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[Cites 23, Cited by 4]

Gujarat High Court

Savitaben Amarshibhai Kanani (Patel) vs Shree Nehrunagar Co Op Housing Society ... on 6 April, 2017

Author: S.G. Shah

Bench: S.G. Shah

                 C/SCA/5980/2017                                           ORDER



                  IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
                    SPECIAL CIVIL APPLICATION No. 5980 of 2017
         ================================================================
                SAVITABEN AMARSHIBHAI KANANI (PATEL)....Petitioner(s)
                                      Versus
                SHREE NEHRUNAGAR CO OP HOUSING SOCIETY LTD &
                               10....Respondent(s)
         ================================================================
         Appearance:
         MR NIRUPAM NANAVATI, SR. COUNSEL with MR SATYAM Y CHHAYA,
         ADVOCATE for the Petitioner(s) No. 1
         MR BHARAT T RAO, CAVEATOR for the Respondent(s) No. 2 - 3
         ================================================================
          CORAM: HONOURABLE MR.JUSTICE S.G. SHAH
                           Date : 06-07/04/2017
                                    ORAL ORDER

1. Heard   learned   senior   counsel   Mr.   N.   D.  Nanavaty   with   learned   advocate   Mr.   Satyam  Chhaya   for   the   petitioner   and   learned  advocate   Mr.B.  T.  Rao  for  the  Respondent/s,  who is appearing on caveat. 

2. Perused the record, which runs into more than  200 pages. The basic issue at this stage is  with   reference   to   interim   relief   only.  However,   when   learned   advocate   for   the  petitioner has submitted that since order of  status   quo   is   in   existence   since   filing   of  the   suit,   it   may   be   continued   with   the  directions to the Court of Board of Nominees  to decide the suit in stipulated time period  but   when   Respondent   Nos.2   and   3   have   not  Page 1 of 32 HC-NIC Page 1 of 34 Created On Wed Apr 19 01:30:51 IST 2017 1 of 34 C/SCA/5980/2017 ORDER agreed   to   such   proposal,   there   is   need   to  pass   detailed   order   irrespective   of   heavy  board   and   though   at   this   stage   of   interim  relief  it  would  be  inappropriate   to discuss  the detailed merits of the case which would  otherwise  prejudice  either  side  at  the  time  of final hearing of such petition. There is  reason   to   say   so   because   at   this   stage   of  admission   and   granting   of   interim   relief,  matter is argued by Respondent Nos. 2 and 3  in   detail   as   if   matter   is   to   be   decided  finally, at this stage. However, considering  the roster and more particularly, when caveat  is filed by Respondent Nos. 2 and 3 only and  thereby   when   rest   of   the   Respondents  including   Respondent   No.1   which   is   party  before the trial Court is yet to be heard and  considering   the   facts   and   circumstances  emerging   from   record,   the   matter   needs  consideration and,  therefore, Rule needs to  be   issued   to   all   the   Respondents.   All   the  Respondents   are   directed   to   complete   their  pleadings   within   60   days   from   the   date   of  receipt   of   writ   of   this   order   so   as   to  expedite the matter. Respondent Nos. 2 and 3  though   have   filed   detailed   reply,   they   are  also   free   to   file   additional   affidavit,   if  they   so   desire.   So   far   as   some   of   the  Respondents  are concerned, at present though  Page 2 of 32 HC-NIC Page 2 of 34 Created On Wed Apr 19 01:30:51 IST 2017 2 of 34 C/SCA/5980/2017 ORDER learned   advocate   for   the   petitioner   has  orally requested to delete some of them since  such amendment is pursuant to written request  dated   22.03.2017   and   since   such   request   is  allowed,   it   would   be   appropriate   for   the  petitioner   to   make   written   request   for   any  such amendment.

3. So far as interim relief is concerned, though  matter   is   argued   at   length   and   since   I  propose to give my reasons for the same, at  this stage disclosing each and every issue in  detail   may   unnecessarily   prejudice   final  hearing and, therefore, I would try to make  the order as precise as it can be, based upon  the   rival   submission   and   material   available  on  record.  However  for  the  reasons  followed  herein after let there be an interim relief  in   terms   of   order   dated   01.02.2017   in  previous   Special   Civil   Application   No.   5446  of   2016   between   the   parties   wherein   Co­ ordinate Bench has in paragraph 7 states as  under:

"7.  Therefore,  when  the  final  rights  of   the   parties   are   yet   to   be  adjudicated   and   determined   by   the  Tribunal   for   which   the   petitioner  will   have   to   establish   his   case,   in  order   to   balance   the   rights   between  the  parties  at this  stage,  interests  Page 3 of 32 HC-NIC Page 3 of 34 Created On Wed Apr 19 01:30:51 IST 2017 3 of 34 C/SCA/5980/2017 ORDER of   justice   would   be   served   by  directing   that   till   the   Tribunal  takes   an   appropriate   decision,  Respondent  Nos.8  and 9 are permitted  to   make   the   use   of   the   building   but  for  residential  purpose.  The rest of  the questions shall be decided by the  Tribunal on merits."

4. In   view   of   such   interim   relief   already  granted on 01.02.2017 and which was in fact  operative till impugned order was passed, at  present   let   there   be   an   interim   relief   in  similar terms whereby though Respondent Nos.  2   and   3   are   permitted   to   make   use   of   the  building   for   residential   purpose,   they   are  restrained   from   utilizing   the   property   for  commercial   purpose   and   more   particularly   to  run   a   hospital   where   several   persons   would  come and go. In addition to it, when petition  is   challenging   the   impugned   order,   the  impugned   order   dated   16.03.2017   in   revision  application No. 26 of 2017 by the Gujarat Co­ Operative Society tribunal is hereby stayed.

5. Petitioner   herein   has   filed   one   Lavad   Suit  No. 123 of 2015 before the Court of Board of  Nominees at Rajkot on or about 27.11.2015 for  declaration   that   a   permission   for   a  commercial construction in plot No.4A of the  Nehrunagar   Co­Operative   Housing   Society  Page 4 of 32 HC-NIC Page 4 of 34 Created On Wed Apr 19 01:30:51 IST 2017 4 of 34 C/SCA/5980/2017 ORDER situated   at   Nanmava   main   road,   Rajkot   is  illegal.   It   is   undisputed   fact   that   such  permission   is   granted   by   Respondent   No.1  herein in favour of Respondent Nos. 2 and 3  who   are   defendant   Nos.   1,   2   and   3  respectively in such suit. There are several  other reliefs including an interim relief for  restraining   the   Respondents   from   continuing  the  commercial  use  of  premises  in  question.  The record shows that initially the Court of  Board   of   Nominees   has   passed   an   order  directing   the   defendants   to   maintain   status  quo of the disputed property till 09.12.2015  and then it was continued till final decision  of the application at exhibit 4 for interim  relief in such Lavad Suit No. 123 of 2015. By  an order dated 22.03.2016, the Court of Board  Nominees   at   Rajkot   has   rejected   such  application   and   vacated   the   order   regarding  stay. 

6. It   seems   that   initially   petitioner   has  challenged such order by filing Special Civil  Application No.5446 of 2016 before this High  Court,   when   tribunal   was   not   available   In  such   petition,   as   already   recorded   herein  above, since alternative remedy was available  before   the   tribunal,   the   petition   was  disposed   of   with   certain   observations   and  Page 5 of 32 HC-NIC Page 5 of 34 Created On Wed Apr 19 01:30:51 IST 2017 5 of 34 C/SCA/5980/2017 ORDER directions amongst which material directions  are   reproduced   herein   above,   by   which   co­ ordinate bench has restricted the Respondent  from   utilizing  the  premises  for  the  purpose  other   then   residential   purpose.   Thereupon  petitioner   has   preferred   the   Revision  Application No. 26 of 2017 before the Gujarat  State   Co   operative   Tribunal,   Ahmedabad  challenging the order dated 22.03.2016 by the  Court   of   Board   of   Nominees,   Rajkot.   The  tribunal   has,   however,   by   impugned   order  dated   16.03.2017   dismissed   the   revision  application   and   confirmed   the   order   below  exhibit   4   in   Lavad   Suit   No.   123   of   2015.  While   dismissing   the   revision   by   impugned  order,   tribunal   has,   after   recording  submissions  by  both  the  sides  observed  that  the dispute raised between the parties is a  question   of   evidence   and   that   when   the  Commercial     activity   is   continued   in   other  properties   hold   by   other   members   of   the  society   and   when   society   has   permitted   the  same and the members holding and plot on main  road and when there is no discrimination by  the   society,   there   is   no   case   in   favour   of  the   present   petitioner   -   original  complainant.   The   tribunal   has   also   recorded  that issue regarding amendment of bye­laws is  an administrative issue and if society is not  Page 6 of 32 HC-NIC Page 6 of 34 Created On Wed Apr 19 01:30:51 IST 2017 6 of 34 C/SCA/5980/2017 ORDER acting   according   to   bye­laws   and   laws,  petitioner   may   apply   before   the   District  Registrar.   But   when   general   body   of   the  society has taken some decision and when it  is   observed   that   medical   services   is   an  activity   of   charity   and   when   petitioner   -  plaintiff   has   raised   objections   after  completing   the   construction   and   that  administration of society is internal matter  and   when   local   bodies   have   granted  permission,  all  the  three  conditions   are  in  favour of Respondent.  The tribunal has also  recorded   that   Respondent   Nos.   2   and   3   have  invested Rs. 5 Crores whereas petitioner has  came   forward     with   ulterior   motive   and,  therefore,   petitioner   is   not   entitled   to  interim relief.  The   tribunal   has   also  recorded   that   though   there   are   several  affidavits   produced   on   record,   it   is   a  question of evidence and, therefore, there is  no error in the order by the Court of Board  of Nominees and hence revision is dismissed.

7. Though   matter   is   argued   at   length   so   as   to  avoid  interim  relief,  the  fact  remains  that  at present i.e. at the admission stage, the  Court   has   to   verify   that   matter   needs  consideration or not and that whether interim  relief can be granted or not. 

Page 7 of 32

HC-NIC Page 7 of 34 Created On Wed Apr 19 01:30:51 IST 2017 7 of 34 C/SCA/5980/2017 ORDER

8. Whether  if  we  peruse   the  impugned  judgment,  details  of  which   are  disclosed  herein  above  now it becomes clear that though tribunal has  on   two   occasions   specifically   admitted   that  several   issues   are   matter   of   evidence,   the  tribunal   has   audacity   to   confirm   that  plaintiff has filed a revision with ulterior  motive. It cannot be said that only because  society has acted through majority, they have  right and that only because Respondent Nos. 2  and   3   have   invested   Rs.5   Crores,   they   can  continue   the   illegal   use   of   the   properties  which is not permissible in law. It is quite  clear   that   laws   and   bye­laws   do   not   permit  the commercial use of residential property.

9. It   can   never   be   stated   that   activities   of  hospital are charitable activity because all  such   activities   are   not   only   for   earning  livelihood but earning butter over the bread  and, therefore, it cannot be stated that such  activities   are   charitable   activity   and,  therefore,   it   can   be   continued   even   if   it  results   into   illegality   or   irregularity   in  any manner, whatsoever. It cannot be ignored  that   if   hospital   is   permitted   to   be  functional   in   residential   zone   then   there  would   be   more   traffic   and   there   is   also  Page 8 of 32 HC-NIC Page 8 of 34 Created On Wed Apr 19 01:30:51 IST 2017 8 of 34 C/SCA/5980/2017 ORDER possibility of infection in surrounding areas  if   hospital   fails   to   maintain   proper  standards of hygiene.

10. At this stage, I do not wish to reproduce the  submissions   and   citations   by   the   petitioner  since I am admitting the matter and to avoid  repeated exercise since the matter is yet to  be argued in detail and would be decided on  its own merits at the time of final hearing.  However,   when   interim   relief   is   opposed  vehemently   with   detailed   argument,   it   needs  to   be   considered   and   answered   at   present.  Thereby, it can be said that grounds taken in  pleading   by   the   petitioner   are   prima   facie  sufficient   to   grant   interim   relief   at  present. 

11. So   far   as   submissions   of   learned   advocate  Mr.B.T.   Rao   for   Respondent   Nos.2   and   3   are  concerned, they are summarized, discussed and  answered as under.

12. It  is  submitted  by  learned  advocate  Mr.B.T.  Rao   for   Respondent   Nos.2   and   3   that   when  Respondent   Nos.2   and   3   have   not   hidden  anything,   their   action   should   not   be  questioned.   For   the   purpose,   he   is   relying  upon   an   application   submitted   by   them   for  Page 9 of 32 HC-NIC Page 9 of 34 Created On Wed Apr 19 01:30:51 IST 2017 9 of 34 C/SCA/5980/2017 ORDER becoming   a   Member   of   the   Society;   copy   of  which   is   produced   at   Annexure   `I'   (Page  No.75­76). It is submitted that in the column  for   purpose   of   purchasing   plot   /   building,  when   it   is   stated   as   `hospital',   there   is  disclosure   by   Respondent   Nos.2   and   3   and  knowledge   by   Respondent   No.1   that   plot   is  being   purchased   for   constructing   or   running  hospital. With due respect and since it is at  interim stage, by all means, the document is  to   be   read   as   it   is   unless   it   is   proved  before   the   trial   Court   with   requisite  formalities   of   proof   whereby   in  alternatively,   it   can   be   said   that   the  disclosure of word `hospital' in such column  may or may not be considered to confirm that  plot   was  purchased  only  for  construction   of  hospital. I have reason to say so because in  the same document, there is disclosure in the  form of Bank by the petitioner which confirms  that   he   will   construct   the   building   as   per  bye­laws of the society and for the purpose  for which society is formed. In any case, all  such   issues   are   to   be   dealt   with   after  evidence   is recorded   before  the  trial  Court  but at this stage, prima facie it cannot be  said that only because of some disclosure by  Respondent Nos.2 and 3 or some permission if  any   granted   by   Respondent   No.1   which   is  Page 10 of 32 HC-NIC Page 10 of 34 Created On Wed Apr 19 01:30:51 IST 2017 10 of 34 C/SCA/5980/2017 ORDER otherwise   not   in   accordance   with   law   and  similarly  even  if  local  bodies  have  granted  some   permission   without   considering   the  relevant   provisions   of   law   to   confirm   that  whether   a   permission   for   constructing  commercial building can be granted in a plot  of   residential   cooperative   housing   society,  only   because,   everyone   including   Respondent  No.1   has   committed   some   irregularity   or  error,   it   cannot   be   said   that   once   it   is  permitted   by   so   many   persons,   it   should   be  continued   forever,   more   particularly,   when  petitioner   being   occupant   of   adjoining   plot  is   objecting   to   run   a   hospital   in   a  residential   premises   adjoining   his  residential house.

13. As   against   that,   it   is   contended   that   when  petitioner  has  agreed  in  general   meeting   of  the   society   to   permit   the   Respondent   Nos.2  and 3 to construct a hospital and when he was  aware   about   the   ongoing   construction   for  almost 18 months and when he has not objected  for 18 months, now, he is not allowed to take  objections. It is further submitted that when  construction   was   ongoing,   petitioner   has  never   opposed   the   construction.   However,   it  cannot   be   ignored   that   starting   of  construction   on day  one  cannot  confirm  that  Page 11 of 32 HC-NIC Page 11 of 34 Created On Wed Apr 19 01:30:51 IST 2017 11 of 34 C/SCA/5980/2017 ORDER whether   it   is   for   commercial   purpose   or  residential   purpose   and,   therefore,   as   and  when it is confirmed that property is being  constructed for being utilized for commercial  purpose, petitioner has initiated proceedings  and   it   is   not   beyond   such   time   frame   when  such issue cannot be considered in detail. It  is   also   alleged   that   by   not   objecting   the  construction   at the  initial  stage,  there   is  some malafide and ulterior motive on the part  of the petitioner. However, such pleading or  submission  alone   is not  sufficient  to  prove  any malafide or ulterior motive which is also  admitted   by the  Tribunal   and,  therefore,   it  is a question of evidence.

14. So far as the aspect of delay is concerned,  learned   advocate   Mr.B.T.   Rao   appearing   for  Respondent   Nos.2   and   3   is   relying   upon  following decisions: ­ [a] Prabhakar   v.   Joint   Director   Sericulture  Department   reported   in   2015(15)   SCC   1,  wherein,   Hon'ble   Supreme   Court   has   observed  that right not exercised for long time is not  existent and even when there is no limitation  period prescribed by any statute relating to  certain proceeding in such cases, Courts can  apply   doctrine   of   latches   /   delay   /  Page 12 of 32 HC-NIC Page 12 of 34 Created On Wed Apr 19 01:30:51 IST 2017 12 of 34 C/SCA/5980/2017 ORDER acquiescence   and   non   suit   litigants   who  approached   the   Court   belatedly   without   any  justifiable   explanation   for   bringing   the  action   after   unreasonable   delay.   Such  observation   is   based   upon   the   doctrine   of  delay and latches relating to application of  maxim   of   equity   `delay   defeats   equities.'  Though there cannot be any issue as to such  observation,   such   judgment   needs   to   be  scrutinized   and   relied   upon   and   applied   it  its  proper  perspective,  inasmuch   as,  in the  given   case   an   order   of   termination   was  challenged   after   a   period   of   more   than   14  years   by   a   labourer   under   the   Industrial  Disputes   Act.  Whereas,  in  the  present  case,  there   is   no   such   inordinate   delay   and,  therefore,   only   because   of   some   such  observations in one case, there cannot be a  strait   jacket   formula   in   all   the   cases   to  confirm that because of some delay, no relief  can   be   granted   at   all.   It   is   settled   legal  position that procedural law including delay  should   not   come   in   way   of   rendering   of  justice. 

[b] Mandali   Ranganna   v.   T.   Ramachandra  reported in 2008(11) SCC 1, wherein, Hon'ble  Supreme   Court   has   observed   and   held   that  while   considering   the   application   for   grant  Page 13 of 32 HC-NIC Page 13 of 34 Created On Wed Apr 19 01:30:51 IST 2017 13 of 34 C/SCA/5980/2017 ORDER of injunction, the Court will not only take  into   consideration   the   basic   elements   in  relation thereto, viz., existence of a prima  facie   case,   balance   of   convenience   and  irreparable   injury,   but   it   must   also   take  into   consideration   the   conduct   of   the  parties. With reference to such citation, it  is   submitted   that   in   the   present   case,   the  conduct of the petitioner in challenging the  use of construction only after its completion  needs  to  be considered.  However,   as already  discussed hereinabove, there is no inordinate  delay  and  petitioner   has  challenged  the  use  at   the   relevant   time   and,   therefore,   it  cannot be said that only because of some such  observation   in   some   cases,   interim   relief  cannot be granted in any case.

[c] Ramrameshwari   Devi   v.   Nirmala   Devi  reported   in   2011   (8)   SCC   249,   wherein,  Hon'ble   Supreme   Court   has,   in   paragraph   47  and   48,   (which   are   read   out   by   learned  advocate Mr.Rao) observed as under: ­ "47.   We   have   to   dispel   the   common  impression   that   a   party   by  obtaining   an   injunction   based   on  even   false   averments   and   forged  documents   will   tire   out   the   true  owner and ultimately the true owner  will   have   to   give   up   to   the  Page 14 of 32 HC-NIC Page 14 of 34 Created On Wed Apr 19 01:30:51 IST 2017 14 of 34 C/SCA/5980/2017 ORDER wrongdoer his legitimate profit. It  is   also   a   matter   of   common  experience   that   to   achieve  clandestine   objects,   false   pleas  are   often   taken   and   forged  documents   are   filed  indiscriminately   in   our   courts  because   they   have   hardly   any  apprehension   of   being   prosecuted  for   perjury   by   the   courts   or   even  pay heavy costs. In Swaran Singh v.  State   of   Punjab   (2000)   5   SCC   668  this   court   was   constrained   to  observe   that   perjury   has   become   a  way of life in our courts.

48. It is a typical example how a  litigation   proceeds   and   continues  and   in   the   end   there   is   a   profit  for the wrongdoer."

However,   though   it   may   be   the   position   in  some   cases,  in  absence  of  specific  evidence  to   that   effect,   it   cannot   be   presumed   that  every   plaintiff   or   petitioner   wants   to  continue the injunction indefinitely only to  get   some   disadvantage.   With   due   respect,   I  have   no   option   but   to   record   that   if   such  principle   is   applied   in   all   cases,   then,  probably provisions of Order 39 - Rule 1 and  similar   such   provisions   and   powers   of   all  judicial   authorities   would   be   futile.  Therefore,   in   a   given   case,   certainly  considering   the   facts   and   circumstances   and  evidence as well as applicable law, the Court  Page 15 of 32 HC-NIC Page 15 of 34 Created On Wed Apr 19 01:30:51 IST 2017 15 of 34 C/SCA/5980/2017 ORDER may   grant   interim   relief   which   is   always  subject   to   final   determination   after  extending reasonable opportunities to all the  concerned.

[d] Zenit   Mataplast   Pvt.   Ltd.   v.   State   of  Maharashtra   reported   in   2009(10)   SCC   388,  wherein,   Mr.Rao,   learned   advocate   for  Respondent   Nos.2   and   3   has   relied   upon  observations   in   paragraphs   30,   31,   and   38  which read as under: ­ "30. Interim order is passed on the  basis   of   prima   facie   findings,  which are tentative. Such order is  passed   as   a   temporary   arrangement  to preserve the status quo till the  matter   is   decided   finally,   to  ensure   that   the   matter   does   not  become either infructuous or a fait  accompli before the final hearing.  The   object   of   the   interlocutory  injunction   is,   to   protect   the  plaintiff   against   injury   by  violation of his right for which he  could not be adequately compensated  in   damages   recoverable   in   the  action   if   the   uncertainty   were  resolved   in   his   favour   at   the  trial.   (Anand   Prasad   Agarwalla   v.  State   of   Assam  vs.   Tarkeshwar  Prasad & Ors. AIR 2001 SC 2367; and  Barak   Upatyaka   D.U.   Karmachari  Sanstha (2009) 5 SCC 694)

31. Grant   of   an   interim   relief   in  regard   to   the   nature   and   extent  Page 16 of 32 HC-NIC Page 16 of 34 Created On Wed Apr 19 01:30:51 IST 2017 16 of 34 C/SCA/5980/2017 ORDER thereof depends upon the facts and  circumstances   of   each   case   as   no  strait­jacket formula   can   be   laid  down.   There   may   be   a   situation  wherein   the   defendant/Respondent  may use the suit property in such a  manner   that   the   situation   becomes  irretrievable.   In   such   a   fact  situation, interim relief should be  granted (vide M. Gurudas & Ors. Vs.  Rasaranjan & Ors. AIR 2006 SC 3275;  and Shridevi & Anr. vs. Muralidhar  & Anr. (2007) 14 SCC 721. Grant of  temporary   injunction,   is   governed  by   three   basic   principles,   i.e.  prima   facie   case;   balance   of  convenience;   and   irreparable  injury,   which   are   required   to   be  considered in a proper perspective  in the facts and circumstances of a  particular case. But it may not be  appropriate for any court to hold a  mini trial at the stage of grant of  temporary   injunction   (Vide   S.M.  Dyechem   Ltd.   Vs.   M/s.   Cadbury  (India) Ltd., AIR 2000 SC 2114; and  Anand Prasad Agarwalla (supra).

38.   The   delay   in   approaching   the  Court   is   of   course   a   good   ground  for refusal of interim relief, but  in exceptional circumstances, where  the   case   of   a   party   is   based   on  fundamental rights guaranteed under  the   Constitution   and   there   is   an  apprehension that suit property may  be   developed   in   a   manner   that   it  acquires   irretrievable   situation,  the Court may grant relief even at  a belated stage provided the court  is satisfied that the applicant has  not been negligent in pursuing the  case." 

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HC-NIC Page 17 of 34 Created On Wed Apr 19 01:30:51 IST 2017 17 of 34 C/SCA/5980/2017 ORDER The bare reading of above three paragraphs on  the contrary confirms that in a given case,  interim   relief   can   certainly   be   granted.  Therefore, in absence of inordinate delay, it  cannot be confirmed that petitioners are not  entitled   to   any   relief   only   because   he   has  come after some time before the Court raising  his grievances and, therefore, I do not see  any reason to deny interim relief only on the  ground of delay and latches. 

[e] Surya Dev Rai v. Ram Chander Rai reported  in 2003(6) SCC 675, wherein, Mr.Rao, learned  advocate   for   Respondent   Nos.2   and   3   has  relied upon observations in paragraphs 26 and  27 of such judgment and submitted that this  Court   should   not   exercise   its   supervisory  jurisdiction   under   Article   227   against   the  impugned   order   when   two   Courts'   below   have  considered   the   fact   and   when   there   are  concurrent   findings.   However,   if   we   peruse  the entire judgment, it becomes clear that in  paragraphs 26 and 27, though Hon'ble Supreme  Court has discussed some issues, ultimately a  conclusion   in   nut   shell   is   endorsed   in  paragraph 38. Though Mr.Rao, learned advocate  for Respondent Nos.2 and 3 has read out some  Page 18 of 32 HC-NIC Page 18 of 34 Created On Wed Apr 19 01:30:51 IST 2017 18 of 34 C/SCA/5980/2017 ORDER sub   paragraphs   of   paragraph   38   submitting  that it restricts the right of the Court to  exercise   its   powers   under   Article   227,   on  overall reading of the judgment, it is very  much   clear  that  in­fact  the  Hon'ble  Supreme  Court has nowhere stated that High Court has  no   power   or   jurisdiction   at   all   in   such  matters   and   if   we   consider   the   fact   of   the  case before the Hon'ble Supreme Court, though  there were concurrent findings by two Courts'  below,   the   Hon'ble   Supreme   Court   has   held  that the High Court has failed in refusing to  entertain   the   petition   filed   by   the  Appellants   holding   it   as   non­maintainable  and,   thereby,   allowed   the   appeal   setting  aside   the   order   by   the   High   Court   and,  thereafter   the   petition   was   ordered   to   be  restored on the file of the High Court to be  dealt   with   by   an   appropriate   bench  consistently   with   the   Rules   of   the   High  Court. Therefore, when Hon'ble Supreme Court  has   discussed   the   issue   regarding  jurisdiction of the High Court under Article  227,   certainly   Hon'ble   Supreme   Court   has  dealt with the submissions of both the sides  pertaining to the issue that whether or not  High Court can exercise the jurisdiction and  after   discussing   issue   on   both   the   sides,  even   in   cited   case,   when   Hon'ble   Supreme  Page 19 of 32 HC-NIC Page 19 of 34 Created On Wed Apr 19 01:30:51 IST 2017 19 of 34 C/SCA/5980/2017 ORDER Court has confirmed that High Court has erred  in   not   exercising   the   jurisdiction   under  Article 227 of the Constitution of India, it  cannot   be   said   that   this   Judgment   is  restraining the powers of the High Court in  entertaining   such   petition.   Therefore,   this  judgment would not be helpful at this stage  to Respondent Nos.2 and 3. 

[f] Mr.Rao,   learned   advocate   for   Respondent  Nos.2 and 3 has also relied upon judgment of  coordinate   bench   in   the   case   of  Vidyanagar  Co­operative   Housing   Society   v.   Sheela   D.  Patel  dated   13.12.2004   in   Special   Civil  Application   No.15555   of   2004   with   Special  Civil   Application   No.15561   of   2004   wherein,  according to Respondents, Commercial activity  was   permitted   by   the   High   Court   in  residential   society.   However,   pursuant   to  decision   in   the   case   of  Ambica   Nagar   Co­ operative   Housing   Society   Ltd.   V.   State   of  Gujarat   reported   in   2013(5)   GLR   3740,  wherein, it is made clear in paragraph 14.7  that pursuant to decision in Zoroastrian Co­ operative   Housing   Society,   the   decision   in  Special   Civil   Application   No.15555   of   2004  with   Special   Civil   Application   No.15561   of  2004 is impliedly overruled and, therefore, I  Page 20 of 32 HC-NIC Page 20 of 34 Created On Wed Apr 19 01:30:51 IST 2017 20 of 34 C/SCA/5980/2017 ORDER need   not   discuss   it   any   further.   Whereas,  factually,  there   is difference  in  the  cited  case   on   hand   i.e.   in   the   cited   case,   the  concerned  area  was  declared  as  a  commercial  zone   but   in   the   present   case,   though   it   is  submitted   that   considering   the   busy   main  road,  this  area  has  become  commercial  zone,  it   cannot   be   said   that   it   is   a   commercial  zone   and,   therefore,   permission   can   be  granted.  

[g] Mr.Rao,   learned   advocate   for   Respondent  Nos.2 and 3 has relied upon similar decision  in the case of  Sharadbhai Premjibhai Rami v.  Vishnumbhai Natvarlal Patel  in  Special Civil  Application No.470 of 2013  wherein also, the  coordinate bench has, allowed the leasing or  renting out the plot in question to a third  party for a commercial use. However, at this  interim   stage,   without   considering   the  factual details, I do not see any reason to  rely   upon   such   when   judgment   of   Hon'ble  Supreme Court in the case of  Zoroastrian Co­ operative   Housing   Society   (Supra)  is  prevailing.   

However,   such   case   has   been   dealt   with   by  coordinate bench in Special Civil Application  Page 21 of 32 HC-NIC Page 21 of 34 Created On Wed Apr 19 01:30:51 IST 2017 21 of 34 C/SCA/5980/2017 ORDER No.477   of   2017  in   the   case   of  Shashikant  Ghelabhai   Maisuriya   v.   Anandnagar   Sahkari  Ghar Mandali Limited wherein relying upon the  case   of    Ambica   Nagar   Co­operative   Housing  Society Ltd. (Supra)  wherein it is held that  the   decision   in  Sharadbhai   Premjibhai   Rami  (Supra) rendered on its own facts and it does  not   lay   down   proposition   that   a   member   is  permitted to use the premises for commercial  purpose   and   to   run   a   restaurant.   It   is  further   observed   that   such   aspect   is   to   be  finally examined on evidence in the course of  the trial of the Lavad suit. Therefore, this  judgment   would  not  be  helpful  to  Respondent  Nos.2 and 3. 

[h]  Mr.Rao,   learned   advocate   for   Respondent  Nos.2 and 3 has also relied upon  Harekrishna  K.   Vadhwani   v.   Vasupujya   Smruti   Co­Op.  Housing   Society   Limited   reported   in   2004(1)  GLH   257  and   relied   upon   paragraph   9   of   the  judgment submitting that when general body of  the society has taken a decision, unless such  decision   is   challenged   under   Section   96,  plaintiff has no case. It cannot be ignored  that   issue   before   the   coordinate   bench   in  cited case was with reference to bifurcation  of the society and when it was decided by the  Page 22 of 32 HC-NIC Page 22 of 34 Created On Wed Apr 19 01:30:51 IST 2017 22 of 34 C/SCA/5980/2017 ORDER general   body   of   the   society   in   three  different phases, the Court has held that it  is   an   issue   which   is   to   be   dealt   under  Section   96   of   the   Act.   Therefore,   only  because of such judgment, which is purely on  altogether   a   different   footing   and   facts  would   not   restrict   for   interim   relief   in  favour   of   the   petitioner   for   the   facts   and  circumstances and evidence which is produced  on record.

15. In   support   of   above   submissions,   Mr.Rao,  learned  advocate   for  Respondent  Nos.2  and  3  is   also   relying   upon   the   provisions   of  Section   73   of   the   Gujarat   Co­operative  Societies   Act,   1961.   However,   the   bare  perusal of the Act makes it clear that there  is   no   substance   in   the   submissions   by  Respondent Nos.2 and 3 that bye­laws can be  deemed   to   be   amended   when   general   body   has  taken   any   decision.   It   is   categorically  provided   under  such  Statute  that   subject   to  the provisions in this Act and the Rules, the  authority   of   every   society   shall   vest   in  general   body   of   the   members   in   general  meeting but it nowhere confirms that bye­laws  of the society are to be treated as deemed to  be   amended   when   general   body   has   taken   any  decision.   If   said   section   is   to   be  Page 23 of 32 HC-NIC Page 23 of 34 Created On Wed Apr 19 01:30:51 IST 2017 23 of 34 C/SCA/5980/2017 ORDER interpreted as suggested then primarily there  is  no  need  to  have  bye­laws  in  the  form  of  documents approved by competent authority and  published   for   reference   for   all   purpose   by  all the concerned. It cannot be ignored that  bye­laws can be amended only after following  the   procedure   which   is   prescribed   under  Section   13   of   the   Act   which   provides   for  amendment of bye­laws of society and confirms  that   no   amendment   of   the   bye­laws   of   the  society shall be valid without forwarding it  to the Registrar and that Registrar may allow  the amendment only if it is not contrary to  the Act and Rules. Sub Section (3) of Section  13 confirms that bye­laws would be effective  only   when   Registrar   issues   a   certified  amendment to the Society. 

Date : 07/04/2017

16. Therefore, none of the legal issues raised by  the Respondents No.2 and 3 are sufficient to  restrict the interim relief prayed for by the  petitioner.

17. It   cannot   be   ignored   that   majority   of   the  members   of   the   co­operative   society   alone  cannot   change   the   statutory   provision   and,  therefore, only because society has resolved  by   majority   to   permit   the   Respondents   to  carry   out   commercial   construction,   when   by­ Page 24 of 32 HC-NIC Page 24 of 34 Created On Wed Apr 19 01:30:51 IST 2017 24 of 34 C/SCA/5980/2017 ORDER laws   of   the   society   so   also   other   statutes  and decision of the Court, more particularly  in   the   case   of   Ambica   Nagar   Co­operative  Housing Society (supra) specifically confirm  that   commercial   activity   cannot   be   carried  out   in   residential   zone,   and   more  particularly,   in   plot   or   house   of   Co­ operative Housing Society, the petitioner has  got   a   prima   facie   case   in   his   favour.   It  cannot   be   ignored   that   prima   facie   case,  balance   of   convenience   and   irreparable  injury,   cannot   tilt   in   favour   of   the  wrongdoer merely because of support rendered  by   majority   members   of   the   co­operative  society. 

18. Similarly,   when   bye­laws   of   the   society   as  well   as   other   laws   and   rules   relating   to  construction,   restrict   the   use   of   the   plot  under reference to be utilised for commercial  activity, only becuase local authorities have  granted permission, the Respondents No.2 and  3 do not have absolute right to utilise such  property   for   commercial   purpose   when   his  neighbour   has   raised   the   issue   regarding  illegal   permission   and   construction.  Therefore, when it is settled legal position  that  prima   facie   case   is   to   be   looked   into  based upon the statutory provision, then, it  Page 25 of 32 HC-NIC Page 25 of 34 Created On Wed Apr 19 01:30:51 IST 2017 25 of 34 C/SCA/5980/2017 ORDER is certain that prima facie case is certainly  in favour of the petitioner so as to restrain  the   Respondents   from   using   the   property   in  question   for   being   utlised   for   commercial  purpose. Thereafter, consideration of balance  of   convenience   and   irreparable   loss   would  follow   the   aspect   of   prima   facie   case  inasmuch as only because someone is a Doctor  and   has   spent   some   amount   for   the   disputed  construciton, it cannot be said that balance  of convenience is in his favour and because  of   his   investment   against   right   of   the  petitioner to stay in a safe residential zone  free from infection, contamination, pollution  and   other   hazards,   which   may   occur   if  hospital   is   permitted   to   be   functional   in  residential   zone.   Therefore,   balance   of  convenience would certainly tilt in favour of  the   person,   who   is   having   residence   in  residential zone rather than the person, who  is trying to utilise the residential zone for  carrying   out   commercial   activities.   It   is  well­known   that   Doctors   are   not   providing  their   services   as   charity,   but   they   are  charging   handome   amount   towards   their  consultancy and other charges and, therefore,  only   because   Respondents   want   to   run  hospital, it cannot be said that balance of  convenience is in their favour.

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HC-NIC Page 26 of 34 Created On Wed Apr 19 01:30:51 IST 2017 26 of 34 C/SCA/5980/2017 ORDER

19. It is also clear and obvious that Respondent  Nos.2   and   3   have   tried   to   affiliate   their  hospital   with   several   agencies   for   cashless  treatment and, therefore, there would be more  flow of patients in the given area. Thereby,  when   balance   of   convenience   is   also   not   in  favour   of   the   Respondents,   petitioner   is  entitled to interim relief as prayed for. So  far as irreparable loss is concerned, it is  well­known fact that developing a hospital in  a residential area would be far cheaper than  developing a hospital in commercial area and,  therefore, practically, Respondents No.2 and  3   are   saving   huge   amount   for   carrying   out  illegal construciton in residential zone and,  therefore, irreparable loss is not caused to  them, but if health of the petitioner and her  family  members  is  affected  due  to  infection  and other probable health hazards because of  adjoining hospital, then, in fact irreparable  loss would result to the petitioner. It seems  that the Tribunal has failed to realise all  such aspects. 

20. It would be appropriate to recollect that in  case   of  Ambica   Nagar   Co­operative   Housing  Society   Ltd.   (supra),   the   Court   has  considered   all   the   cases   on   the   subject,  Page 27 of 32 HC-NIC Page 27 of 34 Created On Wed Apr 19 01:30:51 IST 2017 27 of 34 C/SCA/5980/2017 ORDER which   are   33   in   number   and   after   detailed  discussion   on   the   subject,   came   to   the  conclusion that :­ "[i]   In   a   cooperative   housing  society, a member cannot use land for  commercial   purpose,   namely,   the  purpose   other   than   residence   as   per  bye­laws, rules and provisions of the  Act   of   1961   irrespective   of  permission   granted   by   any   authority  either   under   the   Town   Planning   Act,  GDCR   or   under   the   BPMC   Act   or   like­ wise. 

[ii] When there are specific bye­laws  in   cooperative   housing   society   for  use of house allotted to a member for  residence,   land   cannot   be   permitted  to   be   converted   into   commercial   use  or purpose  including  for the purpose  of   establishing   medical   clinic,  nursing home, etc.  [iii]   The   land   was   granted   to  cooperative   housing   society   by   the  State   Government   in   the   facts   of  Special Civil Application No.11343 of  2006   subject   to   restrictions   in  Section 63 of the Bombay Tenancy and  Agricultural Lands Act, 1948 and also  under   Sections   65   and   65A   of   the  Bombay   Land   Revenue   Code,   1879   and  without   removing   such   restrictions  and   permission   so   granted   by   the  Competent   Authority   under   the   Bombay  Tenancy   and   Agricultural   Lands   Act,  1948,   and   the   Bombay   Land   Revenue  Code,   1879,   permission   for   use   of  commercial   purpose   of   such   land  granted   by   the   Authority   under   the  Page 28 of 32 HC-NIC Page 28 of 34 Created On Wed Apr 19 01:30:51 IST 2017 28 of 34 C/SCA/5980/2017 ORDER Town Planning Act is inconsequential,  when   the   development   and   use   of   the  land   allotted   by   the   Cooperative  Housing   Society   to   the   member   was  contrary   to   bye­law,   rules   and   the  provisions of the Act, 1961."

Most   judgments   relied   by   the   Respondents,  including the judgment in the case of  Satnarayan  B.Sharma  Vs.  A.L. Dineu  reported  in 2004(2)  GLR  1055  are dealt with in this case and therefore,  there is no reason to deviate from such decision. 

21. Petitioner   is   also   relying   upon   the   case  between  Dhanesh  Bhikhubjao  Patel   & Anr.  Vs.  Shantiniketan   Co­operative   Housing   Society  Ltd. reported in 2014(2) GLR 1638 in addition  to   reliance   placed   on   the   case   of   Ambica  Nagar   Co­operative   Housing   Society   Ltd.  (supra). Therein also, the Co­ordinate Bench  has   after   referring   as   many   as   15   previous  decisions observed as under:­ "9.  It   is   required   to   be   noted   that  there is no specific provision in the  bye­law   for   permitting   any   of   the  members   of   the   society   to   put   up  commercial   construction.   Learned  advocate   Mr.   Desai   for   the  petitioners   however   submitted   that  since there is no prohibition in the  bye­law   against   putting   up   the  commercial   construction,   use   of   the  plots of the society will be governed  by the GDCR and the provisions of the  Page 29 of 32 HC-NIC Page 29 of 34 Created On Wed Apr 19 01:30:51 IST 2017 29 of 34 C/SCA/5980/2017 ORDER Corporation   Act   as   per   which   the  commercial   construction   is  permissible   on   the   plot   of   the  society.   Such   contention   of   learned  advocate Mr. Desai cannot be accepted  for   the   simple   reason   that   what   is  required   to   be   considered   is   the  intent   and   purpose   contained   in   the  bye­laws.   Prima   facie,  it   appears  from   the   bye­laws   that  Respondent  No.1   society   was   incorporated   to  provide   houses   to   its   members. 

Therefore,   every   member   of   the  society is well aware that he or she  holds tenement as a house or dwelling  unit   to   reside   therein.   Therefore,  absence   of   prohibition   in   the   bye­ laws   against   making   of   commercial  construction   on   the   plot   of   the  society,   could   not   be   taken   as   a  permission   for   raising   commercial  construction   on   the   plots   of   the  society   which   the   society   never  provided for in the bye­laws. 

10. Paramount consideration is always  the   interest   of   the   society   having  regard   to   its   bye­laws.   What   is   in  the   interest   of   the   society   is  primarily   alone   for   the   society   to  decide.   Even   the   Registrar,   without  there   being   any   proposal   for  amendment   by   society   to   incorporate  provision for commercial construction  in   the   bye­laws,   will   not   be  empowered to order amendment for such  provision in the bye­laws. Section 14  of the Gujarat Co­operative Societies  Act   provides   that   if   it   appears   to  the   Registrar   that   an   amendment   of  the   bye­laws,   except   in   respect   of  the  name   and   object  of   a   society   is  necessary or desirable in respect of  Page 30 of 32 HC-NIC Page 30 of 34 Created On Wed Apr 19 01:30:51 IST 2017 30 of 34 C/SCA/5980/2017 ORDER the   society,   he   may   call   upon   the  society   to   make   amendment.   Thus,   in  respect of the name and object of the  society,   even   the   Registrar   has   no  power to direct amendment in the bye­ laws.   Thus   original   object   of   the  society is given due importance."

22. In view of above facts and circumstances, as  already   recorded   herein   above,   the   interim  relief as prayed for is granted. 

23. Learned advocate Mr.B. T. Rao for Respondent  Nos.2 and 3 is requesting to stay this order  submitting   that   since   there   is   no   interim  relief in favour of the petitioner from the  date   of   impugned   order   till   date,   the  Respondent  Nos.2   and  3 have  already  started  the hospital. 

24. However,   matter   was   under   active  consideration   since   day   one   when   it   was  listed   before   this   Court,   it   was   argued   in  piece­meal because of paucity of time and at  least on one occasion it is adjourned because  of the strike by the advocates. Therefore, I  do   not   see   any   reason   to   stay   this   order  which   is   mainly   based   upon   the   legal   issue  that   whether   commercial   activity   can   be  allowed  in  a  residential   housing   society   or  not. Therefore, request is rejected.  

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HC-NIC Page 31 of 34 Created On Wed Apr 19 01:30:51 IST 2017 31 of 34 C/SCA/5980/2017 ORDER    (S.G. SHAH, J.) * Vatsal/Binoy/Drushti Page 32 of 32 HC-NIC Page 32 of 34 Created On Wed Apr 19 01:30:51 IST 2017 32 of 34 C/SCA/5980/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION NO. 5980 of 2017 [On note for speaking to minutes of order dated 06/04/2017 in C/SCA/5980/2017 ] ========================================================== SAVITABEN AMARSHIBHAI KANANI (PATEL)....Petitioner(s) Versus SHREE NEHRUNAGAR CO OP HOUSING SOCIETY LTD &

10....Respondent(s) ========================================================== Appearance:

MR SATYAM Y CHHAYA, ADVOCATE for the Petitioner(s) No. 1 MR BHARAT T RAO, CAVEATOR for the Respondent(s) No. 2 - 3 ========================================================== CORAM: HONOURABLE MR.JUSTICE S.G. SHAH Date : 18/04/2017 ORAL ORDER Learned advocate for the petitioner Mr. Satyam Y. Chhaya has pointed out that in absence of separate line regarding rule, matter is shown as disposed of in computerised data base. Therefore, though there is specific directions in para 2 that "Rule needs to be issued to all the Respondents." With further directions that; "All the Respondents are directed to complete their pleadings within 60 days from the date of receipt of writ of this order so as to expedite the matter.", let there be an additional line at the bottom of the order on page 32 "Rule returnable on 08.06.2017". Thereby, Registry is directed to rectify the data base accordingly. Note for speaking to minutes is disposed of.
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HC-NIC Page 33 of 34 Created On Wed Apr 19 01:30:51 IST 2017 33 of 34 C/SCA/5980/2017 ORDER (S.G. SHAH, J.) drashti Page 2 of 2 HC-NIC Page 34 of 34 Created On Wed Apr 19 01:30:51 IST 2017 34 of 34