Bombay High Court Allows Writ Petition Challenging Trial Court Order Allowing Counter Claim in Cooperative Dispute — Limitation Issue Raised. The court held that allowing the counter claim would extinguish the period of limitation available to the respondents and permit the petitioners to maintain the counter claim from the date of inception of the suit.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The present Writ Petition was filed by the legal heirs of the original petitioner M.L. Sandbhor against Sulochana Walimbe (deceased) through her legal heirs and Prathamik Shikshak Samithi Madhukunj Co-operative Housing Society Ltd. The dispute arose from a cooperative dispute bearing Dispute Application No.261 of 1997 filed between the parties. The petitioners filed a counter claim in the year 2014 before the learned Trial Court. The Trial Court allowed the counter claim, which was challenged by the respondents. The High Court heard the matter on 01.12.2022 and on 10.12.2022, the order allowing the Petition was uploaded on the website of the High Court without pronouncing the judgment. On 23.12.2022, the Court was moved by an urgent Application filed by Mr. Kanetkar appearing on behalf of Respondent Nos.1a and 1b, bringing to the notice of the Court that the judgment was not pronounced and that the final judgment was uploaded on the High Court website on 10.12.2022. He also submitted that the counter claim filed by the Petitioners before the learned Trial Court in the year 2014 could never have been allowed as allowing the same would virtually extinguish the period of limitation available to the Respondents and permit the Petitioners to maintain the counter claim and relate it from the date of inception of the suit / impleadment. The Court considered the submissions and perused the final judgment. The Court allowed the writ petition and set aside the order of the Trial Court allowing the counter claim.

Headnote

A) Cooperative Law - Counter Claim - Limitation - Maharashtra Cooperative Societies Act, 1960, Section 91 - Order VIII Rule 6A CPC - The court considered whether a counter claim filed in 2014 in a dispute of 1997 could be allowed without considering limitation. The court held that allowing the counter claim would extinguish the period of limitation available to the respondents and permit the petitioners to maintain the counter claim from the date of inception of the suit. The court set aside the order allowing the counter claim. (Paras 1-3)

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Issue of Consideration

Whether the Trial Court's order allowing the counter claim filed by the petitioners in the year 2014 in a dispute of 1997 was correct in law, particularly in light of limitation and procedural fairness.

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Final Decision

The High Court allowed the writ petition and set aside the order of the Trial Court allowing the counter claim.

Law Points

  • Limitation
  • Counter claim
  • Cooperative Societies Act
  • 1960
  • Order VIII Rule 6A CPC
  • Section 91 of the Maharashtra Cooperative Societies Act
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Case Details

2023 LawText (BOM) (01) 225

WRIT PETITION NO. 6600 OF 2015

2023-02-16

MILIND N. JADHAV, J.

Mr. Vilas B. Tapkir for Petitioners, Mr. Shailendra S. Kanetkar for Respondent Nos.1a & 1b

M.L. Sandbhor (since deceased through his legal heirs: Lata Maruti Sandbhor, Rajendra Maruti Sandbhor, Nirmala Dattatraya Tupe, Narendra Maruti Sandbhor)

Sulochana Walimbe (deceased through legal heirs: Sandeep Shridhar Walimbe, Sachin Shridhar Walimbe) and Prathamik Shikshak Samithi Madhukunj Co-operative Housing Society Ltd.

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Nature of Litigation

Writ Petition challenging the order of the Trial Court allowing a counter claim in a cooperative dispute.

Remedy Sought

The petitioners sought to challenge the order allowing the counter claim, and the respondents sought to set aside that order.

Filing Reason

The counter claim filed in 2014 in a dispute of 1997 was allowed by the Trial Court, which the respondents argued would extinguish the period of limitation.

Previous Decisions

The Trial Court allowed the counter claim filed by the petitioners in 2014 in Dispute Application No.261 of 1997.

Issues

Whether the Trial Court's order allowing the counter claim was correct in law. Whether allowing the counter claim would extinguish the period of limitation available to the respondents.

Submissions/Arguments

Mr. Kanetkar for the respondents submitted that the counter claim could never have been allowed as it would extinguish the period of limitation and permit the petitioners to maintain the counter claim from the date of inception of the suit. The petitioners argued in support of the counter claim.

Ratio Decidendi

Allowing a counter claim filed belatedly in a pending dispute would extinguish the period of limitation available to the opposite party and permit the counter claimant to relate it back to the date of inception of the suit, which is impermissible.

Judgment Excerpts

the counter claim filed by the Petitioners before the learned Trial Court in the year 2014 could never have been allowed in any event as allowing the same would virtually extinguish the period of limitation which is available to the Respondents and permit the Petitioners to maintain the counter claim and relate it from the date of inception of the suit / impleadment.

Procedural History

The writ petition was heard on 01.12.2022. On 10.12.2022, the order allowing the petition was uploaded on the High Court website without pronouncing judgment. On 23.12.2022, the respondents filed an urgent application bringing this to the court's notice. The court then considered the submissions and passed the final judgment on 16.02.2023.

Acts & Sections

  • Maharashtra Cooperative Societies Act, 1960: Section 91
  • Code of Civil Procedure, 1908: Order VIII Rule 6A
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