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2025 Supreme(Online)(Cal) 2529

CALCUTTA HIGH COURT
Raja Basu Chowdhury, J
The Peerless General Finance and Investment Company Limited – Appellant
Versus
The Joint Registrar of Co-operative Societies – Respondent
Constitutional Writ Jurisdiction | WPA 13617 of 2025



Advocates:
For the Appellants/Petitioners: Mr. N.C.Bihani, Sr. Adv., Mr. Tapan Nag Chowdhury, Mr. Soumya Mukherjee
For the Respondents: Mr. Tanish Ganeriwala, Mr. Debabrata Das, Mr. Saptarshi Mukherjee, Mr. Tirthankar Nandi, Mr. D. Sengupta, Mr. Ayan Chakraborty, Ms. Sohini Mukherjee, Mr. Srijan Nayak, Mr. Ankit Sureka, Mr. Biplab Das

Exemptions granted by the government under cooperative laws were upheld, allowing multiple flat sales.

Headnote:(A) West Bengal Cooperative Societies Act, 1983 - Section 7 - Exemption of certain provisions - Petitioners challenged the communication regarding membership and sale of government-allotted flats under exemption of Rule 135(2) and were granted permission to proceed with individual sale of flats after no objections were raised. (Paras 1, 4, 9, 10)

(B) Cooperative membership - Eligibility and exemptions - Government exempted certain provisions of the Act allowing multiple memberships within a cooperative society, validating the petitioners' claim to sell the flats individually. (Paras 1, 2, 10)

Facts of the case:
Petitioners sought to cancel communication preventing the sale of flats allotted under government exemption; the government allowed membership and exempted cooperative rules.

Findings of Court:
The court found no objections to granting permission for the sale of flats, upholding the exemption granted by the government from the Cooperative Societies rules regarding membership limits.

Issues: The primary issue was whether the petitioners could retain multiple flat memberships in light of prior governmental exemptions.

Ratio Decidendi: The court reaffirmed that exemptions granted by the government under Section 7 of the Act were valid and upheld the petitioners' rights to sell the allocated flats individually.

Result: The communication preventing the sale was set aside, allowing the petitioners to proceed with the sale.

Table of Content
1. petitioners sought cancellation of communication preventing flat sales. (Para 1)
2. government exemption of cooperative society rules validated flat sales. (Para 2 , 5 , 10)
3. court observations confirm no objections to proposed member actions. (Para 3 , 4)
4. exemptions from cooperative laws upheld by the court. (Para 6 , 11)

5 & 6. Mr. Debabrata Das Mr. Saptarshi Mukherjee Mr. Tirthankar Nandi For West Bengal Housing: Mr. D. Sengupta Board. Mr. Ayan Chakraborty Ms. Sohini Mukherjee For the respondent nos. : Mr. Srijan Nayak 1 to 4. Mr. Ankit Sureka Mr. Biplab Das Heard on : 26.08.2025. Judgment on : 26.08.2025 Raja Basu Chowdhury, J (Oral):

1. The instant writ petition has been filed, inter alia, calling upon the respondents to withdraw and / or cancel the impugned communication dated 20th July 2022 being annexure P-14 to the instant writ petition. According to the petitioners on the basis of an application made by the petitioners even before formation of the respondent no. 5 being the cooperative society, an allotment was made by the West Bengal Housing Board on 19th October 1995, thereby provisionally allotting the petitioner no.1 with 6 (six) several flats at East Calcutta Township Project, Phase-IV ‘B’ type, upon deposit of the sum indicated therein, and on the condition that the petitioner no. 1 becomes a member of the cooperative society.

2.According to Mr. Bihani, learned Senior Advocate appearing on behalf of the petitioners the State Government being otherwise empowered, while making over prior possession of the aforesaid flats had exempted the provisions of Rule 135(2) of the West Bengal Cooperative Societies Rules, 1987 (hereinafter referred to as the “said Rules”) thereby, authorizing the petitioner no.1 to be entitled to retain the above 6 (six) flats. He submits that now the petitioners are interested to sale the above flats to individuals and in this regard insists for allotment of individual, membership numbers.

3.Heard the learned advocates for the respective parties and considered the materials on record. To appreciate the scope of the aforesaid claim, it is necessary to consider the scope of exemption granted by the State Government. In this context, Rule 135 of the said Rules is extracted hereinbelow:-

“Rule - 135. Membership.

(1) Every applicant for membership of a co-operative housing society shall, as the case may be, submit along with his application for membership (i) two recent passport size photographs, (ii) income-tax clearance certificate or profession tax certificate, and (iii) salary certificate (in case of persons employed by others).

(2) In a co-operative housing society the number of members shall not exceed the total number of plots, houses or apartments proposed by a society to be allotted to members under any scheme or project of such society:

Provided that a member shall be eligible for allotment of only one plot, house or apartment in a housing co-operative society.

(3) (a) For the transfer of land or house or apartment a member shall obtain a written consent of the society and before giving such consent the society shall satisfy itself that (i) the transferee is eligible for being a member of the society;

(ii) the transferee has genuine need for residential accommodation;

(iii) the transferor has paid off his outstanding liabilities to the society or, the transferee has undertaken to take over such liabilities of the transferor;

(iv) the transferee formally applies for membership of the society.

(b) Where a society refuses or fails to give consent to the transfer referred to in clause (a) and the member intends to appeal to the Registrar against such refusal by or failure of the society, an appeal may be preferred within thirty days from the date of communication of the refusal or within sixty days from the date of receipt of the proposal by the society.

(4) A person who does not own a house or apartment in his own name or in the name of a member of his family but possesses a plot

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