"It Is Impermissible For Co-operative Societies To Deny Membership To Single Women, Members of Particular Community, People Who Eat Particular Food": Supreme Court

Supreme Court on Saturday has orally remarked that it is "impermissible" that co-operative societies, in pursuance of the fundamental right to form associations under Article 19(1)(c), are denying membership to "single women, to individuals who are members of a particular community, to persons who eat some particular food." The bench headed by Justice Chandrachud was hearing an SLP against a July, 2019 order of a Single Judge of the Bombay High Court by which the petition filed by the Punam Co-operative Housing Society Limited, the SLP petitioner, has been dismissed. In the writ proceedings before the High Court, the petitioner sought to challenge an order passed by the Divisional Joint Registrar, Cooperative Societies in March, 2019 dismissing a revision application under Section 154 of the Maharashtra Cooperative Societies Act 1960 against an order of October, 2008 of the Deputy Registrar granting membership of the Cooperative Society to the first and second respondents. The direction to grant membership was in pursuance of the provisions of Section 23(2) of the Act.Section 23 of the Act speaks of open membership- No society shall, without sufficient cause, refuse admission to membership to any person duly qualified thereof under the provisions of this Act and its by-laws. Section 23(2) provides that any person aggrieved by the decision of society, refusing him admission to its membership, may appeal to the Registrar.Before the bench headed by Justice Chandrachud, when it was urged on behalf of the SLP petitioner that there is a fundamental right to form associations or unions of cooperative societies, the judge observed, "The right is to form associations. Do you know what societies are doing in exercise of this fundamental right? They are not letting single women occupy flats! They are not allowing members of a particular community! They are denying people who eat some particular food! This is the reality! This is impermissible! We cannot tolerate this attitude from societies!"In disposing off the SLP, the bench stated, "The impugned order of the Single Judge directing the Cooperative Society to admit the respondents as members of the Cooperative Society is unexceptionable having regard to the provisions contained in Section 23 of the Act."The bench noted that there is a dispute between the Cooperative Society and the respondents in respect of a space/garage which is alleged to be an encroachment by the respondents. In respect of this dispute, two proceedings are pending:(i) A suit instituted on the original side of the High Court of Judicature at Bombay by the Cooperative Society; and(ii) A proceeding being a cooperative dispute, which has been transferred to the High Court in pursuance of an order passed by the Supreme Court in May, 2016"The dispute which is pending before the High Court between the Cooperative Society and the respondents, as noted above, would proceed independently of the direction to admit the respondents as members of the Cooperative Society and, ultimately, the parties will be governed by the final order that may be passed in the clubbed proceedings, as noted above, in respect of the alleged encroachment and other issues which arise in those proceedings. Subject to the above clarification, it is not necessary for this Court to entertain the Special Leave Petition under Article 136 of the Constitution, there being no error on the part of the Single Judge, either on fact or law, warranting interference. In pursuance of the order of this Court dated 8 October 2021, we request the High Court to ensure that the time schedule for the disposal of the proceedings is duly observed", the bench said in its order.Proceedings before the High CourtThe facts, as recorded in the impugned order of the High Court, are that the petitioner is a Co-operative Housing Society registered under the MCS Act. Respondent no.1 is a purchaser of flat no.1 situated on the first floor of the petitioner's premises known as "Punam" situated at Malabar Hill Division, Nepean Sea Road, Mumbai along with a covered garage below the children's play area. Respondent no.2 is an Associate Member along with respondent no.1. Respondent no.1 purchased the said flat under a registered Deed of Transfer dated 30.5.2007 executed by the erstwhile owners of the flat. After the sale was effected in favour of respondent no.1, it appears that the petitioner-society obstructed the entry of respondent no.1 to the flat and asserted that the sale of the said flat, in favour of respondent no.1 was illegal as 'no objection' or 'written consent' was not obtained from the petitioner. Thereafter, respondent no.1 by an application dated 4.3.2008 applied to the Secretary of the petitioner society for transfer of shares nos. 1 to 5 qua the said flat in favour of respondent no.1. All the necessary documents/prescribed forms, to effect transfer of the shares, along with the necessary fees were submitted by respondent no.1 to the petitioner. The...

"It Is Impermissible For Co-operative Societies To Deny Membership To Single Women, Members of Particular Community, People Who Eat Particular Food": Supreme Court

Mehal Jain

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