Case Note & Summary
The petitioner, The Amravati District Central Co-operative Bank Limited, filed a writ petition challenging an order dated 14.05.2025 passed by the Cooperative Court at Amravati in Dispute No. 86 of 2023. The Cooperative Court had allowed an application at Exhibit 42 filed by the respondents, who were directors of the petitioner-Bank, and granted interim relief restraining the Bank from giving effect to their removal from the board of directors. The respondents contended that their removal was illegal and without following due process. The Bank argued that the Cooperative Court lacked jurisdiction to grant such interim relief and that the removal was valid under the bye-laws. The High Court examined the provisions of the Maharashtra Co-operative Societies Act, 1960, particularly Section 91, which confers jurisdiction on the Cooperative Court to decide disputes touching the constitution, management, or business of a society. The court held that the power to decide a dispute includes the ancillary power to grant interim relief to preserve the subject matter of the dispute. The court found that the respondents had made out a prima facie case regarding the illegality of their removal, and the balance of convenience was in their favor as they would suffer irreparable loss if the removal was given effect pending adjudication. The court also rejected the Bank's argument that the Cooperative Court could not pass orders akin to Section 144 of the CPC, noting that the Cooperative Court has inherent powers to do justice. Consequently, the High Court dismissed the writ petition, upholding the Cooperative Court's order and directing the Bank to maintain status quo as on the date of the impugned order.
Headnote
A) Co-operative Law - Jurisdiction of Cooperative Court - Interim Relief - Section 91 Maharashtra Co-operative Societies Act, 1960 - The Cooperative Court has jurisdiction to grant interim relief in a dispute under Section 91, including orders to maintain status quo, pending final adjudication. The court held that the power to decide a dispute includes the power to grant interim relief to prevent irreparable loss and maintain the subject matter of the dispute. (Paras 5-10) B) Co-operative Law - Election Dispute - Removal of Directors - Prima Facie Case - The petitioner-Bank challenged the order of the Cooperative Court which restrained the Bank from giving effect to the removal of respondent-directors. The court found that the respondents had made out a prima facie case regarding the legality of their removal, and the balance of convenience was in their favor. (Paras 11-15) C) Civil Procedure - Interim Orders - Section 144 CPC - The court noted that the principle of restitution under Section 144 of the Code of Civil Procedure, 1908, is not applicable to interim orders passed by the Cooperative Court, as the Cooperative Court is not a civil court. However, the Cooperative Court has inherent powers to pass appropriate orders to do justice. (Para 16)
Issue of Consideration
Whether the Cooperative Court has jurisdiction to grant interim relief under Section 91 of the Maharashtra Co-operative Societies Act, 1960, and whether the impugned order granting such relief was legally sustainable.
Final Decision
The High Court dismissed the writ petition, upholding the Cooperative Court's order dated 14.05.2025. The court directed the petitioner-Bank to maintain status quo as on the date of the impugned order.
Law Points
- Cooperative Court jurisdiction
- interim relief
- prima facie case
- balance of convenience
- irreparable loss
- Section 91 Maharashtra Co-operative Societies Act
- 1960
- Section 144 CPC
- maintainability of writ petition
