High Court · 2025

Petition under section 151 cpc praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the order of the co-operative Tribunar, Hyderabad in rA, No.240t2024 in OP No.3412O24, dt.Og.1O.2024, pending disposal of the Writ petition Counsel for the petitioners: SRI VEDULA SRINIVAS, COUNSEL FOR SRI RAHUL KANDHARKAR Counsel for Respondent Nos. 1 & 2: Gp FOR COOPERATION Counsel for Respondent Nos. 3 & 4: __ Counsel for Respondent Nos. 5 & 6: SRt NARAYANDA SANJAY Counsel for Respondent No. 7: SRt G. KALYAN CHAKRAVARTHY Counsel for Respondent No. 8: SRI M. p. t(ASHyAp The Court made the following: ORDER * THE HONOURABLE SMT. JUSTICE T. MADHAVI DEVI WRIT PETITIoN NO.3060 soF 2024 ORDER In this Writ Petition, the petitioners are seeking a Writ of Mandamus to declare the action of the Co-operative Tribunal' Hyderabad in entertaining O.P.No.34 of 2024 under Section 37(2) of the TelanganaMutuatlyAidedCo-operativeSocietiesAct,lgg5asillegal and unsustainable and to forbear the Co-operative Tribunal from proceeding with the said O.P. in any manner and also to set aside the order passed in I.A.No.240 of 2024 in O'P'No'34 of 2024 dt'09J02024 and to pass such other order or orders'

2.BrieffactsleadingtothefilingofthepresentWritPetitionare that the petitioners are owners of nvo flats and are members of Indis OneCity Flat Owners Mutuatly Aided Co-operative Maintenance Society Limited which was established with Regd'No'TSMLKG/ MACSI2O22-15/FOW & M under the Telangana Mutually Aided Co- operative Societies Act, 1995. The said complex consists of A' B' C' D and E blocks of flats and there are more than 800 flas which are already occupied. Elections to the society took place on 26.05.2024 for electing 1 ) \ 2 w.P.No.30605 of 2024 the members of the Managing Committee which consisted of 15 Directors and from among the elected Directors, 7 office bearers are elected by the, Directors. The Managing Committee was lbrmed in the elections held on 26.05.2024 including respondents No.3 to 6. On the ground that the members of the Managing Committee were taking actions which are detrimental to the interest of the society, the residents of the flats decided to pass a 'no confidence motion' against three (3) persons and accordingly notices were issued and the same were put before the Managing Committee. [n respect of the Secretar], i.e., respondent No.5, 'no confidence motion' was passed on 24.08.2024 and in respect of the Chairman, i.e., respondent No.4 and the Treasurer, i.e., respondent No.6, 'no confidence motion' was passed on 28.09.2024 and in place of those three (3) persons, petitioner No.1 as one of the offrcer bearers was appointed as the Chairman by the Managing Committee in exercise of its powers. Thereafter, respondent No.4 herein applied for certain clarifications from the District Co-operative Officer (DCO) by using the nanre of the society on 21.08.2024 with regard to the procedure to be followed for 'no confidence motion' against an office bearer. The DCO, vide letter dt.12.09 .2024, replied that there is no bar to move the 'no ,:onfidence motion' and it can be moved in accordance { 3 W.P.No.30605 of2024 with the bye-laws of the society. Respondent No.4 questioned the said letter dt.12.09.2024 in w.P.No.26122 0f 2024 which was found to be not maintainable by this Court and the same was disposed of with liberty to approach appropriate authority. Therefore, respondents No.4 to 6 filed O.P.No.34 of 2024 under Section 37(2) of the Telangana Mutually Aided Co-operative Societies Act, 1995 before the Tribunal to set aside the 'no confidence motions' moved on 24.08.2024 and

28.09.2024 by declaring them as illegal, contrary to law and in violation of the society Bye-laws and in the said O.P., respondents No.4 to 6 have filed I.A.No.2 40 of 2024 for interim relief to stay the operation of the 'no confidence motions' dt.24.08.2024 and28-09.2024. It is submitted that petitioner No. I herein had filed a Caveatbefore the Tribunal and in view of the same, the petitioners herein appeared before the Tribunal and opposed the interim orders. However,.the Tribunal, vide orders dt.Og.lO.2O24, stayed the operation of the 'no confidence motions' moved on 24.08.2024 arrd 28.09.2024 and the consequefltial acts including the bank operations thereof till counters are filed and the petitioners have filed stay vacate petition or.25.70'2024' However, the same was not taken up, but interim order was extended and in view thereof, the petitioners have filed the present Writ Petition challenging \ \ 4 W.P No.30605 of 2024 the order of the Tribunal in I.A.No.240 of 2024 in O.P.No.34 of 2024 dt.09.10.2024.

3. Leamed counsel for the petitioners submitted that respondents No.4, 5 and 6 herein have filed O.P.No.34 of 2024 without making the society as a party to the O.P. and the elected office bearers also were not made as parties to the O.P. It is further submitted that under Section 37 of the Telangana Mutually Aided Co-operative Societies Act, 1995, an application carr be filed before the Tribunal only if there is a dispute with regard to elections and not otherwise. It is submitted that the petitioners befbre the Tribunal have made the respondents herein as parties subsequently, but the O.P. is liable to be dismissed for non- joinder of necessary and proper parties at the outset. He submitted that the Tribunal has not taken the above objection of the petitioners into consideration a.nd therefore, the impugned order is liable to be set aside.

4. Leamed Govemment Pleader for Co-operation appearing for the official respondents and the leamed counsel appearing for the unofficial respondents rvere also heard. It is submitted that the Writ Petition is not maintainable as the respondents have already filed a stay vacate petition before the Tribunal and since altemative efficacious remedv is available 5 W.P.i.{o.30605 of2024 and is b€ing pursued by the writ petitioners, they cannot again file the present Writ Petition. It is submitted that where there is an objection taken by the respondents in the O.P. that necessary parties are not made as parties, subsequently applications can be made for impleading such parties and no prejudice would be caused by such subsequent action. It is submitted that non-joinder of parties is only an irregularity which can be rectified subsequently. He submitted that wrong quoting of Section 37(2) wlllnot make the whole proceedings a nullity. It is submitted thaa Section 37(1) provides that an appeal can be filed before the Tribunal and Writ Petition is thus liable to be dismissed.

5. Having regard to the rival contentions and the material on record, this Court finds that if there is any dispute with regard to elections' only such a dispute can be referred directly to the co-operative Tribunal for a decision under Section 37(2) of the Telangana Mutually Aided Co- operative Societies Act, 1995. Any other disputes under Section 37(l) have to be referred to the Registrar for his decision and against the decision of the Registrar, an appeal vests with the Co-operative Tribunal. In this case, an application has been filed directly before the Co-operative Tribunal and not before the Registrar' The dispute appears to be under Section 37(1) of the Telangana Mutually Aided Co- \ \ 6 W-P.No.30605 of 2024 ( operative Societies Act, 1995 and therefore, it ought to have been filed before the Registrar only. Therefore, O.P.No.34 of 2024 before the Tribunal is appa.rently not maintainable. Another reason for holding that the O.P. is not nraintainable is that the society has not been made a party in the O.P. The society is the necessary and proper party and ought to have been made a party at the time of institution of the application before the Co-operative Tribunal itself. For both of these reasons, this Court holds thar: O.P.No.34 of 2024 before the Co-operative Tribunal is not maintainable and the orders in I.A.No.240 of 2024 in O.P.No'34 of 2024 dt.09.I0.2024 are consequently not sustainable and are accordingly set aside.

6. In view of the same, the Writ Petition is allowed. No order as to costs. At the lime of admission of the Writ Petition, this Court had passed an interim order permitting the persons who were authorized to operate the banking transactions prior to the interim order dt 09.10 -2024 in I.A.No.240 of 2024 in O.P.No.34 of 2024 of the Co-operative Tribunal, Hyderabad, to operate the banking transactions of the society till the next date of hearing. The interim order was extended from time to time. In view of the finding given that the O.P. itself is not maintainable before the Tribunal, this Court grants liberty to the 7 W.P.No.30605 of2024 petitioners to approach the Registrar under Section 37(1) of the Telangana Mutually Aided Co-operative Societies Act, 1995 for settlement of disputes.

7. Pending miscellaneous petitions, if any, in this Writ Petition shall stand closed. SD/-P. PADMANABHA REDDY ASSISTANT REGISTRAR //TRUE COPY// / OFFICER To,

1. The Secretary, Department of Agriculture and Co-operation, State of Telangana, Secretariat Buildings, Saifabad, Hyderabad 2. The District Cooperative Officer, Medchal-Malkajgiri District. 3. The Branch Manager, lClCl Bank, KPHB Road No.2 Branch, 183 MlcH, -2, Dhanalaxmi Centre, KPHB Colony, Kukatpally, Hyderabad - 500 O72. 4. The Branch Manager, HDFC Bank, Banjara Hills Road No.1 Branch, 6-3- 5. One CC to Sri Rahul Kandharkar Advocate [OPUC] 6. Two CCs to GP For Cooperation, High Court for the State of Telangana. 24811111A, Bhaskara Plaza, Road No.1, Banjara Hills, Hyderabad - 500 034 [OUI

7. One CC to Sri Narayandas Sanjay, Advocate(OPUC) B. One CC to Sri G. Kalyan Chakravarthy, Advocate(OPUC) 9. One CC to Sri M. P Kashyap, Advocate(OPUC) '10.Two CD Copies MBC BS s HIGH COURT DATED: 2110112025 1l E STAre ( .J 2iJ[li?ffi c I t:..-.I,iat .A - - -.' ORDER WP.No.30605 of 2024 ALLOWING THE WRIT PETITION WITHOUT COSTS %