Case Note & Summary
The Petitioner, Bandra Owners Court Cooperative Housing Society Limited, a Tenant Cooperative Society registered under the Maharashtra Cooperative Societies Act, 1960, challenged orders dated 15 December 2009 passed by the Divisional Joint Registrar of Cooperative Societies, Mumbai (Respondent No.1) and the order dated 13 April 2009 passed by the Deputy Registrar of Cooperative Societies, H-West Ward, Mumbai (Respondent No.2). The Deputy Registrar's order under Section 23(2) of the MCS Act directed the transfer of suit shares and suit flat from Respondent Nos. 3 and 4 (members of the Society) to Respondent No.5 (Royal Offshore Mercantile Pvt. Ltd.). The Divisional Joint Registrar dismissed the Society's Revision Application under Section 154 of the MCS Act, confirming the Deputy Registrar's order. The Society filed a Writ Petition under Article 226 of the Constitution of India. The High Court, after hearing the parties, found no perversity or illegality in the impugned orders. The Court noted that Respondent No.5 had applied for transfer on 24 January 2004, and Respondent No.3 was a Director of Respondent No.5 and also the Secretary of the Petitioner Society. The Society declined to transfer, leading to the proceedings under Section 23(2). The High Court dismissed the petition, upholding the orders of the authorities below.
Headnote
A) Cooperative Societies - Transfer of Shares and Flat - Section 23(2) of the Maharashtra Cooperative Societies Act, 1960 - The Deputy Registrar directed the transfer of shares and flat from members to a company, which was confirmed by the Divisional Joint Registrar in revision under Section 154. The High Court upheld the orders, finding no perversity or illegality. (Paras 2-4)
B) Cooperative Societies - Tenant Cooperative Society - Rule 10 of the Maharashtra Cooperative Societies Rules, 1961 - The Petitioner-Society is a Tenant Cooperative Society. The transfer application was made by Respondent No.5, and the Society declined to transfer. The Registrar's order under Section 23(2) was confirmed. (Paras 3-4)
Issue of Consideration
Whether the orders passed by the Deputy Registrar under Section 23(2) of the MCS Act and the Divisional Joint Registrar under Section 154 of the MCS Act, directing the transfer of shares and flat from Respondent Nos. 3 and 4 to Respondent No.5, are legal and valid.
Final Decision
The High Court dismissed the Writ Petition, upholding the orders of the Deputy Registrar and the Divisional Joint Registrar.
Law Points
- Section 23(2) of the Maharashtra Cooperative Societies Act
- 1960
- Rule 10 of the Maharashtra Cooperative Societies Rules
- 1961
- Transfer of shares and flat
- Tenant Cooperative Society
- Revision under Section 154
Case Details
2015 LawText (BOM) (02) 103
WRIT PETITION NO. 1011 OF 2010
Mr. Harinder Toor i/by Mr. Nandu Pawar for the Petitioner; Ms. Lakshmi Murali i/by Lakshmi Murali & Associates for Respondent Nos. 6 and 7
Bandra Owners Court Cooperative Housing Society Limited
The Divisional Joint Registrar of Cooperative Societies, Mumbai Division, Mumbai; Dy. Registrar of Cooperative Societies, H-West Ward, Mumbai; Mohammed Ali Rajabali; Mrs. Anjum Mohammed Ali; Royal Offshore Mercantile Pvt. Ltd.; Ms. Sabina Yusuf Lakadawala; Mr. Yusuf Mohammed Lakadawala
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Nature of Litigation
Writ Petition under Article 226 of the Constitution of India challenging orders of the Registrar under the Maharashtra Cooperative Societies Act, 1960.
Remedy Sought
The Petitioner-Society sought to quash the orders dated 15 December 2009 and 13 April 2009 directing transfer of shares and flat.
Filing Reason
The Society declined to transfer shares and flat from Respondent Nos. 3 and 4 to Respondent No.5, leading to proceedings under Section 23(2) of the MCS Act.
Previous Decisions
The Deputy Registrar passed an order on 13 April 2009 under Section 23(2) directing transfer. The Divisional Joint Registrar dismissed the Society's Revision Application under Section 154 on 15 December 2009, confirming the order.
Issues
Whether the orders under Section 23(2) and Section 154 of the MCS Act are legal and valid.
Submissions/Arguments
The Petitioner-Society argued that the orders were perverse and illegal.
The Respondents supported the orders, contending they were correct.
Ratio Decidendi
The High Court found no perversity or illegality in the impugned orders and upheld the transfer of shares and flat under Section 23(2) of the MCS Act.
Judgment Excerpts
The Petitioner-Society has challenged orders dated 15 December 2009 passed by Respondent No.1 the Divisional Joint Registrar, Cooperative Societies, Mumbai whereby, their Revision Application under Section 154 of the Maharashtra Cooperative Societies Act, 1960 was dismissed and thereby, order dated 13 April 2009 passed by the Deputy Registrar of Cooperative Societies, H-West Ward, Mumbai under Section 23(2) of the MCS Act, is confirmed.
The Petitioner-Society is a Tenant Cooperative Society, as contemplated under Rule 10 of the Maharashtra Cooperative Societies Rules, 1961.
Procedural History
The Deputy Registrar passed an order on 13 April 2009 under Section 23(2) of the MCS Act directing transfer of shares and flat. The Society filed a Revision Application under Section 154 before the Divisional Joint Registrar, which was dismissed on 15 December 2009. The Society then filed the present Writ Petition under Article 226 of the Constitution of India.
Acts & Sections
- Maharashtra Cooperative Societies Act, 1960: 23(2), 154
- Maharashtra Cooperative Societies Rules, 1961: 10
