SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1998 Supreme(Del) 861

High Court Of Delhi
ASHOK CHAND AGGARWALA - Appellant
Versus
DELHI ADMINISTRATION - Respondent
Decided On : 10/27/1998

A nomination made by a deceased member of a co-operative society does not create a succession or confer any right or interest in the nominee qua the interest or the right of the deceased member in the land.

Headnote:

CO-OPERATIVE SOCIETY - NOMINATION - SECTION 26 OF DELHI CO-OPERATIVE SOCIETIES ACT, 1972 - RULE 35 OF DELHI CO-OPERATIVE SOCIETIES RULES, 1973 - NOMINATION DOES NOT CREATE A SUCCESSION OR CONFER ANY RIGHT OR INTEREST IN THE NOMINEE QUA THE INTEREST OR THE RIGHT OF THE DECEASED MEMBER IN THE LAND.

Fact of the Case:

The appellant, a nominee of the deceased member of a co-operative society, claimed ownership of the plot allotted to the deceased member, excluding all other heirs, based on the nomination made by the deceased member.

Finding of the Court:

The court held that the nomination made by the deceased member did not create a succession or confer any right or interest in the nominee qua the interest or the right of the deceased member in the land.

Issues: Whether the nomination made by the deceased member conferred ownership of the plot to the nominee, excluding all other heirs.

Ratio Decidendi: The court interpreted Section 26 of the Delhi Co-operative Societies Act, 1972 and Rule 35 of the Delhi Co-operative Societies Rules, 1973, and held that the nomination only provided protection to the society from undue litigation in case it substituted the name of the nominee in place of the deceased member on the basis of the nomination. The court further held that the nomination did not provide for inheritance in favor of the nominee to the exclusion of other heirs.

Final Decision: The court dismissed the appeal, holding that the appellant could not claim ownership of the plot to the exclusion of other legal heirs of the deceased member based solely on the nomination.

Y. K. SABHARWAL

( 1 ) MR. C. B. Aggarwala was a member of Supreme Court bar Co-operative House Building Society Ltd. He was allotted by the society a plot bearing No. A-25, Niti Bagh, New Delhi. The perpetual lease deed was registered in the name of Mr. C. B. Aggarwala in 1972. The appellant was appointed by Mr. C. B. Aggarwala a nominee on the record of the society in accordance with Delhi Co-operative Societies Rules, 1973 (for short The Rules ). Mr. C. B. Aggarwala died on 13th June, 1973. It seems that the society passed a resolution dated 16th May, 1975 substituting the appellant as member of society in place of his father Mr. C. B. Aggarwala. The appellant had approached the Delhi Administration for substitution of his name in the sub-lease and for this purpose he moved the Assistant Housing Commissioner, L and B Department, Delhi Administration vide his application dated 21st February, 1975. The appellant was, however, informed by the Delhi Administration by letter dated 5th March, 1975 to produce the succession certificate from a Civil Court of competent jurisdiction so that further action could be taken in the matter. The plea of the appellant before the authorities was that as a nominee he was entitled to inherit the plot of which his father was the lessee. In short, the case of the appellant was that in view of nomination made by his father he was entitled to the ownership of the plot in question to the exclusion of all other heirs.

( 2 ) AGGRIEVED by the action of the authorities, the writ petition out of which this appeal has arisen was filed by the appellant and reliance was placed upon Section 26 of the Delhi Co-operative Societies Act, 1972 in support of the contention that on the basis of nomination be was entitled to inherit the plot in question to the exclusion of other heirs of Mr. C. B. Aggarwala. The writ petition was dismissed by learned Single Judge inter alia holding that Section 26 of the Act does not create a succession.

( 3 ) IN support of the appeal reliance has been placed on Section 26 of the Act and Rule 35ufthe Delhi Co-operative Societies Rules, 1973. It would be useful to reproduce the said provisions as under :- "26. (1) On the death of a member a co-operative society may transfer the share of interest of the deceased member, to the person nominated in accordance with the rules made in this behalf, or, if there is no per on so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member s share or interest as ascertained in accordance with the rules or bye-laws: Provided that- (i) in the case of a co-operative society with unlimited liability, such nominee, heir or legal representative, as the case may be, may require payment by the society of the value of the share or interest of the deceased member ascertained as aforesaid; (ii) in the case of a co-operative society with limited liability, the society shall transfer the share or interest of the deceased member to such nominee, heir or legal representative, as the case may be, being qualified in accordance with the rules and bye-laws for membership of the society, or on his application within on month of the death of the deceased member to any person specified in the application who is so qualified; (iii) no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be. (2) A co-operative society shall, subject to the provisions of section 36 and unless within six months of the death of member prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society. (3) All transfers and payments made by a co-operative society in accordance with the provisions of the section shall be valid and effectu






Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top