Bombay High Court High Court

District Beed vs Laxminagar Co-Operative Housing on 3 August, 2009

Bombay High Court
District Beed vs Laxminagar Co-Operative Housing on 3 August, 2009
Bench: S. S. Shinde
                                          1


               IN THE HIGH COURT OF JUDICATURE AT BOMBAY




                                                                          
                    APPELLATE SIDE, BENCH AT AURANGABAD




                                                  
                       WRIT PETITION NO. 2820 OF 2002
                                    WITH
                      CIVIL APPLICATION NO 1572 OF 2006




                                                 
     Deviprabha Nanasaheb Deshmukh'
     Age 54 years, Occ. Household,
     R/o. "Akanksha" Kranti Nagar,
     Navgan College, Road, Beed




                                        
     District Beed                                         ...Petitioner


           Versus
                       
                      
     1.    Laxminagar Co-operative Housing
           Society Ltd., Savedi, Tq. and Dist.
           Ahmednagar,
           Through its Liquidator
      


     2.    Mrs. Indira Waman Pandale,
           Age, Kinge Gate, Near Brahman
   



           Haud, Ahmednagar

     3     Shri Namdeo s/o Trimbak Dahatonde,
           Age major, R/o. C/o. Residential





           High School, Laltaki, Ahmednagar

     4     Assistant Registrar,
           Co-operative Societies,
           Ahmednagar





     5     Divisional Joint Registrar,
           Co-operative Societies,
           Nashik Division, Nashik

     6     The State of Maharashtra
           (Copy to be served on G.P.
           High Court, Bench at Aurangabad)                ...Respondents


                                         .....

     Mr. T.G. Gaikwad h/f Mr. V.D. Salunke, advocate for the petitioner



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     Mr. M.A. Tripathi h/f Mr. V.G. Shelke, advocate for respondent No.3




                                                                            
     Mr. M.L. Dharashive, AGP for respondent Nos. 4 to 6.

                                        .....




                                                    
                                                CORAM: S. S. SHINDE, J.

DATED: 3RD AUGUST, 2009

ORAL JUDGMENT:-

1 This petition is filed challenging the judgment and order passed

by the Secretary, Co-operation Department i.e. respondent No.6,

dated Nil passed by respondent No.6 in revision petition No. Rev.

27/2001/CR-35/15-C.

2 The brief facts of the case, as narrated in the petition, are as

under:-

It is the case of the petitioner that she is member of respondent

No.1 Society. The said society came to be registered on 4.11.1972.

Accordingly, the petitioner has deposited an amount of Rs.150/- as

against the share. The petitioner purchased three shares of Rs.50/-

each. Respondent No.1 society issued share certificate No.346 in

favour of the petitioner. It is the further case of the petitioner that the

petitioner has followed the bylaws of the society and paid amounts

from time to time. However, the society respondent No.1 in its special

general meeting dated 26.7.1992 passed resolution No.7 and

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cancelled the membership of the petitioner. The society had also

issued letter dated 2.8.1992 thereby informing the petitioner that her

membership is cancelled and sent a cheque for an amount of Rs.

10,178/- to the petitioner. It is further case of the petitioner that letter

dated 2.8.1992 issued by respondent No.1 is nothing but an expulsion

of the petitioner from the society, which is required to be done under

Section 35 of the Maharashtra Co-operative Societies Act 1960

(hereinafter for the sake of brevity referred to as the “said Act”).

It is further case of the petitioner that from time to time

representations were made to the Government authorities mentioning

therein that the resolution passed by respondent No.1 society

expelling the present petitioner as member of the society is in

contravention of Rule 3 of the Maharashtra Co-operative Societies

Rules 1961 (hereinafter for the said of brevity referred to as the “said

Rules”). However, no cognizance was taken by the authorities. In the

meanwhile, liquidator came to be appointed on respondent No.1

Society. The petitioner made representation on 9.3.1999 to the

Liquidator requesting to consider her claim and decide the right of the

petitioner. However, no action was taken by the liquidator.

It is further case of the petitioner that meanwhile, respondent

No.1 society has created record to show that the plot which was

alloted to the petitioner has transferred to respondent No.3. It is further

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case of the petitioner that expulsion of the petitioner as member was

without giving an opportunity to the petitioner to put forth her case and

said resolution is without approval of the Assistant Registrar.

It is further case of the petitioner that she filed appeal No. 41 of

1999 before respondent No.5 under Section 152 of the said Act

challenging the resolution expelling her as member of the respondent

No.1 society. The Divisional Joint Registrar, Co-operative Societies by

judgment and order dated 20.1.2000, allowed the appeal filed by the

present petitioner.

3 Respondent No 3 herein filed revision before the State

Government being aggrieved and dissatisfied with the judgment and

order dated 20.1.2000 in appeal No. 41 of 1999. The Revisional

authority has set aside the judgment and order passed by the

Divisional Joint Registrar, Co-operative Society in appeal. Hence, this

petition, filed by the petitioner.

4 On perusal of the compilation of the petition, it appears that

respondent No.3 has filed reply to the petition on 26.9.2003. This

matter was heard by this court for admission on 28.1.2003 and Rule

was issued in the petition. Hearing of the petition was expedited.

Interim relief in terms of prayer clause “C” was granted. Today, the

matter is taken up for final hearing.

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5 Learned counsel for the petitioner submits that the judgment and

order passed by the Divisional Joint Registrar is passed after perusal

of the record and the documents the same is well reasoned judgment

and the said judgment and order is set aside by the Revisional

authority, without calling record of the case. It is further submitted that

the petitioner is a member of the society and she has deposited entire

amount of membership, which was required to be deposited in

accordance with the bylaws. It is further submitted that by way of

resolution without affording opportunity to the petitioner, no

membership can be cancelled. According to the learned counsel, the

resolution passed by respondent No.1 society is in utter disregard to

the provisions of Section 35 of the said Act, since no notice or

opportunity of hearing was afforded to her before resolution was

passed. It is further argued that while entertaining revision there is no

compliance of Rule 26 r.w. Rule 29 of the said Rules, which

contemplates that any resolution passed by the Society expelling

member should be approved by the Assistant Registrar. It is further

argued that the order passed in revision by the State Government is

without jurisdiction, the Revisional powers under Section 154 of the

said Act are vested with the State Government. The Business Rules

are framed under Rule 166 of the Constitution of India and powers to

decide the appeal or revision are delegated to the Minister on behalf of

the Governor of Maharashtra. Under Rule 6 of the said Rules those

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powers are delegated to the cabinet Minister and therefore, the said

powers delegated under Article 166 of the Constitution of India, cannot

be exercised by the Secretary. Learned counsel further invited my

attention to the judgment delivered by the Full Bench in the case of

Sheikh Mohamed Fatemohamed and etc. Vs. Raisuddin

Aximuddin Katil and others reported in AIR 2000 Bombay 353 to

contend that the order passed by the Secretary in revision is without

jurisdiction. It is further argued that the administrator who was

appointed to look after the affairs of the respondent No.2 society had

no power to grant or cancel the membership. In respect of his

contention, learned counsel placed reliance on the judgment of this

court in the case of Ballumal A. Jaisingh Vs. M/s. J.J. Builders and

others, reported in 2003 (3) Mh. L. J. 238. Learned counsel has

taken me through the contents of the pleading in the petition and the

annexures thereto as well as the order passed by the revisional

authority. He submitted that the point of limitation was not raised by

other side before the appellate authority. Learned counsel for the

petitioner ultimately submits that the writ petition deserves to be

allowed.

6 Learned counsel appearing for respondent No. 3 has invited my

attention to the provisions of Section 152 of the Societies Act and

more particularly sub Section 3 of Section 152 and submitted that if the

petitioner was aggrieved by the resolution passed by respondent No.1

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Society, expelling the petitioner, the appeal should have been filed

within two months from the date of resolution. He further submits that

even if it is admitted that the petitioner was not aware about passing of

resolution, even then there was communication dated 2.8.1992 by

respondent No.1 to the petitioner about her expulsion as member as

per the resolution No.7 passed by the general body meeting held on

26.7.1992. The petitioner has replied the letter dated 2.8.1992 by her

representation dated 17.8.1992. On the basis of the Exh. E and Exh.

F, counsel for the respondent submits that it is not the case of the

petitioner that the petitioner had not informed about passing of the

resolution dated 26.7.1992. Learned counsel for the respondent

submits that the letter addressed by petitioner itself indicate that the

petitioner was aware of passing of the said resolution dated 26.7.1992.

Therefore, according to the respondents, the petitioner should have

filed appeal within two months at least from 2.8.1992 or 17.8.1992.

Learned counsel invited my attention to the provisions of Section 153

of the Societies Act and submitted that the authority has no power to

condone the delay unless application is filed as required under Section

153 of the Societies Act for condonation of delay. The judgment and

order passed in appeal is silent about the delay in filing the appeal.

The appeal should not have been entertained by the Divisional Joint

Registrar since it was time barred and no application was preferred by

the petitioner to that effect before the appellate authority. Learned

counsel further submits that the petition is totally silent about filing any

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application for condonation of delay as required under Section 153 of

the Societies Act. Therefore, learned counsel for the respondent

submits that the order passed by the revisional authority has been

rightly passed when the appeal cannot be entertained, which is filed

beyond time, without application for condonation of delay. There was

no question of further adjudication of the said appeal. Learned

counsel further submits that the appellant was hopelessly time barred

and same was filed in 1999 though cause of action arose in 1992.

7 Learned AGP submits that non filing of application for

condonation of delay in filing the appeal and entertaining the appeal by

the appellate authority, goes to the root of the matter and therefore,

once the appeal was time barred, there was no question of further

adjudication by the appellate authority of the said appeal in the

absence of application of condonation of delay, as required under

Section 153 of the said Act. Learned AGP further submits that even

the point that the resolution passed by the general body of respondent

No.1 Society was without notice and without hearing the petitioner

should have been taken in appeal, if the appeal would have been filed

within time but in the instant case the appeal was filed in the year 1999

challenging the resolution which was passed in July, 1992, therefore,

the Revisional authority is perfectly justified in entertaining the revision

and setting aside the order passed by the appellate authority.

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8 After hearing learned counsel appearing for the petitioner,

learned counsel for respondent No.2 and learned AGP for respondent

State, I am of the considered view that the Divisional Joint Registrar

should have followed the provisions of Sub-section (3) of Section 152

of the said Act, which reads thus:-

“152(3) An appeal under sub-section (1) or (2) shall be

filed within two months of the date of the communication of the
order or decision.”

Sub-Section 3 of Section 152 mandates that the appeal

under sub section (1) of (2) shall be filed within two months from the

date of communication of the order or decision. Further section 153 of

the said Act provides that appeal may be filed against any decision or

order within specified period, the appellate authority may admit the

appeal after expiry of such period, if the appellant satisfied the

appellate authority that they had sufficient cause for not preferring the

appeal within the said period.

9 In the instant case, the Divisional Joint Registrar, though

exercised powers of appeal has not followed provisions of sub section

(3) of Section 152 and the provisions of Section 153 of the said Act.

There is no single word in the judgment passed by the Divisional Joint

Registrar about any application filed for condonation of delay or he has

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considered the same as per the provisions of sub-Section (3) of

Section 153 of the Societies Act.

The authority who has conferred the valuable powers of appeal

cannot be said to be ignorant about the substantial provision of statute

and cannot bypass the express provisions and decide the matter on

merits unless satisfied itself that appeal is within time limit prescribed

by the statute. The judgment and order passed by the Divisional Joint

Registrar in utter disregard to sub-section (3) of Section 152 and

Section 153 of the Societies Act goes to the root of the matter.

10 The petitioner may have good case on merits as contended by

the learned counsel appearing for the petitioner, however, the appeal

filed by the petitioner herein should not have been entertained by the

appellate authority on merits ignoring that there was stipulation of two

months for filing of appeal from the date of communication of order or

decision.

11 The Secretary in revision has rightly entertained the point raised

by respondent No.3 that the appeal filed by the petitioner herein was

hopelessly time barred, there was no application filed by the petitioner

for condonation of delay, the Divisional Joint Registrar has ignored the

provisions of sub section (3) of Section 152 and 153 of the said Act.

The Secretary has come to the definite conclusion that the appellate

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authority was not empowered to entertain the appeal which was

hopelessly time barred in absence of application for condonation of

delay or any prayer to that effect as contemplated under Section 153

of the Societies Act.

12 The learned counsel for petitioner relying on the judgment of Full

Bench of this court in the case of Sheikh Mohamed Fatemohamed

and etc. (supra) has tried to contend that Secretary is not

empowered to entertain the revision. On careful perusal of the Full

Bench judgment, it appears that the Full Bench has considered the

delegation of powers to entertain the appeal and not of revision. This

court had occasion to consider this point in the case of Purna Co-

operative Sugar Factory and Anr. Vs. Jaiparakash s/o Shankarlal

Mundada and others, reported in 2003 CTJ 484 and after

considering the Full Bench judgment as well as other judgments in

para 22, this Court has held that,

“The language used in Section 152 and Section 154 is

totally different. Sub-Section (4) of Section 154 clearly provides
for delegation of power of the State, to be exercised also by an
officer of the rank of Secretary to Government. There is no
provision in Section 152, akin to the provision contained in sub-
section (4) of Section 154.”

Therefore, in the result this Court held that the Secretary was

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justified in entertaining the revisional powers under Section 154 of the

Maharashtra Co-operative Societies Act therefore, in view of the

judgment cited supra, which has considered even the judgment of the

Full Bench and came to the conclusion that under sub section 4 of

Section 154 of the said Act the State Government can delegate the

revisional powers to the Secretary, therefore, the submission of the

learned counsel for the petitioner that the Secretary who had

entertained revision in this case had no jurisdiction to entertain the

same is liable to be rejected.

13 Taking over all view of the matter, since the appeal filed by the

petitioner herein before the Divisional Joint Registrar was filed in the

year 1999 which was delayed almost by seven years and which was

without any application for condonation of delay should not have been

entertained. The Divisional Joint Registrar ignoring the provisions of

sub Section (3) of Section 152 and Section 153 of the Societies Act,

has entertained the appeal giving total go bye to the said provisions.

For filing appeal before any authority or quashi judicial authority,

statutory limitations are prescribed and therefore, even registration of

appeal and entertaining the same on merits itself was not proper in

absence of application for condonation of delay and without

observance of Section 153 of the Societies Act.

This Court had occasion to consider the provisions of Section 30

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of the Arbitration Act 1940 in the case Ballumal A. Jaisingh (supra)

and has considered the point that whether in absence of proper

application to condone the delay whether the court has jurisdiction to

condone the delay? The Court after appreciating the facts involved

therein has held that the court is prevented from taking cognizance of

any matter if it is barred by limitation. The court can exercise the

jurisdiction in which the application to that effect is made and in

absence of the application, the court will have no jurisdiction to take up

the matter and consequently the court has no power to condone the

delay.

14 Therefore, viewed from any angle the order passed by the

Revisional authority does not call for any interference in the writ

jurisdiction and the same is confirmed. The writ petition is dismissed.

Rule discharged. Interim relief is vacated.

15 Civil application No.1572 of 2006, in view of dismissal of writ

petition, does not survive and the same is accordingly disposed of.

*****

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