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2002 Supreme(Bom) 1102

IN THE HIGH COURT OF BOMBAY
Khanwilkar A.M., J.
Shankar Y. Gavli .... Petitioner.
Versus
Vishakha Sadan Co-operative
Housing Society another.... Respondents.
Writ Petition No. 895 of 2002, decided on 9-10-2002.
Advocates appeared :
Ms. Varsha Palav with Rupesh Nalawade, for petitioner.
M.G. Gawde, for respondent No. 1.

Headnote:Maharashtra Co-operative Societies Act, 1960 - Section 91 - Cooperative Court - Jurisdiction of - Disputes - Tran- saction pertains to period prior to registration of Society - Claim of amounts spent by petitioner till date of registration - Cannot be subject-matter of dispute within meaning of Section 91 of Act - Relief under Section 91 of the Act not available to petitioner. - If the transaction pertains to period prior to the registration of the society such a transaction cannot be subject-matter of dispute within the meaning of Section 91 of the Act. Going by the averments made in the plaint, the Appellate Court has rightly taken the view that the relief in terms of prayer Clause (bb) was obviously in relation to claim for amounts spent by the petitioner till the date of registration. If that be so, that relief was not available under Section 91 of the Act.

       Maharashtra Co-operative Societies Act, 1960 - Section 91 - Jurisdiction of Co-operative Court - Dispute existing even prior to registration of society - Whether Co-operative Court has jurisdiction to decide it - Co-operative Court allowed certain reliefs - But Appellate Court rejected application - Ground taken that dispute was pre- existing so the Co-operative Court cannot entertain it - Held - The Society is now a registered one and has itself jurisdiction to consider the case - Co-operative Court shall have sufficient jurisdiction to deal with it - Some items were considerable whereas some prior to registration were not referable. - In so far as prayer clause (b) is concerned, it is not in dispute that the Co-operative Court had granted injunction against the respondent No. 2. The Appellate Court, however, proceeded to hold that the entire dispute was not maintainable. On close examination of the reasons recorded by the Appellate Court it would appear that it was impressed by the fact that the expenses incurred and claimed in the dispute pertained to period prior to the date of registration of the society. However, that reason may be valid or relevant for considering reliefs (bb) and (bbb) but not for the reliefs (a) and (b). There is no cogent reason assigned by the Appellate Court as to why reliefs (a) and (b) was also not maintainable under Section 91 of the Act. It is now pointed out that it will not be necessary to consider relief (b) since the respondent No. 1 has already entered into transaction with the builder for developing the subject property. However, since Court is inclined to remand the matter to the Appellate Court that Court may consider the efficacy of that aspect of the matter. The Appellate Court was right in taking the view that reliefs claimed in terms of prayer clause (bb) or for that matter prayer clause (bbb) were not within the jurisdiction of the Co-operative Court in terms of Section 91 of the Act. The Appellate Court is right in observing that once the society is registered there is no question of going into that issue. Besides, the counsel for the respondent no doubt relied on the fact that the application for registration of the society does not indicate that the petitioner has signed the same either as the chief promoter or as member thereof. However, it is not necessary to go into that aspect of the matter as it is well- settled that for examining the question of jurisdiction the Court has to look only at the plaint and decide the issue on the basis of the averments in the plaint. In the present case, from the averments in the plaint prima facie, it is possible to take the view that the Co-operative Court would have jurisdiction to try and decide the claim set up in the dispute atleast in terms of reliefs (a) and (b).

       Maharashtra Co-operative Societies Act, 1960 - Section 91 - Dispute under. - Transaction pertaining to period prior to registration of society, cannot be subject-matter of dispute under Section 91 of Maharashtra Cooperative Society Act.

JUDGMENT - KHANWILKAR A.M., J.:---Rule. Mr. Gawde waives notice for respondent No. 1. Respondent No. 2 has been served with notice indicating that the matter will be finally disposed of at notice stage but none appears. Heard forthwith for final disposal.

2. This writ petition, under Article 227 of the Constitution of India, takes exception to the common order passed by the Maharashtra State Co-operative Appellate Court, Mumbai dated March 30, 2001 in Appeal No. 80 of 2000 and Appeal No. 27 of 2001. Briefly stated, the petitioner had filed a dispute under section 91 of the Maharashtra Co-operative Societies Act, 1960 against the respondents. In the said dispute, as it stood amended, following reliefs were claimed:---

"a) The respondent No. 2 has no right to represent the society i.e. Vishakha Sadan Co-operative Housing Society,

b) For permanent injunction from this Honble Court restraining the respondents from entering into the contract with the builder or developer for the purpose of developing the said property, i.e. Vishakha Sadan Co-operative Housing Society, situate at Plot No. 9, Survey No. 66/9-A and 68/14.

(bb) This Honble Court be pleased to order refund of Rs. 1,25,151/- along with interest @ 16% p.a. from the Opponent No. 1 Society and/or from opponent No. 2 and any other amounts spent by the Disputant till the date of Registration, from the date of incurring expenses excluding the membership contribution and shares.

(bbb) This Honble Court be pleaded to declare the Disputant as the "Chief Promoter" of the said Society."

The dispute was decided ex parte against the respondents by the Co-operative Court by the judgment and order dated 3-4-2000. The Co-operative Court partly allowed the dispute by the following Award:--

"ORDER

1. The opponent No. 2 has no right to represent the society i.e. Vishakha Sadan Co-operative Housing Society,

2. Opponent No. 2 is hereby restrained permanently from entering into the contract with the building or developer for the purpose of developing the said property i.e. Vishakha Sadan Co-operative Housing Society situate at Plot No. 9, Survey No. 66/9-A and 68/14, Bhagulpada, Shivaji Road, Dahisar (East) Bombay 400 068,

3. Opponent Society is hereby ordered to refund Rs. 1,25,151/- along with interest @ 16% p.a. to the disputant, the amount spent by the disputant till registration of the opponent No. 1 society.

4. It is hereby declared that Disputant was the Chief Promoter of the Opponent Society.

5. Opponents to pay the cost of this dispute to the disputant as under and to bear their own.

Court fee stamps Rs. 60/-

Court expenses Rs. 320/-

6. Judgment and order pronounced in open Court."

3. Against this order the petitioner carried appeal before the Appellate Bench of the Co-operative Court being Appeal No. 80 of 2000 praying for further reliefs even against the society, which was not granted by the Co-operative Court. On the other hand, the respondents filed substantive appeal before the Appellate Bench of the Co-operative Court being Appeal No. 27 of 2001 challenging the ex parte Award passed by the Co-operative Court. Both the appeals are disposed of by the common judgment, which is the subject matter of challenge in this writ petition. The Appellate Court has taken the view that the dispute as filed by the petitioner before the Co-operative Court was without jurisdiction as it pertained to matters prior to registration of the Society. The Appellate Court has essentially allowed the appeal preferred by the respondents and dismissed the appeal preferred by the petitioner holding that the Co-operative Court had no jurisdiction to entertain the dispute. It is this decision which is the subject matter of challenge in the present writ petition.

4. This Court had issued notice for final disposal on 17-4-2002. According to the petitioner the relief claimed in terms of prayer Clause (a) of the dispute was on the basis of allegations pointing out continuing cause of action against the respondent No.








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