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2024 Supreme(Online)(Bom) 6006

BOMBAY HIGH COURT
B. P. DESHPANDE, J
RYAN WALTER FERNANDES THR. POA HERCULANO WILLIAM FERNANDES – Appellant
Versus
NOVA CIDADE RESIDENTIAL CO-OP. HOUSING MAINTENANCE SOCIETY LTD. THR SEC. FERDINANDO NOROHNA – Respondent
WP 222 / 2024



Advocates:
Mr. D. Vernekar, Mr. A. D. Bhobe

The court affirmed that internal decisions of a Co-operative Housing Society regarding tenant agreements and fees do not constitute disputes under Section 83 of the Goa Co-operative Societies Act.

Headnote:(A) Goa Co-operative Societies Act, 2001 - Section 83(2) - Challenge to resolution of Co-operative Housing Society regarding tenant agreements and fees - Petitioner contended that the society's decision to require rent agreements for issuing new stickers was illegal and not within its authority. The Assistant Registrar dismissed the application, stating no dispute existed under Section 83. (Paras 3, 15)

(B) Co-operative Housing Society - Definition and authority - The court found that the respondent society is a Co-operative Housing Maintenance Society as defined under Section 102, and its decisions regarding non-occupancy charges and parking fees were valid. (Paras 11, 13)

Facts of the case:
The petitioner, a member of the Co-operative Housing Society, challenged a resolution requiring tenants to submit rent agreements for new parking stickers, claiming it was illegal and not authorized by the society's bylaws. (Paras 3, 4)

Findings of Court:
The court upheld the Assistant Registrar's decision, stating the society's actions were internal arrangements and did not constitute a dispute under the Act. (Paras 15, 18)

Issues: The main issues included whether the society's resolution regarding tenant agreements and fees constituted a legitimate dispute under Section 83 of the Act. (Paras 3, 15)

Ratio Decidendi: The court ruled that the society's resolution was valid as it fell within its authority and did not violate the provisions of the Act, emphasizing that internal decisions do not necessarily constitute disputes under Section 83. (Paras 11, 15)

Result: Petition dismissed.

ORAL JUDGMENT

  1. Heard Mr D. Vernekar, learned counsel for the petitioner and Mr A. D. Bhobe, learned counsel for the respondent.

2. Rule. Rule is made returnable forthwith. Matter is taken up for final disposal at the admission stage with consent.

3. Petitioner who is one of the member of the Co-operative Housing Society/Respondent, challenged resolution passed by the society before the Assistant Registrar of Co-operative Society under Section 83(2) of the Goa Co-operative Societies Act 2001( “The Act” for short) thereby seeking prayer that the decision to handover rent agreement of the tenant for the purpose of giving new stickers and entry into the complex, is illegal. The Assistant Registrar by the impugned order dated 9.2.2024, rejected such application filed by the petitioner on the ground that there is no such dispute exists between the members and the society as contemplated under Section 83 of the Act. The above said decision is challenged in the present petition.

4. Mr Vernekar appearing for the petitioner would submit that petitioner is the owner of the unit which he purchased and thereafter Co-operative Maintenance Society is formed of the unit holders only for the purpose of maintenance activities. He submits that decision was taken in a special meeting which was conveyed by respondent/ society with unit holders who are intending to let out their units to the tenants, shall hand over land agreement for the the purpose of issuing stickers to the tenants. Resolution was also passed that proposal to start non-occupancy charges as per the bye laws at the rate of 10% of the general maintenance, to charge Rs.200/- per month from the tenants with regards to car parking in the open space, to discontinue with the old car stickers and issue new ones to control unauthorised entry into the complex.

5. Mr Vernekar, submits that respondent being Cooperative Housing Society is not entitled to resolve and charge such fees since said society is not Co-operative Housing Society as defined under section 102 of the said Act. He would further submit that petitioner is owner of the unit as well as he has purchased parking place and therefore, even if he decided to let out unit, tenant is entitled to use his parking space and for that purpose society is not entitled to charge extra amount.

6. Mr Vernekar while relying upon the provisions of Co-operative Societies Act and Rules would submit that the unit was not allotted by the society to the petitioner but it was purchased by him from the developer as owner and only thereafter the society was formed. Mr Vernekar would then submit that no bye laws are framed or available with the society even though the respondent claimed that they adopted standard bye laws.

7. As far as impugned order is concerned, Mr Vernekar would submit that dispute exists between the Co-operative Society and the members i.e petitioner and observations of the learned authority that it is only internal arrangement and not touching the constitution of the society is perverse.

8.

Per contra, Mr Bhobe, appearing for the society would submit that dispute raised by the petitioner is only with the prayer as found in the prayer clause of his application which restricts to the decision taken by society to call for the rent agreement in order to issue new stickers to the tenants so as to prevent unauthroised entry into the complex.

9. Mr Bhobe submits that there is no challenge raised by the petitioner to the first part of the resolution and therefore, authority was right in considering that there is no dispute touching the constitution of the society and it is only an internal arrangement or decision of the society to safeguard the interest of the members.

10. Rival contentions fall for determination.

11. It is a fact that the respondent is a Co-operative Housing Maintenance Society, however Section 102 defines Co-operative Housing Society which also includes in it Co-operative Housing Maintenance Society, thus contention of Mr Vernekar tha

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