Bombay High Court Allows Petition in Co-operative Housing Society Dispute — Maintenance Charges Liability Determined by Conveyance Deed. Consent Terms Allegedly Obtained by Fraud Cannot Override Original Conveyance Deed for Two Units.

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

The petitioner, Dr. Ranjit Ramchandra Upadhyaya, a member of the respondent M/s. Salas Co-operative Housing Society Ltd., filed a writ petition challenging the order of the Divisional Joint Registrar which had set aside the Dy. Registrar's order dated 29.12.2004. The dispute centered on whether the petitioner was liable to pay maintenance charges for three units or two units. The petitioner contended that he was liable only for two units as per the original conveyance deed, while the society claimed he was liable for three units based on consent terms allegedly arrived at on 18th March 1994. The petitioner initiated proceedings before the Dy. Registrar to restrain the society from recovering maintenance charges for three units. The Dy. Registrar observed that the petitioner should be charged according to the conveyance deed for two units. The society appealed to the Divisional Joint Registrar, who set aside the Dy. Registrar's order. The petitioner then approached the High Court. The High Court noted that the petitioner had pleaded before the Divisional Joint Registrar that the consent terms were obtained by fraud. The court found that the Divisional Joint Registrar had not considered this plea and had erroneously set aside the Dy. Registrar's order. The court held that the consent terms, if obtained by fraud, cannot be relied upon, and the original conveyance deed must prevail. Consequently, the court allowed the writ petition, set aside the order of the Divisional Joint Registrar, and restored the order of the Dy. Registrar dated 29.12.2004.

Headnote

A) Co-operative Law - Maintenance Charges - Liability Based on Conveyance Deed - Dispute between member and society regarding number of units for which maintenance charges are payable - Petitioner claimed liability for two units as per conveyance deed, society claimed three units based on consent terms - Court held that consent terms allegedly obtained by fraud cannot override the original conveyance deed - Dy. Registrar's order directing charges as per conveyance deed for two units was upheld (Paras 4-6).

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Issue of Consideration

Whether the petitioner is liable to pay maintenance charges in respect of three units or two units, and whether the consent terms relied upon by the society are valid or obtained by fraud.

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Final Decision

Writ petition allowed. Order of the Divisional Joint Registrar set aside. Order of the Dy. Registrar dated 29.12.2004 restored.

Law Points

  • Consent terms obtained by fraud are void
  • Conveyance deed prevails over consent terms for determining liability
  • Co-operative society cannot recover maintenance charges beyond what is stipulated in conveyance deed
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Case Details

2005 LawText (BOM) (07) 190

Writ Petition No. 4206 of 2005

2005-07-14

S. A. Bobde

R.S. Apte with A.A. Garge for the Petitioner, Rajesh Datar for Respondents

Dr. Ranjit Ramchandra Upadhyaya

M/s. Salas Co-operative Housing Society Ltd. through its Chairman/Secretary Mr. M.N. Sonawane, The Deputy Registrar of Co-operative Societies

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Nature of Litigation

Writ petition challenging order of Divisional Joint Registrar regarding maintenance charges liability.

Remedy Sought

Petitioner sought to restrain the society from recovering maintenance charges for three units and to restore the Dy. Registrar's order.

Filing Reason

Dispute over number of units for which maintenance charges are payable; petitioner claims two units as per conveyance deed, society claims three units based on consent terms.

Previous Decisions

Dy. Registrar order dated 29.12.2004 directed charges as per conveyance deed for two units; Divisional Joint Registrar set aside that order.

Issues

Whether the petitioner is liable to pay maintenance charges for three units or two units. Whether the consent terms relied upon by the society were obtained by fraud and are thus void.

Submissions/Arguments

Petitioner argued that he is liable only for two units as per the original conveyance deed and that the consent terms were obtained by fraud. Society argued that the petitioner is liable for three units based on consent terms dated 18.03.1994.

Ratio Decidendi

Consent terms allegedly obtained by fraud cannot override the original conveyance deed; the Dy. Registrar's order based on the conveyance deed was correct.

Judgment Excerpts

The Dy. Registrar observed in his order dated 29.12.2004 that the petitioner should be charged according to the conveyance deed for two units. The petitioner pleaded that the consent terms, on which the society relies, were obtained by fraud.

Procedural History

Petitioner filed proceedings before Dy. Registrar to restrain society from recovering maintenance for three units. Dy. Registrar ordered charges as per conveyance deed for two units on 29.12.2004. Society appealed to Divisional Joint Registrar, who set aside Dy. Registrar's order. Petitioner filed writ petition in High Court.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960:
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High Court Bombay High Court Allows Petition in Co-operative Housing Society Dispute — Maintenance Charges Liability Determined by Conveyance Deed. Consent Terms Allegedly Obtained by Fraud Cannot Override Original Conveyance Deed for Two Units.
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