Case Note & Summary
The appellant, a member of the respondent housing society, filed a dispute under Section 91 of the Maharashtra Cooperative Societies Act, 1960 before the Cooperative Court, Amravati, challenging his expulsion from membership and seeking allotment of a plot. The society had cancelled his membership by resolution dated 16.12.1990 and issued a notice of expulsion dated 05.10.1991, claiming he was a defaulter. The Cooperative Court dismissed the dispute on 08.08.2000. On appeal, the Cooperative Appellate Court allowed the appeal, set aside the expulsion resolution and notice, and directed allotment of a plot. The society then filed a writ petition before the Bombay High Court, which was allowed by the learned Single Judge who held that the dispute under Section 91 was not maintainable against an action under Section 35. The appellant appealed by way of Letters Patent Appeal. The Division Bench framed the sole question of maintainability. After hearing arguments, the Court held that the dispute under Section 91 is maintainable as the expulsion touches the business of the society and the Cooperative Court has jurisdiction to decide the validity of the expulsion. The Court set aside the order of the learned Single Judge and remanded the matter for decision on merits. The appeal was allowed.
Headnote
A) Cooperative Law - Maintainability of Dispute - Section 91 vs. Section 35 of the Maharashtra Cooperative Societies Act, 1960 - The issue was whether a dispute under Section 91 of the MCS Act is maintainable against an expulsion order passed under Section 35. The Court held that the dispute is maintainable as the expulsion touches the business of the society and the Cooperative Court has jurisdiction to decide the validity of the expulsion resolution. The remedy under Section 91 is not ousted by the availability of an appeal under Section 35. (Paras 1-5) B) Cooperative Law - Expulsion of Member - Section 35 of the Maharashtra Cooperative Societies Act, 1960 - The Court held that the action of expulsion under Section 35 is subject to challenge under Section 91 as it relates to the business of the society. The Cooperative Court can examine whether the expulsion was validly done. (Paras 2-5)
Issue of Consideration
Whether a dispute under Section 91 of the Maharashtra Cooperative Societies Act, 1960 is maintainable against an action of expulsion of a member taken under Section 35 of the said Act.
Final Decision
The appeal is allowed. The judgment and order of the learned Single Judge dated 18.06.2002 in Writ Petition No.3116/2001 is set aside. The matter is remanded to the learned Single Judge for decision on merits in accordance with law. No order as to costs.
Law Points
- Section 91 of the Maharashtra Cooperative Societies Act provides a remedy for disputes touching the business of the society
- including expulsion of a member under Section 35
- the Cooperative Court has jurisdiction to decide the validity of such expulsion
- the remedy under Section 91 is not barred by the availability of an appeal under Section 35.
