The Shadi Hari SCLO Cooperative Society Limited vs State of Punjab and Others

Rakesh Kumar Jain, J.—The dispute in this case is in a narrow compass as it relates to the succession of the private respondents. During the course of hearing, learned counsel for the petitioner drew the attention of this Court to Section 21 of the Punjab Cooperative Societies Act, 1961, which reads as under:-

S.21(1). On the death of a member of the cooperative society may transfer the share or interest of the deceased member to the person nominated in accordance with the rules, made in this behalf, of if there is no person so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member''s share or interest as ascertained in accordance with the rules of bye laws.

Provided that:-

(i) In the case of a cooperative society with unlimited liability, such nominee, heir or legal representative as the case may be, may require payment by the society of the value of the share or interest of the deceased member ascertained as aforesaid.

(ii) In the case of a cooperative society with limited liability the society shall transfer the share or interest of the deceased member to such nominee, heir or legal representative as the case may be, being qualified with the rules and bye laws of the society for membership of the society, or on his application, within one month of the death of the deceased member to any person specified in the application who is so qualified and

(iii) No such transfer or payment shall be made except with the consent of the nominee, heir or legal representative as the case may be

(2) A cooperative society shall subject to the provisions of section 31 and unless within six months of the death of member prevented by an order of competent court pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society.

(3) All transfer and payments made by a cooperative society in accordance with the provisions of this Section shall be valid and effectual against any demand made upon the society by any other person.

It is submitted by the learned counsel for the petitioner that the petitioner society is registered with limited liability which is not disputed by the learned counsel for the respondents. It is further submitted that the society shall transfer the share or interest of the deceased member to such nominee, heir or legal representatives of the deceased as the case may be because the jurisdiction vests with the society and in case the deceased member has nominated any person in accordance with law, then his share or interest would be transferred and if it is not so, proceedings have to be carried out in terms of Section 21(2) of the Act.

Learned counsel for the petitioner submits that the respondents may now file an application u/s 21(2) of the Act which shall be considered by the society in accordance with rules and an appropriate order would be passed in terms of the provisions of the Act.

Learned counsel for the respondents is satisfied with the statement made by the learned counsel for the petitioner and submits that 15 days'' time may be granted to make an application and a direction be issued to the petitioner to decide the same within the time frame. After hearing the learned counsel for the parties and keeping in view the facts and circumstances of the case, this petition is disposed of with a direction to the respondents to move an appropriate application in terms of Section 21 and Rule 7 of the Nazool Land (Transfer) Rules, 1956 to the society and it will take a decision in that regard in terms of Section 21 of the Act. If an application is filed within 15 days, then the same shall be disposed of within two months thereafter.