High Court of Bombay at Nagpur Dismisses Petition by Co-operative Society Challenging Co-operative Court Orders — Upholds Members' Right to Fish and Remuneration. The Court held that the Co-operative Court had jurisdiction under Section 91 of the Maharashtra Co-operative Societies Act, 1960, and that the resolutions expelling members were illegal.

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

The petitioner, Valmiki Matsya Vyavasaik Sahakari Sanstha Ltd., a co-operative society, filed a writ petition challenging the judgments of the Co-operative Court, Nagpur, and the Maharashtra State Co-operative Appellate Court, Nagpur Bench. The Co-operative Court had allowed a dispute raised by respondent Nos.1 to 9 under Section 91 of the Maharashtra Co-operative Societies Act, 1960, holding that the respondents, being members of the petitioner-Society, had a right to fish and get remuneration, and that the resolutions of the petitioner-Society dated 19-10-1992 and 22-2-1993 were illegal. The Co-operative Court also restrained the petitioner-Society from disallowing respondent Nos.1 to 9 from taking part in fishing work. The Appellate Court upheld this judgment. The petitioner-Society contended that it had passed resolutions to expel members who were fishing in a water body belonging to Khapre-Patil, which was detrimental to the Society's interest. A notice was issued to respondent No.1, and subsequently, the Managing Committee cancelled his membership. Nine members then filed the dispute. The High Court, after hearing the parties, found no merit in the petition and dismissed it, upholding the orders of the Co-operative Court and the Appellate Court. The Court held that the Co-operative Court had jurisdiction under Section 91 and that the resolutions were rightly set aside as they were passed without following proper procedure and infringed upon the members' rights.

Headnote

A) Co-operative Law - Jurisdiction of Co-operative Court - Section 91 of Maharashtra Co-operative Societies Act, 1960 - Dispute regarding expulsion of members and right to fish - Co-operative Court has jurisdiction to decide disputes touching the business of the society - Held that the dispute raised by members was within the ambit of Section 91 (Paras 1-3).

B) Co-operative Law - Expulsion of Members - Validity of Resolutions - Resolutions dated 19-10-1992 and 22-2-1993 - Society passed resolutions expelling members for fishing in a water body - Co-operative Court and Appellate Court held resolutions illegal as they were passed without proper procedure and violated members' rights - Held that the resolutions were invalid (Paras 1-3).

C) Co-operative Law - Right of Members - Fishing and Remuneration - Members of a fishing co-operative society have a right to fish and receive remuneration - Society cannot arbitrarily deprive members of their livelihood - Held that respondent Nos.1 to 9 had a right to fish and get remuneration (Paras 1-3).

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Issue of Consideration

Whether the Co-operative Court and Appellate Court correctly held that the petitioner-Society's resolutions dated 19-10-1992 and 22-2-1993 were illegal and that respondent Nos.1 to 9 had a right to fish and get remuneration.

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Final Decision

The High Court dismissed the writ petition, upholding the judgments of the Co-operative Court and the Appellate Court.

Law Points

  • Section 91 of Maharashtra Co-operative Societies Act
  • 1960
  • jurisdiction of Co-operative Court
  • validity of resolutions expelling members
  • right of members to participate in society's activities
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Case Details

2010 LawText (BOM) (01) 412

Writ Petition No.535 of 2002

2010-01-11

R.C. Chavan, J.

Shri S.B. Solat for Petitioner, Shri N.N. Thengre for Respondent Nos.1 to 9, Shri D.B. Patel, AGP for Respondent No.10

Valmiki Matsya Vyavasaik Sahakari Sanstha Ltd., Kurud, through its President Shri Deonath Sonuji Meshram

Shalikram Bisan Meshram and others (Respondent Nos.1 to 9), The State of Maharashtra (Respondent No.10)

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Nature of Litigation

Writ petition challenging judgments of Co-operative Court and Appellate Court in a dispute under Section 91 of the Maharashtra Co-operative Societies Act, 1960.

Remedy Sought

Petitioner-Society sought to set aside the judgments of the Co-operative Court and Appellate Court which held that respondent Nos.1 to 9 had a right to fish and get remuneration and that the resolutions dated 19-10-1992 and 22-2-1993 were illegal.

Filing Reason

The petitioner-Society passed resolutions expelling members who fished in a water body of Khapre-Patil, which the Society considered detrimental. Respondent Nos.1 to 9 challenged these resolutions before the Co-operative Court.

Previous Decisions

The Co-operative Court allowed the dispute and held that respondent Nos.1 to 9 had a right to fish and get remuneration, and declared the resolutions illegal. The Appellate Court upheld this judgment.

Issues

Whether the Co-operative Court had jurisdiction under Section 91 of the Maharashtra Co-operative Societies Act, 1960 to entertain the dispute. Whether the resolutions dated 19-10-1992 and 22-2-1993 expelling members were valid.

Submissions/Arguments

Petitioner argued that the Society passed resolutions to protect its interests and that the members were fishing in a water body detrimental to the Society. Respondent Nos.1 to 9 argued that they were members of the Society and had a right to fish and receive remuneration, and that the resolutions were illegal.

Ratio Decidendi

The Co-operative Court has jurisdiction under Section 91 of the Maharashtra Co-operative Societies Act, 1960 to decide disputes touching the business of the society. The resolutions expelling members were illegal as they were passed without proper procedure and violated the members' rights to fish and receive remuneration.

Judgment Excerpts

The Co-operative Court allowed a dispute raised by respondent Nos.1 to 9 under Section 91 of the Maharashtra Co-operative Societies Act, 1960 and held that respondent Nos.1 to 9, being the members of the petitioner-Society, had a right to fish and get remuneration and that the resolutions of the petitioner-Society dated 19-10-1992 and 22-2-1993 are illegal. The said judgment of the Co-operative Court was upheld by the Co-operative Appellate Court.

Procedural History

The petitioner-Society passed resolutions on 19-10-1992 and 22-2-1993 expelling members. Respondent Nos.1 to 9 filed a dispute under Section 91 of the Maharashtra Co-operative Societies Act, 1960 before the Co-operative Court, Nagpur. The Co-operative Court allowed the dispute. The petitioner-Society appealed to the Maharashtra State Co-operative Appellate Court, Nagpur Bench, which dismissed the appeal. The petitioner-Society then filed the present writ petition before the High Court.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 91
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