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Court Upholds Co-operative Membership Transfer with Release Deed

In the case of Bima Nagar Co-operative Housing Society Ltd. v. Divisional Joint Registrar & Ors. WP 10768 of 2024, the Bombay High Court on 23.09.2024 dismissed the society’s petition challenging the membership transfer to Pushpa Morey, a widow, following her husband's death. Initially, Pushpa was granted provisional membership but was later denied full membership by the society.

Pushpa applied for full membership after her husband's passing. When the society refused, she sought help from the Deputy Registrar, who ordered that the society admit her as a full member under Section 22(2) of the Maharashtra Co-operative Societies Act, 1960. The society’s appeal to the Divisional Joint Registrar was unsuccessful, prompting the writ petition in the Bombay High Court.

The society argued that the "family arrangement" concept under Section 154B-13 of the Maharashtra Co-operative Societies Act applies only to a Hindu Undivided Family (HUF). Pushpa, however, contended that her two adult children had relinquished their rights in her favour through a registered release deed. Since there was no dispute among the heirs, the release deed constituted a valid "family arrangement" as per the law.

The Court examined the law and clarified that "family" under the Act is not limited to HUF but includes individuals related to each other by marriage, consanguinity, adoption, etc. In this case, Pushpa and her children formed a family, and the release of rights by her children constituted a valid family arrangement.

The Court also rejected the argument that a succession certificate was necessary, stating it is only required if there is a dispute among heirs. Since there was no dispute here, the transfer of membership to Pushpa was deemed lawful.

In conclusion, the Court found no error in the decisions of the lower authorities and upheld the membership transfer based on the relinquishment deed signed by Pushpa’s children. The ruling clarified that in cases where multiple heirs exist, a family arrangement such as this one is sufficient to allow the society to transfer the membership to a single person.

[Stay tuned for more such updates…]

 

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Comments

  1. AnonymousOct 5, 2024, 12:06:00 PM

    Can a release deed be made where property is under attachment of govt and court case is pending?

    ReplyDelete
  2. Adv. (CA) Pooja Ashok GuptaOct 7, 2024, 1:49:00 PM

    The simple answer is yes as release deed is a document of relinquishment of succession rights

    ReplyDelete

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