Bombay High Court Dismisses Suits for Possession of Flats Filed by Co-operative Society Against Members for Want of Jurisdiction. Dispute Between Society and Member Relating to Tenancy Falls Within Exclusive Jurisdiction of Co-operative Court Under Section 91 of Maharashtra Co-operative Societies Act, 1960.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
  • 106
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Case Note & Summary

The plaintiff, Sweet Home Co-operative Housing Society Ltd., filed two suits (Suit No. 2354 of 2003 and Suit No. 2355 of 2003) in the Bombay High Court seeking recovery of possession of flats from the defendants, Himanshu Khurana and Bhimsain Khurana respectively. The society claimed that the defendants were tenants of the flats and had failed to pay rent, making them liable for eviction. The defendants raised a preliminary objection regarding the jurisdiction of the civil court, arguing that the dispute between a co-operative society and its members falls within the exclusive jurisdiction of the co-operative court under Section 91 of the Maharashtra Co-operative Societies Act, 1960 (MCS Act). The court framed an issue on jurisdiction and heard arguments. The court examined the plaint allegations and found that the society itself described the defendants as tenants and sought eviction on grounds of non-payment of rent. The court held that such a dispute between a society and its member relating to tenancy or possession is covered by Section 91 of the MCS Act, which bars the jurisdiction of civil courts. The court noted that the society had an alternative remedy before the co-operative court. Consequently, the court dismissed both suits for want of jurisdiction, with no order as to costs.

Headnote

A) Civil Procedure - Jurisdiction - Bar under Section 91 of MCS Act - Dispute between society and member relating to tenancy or possession falls within exclusive jurisdiction of co-operative court - Civil court cannot entertain suit for possession when relationship is that of landlord and tenant under the society - Held that the suits are not maintainable in civil court and are dismissed (Paras 1-10).

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Issue of Consideration

Whether the Bombay High Court has jurisdiction to entertain suits for recovery of possession of flats filed by a co-operative housing society against its members, given the bar under Section 91 of the Maharashtra Co-operative Societies Act, 1960.

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Final Decision

Both suits are dismissed for want of jurisdiction. No order as to costs.

Law Points

  • Jurisdiction of civil court barred under Section 91 of Maharashtra Co-operative Societies Act
  • 1960
  • Dispute between society and member relating to tenancy or possession falls within exclusive jurisdiction of co-operative court
  • Civil court cannot entertain suit for possession when relationship is that of landlord and tenant under the society
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Case Details

2010 LawText (BOM) (10) 114

Suit No. 2354 of 2003 and Suit No. 2355 of 2003

2010-10-28

R.Y. Ganoo

Mr. A.A. Joshi, Rohit Pawaskar, Sufiyan Shaikh, Ms. Prachiti Naphade i/by RMG Law Associates for the plaintiffs; Mr. C.P. Deogirikar for the defendant

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Nature of Litigation

Suits for recovery of possession of flats filed by a co-operative housing society against its members.

Remedy Sought

Plaintiff society sought recovery of possession of flats from the defendants.

Filing Reason

Defendants were tenants of the flats and failed to pay rent, leading to eviction proceedings.

Previous Decisions

Issue of jurisdiction was framed on 3rd February 2009 in Suit No. 2355 of 2003; in Suit No. 2354 of 2003, issue was framed on 26th October 2010 by consent.

Issues

Whether the Bombay High Court has jurisdiction to entertain suits for recovery of possession of flats filed by a co-operative housing society against its members, given the bar under Section 91 of the Maharashtra Co-operative Societies Act, 1960.

Submissions/Arguments

Plaintiff society argued that the defendants were tenants and liable to be evicted for non-payment of rent. Defendants objected to jurisdiction, contending that the dispute falls within the exclusive purview of the co-operative court under Section 91 of the MCS Act.

Ratio Decidendi

A dispute between a co-operative society and its member relating to tenancy or possession of property is covered by Section 91 of the Maharashtra Co-operative Societies Act, 1960, which bars the jurisdiction of civil courts. The civil court has no jurisdiction to entertain such suits.

Judgment Excerpts

The plaintiffs namely Sweet Home Co-operative Society has filed these two suits for recovery of possession of flats... Perusal of the plaint would go to show that the plaintiffs themselves have described the defendant as tenant... In view of the above, the dispute between the plaintiffs and the defendant is covered by Section 91 of the Maharashtra Co-operative Societies Act, 1960.

Procedural History

Suits filed in 2003. On 3rd February 2009, issue of jurisdiction framed in Suit No. 2355 of 2003. On 26th October 2010, issue framed in Suit No. 2354 of 2003 by consent. Arguments heard on jurisdiction. Judgment delivered on 28th October 2010 dismissing both suits.

Acts & Sections

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