By Staff Reporter
Hon Bombay High Court delivered upheld the order of DDR and JSR in a matter wherein the Society wanted to bifurcate u/s 18 applied to DDR wherein DDR allowed the application and bifurcated the society for subdivision.
Petitioner-Society was initially formed by owners / occupiers of 144 tenements spread over 18 blocks. It appears that each block has 8 tenements. After the Managing Committee of Petitioner Society started to take steps for redevelopment of 18 blocks, it appears that owners / occupiers of tenements in Block Nos. 1 to 6 did not concur with the position taken by the Managing Committee and the General Body and decided to carry out self-development of tenements situated in block Nos. 1 to 6. Accordingly, proposed Societies were formed in respect of Block Nos. 1 to 3 and Block Nos. 4 to 6 and applications were filed before the Deputy Registrar for sub-division of Petitioner-Society and for formation of separate Societies in respect of Block Nos. 1 to 3 and Block Nos. 4 to 6. The Deputy Registrar has passed orders dated 18 September 2023 sub-dividing the Petitioner-Society and forming Unnat Nagar No. 3 (Block Nos. 1 to 3) Co-operative Housing Society Ltd. (Respondent No. 4) in respect of 24 tenements in Block Nos. 1 to 3. Similarly, by separate order passed on 18 September 2023, the Deputy Registrar has ordered registration of Unnat Nagar No. 3 (Block Nos. 4 to 6) Co-operative Housing Society Ltd. (Respondent No. 5) in respect of 24 tenements situated in Block Nos. 4 to 6. The subdivision of Petitioner-Society and registration of Respondent Nos. 4 and 5-Societies is effected by the Deputy Registrar by exercise of powers under provisions of Section 18 of the MCS Act and Rule 17 of the MCS Rules. It would, therefore, be necessary to take into consideration the statutory scheme of Section 18 and Rule 17.
The Judgement:
Thus, the power of amalgamation of two societies or division of one society into two or more societies or their re-organization can be effected by the Registrar after recording his satisfaction in respect of one of the following four factors : (i) in public interest. (ii) in interest of members of societies. (iii) in the interest of the cooperative movement or (iv) for ensuring proper management of the society. Once the Registrar records the satisfaction about existence of either of the exigencies, he needs to consult the Federal Society and thereafter, pass an order for amalgamation, division or reorganization. Under subsection (2) of Section 18, an order of amalgamation, division or reorganization cannot be passed unless the copy of the proposed order has been sent in draft to the Society and the Registrar has considered the suggestions and objections received by him from the society, its members, etc.It must also be observed that the objective behind providing mandatory consultation with the Federal Society is to merely ensure that division of a Co-operative Society does not take place behind the back of the Federal Society. The objective is also to ensure that the Registrar is guided by the opinion of the Federal Society in respect of the subdivision proposal.In my view, therefore no interference is warranted in the orders passed by the Revisional Authority, Appellate Authority and the Deputy Registrar
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