In Brief
A cooperative society registered in West Bengal sought to redevelop its 100-year-old, dilapidated administrative building through a joint venture with a private developer. One minority member challenged this, citing an old arbitral award. The High Court upheld the member's objection, holding that cooperative law prohibited commercial partnerships. The Supreme Court reversed, holding that the General Body's democratically-approved decisions bind all members, including dissenters. The society has the inherent right to engage developers for such necessities, since the cooperative movement emphasizes autonomy and democratic functioning. Single minority members cannot obstruct majority decisions absent fraud or statutory violation. The Court set aside the High Court's order and allowed the society to proceed with redevelopment.
The lawyer headnote and full judgment text are available to registered users.