Case Note & Summary
The petitioner, Mayfair Co-operative Housing Society Ltd., filed a writ petition challenging the judgment and order dated 03/07/2006 of the President, Co-operative Tribunal, Goa, which dismissed Co-operative Appeal No.14/2003 and upheld the order dated 07/03/2003 of the Assistant Registrar of Co-operative Societies, Central Zone, Panaji. The Assistant Registrar had held that an application filed by the petitioner under Section 91 of the Maharashtra Co-operative Societies Act, 1960 (as applicable to Goa) did not raise any dispute under that section and was not tenable. The case of the petitioner before the Assistant Registrar was that a group of persons organized themselves to form a co-operative housing society with the object of buying a portion of land admeasuring about 800 square metres situated at Dada Vaidya Road, Panaji, belonging to the respondent, his brother and mother, and constructing a building with flats and shops. A meeting of promoters was held on 05/10/1967 and resolutions were passed regarding purchase of the land. The dispute arose from this pre-society agreement. The legal issue was whether such a dispute falls within the ambit of Section 91 of the MCS Act. The court analyzed that the dispute was between promoters of a proposed society and did not involve the society itself or its business, as the society was not registered at the time of the agreement. The court upheld the findings of the lower authorities and dismissed the writ petition, holding that the dispute was not maintainable under Section 91.
Headnote
A) Co-operative Law - Jurisdiction of Registrar - Section 91 of Maharashtra Co-operative Societies Act, 1960 - Dispute must be between society and its members or touching business of society - The dispute pertained to an agreement among promoters of a proposed society for purchase of land and construction of building, which was entered into before the society was registered. The court held that such a dispute does not relate to the business of the society and is not covered under Section 91, as the society was not in existence at the time of the agreement. The Assistant Registrar and the Co-operative Tribunal correctly held that the application was not maintainable. (Paras 1-3)
Issue of Consideration
Whether a dispute arising from an agreement between promoters of a proposed co-operative housing society, regarding purchase of land and construction of building, falls within the ambit of Section 91 of the Maharashtra Co-operative Societies Act, 1960, and is maintainable before the Assistant Registrar of Co-operative Societies.
Final Decision
The writ petition is dismissed. The judgment and order dated 03/07/2006 of the Co-operative Tribunal and the order dated 07/03/2003 of the Assistant Registrar are upheld.
Law Points
- Section 91 of Maharashtra Co-operative Societies Act
- 1960
- dispute must be between society and its members or touching business of society
- pre-society promoters' agreement not covered
- writ petition dismissed
Case Details
2016 LawText (BOM) (01) 112
WRIT PETITION NO.183 of 2007
Mr. Joseph Vaz for petitioner, Mr. R. G. Ramani for respondent no.1, None for respondent no.2
Mayfair Co-operative Housing Society Ltd.
Mr Francisco Carmo Fernandes, The Asst Registrar Co-operative Housing Societies
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Nature of Litigation
Writ petition challenging the legality and correctness of the judgment and order of the Co-operative Tribunal dismissing appeal and upholding order of Assistant Registrar that application under Section 91 of MCS Act was not maintainable.
Remedy Sought
Petitioner sought to set aside the orders of the Assistant Registrar and Co-operative Tribunal and to have its application under Section 91 adjudicated.
Filing Reason
Petitioner claimed that a dispute regarding purchase of land and construction of building by promoters of the society fell within Section 91 of MCS Act.
Previous Decisions
Assistant Registrar of Co-operative Societies held that the application did not raise any dispute under Section 91 and dismissed it. Co-operative Tribunal upheld that order.
Issues
Whether a dispute arising from an agreement among promoters of a proposed co-operative housing society, entered into before registration of the society, is a dispute under Section 91 of the Maharashtra Co-operative Societies Act, 1960.
Submissions/Arguments
Petitioner argued that the dispute related to the business of the society and was covered under Section 91.
Respondent no.1 argued that the dispute was between promoters and not between the society and its members, hence not maintainable under Section 91.
Ratio Decidendi
A dispute under Section 91 of the Maharashtra Co-operative Societies Act, 1960 must be between the society and its members or touching the business of the society. An agreement among promoters of a proposed society, entered into before the society's registration, does not relate to the business of the society and is not covered under Section 91.
Judgment Excerpts
This Writ Petition challenges the legality and correctness of the judgment and order dated 03/07/2006, passed by the President, Co-operative Tribunal, Goa at Panaji in Co-operative Appeal No.14/2003, thereby dismissing the appeal and upholding the judgment and order dated 07/03/2003, delivered by the Assistant Registrar of Co-operative Society, Central Zone, Panaji.
The effect of the dismissal of the Co-operative Appeal, has been that the application, filed by the petitioner before the Assistant Registrar of Co-operative Societies under Section 91 of the Maharashtra Co-operative Societies Act, 1960 as applicable to the State of Goa at the relevant time, does not raise any dispute under Section 91 and is, therefore, not tenable before the Assistant Registrar of Co-operative Societies.
Procedural History
Petitioner filed application under Section 91 of MCS Act before Assistant Registrar of Co-operative Societies. Assistant Registrar dismissed application on 07/03/2003 holding no dispute under Section 91. Petitioner appealed to Co-operative Tribunal, which dismissed appeal on 03/07/2006. Petitioner then filed writ petition in High Court of Bombay at Goa on 22/01/2016.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: Section 91
