While rejecting Bima Nagar Cooperative Housing Society Ltd's (the Society) interpretation that a family arrangement under section 154B-13 of the Maharashtra Cooperative Housing Societies Act (MCHS Act) applies only to Hindu undivided families (HUF), the Bombay High Court (HC) directed the Society to allow full membership to the widow of a deceased member. The HC upheld the family arrangement where the two children of the deceased member had relinquished their rights in favour of the mother.
In an order in September 2024, the bench of justice RH Joshi said, "This Court finds no substance in the contention of the counsel for the Society that the family arrangement could be considered only in case of HUF. Such interpretation is not permissible as the same would amount to adding something which the legislature never intended to. As per settled position of law, it is not permissible to add or substitute anything from the statute, and it only can be interpreted by counsel. The plain and simple meaning which can be attached to the same is that if there are more than one heir of the deceased member and they enter into a family arrangement, that would be sufficient to enable the Society to transfer membership in favour of a single person."
"As far as the contention of the Society that respondent No3 (the widow) is required to obtain succession certificate is concerned, since this issue is not involved in this petition, this Court finds no reason to decide the said issue," the bench says.
On the death of her husband, the widow applied for membership with Bima Nagar CHS and was granted a provisional membership. Since the Society did not grant her full membership, she filed an application with the deputy registrar of cooperative societies.
Allowing the application, on 28 March 2022, the deputy registrar, under section 22(2) of the MCHS Act, directed Bima Nagar CHS to admit the widow as a full member and issue a share certificate. The revision appeal filed by Bima Nagar CHS was rejected by the district deputy registrar on 10 April 2024.
Bima Nagar CHS then approached Bombay HC. The counsel for the Society submitted that the family arrangement would apply only in the case of HUF and that in such case, the family arrangement between the members of HUF will be treated as a family arrangement under section 154B-13 of the MCHS Act. He further submitted that in case of a single person, who is the heir of the deceased member, it would be obligatory on the part of such a person to seek a succession certificate to get transferred the interest of the deceased member and therefore, in this case, the widow must obtain a succession certificate.
The counsel for the widow submitted that her major children had executed a deed of relinquishment in her favour, which is covered under relevant provisions as a family arrangement. He says, "There cannot be a mandate that in each case membership or the interest of a deceased member can be transferred only on obtaining succession certificate. This may be required in case of a dispute with regard as to who is the heir of the deceased amongst a number of claimants."
After perusing section 154B-13 of the MCS Act, the bench observed that the provision indicates that on the death of a member of Society, the Society is bound to transfer share, right, title and interest in the property of the deceased to a person or persons based on testamentary documents or succession certificate or legal heirship certificate or document of family arrangement executed by the person, who are entitled to inherit the property of the deceased member.
The term 'family' or 'family arrangement' has not been defined by the Act, the HC says. "In this case, admittedly, the deceased had left the widow and two children. Thus, these persons consist of a family. Undoubtedly, the children of the deceased have executed a deed of relinquishment in favour of the mother. Thus, there is no iota of doubt that this is a family arrangement between the heirs of the deceased in respect of the interest of the deceased member in the Society, as contemplated by Section 154B-13 of the Act."
"This Court, therefore, finds no reason or justification not to accept the said relinquishment by the other two heirs in the favour of the widow as a family arrangement. Having regard to this fact, there is no perversity in the findings recorded by the authorities below and the orders impugned," the HC says.
(Writ Petition No10768 of 2024 Date: 23 September 2024)
