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Showing contexts for: Flimsy in Manubhai C Shah Huf vs Nayab Sachiv(Appeal) & on 11 July, 2016Matching Fragments
3.17 The impugned order passed by respondent No.1 HC-NIC Page 14 of 51 Created On Tue Jul 12 02:28:28 IST 2016 would mean that if a person makes a complaint against any office bearers of the Society, he cannot be admitted to membership. If this becomes an absolute proposition, the order would stand vitiated on this ground alone. That the grounds for the rejection of the application of the petitioner are hardly rational but are flimsy and arbitrary and cannot stand the scrutiny of law.
3.18 Distinguishing the judgment in the case of Zoroastrian Cooperative Housing Society Ltd. And Another Vs. District Registrar, Cooperative Societies (Urban) And Others (supra) that has been referred to in the impugned order of respondent No.1, it is submitted by learned Senior Counsel for the petitioner that this judgment does not deal with the aspect of dual membership. It is submitted that in this decision, the Court was dealing with the vires of Rule 12(2) of the Rules and ultimately declared such Rule to be constitutionally valid. The judgment would, therefore, is not applicable in the present case. 3.19 In support of his submissions, learned Senior HC-NIC Page 15 of 51 Created On Tue Jul 12 02:28:28 IST 2016 Counsel has relied upon the judgment of a Division Bench of this Court in the case of Jain Merchants Co Op. Housing Society Ltd. & Ors. Vs. H.U.F. Of Manubhai Kalyanbhai Shah Through Its Manager Harishbhai Manubhai Shah & Ors. (supra), by submitting that it has been held that membership cannot be refused or denied at the pleasure of the Society and in case the membership is refused on any flimsy or trivial grounds, the matter can be adjudicated before the Court and the concerned Authority.
"8. ....We have considered the question of the right of the Society to admit, deny or refuse the membership and in the light of the observations relied upon by Mr. Zaveri and pointed out by Mr. Joshi, we are of the opinion that the contention relating to an absolute and unfettered right in favour of the Society to admit, deny or refuse the membership cannot be accepted for the simple reason that according to this Division Bench decision (1984(2) GLR 1244) itself as HC-NIC Page 38 of 51 Created On Tue Jul 12 02:28:28 IST 2016 mentioned in para 54 at page 1298 a right to be considered for being a member has been recognised and consideration would always mean a fair consideration. Further, refusal of membership on flimsy and trivial grounds has also been left open to the challenge and the remedy of the aggrieved person and the right to move the Court by regular civil action or Civil Court or before the Registrar by invoking his special jurisdiction in such cases has been recognised. Once it is held that there is a right to be considered for being a member and the consideration means a fair consideration, it is implicit in the very nature of things that the membership cannot be refused or denied at pleasure and in case the Membership is refused on any flimsy or trivial ground, the matter can be agitated before the Court or the concerned authority. Thus, we find that the Society is not clothed with such unfettered power and if at all the society refuses or denies membership on some flimsy and trivial ground, it will be open to the aggrieved party to move the Court or the authorities under the Act. When there is a right and remedy available to the person, who has been denied the membership, it does not stand to reason to accept the contention of Mr. Zaveri that the petitionerSociety has any such absolute HC-NIC Page 39 of 51 Created On Tue Jul 12 02:28:28 IST 2016 right. When the aggrieved person approaches the Court or the competent authority, there is no basis for the argument that the decision of the Society to admit any one to membership or to deny or refuse the same is not open to challenge. The first contention raised by Mr. Zaveri, therefore, fails and is hereby rejected."
27. Though respondent No.2 Society has the power to admit a person as member or deny such membership, it cannot do so without sufficient cause, especially if the person is duly qualified as per its byelaws. As has already been discussed, the qualifications in the byelaws are fulfilled by the petitioner. Had the petitioner not been qualified, it would have gone to the root of the matter. However, that is not the case. The right of the Society to refuse admission to its member to any person who is duly qualified should be based on sufficient cause. In the present case, all HC-NIC Page 45 of 51 Created On Tue Jul 12 02:28:28 IST 2016 other reasons having been found to be untenable and unsustainable, the only reason to be examined is the failure on the part of the petitioner to obtain prior permission from the Society before entering into a transaction for bungalow No.1. Such failure is certainly a deviation from the requirements of the byelaws but cannot be termed as an illegality in terms of the Act and Rules. It would amount to a procedural irregularity. No consequences are provided under the Act or Rules if the person applies for membership after the transaction is over. As has been held by the Division Bench, the Society is not clothed with unfettered power to deny membership on flimsy or trivial grounds that do not constitute sufficient cause and if that is so, the aggrieved party is free to move the authorities or the Court under the Act. It is under these circumstances that the petitioner has approached the authorities and, consequently, this Court. It may not be understood that the Court takes lightly, the implementation of the byelaws. On the contrary, the byelaws should be scrupulously followed by all concerned. However, when a default has been committed and is sought to be cured later on, the HC-NIC Page 46 of 51 Created On Tue Jul 12 02:28:28 IST 2016 Court has to weigh the consequences ensuing to the petitioner and the Society. As the members of the petitioner HUF already reside in Bungalow No.38 and all are qualified as per byelaw No.7, no serious consequences or prejudice would arise to the Society if the petitioner is admitted as member. The petitioner has purchased the bungalow after paying consideration but cannot occupy it, as it is not a member. It is lying vacant and would deteriorate with time. Weighing all aspects, it can be said that the petitioner would be deprived of the enjoyment of the property and would suffer more due to the rejection of its application.