Back
2015 Supreme(Del) 3443
IN THE HIGH COURT OF DELHI AT NEW DELHI
GITA MITTAL & I.S.MEHTA, JJ.
Kiran Arora – Petitioner
Versus
Registrar Co-Operative Societies & Anr. – Respondents
W.P.(C) 7057/2013
Decided On : 01-12-2015
For the Petitioners:Ms. Amita Gupta, Mr. Abhimanyu K. Singla, Advocates
For the Respondents:Mr. Santosh Kumar Tripathi, ASC for GNTD-RCS/R1, Mr. R.K. Gupta, Advocate for R2
Headnote:
Membership Transfer - Cooperative Society - Delhi Cooperative Societies Act, 1972, Section 26, Rule 35 - The court discussed the provisions of Section 26 of the Delhi Cooperative Societies Act, 1972 and Rule 35 of the Delhi Cooperative Societies Rules, 1973. It highlighted the authority of the managing committee to appoint the heir or legal representative of a deceased member to succeed to the membership and the procedure for transfer of share or interest of the deceased member. The court emphasized the validity of transfer and payment made by a cooperative society in accordance with the provisions of Section 26 and the requirement for public notice and consideration of claims/objections for proposed transfer of share or interest of the deceased member.
Fact of the Case:
The petitioner sought transfer of membership in a cooperative society following the death of her grandmother, who was an original member. Despite making all payments and completing formalities, the society failed to hand over possession of the allotted flat, leading to the petitioner's financial loss and continued residence in a rented accommodation.
Finding of the Court:
The court found that the petitioner was entitled to the transfer of membership and possession of the flat, and set aside the orders withholding the petitioner's name and denying membership. It directed the petitioner to submit required documents and an indemnity bond, and instructed the society and Registrar of Cooperative Societies to process the case in accordance with the statutory provisions prevailing prior to a specific date.
Issues: The issues involved the entitlement of the petitioner to transfer the membership of the deceased member, the validity of the society's actions, and the procedural compliance with the Delhi Cooperative Societies Act and Rules.
Ratio Decidendi: The court's decision was based on the interpretation and application of the provisions of the Delhi Cooperative Societies Act, 1972 and the Delhi Cooperative Societies Rules, 1973, emphasizing the rights of the heir or legal representative of a deceased member and the procedural requirements for transfer of membership and possession.
Final Decision: The writ petition was disposed of in favor of the petitioner, directing the society and Registrar of Cooperative Societies to process the case in accordance with the statutory provisions prevailing prior to a specific date, and instructing the petitioner to submit required documents and an indemnity bond.
GITA MITTAL, J.
1. The facts giving rise to the instant petition are within the narrow compass and to the extent necessary are noted hereunder. One Smt. Shanti Devi applied for the membership of Jyoti Cooperative Group Housing Society Limited (hereinafter referred to as ‘society’)
2. On 1st April, 1979, Smt. Shanti Devi made a payment of Rs.110/- for the membership of respondent No.2-society. Smt. Shanti Devi was inducted as an original member of the respondent-society and a share certificate was duly issued to her on 25th March, 1980.
3. Unfortunately, Smt. Shanti Devi expired on 30th January, 1987. So far as the relationship of the petitioner with Smt. Shanti Devi is concerned, it is submitted that she is the child of the daughter of Smt. Shanti Devi namely Smt. Naresh Kumari. The petitioner/Ms. Kiran Arora is thus the grand-daughter of Smt. Shanti Devi.
4. We are informed that Smt. Naresh Devi was the only child of Late Smt. Shanti Devi. Inasmuch as, the siblings of the present petitioner were not interested in acquiring the rights of the deceased in the society, the petitioner made an application for transfer the membership in the society to her name. As required by the society, the petitioner surrendered the original share certificate and submitted all the required documentation with the respondent-society. It is an admitted position before us that from 1982 to 2003, the respondent-society accepted the validity of the entitlement of the petitioner to transfer of the membership of Smt. Shanti Devi in favour of petitioner who has made all the payments to the respondent-society towards the said membership. Between this period, the petitioner has paid a sum of Rs.6,22,900/- (Rupees Six Lacs Twenty Two Thousands and Nine Hundred) against the cost of the flat to be allotted against the share certificate apart from the payment of other ancillary charges against various demands raised by the society.
5. On 6th January, 1999, the petitioner was informed by the society that a category ‘C’ flat stood allotted to her and was asked to deposit certain documents vide a communication dated 5th January, 2005. On 3rd October, 2005, the petitioner deposited the required documents with the respondent-society. However, neither the formal share certificate was issued nor possession of the allotted flat was given to her, despite the payment of all the charges and participation in all activities including the general body meetings by the petitioner.
6. In these circumstances, the petitioner was compelled to raise a claim before the Registrar of Cooperative Societies which was referred to arbitration under Section 70 of the Delhi Cooperative Societies Act. It appears that the society took a stand that it was supporting the membership of the petitioner and that she had not submitted the required documents. Consequently, by an order dated 13th March, 2008, the arbitrator directed the petitioner to complete all the formalities and if, the petitioner’s case was not cleared thereafter, an opportunity was given to the petitioner to file a fresh petition.
7. As this also did not culminate in a favourable order, the petitioner sought adjudication afresh by way of petition under Section 70 of the Delhi Cooperative Societies Act, 2003 filed on 11th September, 2008 seeking a direction to the society to inform her about the requisite documentation and formalities. This was disposed of on 10th March, 2009 with the observation that the issue already stood decided and no fresh orders were required. The petitioner’s appeal to Delhi Cooperative Tribunal was similarly disposed of on 7th October, 2011.
8. Despite the above, during the period after 10th February, 2013, the petitioner has been receiving fresh demand letters from the respondent-society requiring her to make further payment and accordingly the petitioner has made further payments.
9. Finally frustrated by the failure of respondent to do justice to her and to hand over the possession of the allotted
