IN THE HIGH COURT OF BOMBAY
Patel D.V.and Nain J.N, JJ.
Appellants: N. Nageshwar Roa
Vs.
Respondent: Ruth Moses and Ors.
Spl. Civil Appln. No. 1685 of 1967Decided On: 04.03.1968
Counsels:
For Appellant/Petitioner/Plaintiff: Minocher Homji, Adv.
For Respondents/Defendant: J.S. Raymond and R.T. Sippy, Advs.
CO-OPERATIVE SOCIETIES ACT - S. 91, 93, 96 - RULES 76, 77 - JURISDICTION OF NOMINEE - APPOINTMENT OF NOMINEE FOR A PARTICULAR DISPUTE - AWARD MADE AFTER EXPIRY OF TERM OF NOMINEE - VALIDITY.
Fact of the Case:
The petitioner, the owner of a flat in a cooperative housing society, gave the flat to respondent No. 1 as a licensee. Respondent No. 1 and her family members became a nuisance to the occupants of the building, and the petitioner called upon her to vacate the premises. The society made a complaint to the Registrar regarding respondent No. 1's conduct, and the Registrar referred the matter to his Nominee for decision. The Nominee made an award in favor of the petitioner, but the Co-operative Tribunal set aside the award on the ground that the Nominee had ceased to have jurisdiction because his term had expired. The petitioner challenged the Tribunal's decision.
Finding of the Court:
The court held that the Tribunal's decision was erroneous. The appointment of the Nominee was not for a fixed term, but rather for disputes that arose during the year. The dispute in the present case arose within the year, and therefore the Nominee had jurisdiction to decide the dispute. Furthermore, the court held that the Nominee's power to decide the dispute did not end after the expiry of his term. The court also held that Rule 77, which expects the Nominee to dispose of the matter within two months, is not a peremptory rule and does not say that the Nominee's power comes to an end if he does not decide the dispute within two months.
Issues: 1. Whether the Nominee had jurisdiction to decide the dispute. 2. Whether the Nominee's power to decide the dispute ended after the expiry of his term.
Ratio Decidendi: 1. The appointment of the Nominee was not for a fixed term, but rather for disputes that arose during the year. The dispute in the present case arose within the year, and therefore the Nominee had jurisdiction to decide the dispute. 2. The Nominee's power to decide the dispute did not end after the expiry of his term. Rule 77, which expects the Nominee to dispose of the matter within two months, is not a peremptory rule and does not say that the Nominee's power comes to an end if he does not decide the dispute within two months.
Final Decision: The court set aside the Tribunal's decision and directed that the matter be heard on merits.
1. This is a petition under Article 227 of the Constitution of India challencing the decision of the Maharashtra Co-operative Tribunal whereby it set aside the award made by the Registrars Nominee and remitted the matter for retrial. The short facts necessary for the purpose of the case may be state as follows: The Petitioner, who was the original opponent No.1 in the reference, is the owner of the flat consisting of three rooms and a kitchen on the ground floor of a building known as Mirabelle belonging to Mirabelle Co-operative Housing Society Ltd., which (was?) the original disputant in the reference. The petitioner purchases this flat essentially for his personal residence. However, because o \f certain difficulties in his way he could not occupy the said premises and he, therefore, gave the same to respondent No.1 as a licensee on June 9, 1962 for a period of eleven months. In November 1962 the Co-operative Society gave notice to the petitioner saving that respondent No.1 and the members of her family were a nuisance to the occupants of the building. The petitioner, therefore, called upon respondent No.1 to vacate the premises and deliver possession to him. It seems that since February 1963 not a pie has been paid to the petitioner towards compensation for the occupation of the premises. In the meantime, there have been litigations between these parties to which it is needless to refer. The compensation that has accumulated to this day comes to near about Rs. 11,520. In pursuance to the Societys notice, the Society made a complaimt before the Registrar regarding the conduct of respondent No.1 and the members of her family as she was a source of nuisance and sought eviction. The Registrar after hearing respondent No.1 referred the matter under S. 91 of the Co-operative Societies Act to his Nominee by an order dated December 17, 1965 in the following terms:
"I, Shri D.D.Naik, Assistant Registrar, Co-operative Societies, (II), Bombay, do hereby hold that the dispute within the meaning of S. 91 (1) of the Maharashtra Co-operative Societies Act, 1960, exists in this case and the same is therefore referred to Shri S.M. Dixit, Registrars Nominee for decision."
Respondent No.1 took the matter to the Co-operative Tribunal challenging the reference by the Registrar. However, this appeal was rejected by the Tribunal and the Nominee was directed to decide the matter. The Nominee made his award on November 1, 1966. Respondent No.1 took an appeal to the Co-operative Tribunal. The contention before the Tribunal was that the Nominee had ceased to have jurisdiction because by a general order the Registrar had appointed a body of Nominees for a period of one year and that the term expired on June 30, 1966. It was argued that as the award was made after this date, the award was a nullity. This contention found favour with the Tribunal with the result that it set aside the award and referred the matter back to the Registrar for reference to any other Nominee for disposal or to try it himself. The petitioner, who is the owner of the flat, seeks to challenge this decision.
2. Section 91 of the Maharashtra Co-operative Societies Act 1960 requires that all disputes touching the business of a Society shall be referred to the Registrar. Under Section 93 after being satisfied that the matter referred to him is a dispute within the meaning of S. 91, the Registrar may decide the dispute (a) himself, or (b) refer it for disposal to a nominee, or (c) a broad of nominees, appointed by the Registrar, sub-sections (2) and (3) of section 93 are procedural sections. Sub-section (2) gives the Registrar the power to withdraw for reasons to be recorded in writing a dispute referred by him to the nominee or board of nominees and to decide it himself or to refer it for decision to any other nominee or board of nominees. Sub-section (3) gives him power to suspend the proceedings under certain circumstances with which we are not concerned. Section
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