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2009 Supreme(Guj) 385

Hon'ble Mr. Justice M. R. Shah
CHITRAKUT DHAM CO-OPERATIVE HOUSING SOCIETY LTD., MAHUVA
Versus
KHARAK HARIBHAI RAVJIBHAI BHALARIYA & ORS.
Second Appeal No. 29 of 2008 with C.A. No. 2215 of 2008
Decided on 8-7-2009.

Advocates Appeared:
U. I. Vyas, for the Appellant.
D. S. Aff. Not Filed (N) for Defendant Nos. 1 to 7.
C. B. Upadhyaya, for Defendant Nos. 1 to 6.

Headnote:

Civil Procedure Code,1908 - Section 100 - Second Appeal - Appellant-original plaintiff to quash and set aside the impugned judgment and order Agreement of sale of land in favour of proposed vendee - Held, Unregistered Co-op. Society not enforceable because such a Society is not a legal entity - Contention on behalf of the Society that the Government circular envisages such agreement in favour of proposed society for the purpose of registration, hence, it is enforceable - Contention rejected - Petition dismissed - Gujarat Co-operative Societies Act, 1961 - Sections 37 and 161.

Judgment

M. R. SHAH, J. Present Second Appeal under Sec. 100 of the Code of Civil Procedure has been preferred by the appellant-original plaintiff to quash and set aside the impugned judgment and order dated 7-5-2007 passed by the learned Additional District Judge, Bhavnagar Camp at Mahuva in Regular Civil Appeal No. 115 of 2005, by which the learned Appellate Court has dismissed the said appeal confirming the judgment and decree dated 12-8-1996 passed by the learned 3rd Joint Civil Judge, Senior Division, Bhavnagar in Special Civil Suit No. 124 of 1983.

2. The appellant herein-original plaintiff No. 2 had instituted Special Civil Suit No. 124 of 1983 in the Court of learned Civil Judge (S.D.), Mahuva against the respondents herein-original defendants, for specific performance of the contract dated 18-6-1981. It was the case on behalf of the plaintiff that the defendants are owners of land bearing Revenue Survey No. 248 paiki admeasuring 4 acres and 16 gunthas situated at Mahuva. That the plaintiff No.2 is a registered Co-operative Society registered on 3-6-1982. The defendants agreed to sell the suit land to the plaintiff No. 1 by agreement-to-sale dated 18-6-1981 for Rs. 23,501/- a bigha. That earnest money of Rs. 20,000/- was paid by cash. That the defendants gave Power of Attorney to one Mr. Maheshkumar N. Mehta for the purpose of converting the land into non-agricultural use. Upon such sanction, the sale-deed was to be executed. That the possession was to be handed over on 20-11-1981. As per the plaintiffs they were ready and willing to perform their part of contract, however, the defendants instead of performing their part, issued notice on 19-1-1982 denying to execute the sale-deed, and therefore, the plaintiffs filed a suit for declaration and permanent injunction being Regular Civil Suit No. 21 of 1982 in the Civil Court, Mahuva. That thereafter, as the defendants raised false dispute pending the said suit, the plaintiffs instituted the present suit for specific performance of the Agreement-to-sale dated 18-61981. The suit was resisted by the defendants by submitting that the plaintiffs are not entitled to the relief/decree for specific performance of the agreement-to-sale dated 18-6-1981, as the agreement -to-sale dated 18-6-1981 was in favour of proposed Co-operative Society i.e. unregistered co-operative Society, and therefore, the suit for specific performance of the agreement-to-sale is not maintainable. That the learned trial Court framed the issues that whether the suit contract is legally enforceable in view of the fact that the plaintiff No. 2 was not registered under the provisions of the Gujarat Co-operative Societies Act on the date of the contract? That the learned trial Court answered the aforesaid issue in negative and held that the suit contract is legally not enforceable in view of the fact that the plaintiff No.2-Society was unregistered on the date of the execution of the Agreement-to-sale. However, the learned trial Court passed an order directing the defendants to repay Rs. 20,000/- to the plaintiffs which was received by them by way of earnest money. Being aggrieved by and dissatisfied with the judgment and decree passed by the learned trial Court in Special Civil Suit No. 124 of 1983 in refusing to grant relief for specific performance of the agreement-to-sale dated 18-6-1981, the appellant-original plaintiff No. 2 preferred Regular Civil Appeal/First Appeal No. 4413 of 1996 before this Court which was subsequently transferred to the District Court, Bhavnagar, upon enhancement of pecuniary jurisdiction of the trial Court and the same was subsequently numbered as Regular Civil Appeal No. 115 of 2005. That the learned Additional District Judge, Bhavnagar Camp at Mahuva by the impugned judgment and order dated 7-5-2007 dismissed the said appeal confirming the judgment and decree passed by the learned trial Court refusing to grant relief of specific performance of the agreement-to-sale dated 18-6-1981





















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