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ZOROASTRIAN CO-OPERATIVE HOUSING SOCIETY LTD. AND ANR. vs. DISTRICT REGISTRAR CO-OPERATIVE SOCIETIES (URBAN) AND ORS.

SCR Citation: [2005] 3 S.C.R. 592
Year/Volume: 2005/ Volume 3
Date of Judgment: 15 April 2005
Petitioner: ZOROASTRIAN CO-OPERATIVE HOUSING SOCIETY LTD. AND ANR.
Disposal Nature: Appeal Allowed
Neutral Citation: 2005 INSC 208
Judgment Delivered by: Hon'ble Mr. Justice P.K. Balasubramanyan
Respondent: DISTRICT REGISTRAR CO-OPERATIVE SOCIETIES (URBAN) AND ORS.
Case Type: CIVIL APPEAL /1551/2000
Order/Judgment: Judgment
1. Headnote

Cooperative Societies : Gujarat Cooperative Societies, 1961-Sections 4, 24 and 30-Gujarat Cooperative Societies Rules, 1965-Rule 12(2)-Constitution of India, 1950-Articles 19(1)(c) and 300A-Transfer of Property Act, 1882-Section 10- Cooperative Housing Society-Admission of Member-Transfer of Membership-Bye laws of Society confining membership to persons belonging to Parsi community-Validity of-Held: Bye laws restricting membership to Parsi community do not violate Act or Rules-Nothing precludes Society from restricting membership to particular religion, belief or tenet-Restriction being in interest of Society and consistent with its object, not opposed to public policy-Right to become member of Co-operative Society governed by its own bye laws is not a fundamental right-Further, when person becomes member of Society, he enters into a contract submitting to its bye laws which cannot be curtailed relying on fundamental right-Bye laws are not absolute restraint on alienation to attract section 10 of 1882 Act but only a partial restraint which is valid in law-Also does not violate Article 300A-Bye laws being valid, Society cannot be directed to amend bye-laws relating to qualification for membership-Property is to be dealt by member and assigned only to persons qualified to be member of Society, in terms of its bye-laws. Several persons formed appellant-society for purpose of erecting housing for residential use of its members. After coming into force of Gujarat Act, society was regulated by Gujarat Cooperative Societies Act, 1961. Society acquired land and allotted plots of land to its members. Bye law 7 of the Housing Society confined its membership to those of Parsi community and as per bye law 21 members could sell their share with previous sanction of the Committee of society only to person belonging to Parsi Community. Father of respondent No. 2 purchased flat from a member being qualified under the bye laws. Respondent No. 2 became member of society on death of his father. On Respondent No. 2's application Society granted permission to demolish the bungalow and construct residential flats to be sold to Parsis. Thereafter, in terms of the order of Board of nominees respondent No. 2 sought permission to transfer his share to respondent No. 3-a builder Association, non-parsi. Society rejected the permission. Tribunal held that the bye laws restricting membership to Parsi was a restriction on the right to property and right to alienate property and thus invalid in terms of Article 300-A of the Constitution. High Court dismissed both Writ Petition and Writ Appeal. Hence the present appeal.

2. Case referred
3. Act
      No Data Found!!!!!
4. Keyword
  • Gujarat Cooperative Societies
  • 1961-Sections 4
  • 24 and 30--Gujarat Cooperative Societies Rules
  • 1965-Rule 12(2)-Constitution of India
  • 1950-- Articles 19(1)(c) and 300A-Transfer of Property Act
  • 1882-Section 10
5. Equivalent citation
    Citation(s) 2005 AIR 2306 = 2005 (5) SCC 632 = 2005 (5) Suppl. SCC 632 = 2005 (4) JT 337 = 2005 (4) Suppl. JT 337 = 2005 (4) SCALE 156