Deemed membership and binding government directions prevail over society bye-laws on transfer premium demands.
Failure to communicate refusal of membership within the statutory framework under sections 22(2) and 23 of the Maharashtra Co-operative Societies Act can give rise to deemed membership; on the stated facts, the applicant was treated as a deemed member. Government directions issued under section 79A are binding on societies and prevail over inconsistent bye-laws or internal regulations; the society could not enforce a transfer premium above the prescribed ceiling. The concurrent findings upholding deemed membership and rejecting the excessive premium demand were sustained.
Issues: (i) Whether the respondent was entitled to be treated as a deemed member of the society under the Maharashtra Co-operative Societies Act, 1960. (ii) Whether the society could insist on a transfer premium of Rs. 2 crore in the face of the Government directions issued under section 79A of the Maharashtra Co-operative Societies Act, 1960.
Issue (i): Whether the respondent was entitled to be treated as a deemed member of the society under the Maharashtra Co-operative Societies Act, 1960.
Analysis: The statutory scheme under sections 22(2) and 23 of the Maharashtra Co-operative Societies Act, 1960 requires refusal of membership to be communicated within the prescribed time and confers deemed membership where the society fails to communicate its decision in time. The material on record showed that the respondent applied in the prescribed form, and the alleged rejection was not effectively shown to have been communicated within the statutory framework. The respondent approached the Registrar within a reasonable time after learning of the rejection, and the authorities below found that the deemed membership condition stood attracted.
Conclusion: The respondent was correctly held to have become a deemed member, and that finding was upheld.
Issue (ii): Whether the society could insist on a transfer premium of Rs. 2 crore in the face of the Government directions issued under section 79A of the Maharashtra Co-operative Societies Act, 1960.
Analysis: Section 79A confers power on the State Government to issue binding directions in the public interest, and such directions prevail over inconsistent society bye-laws or internal regulations. The Government notification fixing a uniform ceiling of Rs. 25,000 for transfer in municipal corporation areas applied to co-operative housing societies, and the society could not rely on its bye-laws to demand a much higher amount. The challenge based on internal regulation 6A and prior approval of bye-laws could not override the statutory directions. The demand of Rs. 2 crore was therefore unsustainable.
Conclusion: The society was not entitled to demand transfer premium beyond the Government-prescribed ceiling, and the respondent's objection succeeded.
Final Conclusion: The concurrent orders of the authorities below were sustained, and no interference was warranted in writ jurisdiction.
Ratio Decidendi: Government directions issued under section 79A of the Maharashtra Co-operative Societies Act, 1960 are binding on societies and prevail over inconsistent bye-laws, and a society's failure to communicate refusal of membership within the statutory framework can result in deemed membership.
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