Case Note & Summary
The Bombay High Court allowed a writ petition filed by a cooperative housing society challenging an order of the Cooperative Appellate Court which had set aside the Trial Court's judgment on the ground of lack of jurisdiction. The dispute originated from the society's claim for eviction of the respondents from a servant quarter (Room No.4) which was allotted to the respondents' predecessor-in-interest, Diwalibai, who was employed as a sweeper by the society. After Diwalibai's death, her son and later his wife (Respondent No.1) continued to occupy the room while working as sweepers. The society terminated the services of Respondent No.1 in 2005 and filed a dispute under Section 91 of the Maharashtra Cooperative Societies Act, 1960 seeking possession and mesne profits. The Trial Court held that the dispute touched the management of the society and decreed eviction. The Appellate Court reversed, holding that the dispute did not fall within Section 91 as it related to an employee and not to the business of the society. The High Court analyzed the distinction between 'business' and 'management' of a society, relying on precedents including Deccan Merchants Co-operative Bank Ltd. v. Dalichand Jugraj Jain and Maharashtra Cooperative Housing Finance Society Ltd. v. Bombay. It held that the employment of servants and the administration of society property are part of the management of the society, and a dispute for recovery of possession of such property from an ex-employee is a dispute touching the management, falling within the jurisdiction of the Cooperative Court under Section 91. The High Court set aside the Appellate Court's order and restored the Trial Court's judgment, directing the respondents to vacate the premises.
Headnote
A) Cooperative Law - Jurisdiction of Cooperative Court - Section 91 Maharashtra Cooperative Societies Act, 1960 - Dispute touching management of society - The issue was whether a dispute for recovery of possession of servant quarters from an ex-employee falls within the jurisdiction of the Cooperative Court under Section 91 of the MCS Act. The High Court held that the employment of a servant is part of the management of the society and recovery of possession of property allotted to such servant is a dispute touching the management of the society, thus within the jurisdiction of the Cooperative Court. The Court set aside the Appellate Court's order and restored the Trial Court's judgment. (Paras 1-18) B) Cooperative Law - Management vs. Business of Society - Section 91 Maharashtra Cooperative Societies Act, 1960 - The High Court distinguished between 'business' and 'management' of a society, holding that management includes day-to-day affairs such as employment of staff and administration of property, while business refers to the actual trading or commercial activities of the society. The dispute in question pertained to management, not business, and thus fell under Section 91. (Paras 12-18)
Issue of Consideration
Whether a dispute for recovery of possession of servant quarters from an ex-employee of a cooperative housing society falls within the jurisdiction of the Cooperative Court under Section 91 of the Maharashtra Cooperative Societies Act, 1960 as a dispute touching the management of the society.
Final Decision
The High Court allowed the writ petition, set aside the judgment of the Cooperative Appellate Court dated 4th February 2019, and restored the judgment of the Trial Court dated 7th April 2018. The respondents were directed to vacate the premises.
Law Points
- Jurisdiction of Cooperative Court under Section 91 MCS Act extends to disputes touching management of society
- including employment of servants and recovery of possession of property allotted to them
- management of society includes day-to-day affairs and administration of property
- distinction between business and management of society
