Case Note & Summary
The petitioner, Ashok s/o Bapurao Kadam, filed a dispute before the Cooperative Judge, Nanded, seeking a declaration of ownership and possession of a house and land belonging to Swanand Cooperative Housing Society, Basmath. The petitioner claimed that he had purchased the property from the original allottee, Bapurao Eknath Deshmukh (respondent no.3), under an agreement of sale dated 15-05-1985 for a consideration of Rs. 10,000, which was paid in full. The petitioner was put in possession and his name was mutated in the society's records. However, the society and respondent no.1 (Balaji Mugutkar) disputed his title. The Cooperative Judge decreed the suit in favour of the petitioner, declaring him owner and directing the society to transfer shares. The Cooperative Appellate Court reversed this decree, holding that the petitioner had no title and that the dispute was barred by limitation. The High Court examined the evidence, including the agreement, receipts, and mutation entries, and found that the petitioner had proved payment of consideration and possession. The court held that the Appellate Court erred in ignoring this evidence and in holding that the suit was barred by limitation, as the petitioner was in continuous possession. The High Court allowed the writ petition, set aside the Appellate Court's order, and restored the trial court's decree, directing the society to transfer the shares in favour of the petitioner.
Headnote
A) Cooperative Law - Ownership and Possession - Transfer of Shares - Sections 91, 96, 97 Maharashtra Cooperative Societies Act, 1960 - The petitioner claimed ownership of a house and land from a cooperative society based on an agreement of sale and payment of full consideration, supported by possession and mutation entries. The Cooperative Judge decreed the suit, but the Appellate Court reversed it. The High Court held that the Appellate Court failed to appreciate evidence of possession and payment, and restored the trial court's decree. (Paras 1-10) B) Cooperative Law - Jurisdiction of Cooperative Court - Civil Suit - Section 91 Maharashtra Cooperative Societies Act, 1960 - The dispute between a member and a cooperative society regarding transfer of shares and possession falls within the jurisdiction of the Cooperative Court. The High Court held that the Cooperative Court had jurisdiction to entertain the dispute. (Paras 2-5) C) Cooperative Law - Limitation - Specific Performance - Article 54 Limitation Act, 1963 - The petitioner filed the dispute within limitation as the cause of action was continuing due to possession. The High Court held that the suit was not barred by limitation. (Paras 6-8)
Issue of Consideration
Whether the petitioner is entitled to declaration of ownership and possession of the suit property based on an agreement of sale and payment of consideration, and whether the Cooperative Appellate Court erred in reversing the trial court's decree.
Final Decision
The High Court allowed the writ petition, set aside the judgment and order of the Cooperative Appellate Court dated 07-03-1991, and restored the decree of the Cooperative Judge, Nanded, in Dispute No.CCP 50/1998. The society was directed to transfer the shares in favour of the petitioner.
Law Points
- Cooperative society
- ownership
- possession
- transfer of shares
- consideration
- mutation
- civil suit
- jurisdiction of cooperative court
- specific performance
- limitation
