Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | West Bengal Co-operative Societies Act 1940 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | West Bengal Co-operative Societies Act, 1940: s. 95 – Dispute pertaining to co operative societies – Appellant Society to carry out the demolition/construction of the administrative building entered into an agreement with the developer – Respondent No. 1, member of the appellant Society filed a case u/s. 95(1) wherein the arbitrator passed an award directed that the society to restrain itself from taking any step towards demolishing the existing Administrative Building with the developer and a special general meeting be called – Appellant resolved in AGM to terminate the work orders issued in favour of the developer and refund the security deposit – However, the respondent No.1 filed another case on the ground that the former Award had directed the Society to hold an Special General Meeting and not an Annual General Meeting – Meanwhile the developer also filed a matter seeking to injunct the appellant society from giving effect to the Resolution wherein the parties were directed to maintain status quo – In the light of the impasse, it was resolved in the AGM that the Board of the Society to get the administrative building developed through the developer on the revised terms and conditions – Appellant society was accorded permission – Respondent No. 1 then instituted the arbitration execution case in respect of the award made in the 1st dispute case, which was allowed – In revision, by the appellant society, the High Court upheld the said order – Sustainability of – Held: Not sustainable – High Court erred in holding the appellant Society could not have entered into an agreement with a third party developer as the Act or the Rules do not provide for the same – It is too much for the High Court to expect that all the members of the appellant Society should on their own contribute and undertake the development of the new administrative building – Co-operative Society is to function democratically and the internal democracy of a society, including resolutions passed in accordance with the Act, the Rules, and the bye-laws have to be respected and implemented – General Body of the Society resolved to appoint the developer, those decisions having not been challenged at all, the respondent No. 1 being a member of the appellant Society is bound by the said decisions – Merely because one single member in minority disapproves of the decision, that cannot be the basis to negate the decision of the General Body, unless it is shown that the decision was the product of fraud or misrepresentation – Redevelopment of the property was necessitated in view of the dilapidated condition of the building – No provision in the Co-operative Societies Act or the rules or any other legal provision which would curtail the right of the Society to redevelop the property when the General Body of the Society intends to do so – It is not open to the Court to sit over the commercial wisdom of the General Body as an Appellate Authority – Thus, the judgment and order passed by the High Court is set aside. |
Judge | Hon'ble Mr. Justice J.B. Pardiwala |
Neutral Citation | 2022 INSC 1084 |
Petitioner | The Bengal Secretariat Cooperative Land Mortgage Bank And Housing Society Ltd. |
Respondent | Sri Aloke Kumar & Anr |
SCR | [2022] 13 S.C.R. 1084 |
Judgement Date | 2022-10-13 |
Case Number | 7261 |
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