Facts: The dispute concerns membership in Malboro House Co-operative Housing Society Limited. Shri Narendra Patel, the original tenant of Flat No. 7, was offered membership in 1995 upon payment of Rs. 5,00,000. He allegedly sought clarification on the amount but did not pay. After his death, his legal heirs, Shashin Patel and Bhavini Patel (the appellants), sought membership, which was initially denied. They then transferred the flat to M/s. Capital Mind Advisory Services Private Limited. The Society's AGM in 2005 resolved to admit Shri Narendra Patel as a member upon payment.
Procedural Posture: The appellants initially applied to the Authorised Officer for membership, which was denied. They appealed to the Deputy Registrar, who directed a Special General Body Meeting. Dissatisfied, they filed a revision before the Divisional Joint Registrar, who allowed it, directing their admission. Respondent Nos. 1-3 (original writ petitioners) challenged this in the High Court, which partly allowed the writ petition, setting aside the Joint Registrar's order. The appellants then appealed to the Supreme Court.
Issue: Whether the legal heirs of a deceased tenant, who was previously offered membership in a cooperative housing society but did not accept it, can be granted membership at a belated stage, and whether the High Court was correct in setting aside the Joint Registrar's order directing their admission.
Holding: The Supreme Court held that the appellants are entitled to membership in the Society. The Court set aside the impugned judgment of the High Court to the extent that it quashed the Joint Registrar's order admitting the appellants as members. The subsequent transfer of Flat No. 7 to M/s. Capital Mind Advisory Services Private Limited and their admission as members were also upheld.
Reasoning: The Court reasoned that the appellants' continued occupation of Flat No. 7 was undisputed, and the Society had previously resolved to admit Shri Narendra Patel as a member. Denying membership would create an anomaly. The Court also noted that the General Body of the Society had ratified the membership of the appellants and the subsequent transfer to M/s. Capital Mind Advisory Services Private Limited. The Court allowed the aggrieved members of the Society to seek determination of a suitable additional amount payable by the appellants as enhanced interest due to the delay in payment.