Case Note & Summary
The case involves a dispute between Maker Tower 'H' Co-operative Housing Society Ltd. (petitioner) and Smt. Leena N. Parekh (respondent no.1) regarding the deemed membership of respondent no.1 as a nominee of the deceased member, respondent no.4 (Chandrakant V. Shah). The respondent no.4 was the original owner of flat no. H-21 in the petitioner society and held shares in the society. In 1994, respondent no.4 applied to add his wife, Leena M. Parekh, as an associate member. Later, in 1996, he applied to add his children and delete his wife's name, but the application was not accompanied by the share certificate. The society did not act on these applications. Respondent no.4 died, and respondent no.1 claimed to be his nominee and sought membership. The Deputy Registrar of Co-operative Societies, by order dated 22.7.1999, held that respondent no.1 was entitled to be a deemed member. This order was confirmed by the Divisional Joint Registrar on 19.6.2001. The society challenged these orders by way of a writ petition. The legal issues were whether a nominee of a deceased member is entitled to deemed membership without actual transfer of shares, and whether the society can refuse membership on the ground that the share certificate was not surrendered. The court analyzed Section 30 of the Maharashtra Cooperative Societies Act, 1960, which provides that on the death of a member, the society shall transfer the shares to the nominee, and the nominee becomes a deemed member. The court held that the society's bye-laws did not require a transfer deed for nomination, and the nomination itself was sufficient. The court dismissed the petition, upholding the orders of the Deputy Registrar and Divisional Joint Registrar, and directed the society to admit respondent no.1 as a deemed member.
Headnote
A) Cooperative Law - Deemed Membership - Nominee Rights - Section 30 of the Maharashtra Cooperative Societies Act, 1960 - The court considered whether a nominee of a deceased member is entitled to be deemed a member of the society without actual transfer of shares. The Deputy Registrar and Divisional Joint Registrar held that the nominee is entitled to deemed membership. The court upheld these orders, reasoning that Section 30 of the Act provides that on the death of a member, the society shall transfer the shares to the nominee, and the nominee becomes a deemed member. The court held that the society cannot insist on surrender of share certificate or a separate transfer deed as a condition for recognizing the nominee's membership. (Paras 1-5) B) Cooperative Law - Transfer of Shares - Bye-laws - Section 30 of the Maharashtra Cooperative Societies Act, 1960 - The court examined the society's bye-laws and found that they did not require a transfer deed for nomination. The court held that the nomination itself is sufficient to confer deemed membership on the nominee, and the society's refusal to admit the nominee as a member was unjustified. (Paras 6-8)
Issue of Consideration
Whether a nominee of a deceased member of a cooperative housing society is entitled to be deemed a member of the society without actual transfer of shares in his name, and whether the society can refuse membership to a nominee on the ground that the share certificate was not surrendered or that the nomination was not accompanied by a transfer deed.
Final Decision
The court dismissed the petition and upheld the orders of the Deputy Registrar and Divisional Joint Registrar, holding that respondent no.1 is entitled to be a deemed member of the petitioner society. The court directed the society to admit respondent no.1 as a deemed member.
Law Points
- Deemed membership
- Nominee rights
- Transfer of shares
- Section 30 of Maharashtra Cooperative Societies Act
- 1960
- Bye-laws of society
- Cooperative society membership
