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.