Case Note & Summary
The judgment pertains to two writ petitions filed in the Bombay High Court. The first petition (Writ Petition No. 9116 of 2013) was filed by Farhat Coop Housing Society Ltd (the Society) challenging the order of the Competent Authority and District Deputy Registrar of Cooperative Societies (Respondent No. 12) dated 30th September 2013. The second petition (Writ Petition No. 10356 of 2013) was filed by Hasham Esa Dathawala and others (the Dathawala family members) challenging the same order. The Competent Authority had allowed the application of M/s. Malkani Enterprises (Respondent No. 1) for registration of transfer of shares in the Society and also approved an amendment to the bye-laws of the Society. The Society and the Dathawala family members contended that the Competent Authority lacked jurisdiction to decide the dispute, that the transfer of shares was invalid, and that the bye-law amendment was not properly passed. The court examined the provisions of the Maharashtra Cooperative Societies Act, 1960, particularly Section 22A which confers jurisdiction on the Competent Authority to decide disputes relating to membership and transfer of shares. The court held that the Competent Authority had exclusive jurisdiction to decide such disputes and that its order was within its powers. The court also found that the bye-law amendment was validly passed and that the transfer of shares was in compliance with the bye-laws. The court rejected the arguments regarding violation of natural justice and res judicata. Consequently, both writ petitions were dismissed, and the order of the Competent Authority was upheld.
Headnote
A) Cooperative Societies - Jurisdiction of Competent Authority - Section 22A of Maharashtra Cooperative Societies Act, 1960 - The Competent Authority has exclusive jurisdiction to decide disputes regarding membership and transfer of shares in a cooperative housing society. The court held that the authority's decision to register the transfer of shares and approve the amendment to the bye-laws was within its jurisdiction and not vitiated by any error of law. (Paras 10-15) B) Cooperative Societies - Bye-Law Amendment - Validity - The amendment to the bye-laws requiring prior approval of the society for transfer of shares was held to be valid and binding on all members. The court found that the amendment was passed in accordance with the Act and Rules, and that the Competent Authority had correctly approved it. (Paras 16-20) C) Cooperative Societies - Transfer of Shares - Registration - The Competent Authority's order directing the society to register the transfer of shares in favor of the respondents was upheld. The court held that the transfer was in compliance with the bye-laws and that the society's refusal was unjustified. (Paras 21-25) D) Cooperative Societies - Principles of Natural Justice - The court held that the Competent Authority had afforded adequate opportunity of hearing to all parties and that there was no violation of principles of natural justice. (Paras 26-30) E) Cooperative Societies - Res Judicata - The court rejected the contention that the dispute was barred by res judicata, as the earlier proceedings were not on the same cause of action. (Paras 31-35)
Issue of Consideration
Whether the Competent Authority under the Maharashtra Cooperative Societies Act, 1960 has jurisdiction to decide disputes regarding membership and transfer of shares in a cooperative housing society, and whether the society's bye-law amendment requiring prior approval for transfer of shares is valid.
Final Decision
Both writ petitions are dismissed. The order of the Competent Authority dated 30th September 2013 is upheld.
Law Points
- Jurisdiction of Competent Authority under Section 22A of Maharashtra Cooperative Societies Act
- 1960
- Validity of Bye-Law Amendment
- Transfer of Shares in Cooperative Housing Society
- Principles of Natural Justice
- Res Judicata
