The main legal principle established is that the decisions of the General Body of a Co-operative Society, approved in accordance with the Act and Rules, should be respected and implemented, emphasizing the moral aspect of co-operation and the society's duty to act in the best interest of its members.

JUDGMENT :

J.B. Pardiwala, J.

1. Leave granted.

2. This appeal is at the instance of a Co-operative Society registered under the West Bengal Co-operative Societies Act, 1940 (for short, ‘the Act 1940’) and is directed against the judgment and order passed by the High Court at Calcutta (Civil Revisional Jurisdiction, Appellate Side) dated 08.08.2018 in the CO No. 2714 of 2014 by which the High Court rejected the civil revision filed by the Appellant Society herein thereby affirming the order passed by the Civil Judge (Senior Division), 9th Court at Alipore, District South 24 Paraganas in the Arbitration Execution Case No. 19 of 2009 dated 17.04.2014.

FACTUAL MATRIX

3. The Appellant Society was registered in the year 1945 under the Act 1940 (now governed by the West Bengal Co-operative Societies Act, 2006 as amended up to date, [for short, ‘the Act 2006’]). The Appellant Society was formed for the purpose of providing housing to the employees of the West Bengal Secretariat and others in accordance with the bye-laws of the society. The registered office of the Appellant Society at the time of registration was that of the Bengal Secretariat being the Writers Buildings, Calcutta (P.O. Calcutta G.P.O., Thana-Hare Street, Calcutta). At present, the registered office of the Appellant Society is located at No. 1, Gariahat Road, Jodhpur Park, P.S. Lake, Koltaka-700068.

4. The Appellant Society purchased a parcel land along with two buildings erected on it on 18.07.1947 from the Official Trustee of Bengal, the Executor of the property of Ketty Graham William admeasuring approximately 80.90 acre. One of the buildings out of the two is used as the administrative building of the Appellant Society and the other building is used for the Girls School. The Appellant Society was registered with multipurpose activities. The administrative building by now is almost 100 years old and is in a dilapidated condition. The certificate issued by the Kolkata Municipal Corporation dated 15.07.2016 along with the photographs of the building would indicate that the same may collapse at any time causing loss to life.

5. It appears from the materials on record that sometime in 1960, the entire ground floor portion of the administrative building was let out to the Indian Postal Department for running a post office namely the Jodhpur Park Post Office with current PIN Code 700068. Since then, the Post Office is functioning for the benefit of the members of the Appellant Society as well as the locals at large. Having regard to the fact that the administrative building is in a dilapidated condition and requires urgent repairs and renovations, it was felt by the Appellant Society sometime in the year 2001 that it would be more expedient to demolish the old structure and construct a new building in its place which would be safe for habitation and would allow for more efficient utilisation of the available space/land area.

6. In such circumstances referred to above, the Appellant Society invited tenders through an advertisement published in the local dailies for the development of the administrative building through a joint venture with the developer.

7. Pursuant to the tender process, the Hi-Rise Apartment Makers Private Limited (for short, ‘the Hi-Rise’) was declared as the successful bidder. The entire matter was placed before the General Body of the Appellant Society at the Annual General Meeting which was held on 28.04.2002. The meeting was ultimately adjourned to 05.05.2002. At the Annual General Meeting of the Appellant Society convened on 05.05.2002, it was resolved that the Appellant Society would accept the earnest/security money from the Hi-Rise and enter into an agreement accordingly with it for the purpose of demolition of old administrative building and for construction of the new administrative building.

8. On 22.06.2002, the Appellant Society issued the work order pursuant to the decision taken in the Annual General Meeting. In the said work order, it was state