Case Note & Summary
The petitioner, Bima Nagar Co-Operative Housing Society Limited, challenged an order dated 10th April 2024 passed by the Divisional Joint Registrar, which confirmed an earlier order dated 28th March 2022 by the Deputy Registrar directing the society to admit Respondent No.3, the widow of a deceased member, as a member and issue a share certificate. The society had granted provisional membership to the widow but failed to admit her as a full member. The widow applied to the Deputy Registrar, who allowed her application under Section 22(2) of the Maharashtra Co-Operative Housing Societies Act, 1960. The society's revision before the Divisional Joint Registrar was dismissed. The society then filed a writ petition in the Bombay High Court. The main legal issue was the interpretation of 'family arrangement' under Section 154B-13 of the Maharashtra Co-Operative Societies Act, 1960. The petitioner argued that 'family arrangement' applies only to Hindu Undivided Family (HUF) and that the widow must obtain a succession certificate to transfer the deceased member's interest. The respondent contended that the deceased left behind a widow and two major children, who executed a deed of relinquishment in favour of the widow, constituting a family arrangement. The court examined Section 154B-13, which allows transfer of interest on the death of a member based on testamentary documents, succession certificate, legal heirship certificate, or document of family arrangement. The court held that 'family' is not defined in the Act and must be given its general meaning, i.e., a group of persons related by marriage, consanguinity, or adoption. Since the deceased's widow and children constitute a family, the deed of relinquishment executed by the children in favour of the widow is a valid family arrangement. The court rejected the petitioner's argument that family arrangement is limited to HUF, stating that such an interpretation would add something not intended by the legislature. Regarding the succession certificate, the court declined to decide the issue as it was not involved in the petition. The court found no perversity in the findings of the authorities below and dismissed the petition.
Headnote
A) Co-operative Societies - Transfer of Interest on Death - Family Arrangement - Section 154B-13 of Maharashtra Co-Operative Societies Act, 1960 - The court interpreted 'family arrangement' to include a deed of relinquishment executed by the heirs of a deceased member in favour of the widow, rejecting the contention that it applies only to HUF. Held that the plain meaning of family arrangement covers any arrangement among persons related by marriage, consanguinity, or adoption, and the society must transfer membership based on such document (Paras 9-12).
B) Co-operative Societies - Succession Certificate - Not Mandatory - Section 154B-13 of Maharashtra Co-Operative Societies Act, 1960 - The court declined to decide whether a succession certificate is mandatory, as the issue was not involved in the petition. Held that where there is a family arrangement among heirs, the society can transfer membership without a succession certificate (Para 12).
Issue of Consideration
Whether the term 'family arrangement' under Section 154B-13 of the Maharashtra Co-Operative Societies Act, 1960 is restricted to Hindu Undivided Family (HUF) only, and whether a succession certificate is mandatory for transfer of membership to a widow of a deceased member.
Final Decision
The petition stands dismissed. The court upheld the orders of the Deputy Registrar and Divisional Joint Registrar directing the petitioner society to admit Respondent No.3 as a member.
Law Points
- Interpretation of family arrangement under Section 154B-13 of Maharashtra Co-Operative Societies Act
- 1960
- Transfer of interest on death of a member
- Succession certificate not mandatory in absence of dispute
Case Details
2024 LawText (BOM) (09) 2726
Writ Petition No. 10768 of 2024
Adv. Amar Habib i/b Adv. Chirag Thakkar, Adv. Aloka A. Nadkarni, Adv. Laxman Kalel
Bima Nagar Co-Operative Housing Society Limited
The Divisional Joint Registrar Co-Operative Soc. And Ors.
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Nature of Litigation
Writ petition challenging order of Divisional Joint Registrar confirming Deputy Registrar's direction to admit widow as member of co-operative housing society.
Remedy Sought
Petitioner sought to quash the order dated 10th April 2024 passed by Respondent No.1 confirming the order dated 28th March 2022 directing admission of Respondent No.3 as a member.
Filing Reason
Petitioner society aggrieved by the order directing admission of Respondent No.3 as a member, arguing that family arrangement under Section 154B-13 applies only to HUF and that succession certificate is mandatory.
Previous Decisions
Deputy Registrar allowed application of Respondent No.3 under Section 22(2) of the Maharashtra Co-Operative Housing Societies Act, 1960 on 28th March 2022, directing society to admit her as member and issue share certificate. The society's revision before Divisional Joint Registrar was dismissed on 10th April 2024.
Issues
Whether the term 'family arrangement' under Section 154B-13 of the Maharashtra Co-Operative Societies Act, 1960 is restricted to Hindu Undivided Family (HUF) only.
Whether a succession certificate is mandatory for transfer of membership to a widow of a deceased member.
Submissions/Arguments
Petitioner argued that 'family arrangement' under Section 154B-13 applies only to HUF, and that the widow must obtain a succession certificate to get the deceased member's interest transferred.
Respondent No.3 argued that the deceased left behind widow and two major children who executed a deed of relinquishment in her favour, constituting a family arrangement, and that succession certificate is not mandatory in every case.
Ratio Decidendi
The term 'family arrangement' under Section 154B-13 of the Maharashtra Co-Operative Societies Act, 1960 is not restricted to Hindu Undivided Family (HUF) but includes any arrangement among persons related by marriage, consanguinity, or adoption. A deed of relinquishment executed by the heirs of a deceased member in favour of one heir constitutes a valid family arrangement, and the society must transfer membership based on such document. Succession certificate is not mandatory where there is a family arrangement.
Judgment Excerpts
A bare perusal of the said provision indicates that on a death of a member of society, the society is bound to transfer share, right, title and interest in the property of the deceased to a person or persons on the basis of testamentary documents or succession certificate or legal heirship certificate or document of family arrangement executed by the person, who are entitled to inherit the property of the deceased member.
The term 'family' or 'family arrangement' has not been defined by the Act. Hence, general meaning of these terms need to be considered. The family is group of persons related to each other by marriage, consanguinity, adoption etc, which would further be considered in the light of personal laws applicable to the parties.
This Court finds, no substance in the contention of the counsel for the Petitioner that the family arrangement could be considered only in case of HUF. Such interpretation is not permissible as the same would amount to adding something which legislature never intended to.
Procedural History
Respondent No.3 applied for membership after death of her husband, a member of the petitioner society. The society granted provisional membership but did not admit her as full member. She filed an application before the Deputy Registrar, who allowed it on 28th March 2022 under Section 22(2) of the Maharashtra Co-Operative Housing Societies Act, 1960, directing the society to admit her as member and issue share certificate. The society filed a revision before the Divisional Joint Registrar, which was dismissed on 10th April 2024. The society then filed the present writ petition before the Bombay High Court.
Acts & Sections
- Maharashtra Co-Operative Societies Act, 1960: 154B-13, 22(2)
