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2020 Supreme(Telangana) 815

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
KUNURU LAKSHMAN, J.
Sri Sri Kalakuteers Apartment Flat Owners Maintenance Mutually Aided Co-operative Society Limited and Others – Appellants
Versus
The State of Telangana and Others – Respondents
W.P. No. 25713 of 2019, I.A. No. 3 of 2019
Decided On : 10-08-2020

Advocates:
Advocate Appeared:
For the Appellants : M. Venkat Divakar, Laxmaiah Kanchani.
For the Respondent: M. Venkat Divaka.

The State cannot impose any restriction or force a society to get itself registered under a particular Statute for which the society has not applied.

Headnote:

Cooperative Society - Registration under TMACS Act - Proceedings dated 24.03.2017, 18.12.2018, G.O.Ms. No. 42, dated 02.02.2013 - The court held that the State cannot impose any restriction or force the Society to get itself registered under a particular Statute for which the Society has not applied. The proceedings refusing to register the 1st petitioner society under the TMACS Act are illegal and in violation of fundamental rights. The 3rd respondent is directed to register the 1st petitioner society under the TMACS Act within a month.

Fact of the Case:

The owners of a residential complex decided to register a Maintenance Society under the TMACS Act, 1995. The 3rd respondent refused to register the society under the TMACS Act, leading to the present writ petition.

Finding of the Court:

The court found the refusal to register the society under the TMACS Act illegal and in violation of fundamental rights. It directed the 3rd respondent to register the society under the TMACS Act within a month.

Issues: The main issue was the refusal to register the society under the TMACS Act, which the court found to be illegal and in violation of fundamental rights.

Ratio Decidendi: The court held that the State cannot impose any restriction or force the Society to get itself registered under a particular Statute for which the Society has not applied. The refusal to register the society under the TMACS Act was declared illegal and in violation of fundamental rights.

Final Decision: The court directed the 3rd respondent to register the 1st petitioner society under the provisions of the TMACS Act, 1995 within a month.

ORDER :

1. This writ petition is filed to declare the Memo No. RC No. 7033/2015/HR-2, dated 24.03.2017 and RC No. 6215/2018/HR-4, dated 18.12.2018 issued by the 2nd respondent as illegal and to set aside the proceedings in RC No. 2662/2019-MACS, dated 01.11.2019 issued by the 3rd respondent and for a consequential direction to the 3rd respondent to register the 1st petitioner Society under the provisions of the Telangana Mutually Aided Cooperative Societies Act, 1995 (for short ‘TMACS Act’). Whereas, I.A. No. 3 of 20192 is filed by Sri. Sri. Kala Kuteer Apartment Owners Cooperative Maintenance Society, rep. by its Chief Promoter Avula Vijayalaxmi, to implead it as 5th respondent in the writ petition.

2. The facts that germane for filing of the present writ petition are as follows:

(i) There are 150 flats in Sri. Sri. Kalakuteer Apartment, a residential complex. Initially, the owners of the said flats have registered a Society under Public Societies Act with registration No. 580/2015. They came to know about the recent new enactments with regard to registration of Apartment Flat Owners' Welfare Association under the Cooperative laws. Therefore, the owners of the flats of the said residential complex have decided to register the maintenance association under the provisions of the MACS Act, 1995. Accordingly, the promoters of the 1st petitioner Society have passed a resolution on 13.09.2019 to register the 1st petitioner Society under the provisions of the TMACS Act. Pursuant to the said resolution, the 1st petitioner Society submitted an application to the 3rd respondent for registration of the 1st petitioner Society on 14.09.2019.

(ii) On receipt of the said application dated 14.09.2019, the 3rd respondent has appointed the 4th respondent to conduct a meeting with the promoters of the 1st petitioner Society on 21.09.2019. Accordingly, the 4th respondent had conducted meeting with the promoters of the 1st petitioner Society and submitted report dated 03.10.2019. In the said report, the 4th respondent informed the 3rd respondent that as per the instructions of the Registrar of TMACS, Telangana State, Hyderabad, vide memo RC No. 6215/2018-HR4 dated 18.12.2018, there is no possibility to register the Flat Owners' Maintenance Cooperative Society under the provisions of the TMACS Act. The 4th respondent has further informed the 3rd respondent that he has explained the said instructions to the promoters of the 1st petitioner Society in the said meeting. Thus, the 4th respondent informed the 3rd respondent that the proposals are not recommended for registering the Society under the provisions of the TMACS Act.

(iii) It is apt to mention here itself that the 1st respondent vide his proceedings RC No. 7033/2015/HR2, dated 24.03.2017 informed all the District Cooperative Officers of the State of Telangana to register the Flat Owners' Cooperative Maintenance Societies under Section 6 of the Telangana Cooperative Societies Act, 1964 and Rule 3 of Telangana Cooperative Rules, 1964, provided the proposals to fulfill the criteria mentioned therein i.e. (1) The Members of the Flats are more than 21 and there are 21 Promoters belonging to different families as per provisions of the Telangana Cooperative Societies Act, 1964, and (2) Byelaws framed are as per the provisions of the Telangana Cooperative Societies Act 1964.

(iv) The Registrar of Mutually Aided Cooperative Societies Act, Telangana State, vide his proceedings in RC No. 6215/2018-HR4 dated 18.12.2018 informed the 3rd respondent that vide G.O.Ms. No. 42, dated 02.02.2013, the 2nd respondent has been delegated the powers to register the flat owners association under the A.P. Apartment (Promotion of Constructions and Ownership) Act, 1987. Under the said G.O. Sub-Rules (c) and (d) to Rule-7 were added. Sub-Rule (d) to Rule-7, which is relevant, is as under:

“Rule - 7.......

(d) The procedure prescribed in Andhra Pradesh Cooperative Societies Rules, 12964 shall be followed for Registration of Flat

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