Amit Bajaj vs Registrar Coop. Societies & Ors.
2009 Latest Caselaw 1402 Del

*     IN THE HIGH COURT OF DELHI AT NEW DELHI


+     WRIT PETITION (CIVIL) 6574/2003


      AMIT BAJAJ                              ..... Petitioner

                         Through:   Mr. Rajeshwar Kumar Gupta, Adv.


                         versus



      REGISTRAR COOP. SOCIETIES & ORS. ..... Respondents

                         Through:   Mr. Manoj Rath, Adv. for
                                    Mr. V.K. Tandon, Adv. for R-1.
                                    Mr. Pawan Mathur, Adv. for R-3.


    % CORAM:
      HON'BLE MR. JUSTICE MADAN B. LOKUR
      HON'BLE MR. JUSTICE SIDDHARTH MRIDUL

      1.   Whether reporters of local papers may be allowed to see
           the judgment?                                            YES
      2.   To be referred to the Reporter or not?                    YES
      3.   Whether the judgment should be reported in                YES
           the Digest?

                            JUDGMENT

MADAN B. LOKUR, J. (ORAL)

1. The Petitioner's grandmother Smt. Rukmani Devi was a member

of Respondent No.2-Society. She was desirous of transferring the

membership in favour of the Petitioner. The transfer was approved by

the Managing Committee of Respondent No.2-Society. However, the

Registrar of Co-operative Societies did not accept the transfer in view

of a directive issued under Rule 77 of the Delhi Co-operative Societies

Rules, 1973.

2. The directive has been placed on record by the Petitioner on

pages 45 to 48B of the paper book. The sum and substance of

the directive and other connected directives is that transfer of

membership will be allowed only in the case of first degree blood

relations. A first degree blood relation is defined as father, mother,

brother, sister, son, daughter and spouse.

3. On the basis of these directives, the name of the Petitioner was

not sent for the draw of lots for allotment of a flat.

4. It was under these circumstances that the Petitioner has

challenged the directives before us and it is submitted that there is no

rational basis for denying the allotment of the flat to the Petitioner.

5. There is no representation on behalf of the Registrar of Co-

operative Societies. However, we have been taken through the

counter affidavit filed by the Registrar and we find that there is no

justification whatsoever that has been given for limiting the transfer

of membership only to a first degree blood relation.

6. In the present case there is no dispute about the fact that the

transfer of membership from Smt. Rukmani Devi to the Petitioner is a

genuine transfer, inasmuch as the blood relationship is not doubted

and it is nobody's case that the transfer is a benami transfer or a

fraudulent transfer. That being the position there does not

seem to be any reason for denying acceptance to such a genuine

transfer merely because the relationship of grandmother and

grandchild is not a first degree blood relation.

7. Learned counsel for the Petitioner has drawn our attention to

somewhat a similar situation that had arisen in W.P.(C) No.2110/1999

(Vivek Sibal vs. The Registrar of Co-operative Societies & Ors.)

decided on 17th November, 2004.

8. In that case, the petitioner's grandfather was desirous of

transferring his membership in favour of Vivek Sibal but since that

was not approved by the Registrar of Co-operative Societies, a writ

petition was filed in this Court. A Division Bench came to the

conclusion that there was no rational basis for denying the transfer of

membership and that the directive said to have been issued under

Rule 77 of the Delhi Co-operative Societies Rules, 1973 was

completely arbitrary, insofar as it denied the transfer among blood

relations such as grandfather and grandson.

9. Following the decision of the Division Bench in Vivek Sibal with

which we do not find any reason to disagree, we hold that the transfer

of membership of Smt. Rukmani Devi to her grandson Amit Bajaj

(Petitioner) ought to be recognized by the Registrar of Co-

operative Societies. After due recognition is granted, necessary steps

may be taken in accordance with law for the allotment of a flat to the

Petitioner by including his name in the draw of lots.

10. The Registrar of Co-operative Societies is directed to hold the

draw of lots within four weeks from today.

11. The writ petition is allowed to the extent mentioned above.

MADAN B. LOKUR,J

SIDDHARTH MRIDUL, J APRIL 15, 2009 mk