Legal provisions involved: Maharashtra Co-operative Societies Act, 1960 (Sections 23, 152 and 154), society bye-laws, and general principles of property transfer.

Judgement by: Supreme Court of India.

Judge/Bench: Justice Mehta.

Facts

This case was about a flat in a Mumbai cooperative housing society. When the society was formed in 1995, one tenant did not pay his share to become a member. In 2005, the society passed a resolution agreeing to admit him as a member if he paid the amount. He passed away without paying. 

Years later, his legal heirs paid the amount with interest and asked for membership. During this time, the flat was also sold to a third party, who was later accepted as a member by the society.

Key legal provisions

Maharashtra Co-operative Societies Act, 1960 (Sections 23, 152 and 154)

Issues raised

Whether membership can be granted after many years, whether the Registrar had the power to allow it, and whether the sale and new membership were valid.

Arguments of the case 

The society members objected due to the long delay. The appellants relied on the 2005 resolution which was never cancelled.

Judgement

The Supreme Court held that the 2005 resolution was still valid and gave a right to membership. Delay alone could not cancel that right. However, the society can claim extra interest or charges for the delay. The High Court’s order was set aside.

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