Synopsis

A cooperative housing society rejected a company’s application for membership on the ground that the company’s Memorandum of Association (MoA) included a clause permitting it to deal in real estate, which violated the society’s bye‑laws (bye‑law 5(1) and Rule 20(ii) of the DCS Rules). The Registrar of Cooperative Societies allowed the company’s appeal and directed transfer of membership. The Financial Commissioner (revisional authority) dismissed the society’s revision, but directed that the company would drop the disputed clause from its MoA/AoA, and the society should then grant membership. The society filed a review, which was dismissed. The High Court set aside both the revision order and the review order, holding that: (i) membership does not automatically transfer with title to property; (ii) the revisional authority did not properly adjudicate the matter but passed an order based on concessions; (iii) the review authority impermissibly re‑wrote the judgment and supplemented reasons, which is beyond the scope of review; and (iv) the matter was remanded to the revisional authority for fresh decision.

Court: High Court of Delhi (Division Bench)
Coram: Nitin Wasudeo Sambre & Anish Dayal, JJ.
Date: April 9, 2026
Citation: 2026:DHC:2936-DB
Core Law: Cooperative Societies Law – Delhi Cooperative Societies Act, 2003; Delhi Cooperative Societies Rules, 2007; Bye‑laws of Cooperative Housing Societies; Review Jurisdiction.

2. Legal Framework

• Delhi Cooperative Societies Act, 2003: Sections 11 (bye‑laws), 22 (persons who may become members), 91 (appeals).

• Delhi Cooperative Societies Rules, 2007: Rule 19 (powers of society), Rule 20 (disqualification of membership – clause (ii): a person who deals in purchase or sale of immovable properties is disqualified).

• Transfer of Property Act, 1882: Sections 3 and 8 – transfer of property does not automatically transfer membership rights in a

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