Document Fragment View

Matching Fragments

1. The preliminary issue with regard to the bar of the inherent jurisdiction of the Court under Section 91 of the Maharashtra Co-operative Societies Act, 1960 (MCS Act) is to be decided. The issue has been framed thus:

Whether this Court's jurisdiction is barred under Section 91 of the Maharashtra Co-operative Societies Act, 1960.

2. The suit is filed by a co-operative housing society against the two previous owners of the land owned by the society, part of which came to be leased to them under an unregistered agreement of lease. The suit is also filed against the Ex-Secretary of the society who is alleged to have executed a forged and fabricated document in favour of another third party. Defendant Nos.1 & 2 are the previous owners. Defendant No.3 is the previous Secretary. Defendant No.4 is the successor in interest of defendant Nos.1 & 2 under certain documents executed by and between defendant Nos.3 & 4.

5. The plaintiff-society has sought declaration and cancellation of the Deed of Modification, Deed of Confirmation Agreement and Deed of Assignment/Conveyance.

6. It has to be seen whether the dispute between the parties falls within Section 91 of the MCS Act, the relevant part of which runs thus:

91. Disputes.- (1) Notwithstanding anything contained in any other law for the time being in force, any dispute touching the constitution, elections of the committee or its officers other than elections of committees of the specified societies including its officer, conduct of general meetings, management or business of a society shall be referred by any of the parties to the dispute, or by a federal society to which the society is affiliated or by a creditor of the society, to the Cooperative Court if both the parties thereto are one or the other of the following-

10. Sections 43 & 44 which relate to restriction on borrowing and loan making policy do not apply at all to the suit transactions.

11. In the case of Margret Almeida & Ors. Vs. Bombay Catholic Cooperative Housing Society Ltd & Ors. (2012) 5 SCC 642 to which my attention has been drawn by Mr. Shah on behalf of the plaintiff, the Supreme Court considered the purport of the entire Section 91 read with Section 45 in a suit in which the resolution of the society as also the conveyance came to be challenged by the society. It has been held referring to the judgment in the case of Marine Times Publications (P) Ltd. Vs. Shriram Transport & Finance Co. Ltd. (1991) 1 SCC 469 that before the dispute can be referred to the Co-operative Court under Section 91(1) of the MCS Act, it is not only essential that the dispute should be of the kind described in the sub-section but also essential that parties to the dispute must be ones specified thereunder. Hence both the subject matter as also the parties must be those specified in the section. It is, therefore, held that if either of the two requirements is not satisfied the dispute cannot be adjudicated by the Co-operative Court. Consequently then the Civil Court's jurisdiction would not be barred.