IN THE HIGH COURT OF JUDICATURE AT BOMBAY
AMIT BORKAR, J.
Ajay Shantilal Porwal and Others – Appellants
Versus
Gangadham A Cooperative Society Limited and Others – Respondents
Writ Petition No. 10593, 16794 of 2025
Decided On : 11-12-2025
| Table of Content |
|---|
| 1. initial challenge to prior court orders in cooperative dispute. (Para 1 , 2 , 3 , 4) |
| 2. arguments regarding jurisdiction and statutory interpretation. (Para 5 , 6 , 7 , 8 , 9) |
| 3. distinction between jurisdiction and maintainability in legal proceedings. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 4. scope and application of order vii rule 11(d). (Para 18 , 19 , 20 , 21 , 22 , 23) |
| 5. implications of inconsistent pleadings on case rejection. (Para 24 , 25 , 26) |
| 6. cooperative court's jurisdiction to determine effects of illegal resolutions. (Para 27 , 28 , 29 , 30 , 31) |
| 7. analysis of precedential value of prior judgments. (Para 32 , 33) |
| 8. final decision to quash and restore cooperative court dispute for further proceedings. (Para 34 , 35) |
JUDGMENT :
AMIT BORKAR, J.
1. The petitioners have filed this writ petition to challenge the Judgment and Order dated 10 February 2025 passed by the Cooperative Appellate Court. That order confirmed the Judgment and Order dated 25 April 2024 of the Cooperative Court No. 2, Pune in Dispute No. 134 of 2022. The Cooperative Court had dismissed the dispute by invoking Order VII Rule 11 of the Code of Civil Procedure, 1908.
2. The petitioners state that they are members of respondent No. 1 cooperative housing society. On 4 October 2022, they instituted Dispute No. 134 of 2022 seeking several declarations. They sought declaration that resolutions passed in the Annual General Meeting and Special General Meeting were illegal. They sought injunction restraining the opponents from acting upon those resolutions. They also sought declaration that the deed of conveyance executed on the strength of the said resolutions was null, void, and not binding. They further sought perpetual injunction restraining opponent Nos. 13 to 28 from creating third party rights. They also sought injunction restraining the opponents from carrying out construction.
3. Respondent Nos. 13, 15 and 28 filed an application dated 3 November 2022 under Order VII Rule 11 of the CPC seeking dismissal of the dispute. The petitioners filed a reply opposing the application. After hearing both sides, the Cooperative Court allowed the applications below Exhibit 32 and 44 on 25 April 2024 and rejected Dispute No. 134 of 2022.
4. The petitioners challenged the order of the Cooperative Court by filing Appeal No. 44 of 2024 before the Cooperative Appellate Court. The Appellate Court dismissed the appeal by the impugned Judgment and Order dated 10 February 2025. Hence the petitioners have approached this Court in writ jurisdiction.
5. Mr. Soni, learned Advocate for the petitioners, submitted that the Courts below failed to distinguish between objections to maintainability and objections to jurisdiction. He submitted that the respondents raised an objection that the petitioners, being nominal members, lost their status after introduction of Chapter VIII in the Maharashtra Cooperative Societies Act, 1960. According to the respondents, such nominal members could not invoke Section 91 and therefore the dispute could not be entertained. He submitted that this objection pertains to jurisdiction. The respondents invoked clauses (a) and (d) of Order VII Rule 11, CPC. He submitted that the petitioners had pleaded all necessary averments to challenge the general body resolutions. He submitted that the respondents could not show which statutory provision specifically bars filing of such dispute. He submitted that clause (d) of Order VII Rule 11 requires a clear statutory bar.
6. He submitted that lack of jurisdiction of the Cooperative Court does not amount to a statutory bar within the meaning of clause (d) of Order VII Rule 11. He submitted that the Cooperative Court held that the parties were not covered under Section 91 . The Cooperative Appellate Court corrected this error and held that the parties fall within . It only held that the subject matter of the dispute does not fall under . He submitted that such finding does not amount to a stat
Margret Almenda and others vs. Bombay Catholic Coop. Housing Society Ltd. and others
The court clarified that statutory bar under Order VII Rule 11(d) requires clear prohibition for dismissal, emphasizing the distinction between jurisdiction and maintainability.
The jurisdiction to hear cooperative disputes lies with the Cooperative Court when the matters directly impact the society's business and management.
Jurisdiction and maintainability in cooperative disputes depend on specific statutes and bylaws; a cooperative court retains authority to hear disputes related to member resolutions unless explicitly....
Civil courts maintain jurisdiction over disputes involving cooperative society resolutions, clarifying that maintainability isn't limited by cooperative statutes.
Disputes between cooperative societies and their employees are not maintainable under Section 91 of the MCS Act, requiring civil suits for resolution.
The court confirmed that guarantors are liable under the Maharashtra Cooperative Societies Act, and disputes against them are maintainable despite limitation challenges.
High Court cannot in exercise of its power under Article 226 of the Constitution of India can direct the bank to positively consider the benefit of one time settlement to writ petitioner.
The jurisdiction of Civil Courts is ousted in disputes concerning cooperative societies, which must be adjudicated by the Registrar according to Section 102 of the West Bengal Cooperative Societies A....
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