Case Note & Summary
The Bombay High Court, in an interim application filed by Defendant No. 5 (Parimal H. Solanki) in Suit No. 1190 of 2019, considered whether the Civil Court had jurisdiction to entertain a suit filed by Bhoumik Co-operative Housing Society Limited (Plaintiff No. 1) and a Developer (Plaintiff No. 2) against various defendants, including members and developers, concerning the redevelopment of the society's property. The suit was filed on 26th August 2019, after the 2019 Amendment to the Maharashtra Co-operative Societies Act, 1960 (MCS Act) came into effect on 9th March 2019. The Applicant/Defendant No. 5 sought return of the plaint under Rule 283(i) of the Bombay High Court (Original Side) Rules, arguing that the dispute fell within the exclusive jurisdiction of the Co-operative Court constituted under Section 91A of the MCS Act, and that Section 91(3) of the MCS Act barred the jurisdiction of Civil Courts. The Court, after hearing submissions, held that the dispute between the Society and its members/developers regarding redevelopment of the society's property is a dispute touching the business of the society under Section 91(1) of the MCS Act. Since the suit was filed after the 2019 Amendment, the Civil Court lacked jurisdiction, and the plaint was ordered to be returned to the Plaintiffs for presentation to the Co-operative Court of competent jurisdiction. The Court allowed the interim application and directed the return of the plaint.
Headnote
A) Civil Procedure - Jurisdiction - Return of Plaint - Rule 283(i) of Bombay High Court (Original Side) Rules - Maharashtra Co-operative Societies Act, 1960, Sections 91, 91A - The Court held that the suit filed by the Society and Developer against members/developers regarding redevelopment of society property is a dispute touching the business of the society under Section 91(1) of the MCS Act. Since the suit was filed after the 2019 Amendment (effective 9th March 2019), the jurisdiction of the Civil Court is barred under Section 91(3), and the plaint must be returned for presentation to the Co-operative Court under Rule 283(i). (Paras 1-3)
B) Co-operative Law - Dispute - Business of Society - Section 91(1) of Maharashtra Co-operative Societies Act, 1960 - The dispute between the Society and its members/developers concerning redevelopment of the society's property is a dispute touching the business of the society, as it relates to the management and administration of the society's affairs. The Court relied on the 2019 Amendment which expanded the scope of disputes under Section 91. (Paras 2-3)
Issue of Consideration
Whether the Civil Court has jurisdiction to entertain a suit filed by a Co-operative Housing Society and a Developer against members/developers concerning redevelopment of the society's property, in light of the 2019 Amendment to the Maharashtra Co-operative Societies Act, 1960, which bars civil court jurisdiction over disputes covered under Section 91 of the MCS Act.
Final Decision
The Court allowed the Interim Application and directed the return of the Plaint to the Plaintiffs for presentation to the Co-operative Court of competent jurisdiction under Rule 283(i) of the Bombay High Court (Original Side) Rules.
Law Points
- Jurisdiction of Civil Court barred under Section 91(3) of MCS Act
- 1960
- Co-operative Court has exclusive jurisdiction over disputes touching business of society
- 2019 Amendment to MCS Act effective 9th March 2019
- Rule 283(i) of Bombay High Court (Original Side) Rules for return of plaint
Case Details
2022 LawText (BOM) (10) 40
Interim Application (L) No. 25993 of 2022 in Suit No. 1190 of 2019
Mr. Aseem Naphade a/w Mr. Devang Parmar for Defendant Nos. 4 to 6 and 16; Mr. Dinyar Madon, Senior Advocate a/w Mr. Ziyad Madon, Shamima Taly, Mr. Aziz Mohd. Sehyr Taly i/by S. Mahomedbhai & Co. for Plaintiffs in S/1190/2019 and Defendants in S/76/2021 and for Respondent Nos. 1 & 2 in AO No. 122/2021; Mr. Rajendra Pai, Senior Advocate a/w Mr. Yogendra A. Rajgor, Mr. Shardul CJT, Ms. Neha Kamble i/by Legal Chartered for Plaintiffs in S/76/2021 and for Defendant Nos. 1 to 3, 7 to 11, 14 and 15 in S/1190/2019; Mr. Yogendra A. Rajgor i/b Legal Chartered for Appellants in AO 122/2021; Mr. Manish Upadhye, AGP for State of Maharashtra in IA/2400/21
Parimal H. Solanki (Defendant No. 5)
Bhoumik Co-operative Housing Society Limited & Anr. (Plaintiffs)
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Nature of Litigation
Interim Application seeking return of plaint for lack of jurisdiction in a suit concerning redevelopment of a co-operative housing society's property.
Remedy Sought
Defendant No. 5 sought direction to return the Plaint to the Plaintiff under Rule 283(i) of Bombay High Court (Original Side) Rules for presentation to the Court of competent jurisdiction.
Filing Reason
The Applicant contended that the suit filed by the Society and Developer raised a dispute covered under Section 91(1) of the MCS Act, and after the 2019 Amendment, the jurisdiction of the Civil Court was barred under Section 91(3), and the Co-operative Court had exclusive jurisdiction.
Issues
Whether the Civil Court has jurisdiction to entertain a suit filed by a Co-operative Housing Society and a Developer against members/developers concerning redevelopment of the society's property, in light of the 2019 Amendment to the Maharashtra Co-operative Societies Act, 1960.
Submissions/Arguments
Mr. Naphade, counsel for Defendant No. 5, submitted that the 2019 Amendment to the MCS Act, effective 9th March 2019, bars civil court jurisdiction over disputes covered under Section 91(1) and (3) of the MCS Act, and the Co-operative Court under Section 91A has exclusive jurisdiction. The suit was filed on 26th August 2019, post-amendment, and thus the plaint should be returned.
Ratio Decidendi
The dispute between a Co-operative Housing Society and its members/developers regarding redevelopment of the society's property is a dispute touching the business of the society under Section 91(1) of the Maharashtra Co-operative Societies Act, 1960. After the 2019 Amendment (effective 9th March 2019), Section 91(3) bars the jurisdiction of Civil Courts over such disputes, and the Co-operative Court under Section 91A has exclusive jurisdiction. Therefore, the plaint must be returned for presentation to the proper court.
Judgment Excerpts
By this Interim Application, the Applicant/original Defendant No. 5 has sought direction to return the Plaint to the Plaintiff under the provisions of Rule 283(i) of Bombay High Court (Original Side) Rules for being presented to the Court of competent jurisdiction.
Mr. Naphade, learned Counsel appearing for the Defendant No. 5 has placed reliance on the 2019 Amendment of the Maharashtra Co-operative Societies Act, 1960 (“the MCS Act”), which came into effect on 9th March 2019. It is submitted that the Co-operative Court constituted under Section 91A of the MCS Act, would have jurisdiction to entertain and try the present Suit filed by Plaintiff No. 1-Society and Plaintiff No. 2-Developer.
The present Suit was filed on 26th August 2019 which is post the 2019 amendment and since it raises a dispute covered under Section 91(1) of the MCS Act and Section 91(3) of the MCS Act, the jurisdiction of the Civil Court to entertain the dispute is barred.
Procedural History
The suit (Suit No. 1190 of 2019) was filed on 26th August 2019 by Bhoumik Co-operative Housing Society Limited and another against various defendants. Defendant No. 5 filed Interim Application (L) No. 25993 of 2022 seeking return of the plaint for lack of jurisdiction. The application was heard and decided on 6th October 2022.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: 91, 91A
- Bombay High Court (Original Side) Rules: Rule 283(i)
