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A pivotal decision regarding the eligibility of firms and companies to join cooperative housing societies is on the horizon, as the Gujarat High Court takes up a case that has ignited a debate on membership criteria. The court's attention was drawn to the matter through a petition that has now prompted the solicitation of a response from the state government.
The contentious situation revolves around the Pratima Cooperative Housing Society Ltd, nestled near Vijay Crossroads. The genesis of the issue stems from a bungalow owner's loan default, which led to the Bank of India's auctioning of the property in 2011. Subsequently, Atreyi Vincom Pvt Ltd emerged as the buyer in this transaction, with all legal formalities duly completed. Seeking to become a member of the housing society, the company encountered an unexpected roadblock - a refusal of membership.
In response, the company turned to the district cooperative registrar for intervention. The registrar's verdict was unequivocal - denial of membership was unwarranted. A directive was issued to the society to extend membership privileges to the company. As subsequent adjudicating bodies ruled in favour of the company, the housing society escalated the matter to the Gujarat High Court. Their stance rested on the bedrock of the society's 1948 bylaws, citing a specific provision that limits membership to individuals of Hindu Brahmin, Baniya, Patel backgrounds, or those in certain specified professions.
Justice Nikhil Kariel, presiding over the case, cast doubt on the legality of imposing such religious and sub-caste based restrictions. This query prompted a confident affirmation from the society's legal representative, Baiju Joshi, who referred to a Supreme Court precedent related to a housing society within the Zoroastrian community where membership was denied to a non-Parsi.
The society's advocate further contended that as long as the state's cooperative laws remain unchallenged, the society's bylaws retain their supremacy. In his assertion, only individuals from specific religions and castes are eligible for housing society membership. Additionally, he argued that corporations and firms can gain membership in federal or urban societies. Of particular concern for the society was the fact that the applying company was also involved in the construction business.
Representing the company, P K Jani, the company's counsel, emphasized that the society's bylaws had been drafted in 1948 - an era predating the establishment of the Indian Republic and the enforcement of the Constitution. Subsequent legal developments included the formation of the state of Gujarat and the enactment of the Gujarat Cooperative Societies Act in 1961, which sanctioned the inclusion of companies as members within such societies. Section 2B of this Act, Jani underscored, specifically permitted corporate membership.
The Gujarat High Court has accepted the case, slated for a substantive hearing in March 2024. However, the court declined the society's plea for interim relief. As this legal battle unfolds, the outcome could potentially reshape the landscape of cooperative housing society memberships and introduce a landmark legal precedent.
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