Case Note & Summary
The petitioner, The Manglorian Garden Homes Co-operative Housing Society Limited, filed three writ petitions challenging the orders of the Civil Judge, Senior Division, Bandra, which dismissed its applications under Order 7 Rule 11 of the Code of Civil Procedure, 1908 (CPC) for rejection of plaints in three suits filed by the society against its members. The society had filed suits seeking possession and removal of unauthorized construction by the defendant-members, alleging that the constructions violated the society's bye-laws and were without permission. The defendants filed applications for rejection of plaints on the ground that the suits were barred by Section 91 of the Maharashtra Co-operative Societies Act, 1960 (MCS Act), which provides that disputes between a society and its members touching the business of the society shall be decided by the co-operative court and not by civil courts. The trial court dismissed the applications, holding that the dispute did not touch the business of the society and that the civil court had jurisdiction. The High Court, in its analysis, examined the scope of Section 91 of the MCS Act and the bye-laws of the society. It held that the dispute regarding unauthorized construction and possession by a member directly relates to the management and administration of the society's property, which is part of the business of the society. The court noted that the bye-laws have statutory force and any breach thereof is a dispute under Section 91. The court further held that the civil court's jurisdiction is barred under Section 93 of the MCS Act, and the plaint must be rejected under Order 7 Rule 11 CPC. The High Court allowed the writ petitions, set aside the trial court's orders, and rejected the plaints in all three suits, granting liberty to the society to approach the co-operative court for appropriate relief.
Headnote
A) Co-operative Law - Bar of Civil Suit - Section 91 Maharashtra Co-operative Societies Act, 1960 - Dispute between society and member regarding unauthorized construction and possession - Held that such dispute is covered under Section 91 and civil court has no jurisdiction; plaint liable to be rejected under Order 7 Rule 11 CPC (Paras 10-15).
B) Co-operative Law - Bye-laws - Statutory Force - Bye-laws of a co-operative society have the force of law and are binding on members - Disputes regarding breach of bye-laws fall within the exclusive jurisdiction of the co-operative court under Section 91 of the MCS Act, 1960 (Paras 12-14).
C) Civil Procedure - Rejection of Plaint - Order 7 Rule 11 CPC - When the plaint discloses that the suit is barred by any law, the court must reject the plaint - The bar under Section 91 of the MCS Act, 1960 is a statutory bar and the civil court cannot entertain the suit (Paras 15-18).
Issue of Consideration
Whether a civil suit filed by a co-operative housing society against its members for unauthorized construction and possession is maintainable in view of the bar under Section 91 of the Maharashtra Co-operative Societies Act, 1960, and whether the plaint is liable to be rejected under Order 7 Rule 11 of the Code of Civil Procedure, 1908.
Final Decision
The High Court allowed the writ petitions, set aside the orders of the Civil Judge, and rejected the plaints in all three suits. The society was granted liberty to approach the co-operative court for appropriate relief.
Law Points
- Civil suit barred for internal disputes of co-operative society
- Bye-laws have statutory force
- Jurisdiction of co-operative court is exclusive for disputes under Section 91 of MCS Act
- 1960
- Order 7 Rule 11 CPC for rejection of plaint when suit is barred by law
Case Details
Writ Petition No. 6067 of 1995, Writ Petition No. 6071 of 1995, Writ Petition No. 6137 of 1995
Mr. P. K. Dhakephalkar (through V.C.), Senior Advocate a/w. Mr. Mandar Soman, Mr. Vachan Bodke, Mr. Vaibhav Gaikwad & Ms. Prachi Wane i/b. V. & M. Legal for the Petitioner; Mr. Prasad Dani, Senior Advocate a/w. Mr. Sunny Waskar & Ms. Nikita Kaur for the Respondent No.1D in WP/6067/1995; Mr. Simil Purohit, Senior Advocate a/w. Mr. Monel M. Thakkar & Mr. Vishal Pattabiraman for the Respondent in other petitions
The Manglorian Garden Homes Co-operative Housing Society Limited
Shri Jan Mohammed S. Sama (deceased) through LRs and others
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Nature of Litigation
Writ petitions under Article 227 of the Constitution challenging orders of Civil Judge dismissing applications for rejection of plaints under Order 7 Rule 11 CPC.
Remedy Sought
The petitioner society sought rejection of plaints in three civil suits filed by it against its members, on the ground that the suits were barred by Section 91 of the Maharashtra Co-operative Societies Act, 1960.
Filing Reason
The society filed civil suits for possession and removal of unauthorized construction by defendant-members, alleging violation of bye-laws. The defendants sought rejection of plaints contending that the dispute falls within the exclusive jurisdiction of the co-operative court.
Previous Decisions
The Civil Judge, Senior Division, Bandra, dismissed the applications for rejection of plaints, holding that the civil court has jurisdiction.
Issues
Whether a dispute between a co-operative society and its member regarding unauthorized construction and possession is a dispute touching the business of the society under Section 91 of the MCS Act, 1960, barring civil suit.
Whether the plaint is liable to be rejected under Order 7 Rule 11 CPC when the suit is barred by Section 91 of the MCS Act.
Submissions/Arguments
Petitioner (society) argued that the dispute relates to breach of bye-laws and management of society property, falling under Section 91 of MCS Act, and civil court has no jurisdiction.
Respondents (members) argued that the dispute does not touch the business of the society and civil court has jurisdiction.
Ratio Decidendi
A dispute between a co-operative society and its member regarding unauthorized construction and possession of society property, involving breach of bye-laws, is a dispute touching the business of the society under Section 91 of the Maharashtra Co-operative Societies Act, 1960. The civil court's jurisdiction is barred under Section 93 of the Act, and the plaint must be rejected under Order 7 Rule 11 CPC.
Judgment Excerpts
The dispute regarding unauthorized construction and possession by a member directly relates to the management and administration of the society's property, which is part of the business of the society.
The bye-laws have statutory force and any breach thereof is a dispute under Section 91 of the MCS Act.
The civil court's jurisdiction is barred under Section 93 of the MCS Act, and the plaint must be rejected under Order 7 Rule 11 CPC.
Procedural History
The society filed three civil suits (likely before the Civil Judge, Senior Division, Bandra) seeking possession and removal of unauthorized construction. The defendants filed applications under Order 7 Rule 11 CPC for rejection of plaints. The Civil Judge dismissed those applications. The society then filed three writ petitions under Article 227 of the Constitution before the Bombay High Court challenging those orders. The High Court heard all three petitions together and delivered a common judgment allowing the petitions and rejecting the plaints.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: 91, 93
- Code of Civil Procedure, 1908: Order 7 Rule 11
