Case Note & Summary
The Petitioner, New Sion Co-operative Housing Society Ltd., was registered under the Bombay Co-operative Societies Act, 1925 and deemed registered under the Maharashtra Co-operative Societies Act, 1960. The society owned a housing complex known as Sindhi Colony at Sion (West), Mumbai, consisting of about 279 row houses. Row House 10-B/6 belonged to Nanik Kishanchand Ahuja, Gopal Kishanchand Ahuja, and Sajan Kishanchand Ahuja, who were members of the society. The row house was in exclusive possession of a tenant, Mansukhlal Rachh, for about 40 years. The Fourth Respondent, Bhagatraj Gurmukhdas Ahuja, claimed to have an agreement to sell dated 21st January 1995 to purchase the row house. On 1st February 1995, a notice was given to the society indicating the intention to transfer shares and interest in the row house to the Fourth Respondent. The Managing Committee of the society passed a resolution on 13th February 1995 refusing the transfer on the ground that it was not desirable to admit the Fourth Respondent as a member in the larger interest of the society. A Special General Body Meeting on 5th March 1995 also decided unanimously not to admit the Fourth Respondent. The Fourth Respondent filed an appeal before the Assistant Registrar of Co-operative Societies under Section 23(2) of the Maharashtra Co-operative Societies Act, 1960. The society raised a preliminary issue regarding the jurisdiction of the Assistant Registrar, which was decided against the society. The Assistant Registrar allowed the appeal and directed the society to admit the Fourth Respondent as a member. The society challenged this order by way of a writ petition before the Bombay High Court. The High Court held that the Assistant Registrar had jurisdiction under Section 23(2) to entertain the appeal and that the society's refusal was not based on valid grounds as the society did not specify any particular reason for refusal. The court dismissed the petition, upholding the order of the Assistant Registrar.
Headnote
A) Co-operative Law - Transfer of Shares and Membership - Section 23 of Maharashtra Co-operative Societies Act, 1960 - Refusal to Admit Transferee - The society refused to admit the transferee as a member on the ground that it was not desirable in the larger interest of the society. The Assistant Registrar allowed the appeal and directed the society to admit the transferee. The High Court held that the Assistant Registrar had jurisdiction under Section 23(2) to entertain the appeal and that the society's refusal was not based on valid grounds as the society did not specify any particular reason. The court upheld the order of the Assistant Registrar. (Paras 1-5) B) Co-operative Law - Jurisdiction of Assistant Registrar - Section 23(2) of Maharashtra Co-operative Societies Act, 1960 - Appeal Against Refusal of Membership - The society contended that the Assistant Registrar had no jurisdiction as the dispute was not between the society and a member. The High Court rejected this contention, holding that the appeal under Section 23(2) is a statutory remedy available to a person aggrieved by the refusal of a society to admit him as a member, and the Assistant Registrar has the power to decide such appeals. (Paras 2-4)
Issue of Consideration
Whether the Assistant Registrar under Section 23(2) of the Maharashtra Co-operative Societies Act, 1960 has jurisdiction to entertain an appeal against the refusal of a co-operative housing society to admit a transferee as a member, and whether the society's refusal was valid.
Final Decision
The High Court dismissed the writ petition, upholding the order of the Assistant Registrar directing the society to admit the fourth respondent as a member.
Law Points
- Transfer of shares and membership in co-operative housing society
- Refusal to admit transferee as member must be based on valid grounds
- Section 23 of Maharashtra Co-operative Societies Act
- 1960
- Appeal to Assistant Registrar under Section 23(2)
- Jurisdiction of Assistant Registrar to decide membership disputes
