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2010 DIGILAW 135 (GUJ)

Shivsankalp Co-operative Housing Society Ltd. v. Vikrambhai Shankarbhai Patel

2010-03-10

JAYANT PATEL

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Judgment Jayant Patel, J.—The present petition is directed against the order Annexure-G dated 18th August, 2000 passed by the State Government under Section 155 of the Gujarat Cooperative Societies Act (hereinafter referred to as ‘the Act’) whereby the revision is allowed and the order of the Additional Registrar (Appeals) dated 1st July, 1998 is set aside and the order of the District Registrar dated 23rd October, 1997 is confirmed. 2. The short facts of the case appear to be that as the petitioner society had allotted plots to its various members out of which Plot No. 33-C was allotted to Respondent No. 1 on condition to pay the amount. As per the petitioner, Respondent No. 1 defaulted in making payment and therefore it had to take decision in its meeting of the Managing Committee dated 24.09.1995 whereby the allotment of the premises at Plot No. 33-C, to Respondent No. 1, was cancelled. The Respondent No. 1 thereafter had challenged the said decision before the District Registrar by filing the application. But, it is the contention of the petitioner that the respondents forcibly entered into the premises of Plot No. 33-C by trespassing. The petitioner society therefore filed Civil Suit for possession and permanent injunction against Respondent No. 1 and also filed criminal complaint before the criminal Court. The suit as well as the criminal proceedings are pending before the concerned Court. It is the case of the petitioner society that on 29.08.1996, when the hearing was fixed before the District Registrar Mr. Rathod, below the application submitted by the respondent, the matter was heard and the order dated 09.10.1996 was passed for disposal of the said application by holding that, as the suit is pending before the learned Nominee and the criminal case is pending before the criminal Court as well as the civil matter is pending before the civil Court, nothing further is required to be done. On 01.09.1997, Respondent No. 2 informed Respondent No. 1 that the application has been filed since the matters are pending before the concerned Court. It appears that as per the petitioner, the application of Respondent No. 1 was once again considered by the another District Registrar who held that the resolution passed by the Managing Committee is illegal and therefore set aside the said resolution. It appears that as per the petitioner, the application of Respondent No. 1 was once again considered by the another District Registrar who held that the resolution passed by the Managing Committee is illegal and therefore set aside the said resolution. The petitioner carried the matter in revision before the Additional Registrar (Appeals) and he found that the Registrar has no power to cancel the resolution of a society, therefore the decision of the Registrar was set aside and the revision was allowed. The Respondent No. 1 further carried the matter in revision before the State Government under Section 155 of the Act. The State Government found that if any amount is outstanding by Respondent No. 1 to the society, the appropriate suit before the learned Nominee was required to be filed and the allotment even if cancelled, the membership is continued and the action of cancellation of the plot can be equated with expulsion under Section 36, therefore the State Government allowed the revision and set aside the order passed by the Additional Registrar (Appeals) by confirming the order of the District Registrar. It is under these circumstances the present petition before this Court. 3. Heard Mr. Mehul Shah for the petitioner and Mr. Mangukiya with Mr. Ajmera for the respondent. 4. The learned Counsel appearing for both the sides, after some arguments, under the instruction of their respective clients, declared before the Court as under: (1) If Respondent No. 1 pays the amount of Rs. 3,10,000/- towards the defaulted amount and the interest due thereon and Rs. 40,000/- towards litigation expenses incurred up till now, total Rs. 3,50,000/-, the petitioner society would be ready to settle the matter by restoring the status of Respondent No. 1 as member of the society by maintaining the allotment but the condition precedent would be the payment of the aforesaid amount. If Respondent No. 1 pays the said amount of Rs. 3,50,000/- within a reasonable time, the petitioner shall also withdraw the civil suit at well as the criminal complaint filed before the criminal Court. (2) The Respondent No. 1 agrees to pay the said amount of Rs. 3,50,000/- in five installments of Rs. If Respondent No. 1 pays the said amount of Rs. 3,50,000/- within a reasonable time, the petitioner shall also withdraw the civil suit at well as the criminal complaint filed before the criminal Court. (2) The Respondent No. 1 agrees to pay the said amount of Rs. 3,50,000/- in five installments of Rs. 70,000/- each and first installment shall become due on or before 5th April, 2010 to the petitioner society by way of full and final settlement of all outstanding dues of the society and upon the condition for restoration of the status as member and by maintaining the allotment of Bungalow No. 33-C of the society. (3) Both the learned Counsel declare that if the matter is disposed of in light of the aforesaid settlement, their respective clients are agreeable for such purpose. 5. It appears to the Court that as such the action on the part of the petitioner society of cancelling the allotment by expelling Respondent No. 1 is in contravention to the provisions of the Act. At the same time, the action of Respondent No. 1 by forcibly entering into the premises also cannot be sustained in law. However, it appears that as the parties have agreed for the aforesaid settlement, if the order of the State Government is modified by directing the parties to act as per the settlement, the same would meet the ends of justice. Hence the following order: (1) The orders passed by the lower authorities are modified to the extent that upon the payment of Rs. 3,50,000/- by Respondent No. 1 to the petitioner society in five equal monthly installments of Rs. 70,000/- each and first installment to become due on or before 5th April, 2010, the status of Respondent No. 1 as member of the society with the allotment of Bungalow No. 33-C shall stand maintained and restored. (2) It is further directed that after the full amount is paid of Rs. 3,50,000/- by Respondent No. 1, the petitioner society shall withdraw the civil suit as well as criminal proceedings within a period of two weeks from the payment of the last installment and shall also issue no due certificate to Respondent No. 1. 6. The petition is allowed to the aforesaid extent. No order as to costs. P P P P P