IN THE HIGH COURT OF BOMBAY
Rebello F.I., J.
Dadar Avanti Co-operative Housing Society Ltd. .... Petitioner.
Versus
State of Maharashtra others.... Respondents.
Writ Petition No. 980 of 2003, decided on 2-12-2004.
Advocates appeared :
Ms. Snehal Paranjpe Arif S. Doctor i/b. Kanga Co., for petitioner.
K.R. Belosey, A.G.P., for respondent Nos. 1 to 4.
A.S. Desai, for respondents 5 6.
M.C.S. Act - Membership Dispute - Section 22(2) - Summary of Acts and Sections: The court discussed the provisions of section 22(2) of the Maharashtra Co-operative Societies Act, 1960, which deals with the deemed membership of a cooperative society if the society does not take a decision on the membership application within three months. The court also referred to section 154 of the M.C.S. Act, which outlines the revisionary powers of the State Government and Registrar. The court analyzed the maintainability of the second revision under section 154 and the issue of delay in filing the appeal.
Fact of the Case:
The respondents filed appeals claiming deemed membership of the petitioner society under section 22(2) of the M.C.S. Act. The Deputy Registrar allowed the appeal, which was later upheld by the State Government. The petitioners challenged the maintainability of the second revision and the delay in filing the appeal.
Finding of the Court:
The court found that the second revision under section 154 of the M.C.S. Act was not maintainable and that there was no limitation imposed by law on the parties applying for a declaration of membership under section 22(2). The court also held that the order of the 2nd respondent was within the parameters of section 22 of the M.C.S. Act.
Issues: The main issues were the maintainability of the second revision under section 154 of the M.C.S. Act and whether the application for a declaration of membership was belated and barred by limitation.
Ratio Decidendi: The court held that once one of the revisional authorities has exercised the power of revision, the remedy of revision is exhausted and no second revision would lie. The court also determined that there was no limitation imposed by law on the parties applying for a declaration of membership under section 22(2) of the M.C.S. Act.
Final Decision: The court discharged the rule and there shall be no order as to costs.
2. A few facts may be set out. Respondent Nos. 5 and 6 had filed appeals before the Deputy Registrar, Co-operative Societies, under section 22(2) of the Maharashtra Co-operative Societies Act, 1960. It was the case of the said respondents that they has applied for membership of the society. The respondents were informed by the petitioners by letter dated 16th November, 1988 and 20th November, 1988 that their application for membership is under consideration and legal opinion was sought for by the society. A request was also made to forward the original agreements, it was the case of the respondents that the petitioners did not communicate their acceptance within the stipulated period of three months from the date of receipt of the application and consequently they are deemed members of the petitioner society under section 22(2) of the M.C.S. Act. The petitioners by letter of May, 1989 intimated the respondents that their application for membership has been rejected. In the appeal it was the case of the respondents that the rejection has no consequence and consequently they were entitled to be treated as deemed members. The application/appeal was preferred some time in the year 1997. The Deputy Registrar, however, by the impugned order of 30th March, 1998 was pleased to allow the appeal and issued a declaration that the respondent Nos. 5 and 6 are declared as deemed members of the petitioner society.
3. The petitioners being aggrieved by the said order preferred a revision before the 3rd respondents against the order passed in both the appeals. The 3rd respondent on consideration of the arguments advanced on behalf of the petitioners and respondent Nos. 5 and 6 was pleased to hold that the respondent Nos. 5 and 6 had filed appeal after a long delay and that the reasons for the delay could not be accepted. The 3rd respondent also held that the order rejecting the application for membership was communicated to respondent Nos. 5 and 6 by letter dated 20th May, 1989. The respondents Nos. 5 and 6 were fully aware of the rejection and inspite of that they did not take out any proceedings. They has relied on provisions of section 22(2) which came into effect on 2nd January, 1997 and had filed appeal claiming deemed membership. The third respondent also held that the 4th respondent has not taken into consideration the correspondence exchanged between the parties and consequently the contention of non-communication of the decision was not proper and justified and accordingly allowed the Revision Application.
4. The respondent Nos. 5 and 6 preferred Revision Applications before the State Government which came to be allowed by order dated 19th March, 2002. In exercise of the powers of revision the State Government held relying on the judgment of this Court that if a Co-operative Society did not take decision on the membership application of any eligible member within three months then the said person becomes deemed member of the society. In the instant case the petitioners did not take any decision on the membership application of respondent Nos. 5 and 6 within three months nor had the petitioners presented any evidence that the respondents No. 5 and 6 are unfit to become member of the society according to the Bye-laws. Accordingly the 2nd respondent allowed the Revision Applications.
5. At the outset it may be mentioned that the petitioners in respect of admitting respondent Nos. 5 and 6 as members in the matter of change of user of the premises have preferred a petition which has been dismissed. An appeal has been preferred which is admitted and pending before the Court. It is no doubt true that the learned Counsel pointed out that decision on that point would have an important bearing on the issue
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