction by not giving effect to the bylaws. Consequently, the court allowed both writ petitions, quashed the impugned orders, and set aside the directions to admit Brijwasi as a member. The court also directed that the society's bylaws must be followed in determining membership disputes.
Headnote
A) Cooperative Law - Binding Nature of Bylaws - Section 13, Maharashtra Cooperative Societies Act, 1960 - Bylaws of a cooperative society, once approved by the Registrar, have the force of law and are binding on the society, its members, and the authorities - The court held that the Assistant Registrar and Divisional Joint Registrar erred in not giving effect to the society's bylaws while deciding appeals and revisions concerning membership (Paras 4-5). B) Cooperative Law - Jurisdiction of Cooperative Authorities - Sections 152, 154, Maharashtra Cooperative Societies Act, 1960 - The appellate and revisional authorities under the Act must exercise their powers within the framework of the Act and the society's bylaws - The court held that the impugned orders were passed without considering the binding effect of the bylaws and thus were unsustainable (Paras 6-7).
Issue of Consideration
Whether the Assistant Registrar and Divisional Joint Registrar acted within their jurisdiction in entertaining appeals and revisions regarding membership disputes without considering the binding nature of the society's bylaws?
Final Decision
Both writ petitions are allowed. The impugned judgments and orders dated 27.12.2008 and 14.1.2011 in Writ Petition No. 5826 of 2011, and dated 30.12.2008 and 14.1.2011 in Writ Petition No. 5819 of 2011, are quashed and set aside. Rule made absolute accordingly.
Law Points
- Bylaws of a cooperative society have binding force on members and authorities
- Membership rights cannot be transferred without following society's bylaws
- Cooperative authorities must act within the framework of the Act and bylaws
