Case Note & Summary
The petitioner, Mrs. Jyoti Sharadchandra Lohokare, filed a Writ Petition under Article 227 of the Constitution of India challenging the legality and validity of an order dated 6th March 2019 passed by the learned Judge, Co-operative Court, Thane, and the judgment and order dated 10th June 2019 passed by the learned Member, Maharashtra State Co-operative Appellate Court, Mumbai. The dispute arose from a Resolution passed in the Annual General Meeting dated 11th November 2006 of Respondent No. 1 Housing Society, Shreeji Ville CHS Ltd., levying mandatory charges towards expenses for 'cultural activities'. The petitioner contended that Bye-Law No. 148 of the Model Bye-Laws provides for appropriation of profits and Bye-law No. 65 provides for compulsory charges, and that cultural charges are not included under compulsory charges, thus the levy was illegal. The respondent society argued that the resolution was passed in the Annual General Meeting and was permissible by law. The court framed the question whether a Co-operative Housing Society can levy and collect charges for cultural activities. After hearing both sides, the court held that the society can levy such charges if authorized by a resolution in the Annual General Meeting and not contrary to the Bye-laws. The court found no merit in the petition and dismissed it, upholding the impugned orders.
Headnote
A) Co-operative Law - Levy of Charges - Cultural Activities - Maharashtra Co-operative Societies Act, 1960 - Model Bye-Laws - The issue was whether a housing society can levy mandatory charges for cultural activities. The court held that such charges are permissible if authorized by a resolution in the Annual General Meeting and not contrary to the Bye-laws. The court dismissed the petition challenging the resolution dated 11th November 2006. (Paras 6-8)
Issue of Consideration
Whether a Co-operative Housing Society can levy and collect charges towards expenses for 'cultural activities' and whether such an act is permissible in law.
Final Decision
The Writ Petition is dismissed. The impugned orders are upheld. No order as to costs.
Law Points
- Co-operative Housing Society can levy charges for cultural activities if authorized by resolution in Annual General Meeting
- Bye-laws of the society
- Model Bye-Laws
- Maharashtra Co-operative Societies Act
- 1960
Case Details
2023 LawText (BOM) (09) 122
WRIT PETITION NO. 11870 OF 2019
Mr. Butala i/b. M/s. S.S. Butala & Associates for Petitioner, Mr. Prashant P. Kulkarni for Respondent No.1, Mr. P.G. Sawant, AGP for Respondent No.4 - State
Mrs. Jyoti Sharadchandra Lohokare
The Managing Committee, Shreeji Ville CHS Ltd. & Ors.
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Nature of Litigation
Writ Petition under Article 227 challenging orders of Co-operative Court and Appellate Court regarding levy of cultural activity charges by a housing society.
Remedy Sought
Petitioner sought quashing of the order dated 6th March 2019 of the Co-operative Court and the judgment dated 10th June 2019 of the Appellate Court, and declaration that the levy of cultural charges is illegal.
Filing Reason
Petitioner challenged the legality and validity of a resolution passed in the Annual General Meeting dated 11th November 2006 levying mandatory charges for cultural activities.
Previous Decisions
Co-operative Court dismissed the dispute (Exhibit 5) and the Appellate Court confirmed that order.
Issues
Whether a Co-operative Housing Society can levy and collect charges towards expenses for 'cultural activities'?
Whether such levy is permissible under the Bye-laws and the Maharashtra Co-operative Societies Act, 1960?
Submissions/Arguments
Petitioner argued that Bye-law No. 148 provides for appropriation of profits and Bye-law No. 65 lists compulsory charges, and cultural charges are not included, hence illegal.
Respondent argued that the resolution was passed in the Annual General Meeting and is permissible by law.
Ratio Decidendi
A Co-operative Housing Society can levy charges for cultural activities if such levy is authorized by a resolution passed in the Annual General Meeting and is not contrary to the Bye-laws of the society or the Maharashtra Co-operative Societies Act, 1960.
Judgment Excerpts
Thus, the question to be decided in this Writ Petition is whether a Co-operative Housing Society can levy and collect charges towards expenses for ‘cultural activities’ and whether such an act of a Co-operative Housing Society is permissible in law.
In my view, the Co-operative Court and the Appellate Court have rightly held that the society can levy such charges.
Procedural History
The petitioner filed Dispute No. CCT 22/2019 before the Co-operative Court, Thane, challenging the resolution. The Co-operative Court dismissed the dispute by order dated 6th March 2019 on Exhibit 5. The petitioner appealed to the Maharashtra State Co-operative Appellate Court, Mumbai, which dismissed the appeal by judgment and order dated 10th June 2019 in A.O. No. 21 of 2019. The petitioner then filed the present Writ Petition under Article 227.
Acts & Sections
- Constitution of India: Article 227
- Maharashtra Co-operative Societies Act, 1960:
