1972 (3) TMI 89 - SC - Indian Laws

Summary

Issues:
Jurisdiction of the Court of Small Causes in a dispute involving a Co-operative Housing Society and its members; Competing jurisdiction between the Registrar's nominee and the Civil Court in resolving disputes under the Co-operative Societies Act and the Bombay Rent Act.

Analysis:
The case involved an appeal challenging the decision of the Bombay High Court in a Special Civil Application from the Court of Small Causes Bombay. The dispute arose between the owner of a flat in a Co-operative Housing Society and the occupants, who claimed to be tenants under the Bombay Rent Act. The Small Causes Court initially held the suit maintainable, but a revisional court reversed the decision, remanding the matter for further consideration.

The central issue revolved around the jurisdiction of the Civil Court in disputes concerning Co-operative Societies under the Maharashtra Co-operative Societies Act. The relevant provisions of the Act, particularly s. 91(1)(b) and s. 91(3), restricted the jurisdiction of civil courts in matters referred to the Registrar or his nominee for resolution. The Court analyzed the nature of the dispute and whether it fell within the purview of the Act for reference to the Registrar or his nominee.

The Court of Small Causes considered the bye-laws of the Co-operative Society, emphasizing that disputes related to letting of premises affected the business of the society, thus falling under the Act's jurisdiction. However, the High Court's interpretation was challenged, arguing that the letting of a flat by a member to another member did not necessarily touch the business of the society, especially when the society was not the landlord.

The Court also addressed the issue of competing jurisdiction between the Civil Court and the Registrar's nominee under the Bombay Rent Act and the Co-operative Societies Act. It emphasized the need to harmonize the provisions of both Acts, giving precedence to the Rent Act in matters covered by it.

Ultimately, the Supreme Court allowed the appeal, setting aside the judgments of the High Court and the Court of Small Causes. The matter was remanded back to the Court of Small Causes for disposal according to law, with costs awarded to the appellants. The decision clarified the jurisdictional boundaries between the Civil Court and the Registrar's nominee in resolving disputes involving Co-operative Housing Societies and members.