J.CHELAMESWAR, P.SATHASIVAM
Margret Almeida – Appellant
Versus
Bombay Catholic Co-operative Housing Society Ltd. – Respondent
The legal analysis in the document primarily revolves around the jurisdiction of civil courts versus co-operative courts concerning disputes related to co-operative societies. The key points are as follows:
Jurisdiction of Civil Courts: Civil courts have a broad jurisdiction to adjudicate disputes unless explicitly excluded by law. The law's language and scheme are essential in determining whether jurisdiction is barred or preserved.
Exclusion of Civil Court Jurisdiction: Certain disputes, particularly those related to the registration, bye-laws, management, dissolution, or winding-up of societies, are expressly excluded from civil court jurisdiction by statute, specifically through provisions that refer disputes to specialized co-operative courts.
Disputes over Property and Alienation: Disputes arising out of decisions to alienate or sell property of a society are not expressly covered by the exclusion clauses. Such disputes can be initiated in civil courts unless they fall within the scope of disputes mandated to be referred to co-operative courts under specific statutory provisions.
Scope of Co-operative Court Jurisdiction: The jurisdiction of co-operative courts is confined to disputes touching the constitution, election, management, or business of the society, involving parties who are members, officers, or persons with specific transactions with the society. The scope extends to third parties only under particular circumstances, such as when they acquire an interest in the property during the pendency of a dispute and such interest bears a relationship to the dispute.
Parties to Disputes: For a dispute to be within the jurisdiction of a co-operative court, both the subject matter and the parties involved must fall within the categories specified under the relevant sections. The inclusion of third parties is limited to situations where they have acquired an interest during the course of litigation and such interest is related to the dispute.
Ouster of Civil Court Jurisdiction: The statutory provisions do not generally exclude civil courts' jurisdiction unless explicitly stated or clearly implied. Disputes not expressly covered by the statutory exclusion can be legitimately instituted in civil courts.
Procedure for Objections to Jurisdiction: When disputes are initiated, objections to jurisdiction can be raised as a preliminary issue, and courts are obliged to decide such objections expeditiously before proceeding further.
Maintenance of Status Quo: Pending the determination of jurisdiction and the substantive dispute, courts may direct parties to maintain the status quo to preserve the subject matter of the dispute.
In summary, the document emphasizes that unless a dispute explicitly falls within the statutory scope of co-operative courts, civil courts retain jurisdiction. The determination of jurisdiction depends on the specific language of the relevant statutes, the nature of the dispute, and the parties involved.
JUDGMENT
Chelameswar, J.
1. Leave granted.
2. These appeals arise out of a common order dated 29th August, 2011 of the Division Bench of the Bombay High Court passed in three writ petitions and two suits, 144 and 145 of 2010.
3. By the said common order, it was held, among other things, that the two suits are not maintainable in view of the provisions of Sections 91 and 163 of the Maharashtra Co-operative Societies Act, 1960 (hereinafter ‘the Act’, for short). We are not concerned with the remaining part of the Division Bench’s judgment as the instant special leave petitions are preferred only against that part of the Division Bench’s judgment. The brief factual background of this litigation is as follows.
4. The first respondent is a Society which was originally incorporated in the year 1914. The full particulars of such incorporation are not available at this juncture on record and are also not necessary for the present purpose. It is sufficient to state that it is admitted on all hands that it is a housing cooperative society and the Act governs the affairs of the said Society.
5. It is also an admitted fact on all hands that the said Society has different classes of members kno
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