Court Upholds Widow's Membership in Co-operative Society Based on Family Arrangement "Family Arrangement Can Apply Beyond Hindu Undivided Families, Says Court"

Case Note & Summary

The petition challenges an order confirming the direction to admit the widow (Respondent No.3) of a deceased member of a Co-operative Housing Society as a member. The Court rejected the petitioner's interpretation that a "family arrangement" under Section 154B-13 of the Maharashtra Co-operative Societies Act, 1960 applies only to Hindu Undivided Families (HUF). The Court upheld the family arrangement whereby the two children of the deceased relinquished their rights in favor of Respondent No.3. The petition was dismissed.

1. Hearing and Admission Stage

The matter was heard and decided at the admission stage with the consent of both parties.

2. Facts Leading to the Petition The Petitioner is a Co-operative Housing Society. Respondent No.3, the widow of the deceased member, applied for membership after his death. Despite provisional membership, the society did not grant full membership, prompting Respondent No.3 to approach the Deputy Registrar. The Deputy Registrar ordered the society to admit Respondent No.3, which was confirmed in revision by the Divisional Joint Registrar. 3. Aggrieved by Registrar's Order

The Petitioner filed the petition challenging the order dated April 10, 2024, confirming the direction to admit Respondent No.3.

4. Petitioner's Arguments The petitioner argued that the term "family arrangement" under Section 154B-13 applies only to Hindu Undivided Families (HUF). The petitioner also contended that Respondent No.3 must obtain a succession certificate to inherit the deceased member's interest. 5. Respondent No.3’s Arguments The widow was the legal heir along with two children, and all heirs had executed a deed of relinquishment in her favor. The respondent argued that there is no mandatory requirement for a succession certificate unless there is a dispute among the heirs. 6. Section 154B-13: Transfer of Interest on Death of a Member

The provision outlines how shares and interests in the property of a deceased member can be transferred based on testamentary documents, succession certificates, legal heirship certificates, or family arrangements.

7. Family Arrangement and Interpretation The Court rejected the petitioner's argument that family arrangements apply only to HUFs. The term "family" includes individuals related by marriage, blood, or adoption. In this case, the children relinquished their rights in favor of their mother, Respondent No.3, constituting a valid family arrangement. 8. Succession Certificate Not Required

The Court held that the issue of a succession certificate does not arise in this case, as there is no dispute among the heirs.

9. No Perversity in Authorities’ Orders

The Court found no error or perversity in the orders passed by the Deputy Registrar and Divisional Joint Registrar and upheld their decisions.

10. Petition Dismissed

The petition was dismissed on the grounds that the family arrangement was valid, and there was no requirement for Respondent No.3 to obtain a succession certificate.

Acts and Sections Discussed: Maharashtra Co-operative Societies Act, 1960 Section 22(2): Relating to the admission of members. Section 154B-13: Transfer of interest on the death of a member, dealing with succession certificates, legal heirship certificates, and family arrangements. Ratio Decidendi:

The family arrangement under Section 154B-13 of the Maharashtra Co-operative Societies Act is not limited to HUFs but applies to any family arrangement among legal heirs, enabling the transfer of a deceased member’s interest to a single heir when supported by such an arrangement. Succession certificates are not mandatory unless there is a dispute among the heirs.

Subjects:

Co-operative Housing Society, Membership Rights, Succession, Family Arrangement

Maharashtra Co-operative Societies Act, Family Arrangement, Succession Certificate, Widow’s Rights, Legal Heir