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2005 Supreme(Bom) 1645

IN THE HIGH COURT OF BOMBAY
Paramount Co-op. Housing Society Ltd.
VERSUS
Sita Rajab Sayani
Decided no: December 1, 2005

Headnote:Maharashtra Co-operative Societies Act, 1960 - Sections 22 and 23 - Maharashtra Co-operative Societies Rules, 1961, Rule 25(1) - Membership of society - Only such person can because member who holds interest in property - Any stranger cannot be a member - Society does not have any concern over validity or otherwise of transaction in case of new members. - In so far as the membership is concerned it is undoubtedly correct that the person holding the interest in the property can only become a member and not any stranger. But in a case where earlier holder of the property admits that he has transferred the said premises to new person, resigns from the membership and executes all necessary documents in favour of new incumbent to be a member of the society then in such cases it is not open for the petitioner society to challenge the validity or otherwise of the sale transaction in favour of the new incoming members because the society is not concerned with the validity or otherwise of the transaction in favour of the new incoming members. In so far as the original holder of the flat is concerned, he is not disputing the transfer of right, title and interest.

       Maharashtra Co-operative Societies Act, 1960 - Section 154 - Revision - Scope for second revision - Second revision whether permissible - Such power is allowed once only - No provision for a second revision. - The provisions of Section 154 does not give a concurrent jurisdiction to the Registrar and the State Government because the words prescribed thereunder are "the State Government or the Registrar may call for and examine the records." The wording in that section by substitution of the word "or" in place of "and" is materially significant because in case where the word "and" is used it is a conjoint power conferred both on the Registrar as well as the Government whereas the word "or" indicates that it is the power conferred on ’either’ or ’on’ in such cases the power cannot be exercised by both but it can be exercised by one of the two and in that view of the matter, by virtue of the judgment of the Apex Court in the case of Ishwar Singh v. State of Rajasthan and others, (2005) 2 SCC 334 all the Single Judges’ Judgments of the Court interpreting the very Section 154 are deemed to be impliedly overruled. Thus, the contention that the order passed by the Secretary holding that the second revision is maintainable is not bad in law is rejected. The order passed by the Secretary holding that the second revision is not maintainable is upheld.

( 1 ) THE present petition raises an issue whether under the provisions of section 154 of the Maharashtra Co-operative societies Act, 1960 a power can be exercised to entertain a second revision application. Before I deal with the aforesaid issue for the purpose of narration, few facts of the present case are necessary which are briefly enumerated as under :-

( 2 ) ON 2-12-1978 the petitioners society was incorporated and registered under the Maharashtra Co-operative Societies Act. On Mr. R. K. Sayani, being the husband of respondent no. 1 was the Secretary of the said society during the period 1978 to 1983. On 27-1-1980 one Mr. Fernandes gave a resignation from the membership of the Society and executed necessary forms for transfer of membership in favour of one Mr. B. F. Malik and the said Mr. B. F. Malik was admitted as a member of the Society.

( 3 ) ON 14-2-1980 an Annual General meeting was held and the resignation of Mr. Fernandes was confirmed in the said Annual general Meeting. On 21-8-1987 that is almost after a period of 7 years one Mr. S. S. Zende claiming to be a member of the Society in respect of the said flat issued a notice on the petitioner Society. However, the claim of Mr. Zende is not accepted by anybody and has been consistently rejected, both by the Society and the authorities below.

( 4 ) SOMETIME in or about October, 1983, complaint was filed against Mr. R. K. Sayani for mismanagement of the affairs of the society and proceedings were initiated under section 80 of the Maharashtra Co-op. Societies act. 1960 for recovery of the documents which were seized by the police under the order passed by the Deputy Registrar, Co-operative societies. It is the case of the petitioners that on 9-11-1986, the petitioner Society doubted the transaction in favour of the said Mr. Malik and issued public notice in the daily maharashtra Herald, Pune calling for Mr. Malik to produce the documents in respect of his flat. On 11-11-1986 Mr. Malik through his Advocate replied to the said public notice claiming that he is the purchaser of the flat and has paid the amount on 27-6-1981 and 29-6-1982 to Mr. Fernandes for acquiring right title and interest in the said flat. The society thereafter called upon Mr. Malik to produce the documents of title and proof of payment before the committee.

( 5 ) IT is the case of the petitioners that since Mr. Malik failed to produce registered documents in respect of ownership of the flat, another public notice was given on 4-4-1987 calling upon the interested parties to purchase the said flat which was put up for sale by the petitioner society. On 26-5-1987 the said Mr. Malik nominated Respondent no. 1 in respect of the suit flat. On 1-9-1987 the said Mr. Malik expired. On 19-10-1987 the Advocate of the respondent no. 1 addressed a letter to the petitioner society informing about the death of mr. Malik alongwith photocopy of the Death certificate and tendered the nomination form by which the respondent no. l was nominated in respect of the said flat. On 30-9-1988 respondent no. l forwarded an application seeking membership to the petitioner society on the basis of the said nomination form. On 29-10-1988 petitioners refused the membership to the respondent no. 1. Being aggrieved by the said refusal, petitioner preferred an appeal under Section 23 of the maharashtra Co-op. Societies Act bearing no. 61/1988 before the Deputy Registrar, Coop. Societies, Pune. On 29-4-1989 the petitioners filed a Special Civil Suit No. 555 of 1989 against respondent no. l and her husband interalia claiming vacant and peaceful possession of the flat and decree for damages. On 14-9-1990 respondent no. 2 passed an order allowing the said appeal preferred by respondent no. 1 and declared respondent no. 1 as nominee of Mr. Malik and directed that she should be added as a member of the petitioner society. Against the said order, petitioner society filed a Revision Application under section 154 of the Maharashtra Co-op. Soc











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