IN THE HIGH COURT OF BOMBAY
S.M. Daud, J.
Shree Jaya Mahal Co-operative Housing Society Ltd..... Petitioner.
Versus
Zenith Chemical Works Pvt. Ltd. and others.... Respondents.
Writ Petition No. 1403 of 1984 with W.P. No. 1404 of 1984, decided on 10-10-1990.
Advocates appeared :
G.J. Desai with S.G. Walam i/by Gordhandas Fozdar, for petitioner in both petitions.
B.G. Vaidya, for respondent 1, in both petitions.
L.C. Chogle, for respondents 2 and 3 in both petitions.
Section 7-Acceptance of offer-No time for acceptance given-Whether offer to remain valid for Indefinite period.
Held,-Where no time is given for the acceptance of an offer the law is that acceptance has to be communicated within a reasonable time. The offer could not he kept open indefinitely.
Sections 23 & 154-Co-operative Society of the tenants-Non-joining by two tenants despite reasonable time and a number of remainder given to them-Subsequent efforts of joining the society with a view to nullify the effect of quit notices-Such attitude deplored by the Court-Society cannot be expected to wait for these teanants to join Indefinitely.
The minister seems to be under the impression that it was for the society to have clarified that failure to pay the construction would disentitle the Zenith Chemicals and Poona Automobiles from becoming members or that they would be rendering themselves liable to pay interest for delayed payment. I do not see how this obligation could be thrust upon the petitioner Society. In fact by addressing letter dated 29-1-1979 the Chief Promoter of the society was giving a concession to the first respondents to which they were not entitled. The non-filing of the declarations about a refusal by the two concerns to become members has already been committed upon. Like Deputy Registrar the Minister believes that the first respondents had an inviolate right to avail of the invitation given by the Chief Promoter in his letter of 29-1-1979 as and when they thought fit to do so. There could not be a grosser mistake in law and therefore both on facts as also on law the decision given by the Minister cannot be sustained. The Zenith Chemicals and Poona Automobiles were not entitled to the membership of the Society and the refusal of the Society to admit them to membership was valid. The order passed by the Minister in both the petitions is hereby quashed and that of the Divisional Joint Registrar restored.
2. Building known as 'Jaya Mahal' at French Bridge, 45, Atmaram Rangnekar Marg, Bombay 400 007, belonged to Khimji Chaturbhuj and certain others as joint owners. The building consisted of about six storeys and the ground floor was in the occupation of the first respondents to the petitions - hereinafter referred to as 'Zenith Chemicals' and Poona Automobiles' respectively. Zenith Chemicals were in occupation of five shops covered by two separate rent receipts. Poona Automobiles occupied shop No. 6 which was divided by them - one portion being sub-let to Dharmatar Automobiles. The upper storeys were in the occupation of the residential tenants and these tenants decided to band together into a housing co-operative society for the acquisition and maintenance of the building. All the occupants, Zenith Chemicals and Poona Automobiles included attended meetings of the proposed society and minutes of the meetings were recorded. Minutes of 3-6-1978 show that Zenith Chemicals and Poona Automobiles were represented by their concerned representatives on that day. The recitals relating to Zenith Chemicals and Poona Automobiles read as follows:---
"New members were requested to enrol themselves in the Society as the member and submit their consent letter duly completed, along with their contribution.
Mr. Kantilal Shanghani of M/s. Poona Automobiles ...and Mr. Rambhai G. Patel of M/s. Zenith Chemical Works (P) Ltd. have consented orally to become members of the Society."
Minutes of 17-6-1978 show that representatives of Zenith Chemicals and Poona Automobiles were again present and in fact both of them would be attending the Federation Office for adopting proceedings for registration. An application for registration of the proposed society was given on 14-8-1978 and the said application does not contain the names of the authorised representatives of Zenith Chemicals as also Poona Automobiles. In due course, excluding the two concerns and some tenants of the building, the rest succeeded in obtaining registration of a housing co-operative society and the said society in due course purchased the property from the erstwhile owners. The Chief Promoter on January 29, 1979 addressed a communication to Zenith Chemicals as also Poona Automobiles. This communication, to the extent relevant, recited ---
"Your are aware that our society has been registered and we have pleasure to invite you to join as one of the members on the basis of 150 rents (150 month's rent ?), as contributed by other members. As Zenith Chemicals Work is a tenant since long time the bifurcation in your name and in the name of your another relation will be done at a later stage, as per decision arrived at the full fledged possession of the building by the society.
This method is also to be adopted in case of two landlords and other members who wanted to do bifurcation of their flats.
Hope you will please send your consent letter along with the contribution at an early date."
The letter evoked no written response from Zenith Chemicals and Poona Automobiles until the last week of July 1979. The reply came on the heels of Poona Automobiles being served with a quit notice intimating their liability to be ejected pursuant to their failure to pay six months rent, apart from certain other defaults attracting ejectment under the Rent Act. Zenith Chemicals on 26-7-1979 wrote to the Chairman of the newly formed society i.e. petitioner, as under:---
"With reference to your letter dated 29-1-1979 and our subsequent talks from time to time which we had with you, we are enclosing here-with our cheque of Rs. 30,625.50 (Rupees Thirty thous
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