Case Note & Summary
The judgment involves multiple writ petitions filed by the Assistant Registrar, Co-operative Societies/Official Assignee of Co-operative Oil Industries Ltd. (De-Registered), Latur, and the District Deputy Registrar, Co-operative Societies/Liquidator and Official Assignee of the same society, against various respondents who were members of the de-registered society. The petitioners sought recovery of dues from the respondents. The respondents had raised objections that the disputes were barred by limitation under Section 101 of the Maharashtra Co-operative Societies Act, 1960. The court examined the issue of limitation, noting that Section 101 provides a period of 12 years for recovery of money due from a member. The court held that the Limitation Act, 1963 applies to proceedings under the MCS Act, but the special period of 12 years under Section 101 overrides the general period. The court found that the disputes were filed within 12 years from the date of accrual of cause of action, and thus were not barred by limitation. The court allowed the petitions, setting aside the orders of the lower authorities that had dismissed the disputes as time-barred, and remanded the matters for fresh consideration on merits.
Headnote
A) Co-operative Law - Limitation - Recovery of Dues - Section 101 of Maharashtra Co-operative Societies Act, 1960 - The court considered whether a dispute filed by the Official Assignee of a de-registered co-operative society for recovery of dues from its members is barred by limitation. The court held that the period of limitation under Section 101 of the MCS Act, 1960, which provides a period of 12 years from the date of accrual of cause of action for recovery of money due from a member, applies, and the dispute is not barred by limitation as the cause of action arose within 12 years of filing. (Paras 1-10)
B) Co-operative Law - Limitation Act, 1963 - Applicability - Section 29(2) of Limitation Act, 1963 - The court held that the Limitation Act, 1963 applies to proceedings under the Maharashtra Co-operative Societies Act, 1960, but only to the extent not inconsistent with the special period of limitation provided under Section 101 of the MCS Act. The special period of 12 years under Section 101 prevails over the general period under the Limitation Act. (Paras 5-8)
C) Co-operative Law - De-registered Society - Recovery Proceedings - Section 91 of Maharashtra Co-operative Societies Act, 1960 - The court held that the Official Assignee/Liquidator of a de-registered co-operative society is entitled to file a dispute under Section 91 for recovery of dues from members, and such dispute is not barred by limitation if filed within 12 years from the date of accrual of cause of action as per Section 101. (Paras 3-9)
Issue of Consideration
Whether the dispute filed by the Official Assignee/Liquidator of a de-registered co-operative society for recovery of dues from its members is barred by limitation under Section 101 of the Maharashtra Co-operative Societies Act, 1960, and whether the period of limitation under the Limitation Act, 1963 applies.
Final Decision
The court allowed the writ petitions, set aside the orders of the lower authorities dismissing the disputes as time-barred, and remanded the matters for fresh consideration on merits. The court held that the disputes were not barred by limitation as they were filed within 12 years from the date of accrual of cause of action under Section 101 of the Maharashtra Co-operative Societies Act, 1960.
Law Points
- Limitation period for recovery of dues from members of de-registered co-operative society
- Section 101 of Maharashtra Co-operative Societies Act
- 1960
- applicability of Limitation Act
- 1963
- period of limitation for filing dispute under Section 91 of MCS Act
Case Details
Writ Petition No.6408/2018, Writ Petition No.6409/2018, Writ Petition No.6415/2018, Writ Petition No.6474/2018, Writ Petition No.2961/2018, Writ Petition No.2962/2018, Writ Petition No.2968/2018, Writ Petition No.2963/2018, Writ Petition No.2965/2018
Mr. P.P. Shahane, Advocate for petitioner; Mr. S.S. Pawar, Advocate for respondent (in WP 6408/2018, 6409/2018, 6415/2018, 6474/2018); Mr. G.N. Kulkarni, Advocate for respondent (in WP 2961/2018, 2962/2018, 2968/2018, 2963/2018, 2965/2018)
The Assistant Registrar, Co-operative Societies/Official Assignee, Co-operative Oil Industries Ltd. (De-Registered), Latur and The District Deputy Registrar, Co-operative Societies/ Liquidator and Official Assignee, Co-operative Oil Industries Ltd. (De-Registered), Latur
Dnyanchandra R. Shinde, Died through L.R. Satyabhama w/o Dnyanchandra Shinde; Chandrakant Shankarrao Pawar; Govind s/o Marotirao Chatre; Hiralal s/o Bhausaheb Mandwkar; Narsing s/o Kushanrao Jadhav; Chandrappa s/o Keshappa Mudale, Died through L.Rs. Parvatamma w/o Chandrappa Mudale & ors.; Sirajoddin Mehtabsab Shaikh, Died through L.R. Smt. Shahajadbee wd/o Sirajoddin Shaikh; Vitthal s/o Namdeo Kanse
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Nature of Litigation
Writ petitions challenging orders of lower authorities dismissing disputes filed by Official Assignee/Liquidator of a de-registered co-operative society for recovery of dues from members, on the ground of limitation.
Remedy Sought
The petitioners sought to set aside the orders dismissing the disputes as time-barred and to have the disputes adjudicated on merits.
Filing Reason
The respondents raised objections that the disputes were barred by limitation under Section 101 of the Maharashtra Co-operative Societies Act, 1960, and the lower authorities upheld those objections.
Previous Decisions
The lower authorities dismissed the disputes as barred by limitation.
Issues
Whether the dispute filed by the Official Assignee/Liquidator of a de-registered co-operative society for recovery of dues from its members is barred by limitation under Section 101 of the Maharashtra Co-operative Societies Act, 1960.
Whether the period of limitation under the Limitation Act, 1963 applies to proceedings under the Maharashtra Co-operative Societies Act, 1960.
Submissions/Arguments
The petitioners argued that the disputes were filed within the period of limitation as per Section 101 of the MCS Act, which provides a period of 12 years for recovery of money due from a member.
The respondents argued that the disputes were barred by limitation under the Limitation Act, 1963.
Ratio Decidendi
The period of limitation for recovery of money due from a member of a co-operative society under Section 101 of the Maharashtra Co-operative Societies Act, 1960 is 12 years from the date of accrual of cause of action. The Limitation Act, 1963 applies to proceedings under the MCS Act, but the special period of 12 years under Section 101 overrides the general period under the Limitation Act. Therefore, a dispute filed within 12 years is not barred by limitation.
Judgment Excerpts
The period of limitation under Section 101 of the MCS Act is 12 years from the date of accrual of cause of action.
The Limitation Act, 1963 applies to proceedings under the MCS Act, but the special period of 12 years under Section 101 prevails.
Procedural History
The Official Assignee/Liquidator filed disputes under Section 91 of the MCS Act for recovery of dues from members. The respondents raised objections of limitation. The lower authorities dismissed the disputes as time-barred. The petitioners filed writ petitions challenging those orders. The High Court allowed the petitions and remanded the matters.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: Section 91, Section 101
- Limitation Act, 1963: Section 29(2)
