In bustling Mumbai, a landmark judgment by the Supreme Court has reshaped the landscape for cooperative housing societies. The court has ruled that the approval of an assistant registrar is no longer a prerequisite for registering or transferring property within cooperative housing societies, effectively quashing an outdated provision under the Indian Stamps Act, 1899. This decision marks a significant step towards simplifying property transactions among members of cooperative societies, allowing for smoother and more efficient processes.
The Supreme Court's bench, comprising Justices P.S. Narasimha and Atul S. Chandurkar, emphasized that the certificate of registration issued to cooperative societies serves as conclusive proof of their existence and operational status. Justice Narasimha articulated that the requirement for assistance registrar’s recommendation was an irrelevant consideration that only added unnecessary complexity to an already established procedure. He argued that such pre-conditions were not merely superfluous but could lead to illegality in action, thereby impeding the rightful transfer of property among cooperative members.
This ruling stems from a legal challenge initiated by a housing cooperative society in Jharkhand, where the High Court had upheld the necessity of prior approval for property transfers. The apex court's decision overturns this requirement, reinforcing the sentiment that once a cooperative society is registered, its members should not face additional hurdles when transferring property. The court's clarity on this matter is expected to bolster the confidence of cooperative societies across India, encouraging more seamless transactions.
The historical context of this ruling can be traced back to a memo issued in 2009 by the Jharkhand government's registration department which mandated assistant registrar recommendations for stamp-duty exemptions under Section 9A of the Indian Stamp Act. This section was originally designed to provide stamp duty exemptions for property transfers among cooperative members, but the additional requirement for registrar approval had inadvertently complicated the process. With the Supreme Court's latest ruling, members of cooperative societies can now proceed with property transfers without unnecessary bureaucratic delays, promoting a more dynamic real estate market.
This judgment is a pivotal moment for cooperative housing societies, as it aligns with the broader goal of fostering ease of doing business in India. As cooperative societies continue to play a vital role in urban housing, the removal of such regulatory barriers is expected to enhance member engagement and streamline property transactions. The Supreme Court's decision not only reaffirms the authority of registered cooperative societies but also paves the way for more efficient management of housing resources in urban centers across the nation.
