Sanjay Kishan Kaul, J.

1. The petitioner is a house building society and was registered with the Registrar, Co-operative Societies, Delhi (hereinafter referred to as, ‘the RCS’)/respondent No. 1 herein, under the provisions of the Bombay Co-operative Societies Act, 1925 (hereinafter referred to as, ‘the BCS Act of 1925’) as extended to Delhi. On enactment of the Delhi Co-operative Societies Act, 1972 (hereinafter referred to as, ‘the DCS Act of 1972’), the provisions of the DCS Act of 1972 and the Rules framed thereunder came to govern the field. This Act was also repealed by The Delhi Co-operative Societies Act, 2003 (hereinafter referred to as, ‘the said Act’) as amended by The Delhi Co-operative Societies (Amendment) Act, 2006 (hereinafter referred to as, ‘the Amending Act of 2006), which now governs the field along with The Delhi Co-operative Societies Rules, 2007 (hereinafter referred to as, ‘the said Rules) framed thereunder.

2. The Bye-Laws of the petitioner society state the objects of the society with the main object being to acquire land either through outright purchase or on lease for construction of houses for giving to its members either on rent or on hire purchase system or by outright sale. The ‘Objects’ as contained in Chapter II are reproduced hereunder:

“II. OBJECTS

3. Its objects shall be :-

(i) to acquire either through outright purchase or on lease, land for :-

(a) the construction of houses for giving to members, either on rent or on hire purchase system or by outright sale;

(b) allotment to its members, on such terms and conditions as may be fixed by the society in accordance with these bye-laws, for the construction of houses by the members for their own use;

(ii) to arrange to supply, either on commission or otherwise, building material to its members for the construction of house by them (members) for their own use on the land allotted to them (members) by the society;

(iii) to advance loans to its members for building houses for residential purposes;

(iv) to do all such things as are incidental or conducive to the attainment of any or all of the above objects.”

2.1. Chapter III of the Bye-Laws deals with ‘Membership’. Bye-Law 5(i) deals with eligibility of member. The relevant Bye-Laws are as under:

“III. MEMBERSHIP 5.(i) Any person shall be eligible to be a member of the society provided :-

(a) he is a follower of Radha Soami faith and a member of Radha Soami Satsang affiliated to Radha Soami Sabha, Dayalbagh, Agra;

… … … … … … … …

(iv) When a person’s application has been accepted by the Committee and he has paid his admission fee and first instalment of his shares, he shall be deemed to have acquired all the rights and incurred all the obligations and liabilities of a member of the society as laid down in the Co-operative Societies Act, the Rules made thereunder and these bye-laws.”

2.2. Bye-Laws 8 and 9 provide when a person ceases to be a member and the relevant portion thereof is reproduced hereunder:

“8. A person ceased to be a member :-

(i) on death; or

… … … … … … … …

(viii) on ceasing to be member of the Radhasoami Satsang affiliated to the Radhasoami Satsang Sabha, Dayalbagh, Agra.

9. (1) A member or the nominee or successor of an ex-member may transfer his shares to another member or applicant qualified under bye-law 5 and approved by the Committee or to a share transfer fund created by the society out of its profits and shall then be paid the value of his shares, less any sum due from him to the society. No transfer of share or interest shall, however, be made unless a member has held such shares for not less than one year. … … … … … … … …”

2.3. Chapter V deals with ‘Shares’ and the relevant Bye-Law, i.e., Bye-Law 16 reads as under:

“16. Every member may nominate a person or persons to whom on death his shares shall be transferred but no member may nominate more than one person, unless he holds more than one share and in any case unless the amount to be paid to such nominees, whether by way of whole