Bombay High Court Dismisses Petition for Non-Joinder of Necessary Party in Cooperative Society Bye-Law Amendment Dispute. Members Cannot Challenge Cancellation of Bye-Law Amendment Without Impleading the Society Itself.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioners, claiming to be members of a cooperative society named Buldhana Zilla Madhyamik Shikshak Sahakari Pat Sanstha Limited, Buldhana, filed a writ petition challenging an order passed by the Divisional Joint Registrar, Cooperative Societies, Amravati. The order canceled an amendment made in the bye-laws of the society. The society itself did not challenge the order. The petitioners chose not to join the society as a party respondent in the petition. The court observed that when the validity of an order canceling an amendment in the bye-laws of a cooperative society is questioned, the concerned cooperative society is a necessary party. If the society feels aggrieved, it can file the petition; otherwise, members can institute a petition, but the society must be a party. The petitioners' counsel could not explain why the society was not impleaded. The court held that the petition suffers from non-joinder of a necessary party and is not maintainable. Consequently, the petition was dismissed with no order as to costs.

Headnote

A) Civil Procedure - Necessary Party - Non-Joinder - Cooperative Societies Act, 1960 - When validity of an order canceling amendment in bye-laws of a cooperative society is questioned, the concerned cooperative society is a necessary party - Petition filed by members without impleading the society is not maintainable - Held that the society must be joined as a party to such a petition (Paras 1-3).

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Issue of Consideration

Whether the petition challenging the cancellation of amendment in bye-laws of a cooperative society is maintainable without impleading the society as a party respondent.

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Final Decision

The petition is dismissed for non-joinder of necessary party. No order as to costs.

Law Points

  • Necessary party
  • Non-joinder
  • Cooperative society
  • Bye-law amendment
  • Locus standi
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Case Details

2006 LawText (BOM) (02) 74

Writ Petition No.1648 of 1998

2006-02-23

D. K. Deshmukh

Mr. A. S. Jaiswal for petitioner; Mr. Deopujari, A.G.P. for respondent no.1 & 2; Mr. J. T. Gilda for respondent no.3; Mr. Vivek Palshikar for respondent no.4 & 5; Mr. Anand Parchure for R-6

Sanjay Pralhad Pawar, Arun Baburao Parad, Jaibharat Shankar Apar, Shivaji Bhagwan Hiwale, Totaram Arjun Sor

The Divisional Joint Registrar, Cooperative Societies, Amravati; District Deputy Registrar, Cooperative Societies, Buldhana; Shri R. R. Mhaske; Shri Subhash Gaibiraje Gawande; Shri Bhikaji Satvaji Chinchole; Shri M. P. Panchal

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Nature of Litigation

Writ petition challenging order of Divisional Joint Registrar canceling amendment in bye-laws of a cooperative society.

Remedy Sought

Petitioners sought to challenge the order canceling the amendment in the bye-laws of the society.

Filing Reason

The petitioners, claiming to be members of the society, were aggrieved by the cancellation of the amendment in the bye-laws.

Previous Decisions

The Divisional Joint Registrar had passed an order canceling the amendment in the bye-laws of the society.

Issues

Whether the petition is maintainable without impleading the cooperative society as a party respondent.

Submissions/Arguments

Petitioners' counsel could not explain why the society was not impleaded as a party. Respondents argued that the society is a necessary party.

Ratio Decidendi

When the validity of an order canceling amendment in bye-laws of a cooperative society is questioned, the concerned cooperative society is a necessary party. A petition by members without impleading the society is not maintainable.

Judgment Excerpts

There can be no debate on the question, that when the validity or otherwise of an order which cancels the amendment in the bye-laws of the cooperative society is questioned, concerned cooperative society is a necessary party. The learned counsel appearing for the petitioner is not in a position to give any explanation except saying that when he filed the petition, respondent no.3 was claiming to be the Secretary of the society.

Procedural History

The Divisional Joint Registrar passed an order canceling the amendment in the bye-laws of the society. The society did not challenge the order. The petitioners, claiming to be members, filed the present writ petition in 1998. The petition was heard and dismissed on 23.2.2006.

Acts & Sections

  • Cooperative Societies Act, 1960:
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High Court Bombay High Court Dismisses Petition for Non-Joinder of Necessary Party in Cooperative Society Bye-Law Amendment Dispute. Members Cannot Challenge Cancellation of Bye-Law Amendment Without Impleading the Society Itself.