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2024 Supreme(Guj) 1606

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SANGEETA K. VISHEN, J.
Lokeshbhai Vishnubhai Patel & Ors. – Appellant
Versus
Patidar co-operative housing society limited & ors. – Respondent
R/SPECIAL CIVIL APPLICATION NO. 23417 of 2017 With R/SPECIAL CIVIL APPLICATION NO. 13434 of 2023 With R/SPECIAL CIVIL APPLICATION NO. 23418 of 2017 With R/SPECIAL CIVIL APPLICATION NO. 16601 of 2023
Decided on : 13-06-2024

Advocates:
Advocate Appeared
For the Appellant :MR MIHIR H JOSHI, SENIOR ADVOCATE WITH MR ARVIND YADAV AND MR MIT S THAKKAR
For the Respondent: MR PS CHAMPANERI

The court affirmed that members must challenge resolutions to preserve their rights, and the Registrar's approval of amendments is valid if compliant with the Act and Rules.

Headnote:(A) Gujarat Co-operative Societies Act, 1961 - Sections 13, 96, 153, and 155 - Challenge to resolutions permitting commercial construction and amendments to bye-laws - The Board of Nominees dismissed the suits challenging the resolutions, which was upheld by the Tribunal - The court found that the Registrar's approval of the amendments was valid and that the disputes did not fall under Section 96 - The court emphasized that members must challenge resolutions to maintain their rights. (Paras 1-70)

(B) Jurisdiction of Registrar - The Registrar's role is limited to ensuring compliance with the Act and Rules when approving amendments to bye-laws - Members must pursue remedies under the Act for grievances against resolutions. (Paras 1-70)

(C) Delay in filing appeals - The court held that the delay of 26 months in appealing against the Registrar's decision was not justified, as the petitioners failed to provide sufficient explanation. (Paras 1-70)

(D) Finality of decisions - The court reiterated that decisions made by the general body of members in accordance with the Act and bye-laws are binding unless successfully challenged. (Paras 1-70)

JUDGMENT :

With the consent of learned advocates appearing for the respective parties, the captioned petitions are taken for up final disposal.

2. Issue Rule, returnable forthwith. In Special Civil Application nos.23417 of 2017, 23418 of 2017 and 13434 of 2023, Mr P. S. Champaneri, learned advocate, Mr C. P. Champaneri, learned advocate, Mr Meet M. Thakkar, learned Assistant Government Pleader and Mr Dipan Desai, learned advocate waives service of notice of Rule on behalf of respective respondents in the respective writ petitions and in Special Civil Application no.16601 of 2023, Mr Mit S. Thakkar, learned advocate and Mr Meet M. Thakkar, learned Assistant Government Pleader waives service of notice of Rule on behalf of respective respondents.

3. The issue; the challenge and the grievances raised in the captioned writ petitions are interconnected and to an extent overlapping; therefore, owing to the commonness, all the writ petitions are heard analogously and are being disposed of by this common judgment.

4. The gist of challenge in the respective writ petitions, is set out hereunder for ready reference:-

    Re: Special Civil Application no.23417 of 2017 and Special Civil Application no.23418 of 2017

    (a) Challenge is to the common judgment and order dated 15.06.2016 passed by the Board of Nominees as well as the common judgment and order dated 21.09.2017 passed by the Gujarat State Co-operative Tribunal (hereinafter referred to as ‘the Tribunal’). By way of the above-referred common judgment dated 15.06.2016, the Board of Nominees had dismissed the Lavad Suit no.1154 of 2005 and Lavad Suit no.707 of 2010 filed by the petitioners.

    (b) Suit no.1154 of 2005 by the members, was filed seeking declaration that Patidar Co-operative Housing Society (hereinafter referred to as ‘the society’) may not permit the members from using the allotted plot and land and the superstructure put up, for any other purpose, other than residential as well as declaring the resolution dated 21.08.2005 as illegal.

    (c) While in the Suit no.707 of 2010, the petitioners had prayed for the relief that any resolution passed in the Special General Meeting dated 21.09.2010 pursuant to the agenda notice dated 10.09.2010 be declared as illegal, unauthorized and void and permanent injunction against the implementation of any resolution that may have been passed in special general meeting dated 21.09.2010 and any permission for use of the property in the society other than residential use.

    (d) The Suits were dismissed and the judgment was carried by way of an Appeal no.17 of 2016 and Appeal no.18 of 2016 before the Tribunal, and it dismissed the appeals vide order dated 21.09.2017 and hence, captioned writ petitions.

    Re: Special Civil Application no.13434 of 2023

    (a) Challenge is to the order dated 14/15.05.2014 passed by the District Registrar, Co-operative Societies, Porbandar allowing the society’s proposal for amendment of its bye-laws. Said order was made subject to the final outcome of the pending Lavad Suit no.1154 of 2005 and Lavad Suit no.707 of 2010. Status quo was also directed to be maintained as per common order dated 12.05.2010 passed by the Division Bench in Letters Patent Appeal no.39 of 2008 and another.

    (b) The order dated 14/15.05.2014 was challenged by way of appeal under section 153 of the Gujarat Co-operative Societies Act, 1961 (hereinafter referred to as the ‘Act of 1961’) before the Additional Registrar. In view of the delay, Misc. Application no.42 of 2016 was filed seeking condonation of delay.

    (c) Vide order dated 22.06.2018, Misc. Application no.42 of 2016 seeking condonation of delay of 26 months was not entertained by the Additional Registrar (Appeals) which, was subject matter of challenge by way of Revision Application no.98 of 2018. The revision application came to be rejected by the Deputy Secretary (Appeals), Agriculture, Farmer Welfare & Co-operation Department vide order dated 17.02.2023. Being aggrieved that the Special Civil Application no.13

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