Case Note & Summary
The dispute arose from the allotment of Plot No.2 in a cooperative housing society, where the disputant, an employee of the Life Insurance Corporation of India, claimed preferential rights over the plot based on her membership application. The disputant alleged that she had paid a total of Rs.18,355/- to the society and had submitted her application for membership on 18-12-1988, which was not acknowledged by the society within the stipulated three months, thus making her a deemed member under Section 22 of the Maharashtra Cooperative Societies Act, 1960. The society, however, allotted the plot to the appellant on 25-03-1990, which the disputant contested as illegal. The Cooperative Court initially ruled against the disputant, but the Cooperative Appellate Court reversed this decision, recognizing her as a senior member entitled to the plot. The High Court affirmed this finding, stating that the society's failure to communicate a decision on her application led to her deemed membership. The Supreme Court ultimately upheld the High Court's ruling, emphasizing the importance of following proper procedures in allotting plots and recognizing the disputant's rights as a member of the society. The court directed the society to allot Plot No.2 to the disputant and execute the sale deed in her favor, thus granting her the relief sought.
Headnote
A) Cooperative Societies - Membership Rights - Deemed Membership - Section 22 Maharashtra Cooperative Societies Act, 1960 - The court held that the disputant became a deemed member of the society after three months from her application date due to lack of communication from the society, thus entitling her to claim Plot No.2. (Paras 12-14). B) Cooperative Societies - Allotment of Plots - Preferential Claims - Section 91 Maharashtra Cooperative Societies Act, 1960 - The court found that the allotment of Plot No.2 to the appellant was illegal as the disputant had a preferential claim based on her seniority and timely application. (Paras 10-14).
Issue of Consideration
Whether the disputant was entitled to the allotment of Plot No.2 based on her claim of membership and seniority.
Final Decision
The Supreme Court upheld the High Court's decision, declaring the allotment of Plot No.2 to the appellant illegal and directing the society to allot the plot to the disputant.
Law Points
- Deemed membership
- preferential allotment
- illegal allotment
- misappropriation of funds
- cooperative society rights
