Law: Sindh Co-operative Societies Act (XXVIII of 2020)

Section: 73,117,99,101, 103, 104, 119,53,53(2)

Tagline : Discussion: (1) Power & jurisdiction of Special Court for Cooperatives in Sindh (2) Section 73, 117, 118, 119 of Sindh Co-operative Societies Act, 2020 (3) Right of appeal is a substantive right, which should have been provided in the Act and not in the Rules (4) Section 122, 123 and 129 of the Transfer of Property Act, read with Section 17 of the Registration Act.

Summary of Judgment

This case involves a property dispute in Karachi, where the respondent (Aziza) filed a civil suit for declaration, cancellation of documents, possession, and permanent injunction against the petitioner. Aziza claimed her mother, Mst. Hoor Bai, was the owner of the property, and that the petitioner fraudulently transferred the property into his own name with the help of the housing society. The petitioner argued that Aziza was not Hoor Bai’s daughter and that the property was gifted to him by Hoor Bai. Both the Trial Court and the High Court ruled in favor of Aziza, finding that she was indeed the daughter and legal heir, and that the alleged oral gift deed in favor of the petitioner was not proven.

The Supreme Court discussed the relevant legal framework, particularly the Sindh Co-operative Societies Act, 2020, and the Sindh Cooperative Societies Rules, 2020, which now govern such disputes. The new law provides for direct recourse to a Special Court for Cooperative Societies for disputes relating to cooperative society matters, with a right of appeal to the High Court. The judgment also highlighted some drafting errors in the Act that may require legislative correction.

Core Points

The dispute centered on the fraudulent transfer of cooperative society property and the validity of an unregistered oral gift deed.