ALIMUDDIN Vs. REGISTRAR CO OPERATIVE SOCIETIES

JUDGEMENT

(1.) A short question relating to interpretation of Ruls 25(l)(c) Delhi Co-operative Societies Rules, 1973 (hereinafter referred to as the Rules') arises for decision in this petition.

(2.) The petitioner Alimuddin, was a member of Panjatan Cooperative House Building Society Ltd. His membership in the Society has been ceased on the ground that during his membership of the Society, his wife had purchased a plot in one of the unauthorised colonies of Delhi, namely, Zafar Nagar and this act had rendered him disqualified to continue as a member of the Society under Rule 25(3) of the Rules.

(3.) The facts found by the Registrar, Cooperative Societies and as contained in her order dated 16.8.1991, (Annexure-D), are that one Pyarey Lal had executed a power of attorney in favour of the wife of the petitioner in respect of the said plot and later on she had executed another power of attorney in favour of some other parties for the same plot. The petitioner's defence was that a power of attorney only gives power to act on behalf of some one else and the power attorney holder does not acquire any 'ownership' in the property forming subject matter of the power of attorney. It was also submitted that the petitioner's wife had only entered into an agreement for sale of the said plot but she had never purchased it through a registered document and, therefore, she never legally owned it and therefore Rule 25(3) of the Rules was not attracted. The Registrar of the Co-operative Society found that the transaction entered through power of attorney gave an outwardly different colour to the transaction but in substance and in effect she did acquire a plot for her own benefit and that was a transfer in her favour. The learned Registrar further opined that Sec. 25(3) had a social objective, viz. to make available a plot or a house to as many needy people as possible and this objective could not be permitted to be defeated by resort to legal technicality and avoid disqualification under Sec. 25(3). The learned Registrar concluded by upholding the Society's action ceasing the membership of the petitioner as right and proper.