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SUPREME COURT OF INDIA
JAGDISH SINGH KHEHAR, C. NAGAPPAN, JJ.
Indrani Wahi – Appellant
Versus
Registrar of Co-op. Societies & Ors. – Respondents
Civil Appeal No. 4646 & 4930 of 2006
Decided On : 10-03-2016
(1997) 10 SCC 344 – Relied upon
(1984) 1 SCC 424; (2004) 5 SCC 90 – Distinguished
(b) West Bengal Co-operative Societies Rules, 1987 – Rules 127 and 128 – Nomination made by a member under Section 79, Act, 1983 – Share or interest or the value of such share or interest standing in the name of the deceased member, would be transferred to the nominee – Rule 127 however postulating nomination only in favour of a person “belonging to his family”. (Para 17, 18, 19)
(c) West Bengal Cooperative Societies Act, 1983 – Section 79 and 80 – Transfer of share or interest, based on a nomination under Section 79 in favour of the nominee, binding on the said society – Has no relevance to the issue of title between the inheritors or successors to the property of the deceased. (Para 20)
Facts of the case:
Biswa Ranjan Sengupta, was admitted as a member of the Sarbar View Cooperative Housing Society Limited, against Flat No.4-RB 2/3, Purbachal Housing Estate, Phase-II, Sector-III, Salt Lake City, Kolkatta. He had married Parul Sengupta. Out of the above wedlock, there were two children – a daughter (Indrani Wahi) and a son (Dhruba Jyoti Sengupta). Biswa Ranjan Sengupta recorded the name of the appellant – Indrani Wahi as his nominee.
After the death of her father - Biswa Ranjan Sengupta, Indrani Wahi addressed a communication to the Secretary of ‘the Cooperative Society', for entering her name in place of the name of her father, with reference to the said flat. The Managing Committee of the Housing Society passed a unanimous resolution on 15.08.2003, for transferring the membership of Biswa Ranjan Sengupta in ‘the Cooperative Society' to the name of the appellant – Indrani Wahi.
Dhruba Jyoti Sengupta addressed the letter to the Deputy Registrar, Cooperative Societies on behalf of his mother – Parul Sengupta. In the above letter, he (Dhruba Jyoti Sengupta) asserted, that the membership to the flat should be transferred to the name of his mother – Parul Sengupta.
Dhruba Jyoti Sengupta addressed another letter to the Deputy Registrar, Cooperative Societies, informing him, that Biswa Ranjan Sengupta had not nominated Indrani Wahi, but had actually nominated Parul Sengupta. The Deputy Registrar, Cooperative Societies therefore declined to record the name of Indrani Wahi, as the successor of the flat originally allotted to Biswa Ranjan Sengupta.
The appellant assailed the order of the Deputy Registrar, Cooperative Societies dated 11.11.200, and that of the Secretary of ‘the Cooperative Society', by preferring Writ Petition No. 33(W) of 2004, before the High Court. The aforesaid writ petition came to be allowed by a Single Judge of the High Court. The Single Judge of the High Court directed the Registrar of the Cooperative Societies to grant the necessary approval for transfer of the membership in the name of Indrani Wahi, as nominee of Biswa Ranjan Sengupta.
Division Bench of the High Court concluded:
“it is necessary for the said Society to record their interest expressly in the share Certificate as well as in its records pertaining to members and, in particular in the register of members so that one of the joint owners merely because of the nomination in her favour cannot transfer either the share, in which she has a part interest, or the allotment, where also she has a part interest, for the same is expressly declared to be transferable and, accordingly, can only be transferred by expressing consent of all the heirs.”
Finding of the Court:
In case of a valid nomination, under Section 79 of the 1983 Act, ‘the Cooperative Society' is liable to transfer the share or interest of a member in the name of the nominee.
Result: Appeal allowed.
JUDGMENT :
Jagdish Singh Khehar, J.
CIVIL APPEAL No. 4646 OF 2006
1. Biswa Ranjan Sengupta (hereinafter referred to as ‘the appellant's father'), was admitted as a member of the Sarbar View Cooperative Housing Society Limited (hereinafter referred to as ‘the Cooperative Society'), against Flat No.4-RB 2/3, Purbachal Housing Estate, Phase-II, Sector-III, Salt Lake City, Kolkatta. He (Biswa Ranjan Sengupta) had married Parul Sengupta. Out of the above wedlock, there were two children – a daughter (Indrani Wahi) and a son (Dhruba Jyoti Sengupta). It is not a matter of dispute, that his (Biswa Ranjan Sengupta's) membership of ‘the Cooperative Society' had resulted in the allotment of the flat referred to hereinabove. Biswa Ranjan Sengupta recorded the name of the appellant – Indrani Wahi, in terms of the mandate contained in Section 79 of the West Bengal Cooperative Societies Act, 1983 (hereinafter referred to as ‘the 1983 Act'). Under Section 79, a member of ‘the Cooperative Society' is required to nominate a person in whose favour ‘the Cooperative Society' would dispose of the share or interest of the member “on his death”.
2. It is the case of the appellant before this Court, that her father -Biswa Ranjan Sengupta, lived under her exclusive care eversince March 2002, whereafter he died on 22.07.2003. It is also the case of the appellant, that neither the appellant's mother nor her brother participated in the last rites of her father - Biswa Ranjan Sengupta. In our considered view, these facts are irrelevant for the adjudication of the present controversy. They are, however, being recorded herein, on account of the significance assigned to them, in the pleadings, and also during the course of hearing.
3. After the death of her father - Biswa Ranjan Sengupta, Indrani Wahi addressed a communication dated 05.08.2003 to the Secretary of ‘the Cooperative Society', for entering her name in place of the name of her father, with reference to Flat No.4-RB 2/3, Purbachal Housing Estate, Phase-II, Sector-III, Salt Lake City, Kolkatta. The Managing Committee of the Housing Society passed a unanimous resolution on 15.08.2003, for transferring the membership of Biswa Ranjan Sengupta in ‘the Cooperative Society' to the name of the appellant – Indrani Wahi.
4. It is the case of the appellant, that consequent upon the passing of the above resolution, she (Indrani Wahi) has been paying maintenance and other charges to the Society. It is also pointed out, that the Secretary of ‘the Cooperative Society', through a covering letter dated 16.08.2003, sent all papers with reference to the transfer of the membership of ‘the Cooperative Society' from the name of Biswa Ranjan Sengupta, to the name of Indrani Wahi, to the Deputy Registrar, Cooperative Societies. The papers dispatched, included the resolution of ‘the Cooperative Society' referred to above.
5. On 01.09.2003, having got wind of the transfer of the membership of ‘the Cooperative Society' from the name of his father - Biswa Ranjan Sengupta, to the name of his sister – Indrani Wahi, Dhruba Jyoti Sengupta addressed the letter to the Deputy Registrar, Cooperative Societies on behalf of his mother – Parul Sengupta. In the above letter, he (Dhruba Jyoti Sengupta) asserted, that the membership to the flat should be transferred to the name of his mother – Parul Sengupta. In response to the letter dated 01.09.2003, the Deputy Registrar, Cooperative Societies, by an order dated 19.09.2003, required the parties to submit documents to demonstrate, that the deceased had a family. The Secretary of ‘the Cooperative Society' informed Parul Sengupta, that the name of Indrani Wahi had been recorded as a nominee of Biswa Ranjan Sengupta, in the records of ‘the Cooperative Society', and if Parul Sengupta desired to verify the same, it was open to her to inspect the records.
6. In response to the letter dated 19.09.2003, the Secretary of ‘the Cooperative Society' submitted the following information to the Deputy Registrar
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