MAYURDHWAJ CGHS LTD Vs. REGISTRAR COOPERATIVE SOCIETIES

JUDGEMENT

(1.) This writ petition has been filed by the Mayurdhwaj Co-operative Group Housing Society Limited (hereinafter referred to as 'the society'), being aggrieved by the order dated 19.02.2008 passed by the Delhi Co-operative Tribunal in an appeal under Section 112 of the Delhi Co-operative Societies Act, 2003 (hereinafter referred to as 'the 2003 Act'), which, in turn, was directed against the order passed by the Registrar of Co-operative Societies on 20.11.2006 under Sections 60 and 61 of the Delhi Co-operative Societies Act, 1972 (hereinafter referred as 'the 1972 Act'). By virtue of the order dated 20.11.2006 passed by the Registrar of Co-operative Societies, it was held that the respondent No. 3 (Satish Kumar Gupta) was not entitled to be considered as a member through nomination made by Late Shri Ram Lal Dhamija on the ground that the said respondent No. 3 was neither a blood relative of the said Late Shri Ram Lal Dhamija nor was there any proof of inheritance provided by the said respondent No. 3.

(2.) The Delhi Co-operative Tribunal set aside the order dated 20.11.2006 passed by the Registrar-Co-operative Societies and directed the petitioner society as well as the Registrar of Co-operative Societies to accept the respondent No. 3 (Satish Kumar Gupta) as a member and to allot him a flat in the society at the earliest after he completed the formalities, if any. The said Tribunal found that there was no requirement of a nomination being made in favour of a blood relative under the 1972 Act. The Tribunal also found-that the society had earlier already accepted the respondent No. 3 as a member and that it was only after a lapse of nine years that the society refused to allot him a flat and, that too, only because the Registrar of Co-operative Societies had not accepted him as a member.

(3.) We may also note that in the order dated 20.11.2006, the Registrar of Co-operative Societies, while rejecting the respondent No. 3's claim to membership through nomination, also took the view that if the transfer of membership in such circumstances was allowed to be made in favour of the nominee without verifying the documents relating to proof of inheritance or any other legal documents submitted by the nominee, then the sale of flats in the co-operative group housing societies was likely to take place through this "back door channel" without any payment of stamp duty on the transfer of documents as everybody would be able to nominate the purchaser and the nomination could also be changed by any member at any moment during his life time. According to the Registrar of Co-operative Societies, this would give rise to transfers of membership without payment of any stamp duty / Government fees and which would be exploited by the builders / property dealers in the co-operative group housing sector.