Case Note & Summary
The petitioners, members of Bramha Suncity Co-operative Housing Society Ltd., filed Dispute No.106/2021 before the Co-operative Court under the Maharashtra Co-operative Societies Act, 1960 (MCS Act) against the society and others. The society was formed by purchasers of flats in a complex of 26 buildings with 1277 members, constructed by Respondent No.4-Bramha Corporation Ltd., the promoter. The society had sought deemed conveyance of land from the promoter under Section 11 of the Maharashtra Ownership Flats Act (MOFA), but the application was rejected. The society also filed a civil suit against the promoter. In the co-operative dispute, Respondent No.4 filed an application at Exh.15 seeking impleadment as a party. The Co-operative Court allowed the application by order dated 14 March 2023, directing impleadment of Respondent No.4. The petitioners challenged this order before the Co-operative Appellate Court, Pune, which dismissed their Revision Application No.27 of 2023 on 19 August 2023. Aggrieved, the petitioners filed the present writ petition. The core legal issue was whether the Co-operative Court's power to implead parties under Section 94(3)(c) of the MCS Act is restricted to persons enumerated under Section 91(1)(a) to (e) and pendente-lite purchasers, or whether it extends to other persons. The petitioners argued that the power is limited, while Respondent No.4 contended that the court has wide discretion. The High Court analyzed the provisions and held that Section 94(3)(c) confers a broad power on the Co-operative Court to implead any person whose presence is necessary for effective adjudication, and it is not confined to the categories mentioned in Section 91(1). The court noted that the promoter is a necessary party as the dispute involves issues of conveyance and rights over the property. The High Court dismissed the petition, upholding the impleadment order.
Headnote
A) Co-operative Law - Impleadment of Parties - Section 94(3)(c) MCS Act - Scope of Power - The issue was whether the Co-operative Court's power to implead parties under Section 94(3)(c) of the Maharashtra Co-operative Societies Act, 1960 is restricted to persons enumerated under Section 91(1)(a) to (e) and pendente-lite purchasers. The Court held that the power is not so restricted and the Co-operative Court has wide discretion to implead any person whose presence is necessary for effective adjudication of the dispute. (Paras 1, 2, 30) B) Co-operative Law - Impleadment of Promoter - Necessary Party - The petitioners, members of a co-operative housing society, filed a dispute against the society and others. The promoter sought impleadment. The Court held that the promoter, being the builder who constructed the buildings and against whom the society had sought deemed conveyance, is a necessary and proper party to the dispute as its presence would enable effective and complete adjudication. (Paras 3, 4, 30) C) Co-operative Law - Revision - Maintainability - The Co-operative Appellate Court dismissed the revision against the impleadment order. The High Court upheld the dismissal, finding no error in the Co-operative Court's exercise of discretion. (Paras 2, 30)
Issue of Consideration
Whether the powers of a Co-operative Court to implead parties under Section 94(3)(c) of the Maharashtra Co-operative Societies Act, 1960 is restricted to impleadment of only persons enumerated under Section 91(1)(a) to (e) and pendente-lite purchasers or is it permissible to implead to the dispute other persons as well.
Final Decision
The High Court dismissed the writ petition, upholding the orders of the Co-operative Court and Co-operative Appellate Court allowing impleadment of Respondent No.4.
Law Points
- Co-operative Court's power to implead parties under Section 94(3)(c) of MCS Act is not restricted to persons enumerated under Section 91(1)(a) to (e)
- includes pendente-lite purchasers
- wide discretion to join necessary and proper parties
