In Brief
A cooperative housing society acquired land through the Government under the Land Acquisition Act, 1894 and allotted plots to members via registered sale deeds. Members later sold plots to non-members. The society sought to void these transfers, claiming bye-law restrictions prevented sale to non-members. The Supreme Court held that once freehold land is transferred to a society in possession free from encumbrances, members may freely transfer it. Purchasers of registered sale deeds may claim membership under Section 91 of the Delhi Cooperative Societies Act, 2003. Bye-laws restricting transfers to non-members are unenforceable to the extent inconsistent with the Act. The Registrar lacks jurisdiction under Section 70 to examine registered instruments; such disputes must be resolved in civil courts. Appeals dismissed.
The lawyer headnote and full judgment text are available to registered users.