In Brief
Delhi Dayalbagh Cooperative Housing Society acquired land under the Land Acquisition Act, 1894 and allotted plots to members by registered sale deeds. When a member sold property to a non-member, the society sought to cancel the transfer. The Court held that once the society received possession free from encumbrances, it held valid freehold title sufficient to allot plots to members. Registered sale deeds cannot be invalidated under cooperative society arbitration; only civil courts may examine their validity. Section 91 of the Delhi Cooperative Societies Act, 2003 protects purchasers' right to become members. Bye-laws restricting transfers are unenforceable to the extent they conflict with statutory provisions. The appeals were dismissed.
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