Case Note & Summary
The dispute arose between two companies and a cooperative society regarding the sale of office premises. The appellant, a member of the cooperative society, entered into an agreement to sell its office premises to a non-member, subject to the society's approval. The society refused permission for the transfer, leading the non-member to file a dispute in the Cooperative Court for specific performance of the agreement. The Cooperative Court dismissed the case for lack of jurisdiction, but the Maharashtra Cooperative Appellate Court reversed this decision. The appellant then filed a writ petition in the High Court, which upheld the appellate court's ruling. The Supreme Court was approached to determine whether the dispute fell under Section 91 of the Maharashtra Cooperative Societies Act. The court concluded that the main claim for specific performance was not a dispute 'touching the business of the society' and therefore did not fall under the jurisdiction of the Cooperative Court. The court set aside the High Court's judgment, emphasizing that the claim was made by a non-member against the society through a member, which was not permissible under the Act. The appeal was allowed, and the judgment of the High Court was set aside.
Headnote
A) Cooperative Law - Jurisdiction of Cooperative Courts - Dispute touching business of society - Section 91 Maharashtra Cooperative Societies Act, 1960 - The court held that a non-member's claim for specific performance against a member and the society does not fall within the jurisdiction of the Cooperative Court as it does not involve a dispute 'touching the business of the society' as required under Section 91. The court found that the main claim was for specific performance against the member, not through the society. Held that the High Court erred in its conclusion (Paras 473B-H; 474A).
Issue of Consideration
Whether the dispute regarding the agreement to sell office premises falls under the jurisdiction of the Cooperative Court as per Section 91 of the Maharashtra Cooperative Societies Act, 1960.
Final Decision
The Supreme Court allowed the appeal, setting aside the High Court's judgment, and held that the dispute did not fall within the jurisdiction of the Cooperative Court under Section 91 of the Maharashtra Cooperative Societies Act.
Law Points
- Jurisdiction of Cooperative Courts
- Specific Performance
- Cooperative Society Agreements
