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 the 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 where resolutions were passed regarding purchase of the land. The society was subsequently registered. The dispute arose regarding the agreement for purchase of land. The legal issue was whether such a dispute, arising from a pre-formation agreement, falls within the ambit of Section 91 of the MCS Act. The court analyzed that Section 91 requires a dispute to be between a society and its members or touching the business of the society. Since the agreement was entered into by promoters before the society was formed, it was not a dispute touching the business of the society. The court upheld the decisions of the lower authorities and dismissed the writ petition.
Headnote
A) Co-operative Law - Section 91 Dispute - Maintainability - Pre-formation Agreement - The dispute pertained to an agreement for purchase of land entered into by promoters before the society was registered. The court held that such a dispute does not arise between the society and a member or touching the business of the society, and thus is not maintainable under Section 91 of the Maharashtra Co-operative Societies Act, 1960. The Assistant Registrar and the Co-operative Tribunal correctly dismissed the application. (Paras 1-3)
Issue of Consideration
Whether the dispute raised by the petitioner-society before the Assistant Registrar under Section 91 of the Maharashtra Co-operative Societies Act, 1960, regarding an agreement for purchase of land entered into before the formation of the society, is maintainable.
Final Decision
The High Court dismissed the Writ Petition, upholding the orders of the Assistant Registrar and the Co-operative Tribunal that the application under Section 91 of the Maharashtra Co-operative Societies Act, 1960 was not maintainable.
Law Points
- Section 91 of Maharashtra Co-operative Societies Act
- 1960
- dispute must be between society and member or touching business of society
- pre-formation agreement not covered
- maintainability of dispute before Registrar
Case Details
2016 LawText (BOM) (01) 113
WRIT PETITION NO.183 of 2007
Mr. Joseph Vaz for petitioner, Mr. R. G. Ramani for respondent no.1
Mayfair Co-operative Housing Society Ltd.
Mr Francisco Carmo Fernandes and 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 the appeal and upholding the order of the Assistant Registrar that the application under Section 91 of the MCS Act was not maintainable.
Remedy Sought
The petitioner sought to set aside the orders of the Assistant Registrar and the Co-operative Tribunal and to have its application under Section 91 adjudicated.
Filing Reason
The petitioner society filed an application under Section 91 of the MCS Act regarding a dispute arising from an agreement for purchase of land entered into by promoters before the society was registered.
Previous Decisions
The Assistant Registrar of Co-operative Societies, Central Zone, Panaji, by order dated 07/03/2003, held that the application did not raise any dispute under Section 91 and was not tenable. The Co-operative Tribunal, by judgment and order dated 03/07/2006, dismissed the appeal and upheld the Assistant Registrar's order.
Issues
Whether the dispute raised by the petitioner-society under Section 91 of the Maharashtra Co-operative Societies Act, 1960, regarding an agreement for purchase of land entered into before the formation of the society, is maintainable.
Submissions/Arguments
The petitioner argued that the dispute was maintainable under Section 91 as it touched the business of the society.
The respondent no.1 contended that the dispute did not fall within Section 91 as it arose from a pre-formation agreement.
Ratio Decidendi
A dispute arising from an agreement entered into by promoters before the registration of a co-operative society does not touch the business of the society and is not maintainable under Section 91 of the Maharashtra Co-operative Societies Act, 1960.
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
The petitioner society filed an application under Section 91 of the MCS Act before the Assistant Registrar of Co-operative Societies, Central Zone, Panaji, which was dismissed on 07/03/2003. The petitioner appealed to the Co-operative Tribunal, Goa, which dismissed the appeal on 03/07/2006. The petitioner then filed the present Writ Petition before the High Court of Bombay at Goa.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: Section 91
