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SUPREME COURT OF INDIA
T.S. THAKUR, R.K. AGRAWAL, R. BANUMATHI, JJ.
Bhanushali Housing Cooperative Society Ltd. – Appellant
Vs.
Mangilal & Ors. – Respondents
CIVIL APPEAL NO.5704 OF 2015 (Arising out of SLP (C) No.36497of 2012)
Decided On : 24-07-2015
AIR 1969 SC 1320; (1969) 2 SCC 43 – Relied upon
(1982) 2 SCC 244 – Referred
(b) M.P. Cooperative Societies Act, 1960 – Section 64(1)(a) to (f) – Parties to the dispute – Clause (c) of Section 64 (1) – Disputes between the society and a non-member with whom the society has or had “business transactions” – Business transaction – A transaction should be business transaction from the stand point of both the parties to the transaction – While society is in business of purchase of plots for providing housing to its member, respondents are not the business of sale and purchase of plots – Transaction not a business transaction for both parties – A single transaction would not constitute business for both the parties to the transaction – Moreover, legislature using expression “business transactions” – Undoubtedly in case of just a solitary transaction between a society, on the one hand, and a third party, on the other would not be ‘business transactions’ – Any dispute arising out of any such transaction would not fall within the purview of Section 64(1)(c). (Para 18, 19, 21, 23)
AIR 1964 SC 1533; (1981) 2 SCC 693; (1999) 9 SCC 700; (1993) 2 SCC 279; (1979) 2 SCC 616 – Relied upon
(c) M.P. General Clauses Act, 1957 – Section 5 – Like section 13, General Clauses Act – Postulates singular to include the plural and vice-versa only if no different intention appears from the context – Instantly “business transactions” in section 64(1)(c) of MP Act is intended to be plural – It cannot be read to include singular – Section 5 of 1957 Act not having universal application, not attracted. (Para 22)
AIR 1957 SC 532; AIR 1959 SC 219 – Relied upon
Facts of the case:
The short question that arises for consideration in this appeal is whether a dispute arising out of a contract between the Co-op. society and the respondent for sale and purchase of immovable property owned by the respondents was amenable to adjudication under Section 64 of the M.P. Cooperative Societies Act, 1960.
The Deputy Registrar, Co-operative Societies, Ujjain answered that question in the affirmative and decreed specific performance of the contract entered into between the parties. A first appeal preferred by the sellers (respondents-herein) before the Joint Registrar Ujjain failed and was dismissed.
The respondents preferred a second appeal before the M.P. State Co-operative Tribunal, Bhopal who allowed the same holding that the dispute raised by the purchaser-society could not be made the subject matter of proceeding under Section 64 of the M.P. Cooperative Societies Act, 1960.
The purchaser-society then filed writ petition which was heard and dismissed by a Division Bench of the High Court concurring with the view taken by the Tribunal that a dispute arising out of a contract of sale and purchase of immovable property was beyond the purview of Section 64 of the Act.
Finding of the Court:
The dispute does not fall within purview of section 64 of M.P. Cooperative Societies Act, 1960.
Result: Appeal dismissed.
JUDGMENT
T.S. THAKUR, J.
Leave granted.
1. The short question that arises for consideration in this appeal, by special leave, is whether a dispute arising out of a contract for sale and purchase of immovable property owned by the respondents was amenable to adjudication under Section 64 of the M.P. Cooperative Societies Act, 1960. By his order dated 1st March, 2004, the Deputy Registrar, Co-operative Societies, Ujjain, before whom the proceedings were initiated, answered that question in the affirmative and decreed specific performance of the contract entered into between the parties. A first appeal preferred by the sellers (respondents-herein) before the Joint Registrar Ujjain failed and was dismissed by his order dated 7th August, 2009. Aggrieved by the said two orders, the respondents preferred a second appeal before the M.P. State Co-operative Tribunal, Bhopal who allowed the same and set aside the orders passed by the Deputy Registrar and that passed by the Joint Registrar holding that the dispute raised by the purchaser-society could not be made the subject matter of proceeding under Section 64 of the M.P. Cooperative Societies Act, 1960. The purchaser-society then filed writ petition No.15195 of 2011 which was heard and dismissed by a Division Bench of the High Court of Madhya Pradesh. The High Court concurred with the view taken by the Tribunal that a dispute arising out of a contract of sale and purchase of immovable property was beyond the purview of Section 64 of the Act. The present appeal calls in the question the correctness of the said judgments and orders.
2. Section 64 of the M.P. Cooperative Societies Act, 1960, may, at this stage, be extracted in extenso :
“64. Disputes: -(1) Notwithstanding anything contained in any other law for the time being in force, [any dispute touching the constitution, management or business, or the liquidation of a society shall be referred to the Registrar] by any of the parties to the dispute if the parties thereto are among the following:-
(a) a society, its committee, any past committee, any past or present officer, any past or present agent, any past or present servant or a nominee, heirs or legal representatives of any deceased agent or deceased servant of the society, or the liquidator of the society;
(b) a member, past member or a person claiming through a member, past member or deceased member of a society or of a society which is a member of the society;
(c) a person other than a member of the society who has been granted a loan by the society or with whom the society has or had business transactions and any person claiming through such a person.
(d) a surety of a member, past member of deceased member or a person other than a member who has been granted a loan by the society, whether such a surety is or is not a member of the society.
(e) any other society or the liquidator of such a society; and
(f) a creditor of a society.
(2) For the purpose of sub-section (1), a dispute shall include –
(i) a claim by a society for any debt or demand due to it from a member, past member or the nominee, heir or legal representative of a deceased member, whether such debt or demand be admitted or not;
(ii) a claim by a surety against the principal debtor where the society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor as a result of the default of the principal debtor, whether such debt or demand be admitted or not;
(iii) a claim by a society for any loss caused to it by a member, past member or deceased member, any officer, past officer or deceased officer, any agent, past agent or deceased agent, or any servant, past servant or deceased servant or its committee, past or present, whether such loss be admitted or not;
(iv) a question regarding rights, etc., including tenancy rights between a housing society and its tenants or members; and
(v) any dispute arising in connection with the election of any officer of the society or
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