Case Note & Summary
The case involved appeals arising from a common order of the Bombay High Court regarding the maintainability of two civil suits filed by tenant members of a housing cooperative society against the society's resolution to sell property. The society, incorporated in 1914, had 762 members, including 69 tenant members. The tenant members challenged a resolution passed on December 6, 2009, to sell land to third parties, claiming the resolution and subsequent conveyance were illegal. The High Court ruled the suits were not maintainable under Sections 91 and 163 of the Maharashtra Co-operative Societies Act, 1960, asserting that the disputes should be resolved by the Co-operative Court. The appellants contended that the Civil Court had jurisdiction to declare the conveyance void as it involved a non-member. The Supreme Court analyzed the jurisdictional issues, emphasizing that the Civil Court's jurisdiction is not excluded unless explicitly stated in the statute. The Court concluded that the suits were maintainable, allowing the appellants to seek relief in the Civil Court. The Court directed the parties to maintain status quo for two weeks to enable the High Court to consider interim orders. The appeals were disposed of accordingly.
Headnote
A) Co-operative Societies Law - Jurisdiction of Civil Courts - Maintainability of Suits - Maharashtra Co-operative Societies Act, 1960, Sections 91, 163 - The High Court held that the suits were not maintainable as the disputes were amenable to the jurisdiction of the Co-operative Court under Section 91. The Supreme Court disagreed, stating that the Civil Court's jurisdiction is not excluded unless expressly stated, and the suits could challenge the conveyance and resolution independently. Held that the suits are maintainable (Paras 39-41).
Issue of Consideration
Whether the suits filed by the appellants were maintainable in light of Sections 91 and 163 of the Maharashtra Co-operative Societies Act, 1960.
Final Decision
The Supreme Court held that the suits were maintainable and that the jurisdiction of the Civil Courts was not excluded by the Maharashtra Co-operative Societies Act. The Court directed the parties to maintain status quo for two weeks to allow the High Court to consider interim orders.
Law Points
- Jurisdiction of Civil Courts
- Maintainability of Suits
- Co-operative Societies Act
- 1960
- Sections 91
- 163
- 9 of CPC
