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2012 Supreme(Online)(SC) 72

SUPREME COURT
M.R. Shah, A.S. Bopanna, JJ
Margret Almeida and Others v. The Bombay Catholic Co-operative Housing Society Ltd. and Others
Special Leave Petition (Civil) Nos. 144-145 of 2010



Advocates:
For the Appellants/Petitioners: Mukul Rohtagi, Dr. Abhishek M. Singhvi
For the Respondents: C.A. Sundaram, K.K. Venugopal

Civil courts maintain jurisdiction over disputes involving cooperative society resolutions, clarifying that maintainability isn't limited by cooperative statutes.

Headnote:(A) Maharashtra Cooperative Societies Act, 1960 - Sections 91, 163 - Maintainability of suits - Appeals arise from a Division Bench order rejecting maintainability of suits based on cooperative society resolution - The Court found that civil suits challenging resolution and conveyance are maintainable as jurisdiction of civil courts is not excluded when it pertains to disputes over sales not covered by the cooperative act. (Paras 9-39)

(B) Interim Relief - The proper procedure for interim orders and the examination of the merit of claims during the trial were emphasized, allowing for the examination of applications post-verdict. (Paras 41-42)

Table of Content
1. possible maintainability inquiry addressing resolution issues (Para 5 , 8 , 9)
2. arguments regarding jurisdiction and entitlement to challenge cooperatives (Para 10 , 11 , 12)
3. judicial duty to maintain interim status pending proper proceedings (Para 39 , 41)

1. Leave granted.

2. These appeals arise out of a common order dated 29th August, 2011 of the Division Bench of the Bombay High Court passed in three writ petitions and two suits, 144 and 145 of 2010.

3. By the said common order, it was held, among other things, that the two suits are not maintainable in view of the provisions of S.91 and S.163 of the Maharashtra Co - operative Societies Act, 1960 (hereinafter `the Act', for short). We are not concerned with the remaining part of the Division Bench's judgment as the instant special leave petitions are preferred only against that part of the Division Bench's judgment. The brief factual background of this litigation is as follows.

4. The first respondent is a Society which was originally incorporated in the year 1914. The full particulars of such incorporation are not available at this juncture on record and are also not necessary for the present purpose. It is sufficient to state that it is admitted on all hands that it is a housing cooperative society and the Act governs the affairs of the said Society.

5. It is also an admitted fact on all hands that the said Society has different classes of members known as owners, lessees, allottees, tenants, etc. It is also an admitted fact that the total membership is 762 out of which 69 members fall under the classification of tenant members. However, the exact rights and obligations of these various classes of members, vis - ` - vis the first respondent Society or these various classes of members inter se are also not available on record.

6. It appears from the record that, as on today, the first respondent Society owns an extent of approximately 21,774.10 sq. mts. of land in the city of Mumbai alongwith structures popularly known as Wellingdon Catholic Colony. It appears that the said property was part of a larger parcel of land earlier owned by the first respondent Society but is not owned by the Society now. Some of the `tenant members' (including the appellants herein) of the Society initiated proceedings for the division of the Society sometime in the year 1970 invoking S.18 of the Act by making an application to the Registrar. The said application has a very long and chequered history, the details of which are not necessary for the present purpose except to state that by virtue of the judgment under appeal, the application is still open and pending.

7. In the meanwhile, in a resolution came to be passed on the 6th December, 2009 by the General Body of the Society to sell the above mentioned land in favour of respondents No.22 and 23. In furtherance of the said resolution, a sale deed / conveyance came to be executed on 7th December, 2009. Aggrieved by the said resolution and the sale, two suits 144 and 145/2010 came to be filed invoking the original jurisdiction of the Bombay High Court. A copy of the plaint in the suit No.145/2010 is placed on record in these SLPs. The principal prayer in both the civil suits is
"(a) for a declaration that the said Resolution dated 6th December, 2009 (Exhibit `K' hereto) and the said Conveyance dated 7th December, 2009 (Exhibit `M' hereto) are invalid, illegal and void ab initio and / or the same are voidable as against the Plaintiffs and the Tenant members of Defendant No.17 Association;
(a - i) That this Hon'ble Court be pleased to pass Order declaring S.164 of Maharashtra Co - operative Societies Act, 12 Violation of Art.14 of the Constitution of India and the same ought to be struck down."
It can be seen from prayer (a) extracted above that the plaintiffs seek in effect two declarations - (i) that a resolution dated 6th November, 2009 of the first respondent Society, and (ii) a Conveyance dated 7th December, 2009 execu





















































































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