Bombay High Court Dismisses Writ Petition Challenging Recovery of Dues Under Cooperative Societies Act — Disputed Questions of Fact Require Alternative Remedy. The court held that a cooperative society cannot bypass the statutory remedy under the Maharashtra Cooperative Societies Act, 1960, by filing a writ petition when the claim involves factual disputes over transfer of materials.

High Court: Bombay High Court
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Case Note & Summary

The petitioner, Maharashtra Rajya Macchimar Sahakari Sangh Ltd., a cooperative society registered under the Maharashtra Cooperative Societies Act, 1960, filed a writ petition challenging a demand for payment of Rs.5,47,837/- made by the third respondent, Maharashtra Fisheries Development Corporation Limited. The dispute arose from the transfer of an ice factory, cold storage, and fish meal plant at Sasoon Docks, Colaba, Mumbai. The complex was originally erected by the Government of India in 1951, transferred to the Fisheries Department of the Government of Maharashtra on 1st May 1964, and then to the third respondent on its establishment on 5th February 1973. The third respondent operated the project until 1976. On 29th July 1976, the State Government decided to restructure the third respondent, and the project was transferred to the petitioner on 1st November 1976. According to the third respondent, at the time of transfer, raw materials and spare parts valued at Rs.5,47,837/- were handed over to the petitioner, but the amount has not been paid. The petitioner disputed the claim, asserting that no such materials were received. The court noted that the petition involved disputed questions of fact regarding the actual transfer and liability. The court held that such disputed questions cannot be adjudicated in writ jurisdiction under Article 226 of the Constitution. The court further observed that the petitioner has an alternative remedy under the Maharashtra Cooperative Societies Act, 1960, to resolve the dispute. Consequently, the court dismissed the writ petition, leaving it open to the petitioner to pursue the alternative remedy. The rule was discharged with no order as to costs.

Headnote

A) Cooperative Law - Recovery of Dues - Disputed Questions of Fact - Writ Jurisdiction - The petitioner, a cooperative society, challenged a demand for payment of Rs.5,47,837/- for raw materials and spare parts transferred to it by the respondent corporation. The court held that disputed questions of fact regarding the actual transfer and liability cannot be adjudicated in writ jurisdiction and the petitioner should avail alternative remedy under the Maharashtra Cooperative Societies Act, 1960. (Paras 1-3)

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Issue of Consideration

Whether the High Court should entertain a writ petition challenging a demand for payment of dues when there are disputed questions of fact and an alternative remedy available under the Cooperative Societies Act.

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Final Decision

The writ petition is dismissed. Rule is discharged. No order as to costs. The petitioner is at liberty to pursue the alternative remedy available under the Maharashtra Cooperative Societies Act, 1960.

Law Points

  • Cooperative society
  • recovery of dues
  • writ jurisdiction
  • disputed questions of fact
  • alternative remedy
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Case Details

2005 LawText (BOM) (03) 192

WRIT PETITION NO.592 OF 2002

2005-03-22

Dr. D.Y. Chandrachud, J.

Mr. Vijay Patil for the Petitioners, Mr. L. Satelkar, AGP for Respondent Nos.1, 2 and 4, Mr. L.M. Acharya for Respondent No.3

Maharashtra Rajya Macchimar Sahakari Sangh Ltd.

The State of Maharashtra through the Department of Fisheries & Ors.

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Nature of Litigation

Writ petition challenging a demand for payment of dues by a cooperative society.

Remedy Sought

The petitioner sought to quash the demand for payment of Rs.5,47,837/- made by the third respondent.

Filing Reason

The petitioner disputed the claim that raw materials and spare parts were transferred to it and that the amount was due.

Issues

Whether the writ petition is maintainable when there are disputed questions of fact regarding the transfer of materials and liability. Whether the petitioner should be relegated to the alternative remedy under the Maharashtra Cooperative Societies Act, 1960.

Submissions/Arguments

The petitioner argued that no raw materials or spare parts were handed over to it and the demand was unjustified. The third respondent contended that the materials were transferred and the amount remains unpaid.

Ratio Decidendi

Disputed questions of fact regarding the transfer of materials and liability cannot be adjudicated in writ jurisdiction under Article 226 of the Constitution. The petitioner has an alternative remedy under the Maharashtra Cooperative Societies Act, 1960, which should be availed.

Judgment Excerpts

The petition involves disputed questions of fact which cannot be adjudicated upon in writ jurisdiction. The Petitioner has an alternative remedy under the Maharashtra Cooperative Societies Act, 1960.

Procedural History

The petitioner filed a writ petition in the High Court of Judicature at Bombay challenging a demand for payment of Rs.5,47,837/- by the third respondent. The court heard the matter and dismissed the petition on 22nd March 2005.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960:
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