SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2026 Supreme(Online)(SCDRC) 2684

STATE CONSUMER DISPUTES REDRESSAL COMMISSION CIRCUIT BENCH NAGPUR
Kalyani Kapse, Presiding Member, Shaila D. Wandhare, Member
Kamlesh Bakaram Athilkar – Appellant
Versus
Manoj Yuvraj Dongre – Respondent
REVISION PETITION NO. SC/CB2/27/RP/7/2024



Advocates:
For the Appellants/Petitioners: S.K. Tamde
For the Respondents: R.V. Kinarkar

A co-operative society, as a body corporate with perpetual succession, is liable for its financial obligations regardless of changes in its Managing Committee; current office bearers are necessary parties for the effective execution of such liabilities.

Headnote:(A) Co-operative Societies - Liability of Body Corporate - Change in Managing Committee - A society, being a body corporate with perpetual succession, remains liable for deposits made by members regardless of changes in the Managing Committee or the supersession of a previous committee. (Para 7)

(B) Execution Proceedings - Impleadment of Parties - Current office bearers of a society are necessary parties for the effective execution of an order passed against the society, and their impleadment is justified to ensure enforcement of the decree. (Para 7)

(C) Principles of Natural Justice - Notice for Impleadment - While prior notice may not always be required at the stage of considering an impleadment application in execution proceedings, the impleaded parties are entitled to a due opportunity of hearing thereafter. (Para 7)

Issues: Whether the current office bearers of the Society can be impleaded in execution proceedings for a liability incurred during the tenure of a previous Managing Committee.

ORDER

ORDER

1. The revision petitioners have filed this revision petition challenging the impugned order dated 30/06/2022 passed by the learned District Consumer Disputes Redressal Commission, Gondia along with show cause notice or summons dated 21/07/2022 in EA No.06/2021.

2. The learned Advocate of the revision petitioners Shri.S.K.Tamde is present. The respondent is duly served with notice and accordingly, he appeared through learned Advocate Shri.R.V.Kinarkar.

3. It is submitted by the learned Advocate of the revision petitioners that the present revisional petitioner are the duly elected President and Vice-President of the Society, elected in the lawful election held on 05/01/2022 under the provisions of the Maharashtra Co-operative Societies Act, 1960 and they are not concerned with the alleged deposit made by respondent during the tenure of the erstwhile Managing Committee elected in the year 2016. It is also submitted that the said Managing Committee was superseded due to serious allegations of embezzlement and misappropriation of funds and an enquiry under Section 88 of the said Act was initiated, wherein the audit report has specifically pointed out misappropriation of cases in the Audit report 2015-2019 including the amount deposited by respondent. It is further submitted that the present petitioners were neither members of the said erstwhile Managing Committee nor parties to the original consumer complaint proceedings and therefore no liability can be fastened upon them for the acts of the previous body. It is further submitted that without issuing proper notice and without granting an opportunity of hearing, the learned District Consumer Disputes Redressal Commission, Gondia has allowed the amendment application in execution proceedings and wrongly added the present applicants which is in clear violation of the principles of natural justice. It is further submitted that due to police action, the bank accounts of the Society are seized and frozen, and the Society is facing severe financial constraints and therefore it is not in a position to comply with the impugned order. Therefore, the impugned order dated 30/06/2022 along with show cause notice dated 21/07/2022 sin EA No.06/2021 deserves to be quashed being illegal, arbitrary, bad in law.

4. On the contrary, it is submitted by the learned Advocate of the respondent that the impugned order passed by the learned District Consumer Disputes Redressal Commission is legal, proper and passed in accordance with law. It is also submitted that the amount in question was deposited with the Society and the Society is liable to repay the same irrespective of the change in the Managing Committee. It is further submitted that the present revisional petitioners are the office bearers of the Society and are responsible for compliance of the order passed by the learned District Commission. It is further submitted that the amendment in execution proceedings has been rightly allowed for effective enforcement of the order and no prejudice is caused to the petitioners. It is further submitted that the plea regarding acts of the erstwhile Managing Committee and financial difficulties of the Society cannot absolve the present office bearers from their legal liability towards the depositor. Therefore, the revision is not maintainable and is liable to be dismissed with heavy costs.

5. We have heard the learned Advocate of the revision petitioners Shri.S.K.Tambe and the learned Advocate of the respondent Shri.R.V.Kinarkar at length. Perused the record and documents produced along with the revision petition.

6. Upon hearing both sides and on perusal of the record, it is seen that the dispute arises hereunder is nothing but out of non-payment of the deposit amount to the respondent which constitutes “deficiency in service” within the meaning of Section 2(1)(g) read with Section 2(1)(o) of the Consumer Protection Act, 1986 as the Society provides financial services to its members and depos

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top