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5] Shrikant Shamsundar Kabra vs 6] Appasaheb Govind Antre
2013 Latest Caselaw 344 Bom

Citation : 2013 Latest Caselaw 344 Bom
Judgement Date : 13 December, 2013

Bombay High Court
5] Shrikant Shamsundar Kabra vs 6] Appasaheb Govind Antre on 13 December, 2013
Bench: A.H. Joshi, R.V. Ghuge
                                 {1}
                                              revised (3) lpa 206.12.odt

            IN THE HIGH COURT OF JUDICATURE OF BOMBAY




                                                                
                        BENCH AT AURANGABAD
              LETTERS PATENT APPEAL NO. 206 OF 2012
                                 IN




                                       
                  WRIT PETITION NO.7649 OF 2011.


     1]    Kedarnath Ramdayal Bang,
           Age 58 years, Occ. Agri. & Business,




                                      
           R/o. Sonai, Tq. Newasa,
           Dist. Ahmednagar.

     2]    Radhakrishna Tribakraj Bihani
           Age 77 years, Occ. Agri.




                              
           R/o. Ashwi Budruk, Tq. Sangamner,
           Dist. Ahmednagar.
                    
     3]    Mahesh Gokuldas Asawa,
           Age 38 years, Occ. Business & Agri.
                   
           R/o. Songaon, Tq. Rahuri,
           Dist. Ahmednagar.

     4]    Sau. Sunita Shrikant Mundada,
           Age 45 years, Occ. Household,
      

           R/o. Bansilalngar, aurangabad.
   



     5]    Shrikant Shamsundar Kabra
           Age 45 years, Occ. Agri.
           R/o. Yeola, Tq. Yeola, Dist. Nashik.
                                  
                                        APPELLANTS.





           Versus

     1]    The State of Maharashtra
           Through Secretary,





           Cooperative Department,
           Maharashtra State,
           Mantralaya,
           Mumbai-32.


     2]    The Divisional Joint Registrar
           Cooperative Societies, Nashik Division,
           Nashik.




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                                  {2}
                                                revised (3) lpa 206.12.odt

     3]    The District Dy. Registrar,




                                                                  
           Cooperative Societies, Dist. Ahmednagar.
     4]    Mahatma Phule Nagari Sahakari
           Patsanstha, Bhingar, Ahmednagar




                                          
           (through its Manager).

     5]    Shri Sant Sawta Maharaj Gramin
           Bigar Sheti Sahakari Patsanstha,
           Songaon, Tq. Rahuri,




                                         
           Dist. Ahmednagar.

     6]    Appasaheb Govind Antre,
           Age Major. Occ. Agri.
           R/o. Songaon, Tq. Rahuri,




                              
           Dist. Ahmednagar.
                    ig                             Respondents

     7]    Nandkishor s/o. Shivnarayan Attal
           Age 50 years, Occ. Business,
                  
           R/o. Yeola, Tq. Yeola,
           Dist. Nashik.

     8]    Sou. Vishwakanta w/o. Jagdish Attal
           Age 52 years Occ. Household,
      

           R/o. Yeola, Tq. Yeola,
           Dist. Nashik.
   



     9]    Vijaykumar s/o. Shivnath Lahoti,
           Age 52 years Occ. Agri.,
           R/o. Yeola, Tq. Yeola,
           Dist. Nashik.





     10]   Sou. Chandrakala w/o. Laxminarayana Ladhe,
           Age 66 years Occ. Household,
           R/o. Balikashram Road,
           Tq. And Dist. Ahmednagar.





     11]   Smt. Alka Meenanath Antre,
           Age 40 years, Occ. Household
           R/o. Satral, Tq. Rahuri,
           Dist. Ahmednagar.

     12]   Dnyandeo Bhaguji Anap,
           Age 65 years, Occ. Agril.
           R/o. Sonegaon, Tq. Rahuri
           Dist. Ahmednagar.




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                                       {3}
                                                    revised (3) lpa 206.12.odt




                                                                      
     13]   Raghunath Maruti Pathare,
           Age 40 years, Occ. Agril.




                                              
           R/o. Rampur,Tq. Rahuri,
           Dist. Ahmednagar.

     14]   Ashok Raghunath Jumbukar
           Age 42 years, Occ. Agri.




                                             
           R/o. Satral, Tq. Rahuri,
           Dist. Ahmednagar.

     15]   Karbhari Waman Dhige,
           Age 70 years, Occ. Agri.




                                  
           R/o. Dhanore, Tq. Rahuri,
           Dist. Ahmednagar.
                     
     16]   Kaysalyabai Rambhau Shinde,
           Age 50 years, Occ. Household,
                    
           R/o. Songaon, Tq. Rahuri,
           Dist. Ahmednagar.

     17]   Geetabai Bhanudas Tajane,
           Age 65 years, Occ. Household,
      

           R/o. Sonegaon, Tq. Rahuri,
           Dist. Ahmednagar.
   



                                    RESPONDENTS/INTERVENORS.



     Mr. N.V. Gaware, Advocate for the appellants.





     Mr. S.K. Tambe, AGP for respondent Nos. 1 to 3.
     Mr. M.R. Sonawane, Advocate for respondent No.4.
     Mr.   R.N.   Dhorde,   Senior   Advocate   instructed   by   Mr. 
     B.T. Bodkhe, Advocate for respondent No.6
     Mr. Mukul Kulkarni, Advocate for the respondent Nos. 7 





     to 10.
     Mr.  S.B.   /Jadhav,   Advocate   for   respondent   Nos.   11   to 
     17.
      

                            CORAM : A.H. JOSHI &
                                   RAVINDRA V. GHUGE, JJ.

DATE OF RESERVING JUDGMENT :10th DECEMBER, 2013. DATE OF PRONOUNCEMENT OF JUDGMENT :13th DECEMBER,

{4} revised (3) lpa 206.12.odt

JUDGMENT : [ PER A.H. JOSHI,J]

1] Heard both sides on different dates and at

length.

2] The appellants were allowed to substitute

the bunch of annexures by arranging those in sequence

and by placing additional annexures on record. While

deciding this appeal, we have referred to the paper

book in which substituted bunch of annexures is on

record.

FACTS, DATES AND EVENTS.

3] It would be useful to refer to the events as

they arose in sequence of dates. Those are as follows

:-

Sr. Dates and Particulars of event No.

1 The appellants, respondent No.6 and

intervenors are depositors of respondent No.

5. They had deposited their money with the

respondent No.5 society.

{5} revised (3) lpa 206.12.odt

The intervenors are supporting the action

of the amalgamation of respondent No.5 in the

respondent No.4 society. It is alleged that

after amalgamation, said deposits have been

renewed by the respondent No.4 society.

2 The area of operation of the respondent No.5

is District Ahmednagar. It was running into

losses. The money of depositors of the

respondent No.5 society could not be repaid

by the respondent No.5, and hence, the

Managing Committee members as well as the

Members of the respondent No.5 society took

steps for its amalgamation in some other fit

society.

14/8/2009 :-

The Annual General Meeting of Respondent No.5

was called, during which Resolution No.13 was

passed proposing that the respondent NO.5

society be amalgamated into some other

society which may be economically sound.

{6} revised (3) lpa 206.12.odt

4 31/10/2009 :-

The respondent No.5 resolved to request the

respondent No.4 society to take over in

amalgamation, the respondent No.5 society.

5 31/10/2009 :-

The committee of Respondent No.5 decided to

call special general body meeting to discuss

the issue regarding amalgamation of

respondent No.5 society.

Therefore the public notice was issued in

"Daily Sarvamat" notifying that the special

general body meeting of the members of

respondent No.5 society has been scheduled on

1/10/2010 to discuss the issue regarding the

amalgamation. The agenda was also issued to

the individual members of the society.

6 1/1/2010 :-

In the special general body meeting it was

resolved by the general body (with 95%

majority i.e. 285 members being present), to

amalgamate the respondent No.5 society into

{7} revised (3) lpa 206.12.odt

the respondent NO.4 society.

7. The said resolution was opposed by 4-5

defaulting members including the respondent

No.6, and they left the place of meeting by

resorting to walk out.

8 02/01/2010 :-

The Agenda was issued by the respondent No.4

society for conducting special general

meeting on 10/1/2010 for discussing the issue

of amalgamation of Respondent No.5 into

Respondent No.4.

9 10/01/2010 :-

The special general meeting of respondent No.

4 society was conducted and it was resolved

to give effect to the amalgamation of the

respondent NO.5 with the respondent No.4

society.

10 29/3/2010 :-

The respondent No.4 society submitted a proposal with the respondent No.3 District Deputy Registrar, for amalgamation of respondent NO.5 with the respondent No.4 society.

{8} revised (3) lpa 206.12.odt

11 08/04/2010 :-

The respondent No.3 District Deputy Registrar

directed the Taluka Deputy Registrar,

Cooperative Societies, Ahmednagar to submit

his report.

12 15/4/2010 :-

Taluke Deputy Registrar, Cooperative

Societies, Ahmednagar recommended the

amalgamation of the respondent No.5 society

in respondent No.4.

13 19/4/2010 :-

The respondent NO.3 District Dy. Registrar

has issued the order of amalgamation by

exercising powers under Section 17 of MCS

Act, 1960 and rule 16 of Maharashtra

Cooperative Societies Act, 1961. By said

order, the respondent No.3 ordered that the

respondent No.5 society stood amalgamated

with the respondent No.4 society.

{9} revised (3) lpa 206.12.odt

14 20/4/2010 :-

The District Dy. Registrar then passed

consequential order for cancellation of the

registration of respondent No.5 society in

view of the amalgamation which took the

effect immediately.

15 18th May, 2010 :-

The respondent NO.6 preferred a

statutory appeal before the Respondent No.2

Divisional Joint Registrar challenging the

order of amalgamation. It was registered as

Appeal No. A-54/2010.

16 2nd September, 2010 :-

Respondent No.2 has passed an order of stay

of the order of amalgamation in the said

appeal No.A-54 of 2010.

{10} revised (3) lpa 206.12.odt

17 14/2/2011 :-

The respondent NO.2 has decided the appeal

preferred by the respondent No.6 and

confirmed the order dated 19/4/2010 passed by

the respondent No.3, District Dy. Registrar,

Ahmednagar regarding the amalgamation.

1/3/2011 :-

Respondent No.6 being aggrieved by order

dated 14.2.2011 preferred revision

application under Section 154 of the MCS Act,

1960 before the respondent No.1 State

Government.

19 1/3/2011 :-

The Honourable Minister has stayed the order

of amalgamation.

20 5/7/2011

Honourable Minister allowed the Revision

Application and has set aside the order

passed by District Deputy Registrar ordering

amalgamation.

{11} revised (3) lpa 206.12.odt

26/9/2011 :-

The appellants thereafter, preferred writ

petition No. 7649 of 2011 in the capacity of

depositors, challenging the order dated

5.7.2011 passed by the Honourable Minister.

22 21/7/2011 :-

Writ Petition No. 5456 of 2011 was filed by

respondent No.4 in this court.

1/1/2012 :-

Respondent Nos.4, 5 and 6, entered into

consent terms and filed those in the High

Court in W.P. No. 5456 of 2011. By those

consent terms, respondent No.4 agreed to

withdraw the writ petition and acquiesced

and/or consented to the order passed by the

Deputy Registrar, Cooperative Societies

setting aside the order of amalgamation.

Under said compromise, the respondent No.4

was compensated by the respondent No.5

towards the expenses incurred by the

respondent No.4 towards steps taken by it

towards amalgamation.

{12} revised (3) lpa 206.12.odt

Appellants claim that during the pendency of

writ petition No. 5456 of 2011, the

respondent No.6 has forged the resolution of

the respondent No.5 society and, has taken

to himself, the authority to enter into the

compromise for and on behalf of the

respondent No.5 society, which has lost its

existence.

25 24/9/2012 The learned Single Judge of

this Honourable Court was pleased to dismiss

the writ petition NO. 7649 of 2011.

-:CASE OF THE APPELLANTS ON FACTS :-

4] The appellants are original writ petitioners

in W.P. No. 7649 of 2011. Appellant's case apart from

factual brief noted in foregoing paragraphs is as

follows :-

[a] The defaulting members who had borrowed

huge loans from the respondent No.5 society are out

to stall the further recovery proceedings. Those

{13} revised (3) lpa 206.12.odt

defaults were instrumental in creating hurdles in the

way of amalgamation of respondent No.5 into

respondent No.4 society. Respondent NO.6 also had

failed to clear off his dues and loan to the tune of

Rs.2,35,505/- was outstanding against him and his

family members.

[b] On 21/4/2010, the resolution was passed as

per the amalgamation order and accordingly the charge

of affairs of respondent No.5 was handed to the

Respondent No.4 society by the respondent No.5.

Subsequently the respondent No.4 society has started

functioning as the entire assets and liabilities of

the respondent No.5 were transferred to the respondent

No.4 society. The respondent No.4 society issued a

communication to the depositors of the respondent No.5

society and refunded 25% of the deposits and balance

unpaid amount of the deposits were renewed by the

respondent No.4 for further period.

[c] The respondent No.6 is a politically

influential person and is in the good books of Ex.MLA

Mr. Prasad Tanpure, who belongs to NCP party. The

{14} revised (3) lpa 206.12.odt

respondent No.6 of Respondent No.5 had exerted great

deal of pressure upon the respondent authorities to

stall the process of amalgamation.

[d] The Minister of State for Cooperation,

erroneously allowed the revision filed by the

Respondent No.6. The Minster of State has fallen prey

to the political pressure exerted by respondent NO.6

who is the close aide of Ex.MLA. The Hon'ble Minister

has failed to appreciate that the procedural aspects

as per Sections 17 and rule 16 of Rules of 1961 have

been duly complied with and thereafter the order of

amalgamation was passed. The Learned Minister has

failed to appreciate that the revision at the instance

of respondent No.6 was not maintainable and order of

amalgamation was already put into execution.

[e] Present respondent No.4 filed Writ

Petition No. 5456 of 2011 on 21/7/2011. Contesting

respondents and present appellants had appeared suo

motu and by caveat. This court heard the petition at

the Stage of admission hearing on 26/7/2011 and

interim order of status-quo as regards cancellation

{15} revised (3) lpa 206.12.odt

of registration of Respondent No.5 was granted. It is

seen that said order was in operation till disposal of

the writ petition.

[f] During pendency of the writ petitions, the

respondent No.5 society and respondent No.4, arrived

at a compromise. Consent terms were drawn, and were

tendered before this court. This court had ordered the

Registrar (Judicial) to verify those.

[g] The respondent NO.6 and respondent No.4 have

illegally entered into compromise, which cannot bind

the Appellants and other members of respondent NO.5

society.

[h] Consent terms were tendered in writ petition

filed by respondent No.4.

[i] The learned Single Judge of this court

considered it appropriate to dispose of the writ

petition No. 5456 of 2011 by order dated 25/1/2013 as

withdrawn without taking on record the consent terms.

{16} revised (3) lpa 206.12.odt

CHALLENGE TO THE ORDER PASSED BY MINISTER

5] Present writ petitioner filed W.P. No.7649

of 2011 on 26/9/2011. This petition was heard on

5/10/2011, and the interim order was continued on

11/1/2012 and thereafter from time to time.

6] In the Writ Petition No. 7649 of 2011, the

petitioner had raised and agitated the facts and

ground which are noted by this court in summary of

facts recorded in para. No.3 and ground which are

mentioned in para. No.4.

7] The writ petition filed by present

appellants, i.e. W.P. No. 7649 of 2011 was heard by

the learned Single Judge of this court. Said writ

petition was dismissed by order dated 23th September,

2012, which is impugned in this LPA.

8] Interest of the appellants and intervenors

is common. Challenge to the impugned order as raised

in the writ petition is focussed by the learned

advocate for the appellants on the grounds, namely,

ground nos. (V), (VI), (IX), (X) and (XI), which read

{17} revised (3) lpa 206.12.odt

thus :-

"[v] It ought to be held that, the respondent No.6 failed to raise his objection, when the objections were invited by the

respondent No.5 society during the process of amalgamation and therefore is estopped from challenging the action subsequently.

[vi] It ought to be held that, the order

of amalgamation dated 19/4/2010 was put into

execution and the respondent No.4 society started functioning and also the deposits to the tune of

25% were repaid to the depositors proportionately.

[ix] It ought to be held that, the revisional authority has also erred in observing

that general body in the Annual General Meeting

held on 14/8/2009 empowered the unauthorized Managing Committee to take decision regarding the amalgamation of society without considering the

fact that General body is supreme and the resolution was taken in the special general meeting.

[x] It ought to be held that, the

registration of respondent No.5 society was already cancelled and therefore same could not be revived ipso facto and as the order of amalgamation has been set aside it has resulted into chaos and feeling of insecurity amongst the depositors and members.

{18} revised (3) lpa 206.12.odt

[xi] It ought to be held that, the

revisional authority has failed to appreciate the scope of revisional powers as conferred by virtue

of Section 154 of the MCS Act, 1960 and thus has exceeded the jurisdiction vested in it. Moreover, the order dated 20/4/2010 remained

unchallenged and no order could have been passed for quashing the order dated 14.2.2011 and 19.4.2010."

[quoted from the grounds contained in the memo of Writ Petition No. 7649 of 2011]

SUPPORTING PLEA OF INTERVENORS.

9] The intervenors, who have similar interest,

have agitated the points which are summarized as

follows :-

[a] The will of majority must be respected.

[b] Society's interest is prime

consideration which has been taken into

account.

[c] Statutory provisions are followed.

[d] Consent terms are not being vetted by

the learned Single Judge while allowing the

respondent No.4 to withdraw the writ

{19} revised (3) lpa 206.12.odt

petition. Therefore, the learned Single

Judge while passing the impugned order,

erred in believing or proceeding on an

assumption that the dismissal of the writ

petition filed by respondent No.4 was on the

basis of "consent terms" read and recorded.

[e] The amalgamation is already implemented.

[f]

Though the order of amalgamation is set

aside by the Honourable Minister, the order

of de-recognition is not set aside.

[g] The learned Single Judge ought to have

decided the petition on its own merits on

the points agitated in the petition.

[h] The petitioners being members are

entitled to challenge the action and any bar

such as locus standi will not come in the

way of the petitioners.

[i] A society which has ceased to exist

cannot resolve to resile and withdraw from

amalgamation. The depositors of the

{20} revised (3) lpa 206.12.odt

appellants are still in risk. The order

passed by the Divisional Deputy Registrar is

after due hearing and after following the

law and it had attained finality. The

Honourable Minister had no jurisdiction to

entertain the petition since wishes of the

society which is the highest body, are

required to be honoured. Petitioner's right

to organize for commercial activity under

Section 91 include the right to separate and

amalgamate.

PLEA OF RESPONDENT NO.6 OBJECTING/OPPOSING THIS LPA :-

10] The petition has been replied to by learned

Senior Advocate Shri R.N. Dhorde. The ground which

are urged are as follows :-

[a] The order of amalgamation did not operate and take effect since it was stayed

during the pendency of the appeal before Joint Registrar as well as before the revisional authority i.e. the Honourable Minister and thereafter the order of status quo is in operation.

{21} revised (3) lpa 206.12.odt

[b] Though the appellant is disputing the

fact that there was stay, records show that the order of stay was in operation.

[c] Though the financial condition of the respondent No.5 society had become bad, now, the

society has raised funds and the dues by way of repayment of deposits of the petitioners, who are willing to accept the deposits, would be made in

due course.

[d] Provisions of Section 17, which relate to amalgamation, provide for consent of "all

members" and "all creditors". In the instant case, admittedly, consent of "all members" and "all creditors" was not obtained. According to

the appellants, only 95 % members who were

present in the meeting had consented in the general body meeting. Respondent No.5 and others had raised objection and it has been noted,

considering the brute majority against them, they had walked out after raising objection.

[e] The decision of amalgamation is thus contrary to Section 17 since all members have not

consented.

[f] Though the order passed by the Honourable Minister is not eloquent as regards reasons, if the points agitated by revision petitioner i.e. respondent No.5 herein, are taken

{22} revised (3) lpa 206.12.odt

into account, which are recorded in the judgment,

it will reveal that the Minister had passed order after taking into consideration the points

agitated by respondent No.5 herein.

[g] That, now there are adequate resources

and any depositor or member, who wants refund of money, will be immediately refunded no sooner the order of status-quo is vacated.

[h] The act of the appellants in insisting on amalgamation is not in favour of the society and the cooperative movement.

[i] Appellant's effort by way of present appeal is not bonafide and same deserves to be

deprecated and deserves to be dismissed.

-:PLEA OF RESPONDENT NO.4 :-

10] Learned Advocate for respondent No.4 has

addressed that considering the solemn undertaking and

consent terms enter into between respondent NO.5 and

respondent NO.4, now, the respondent NO.4 is not

interested in amalgamation. Accepting amalgamation

was, in fact, an onerous responsibility and when the

respondent No.5 has been revived, there are no grounds

{23} revised (3) lpa 206.12.odt

whatsoever to thrust upon respondent No.5 as well as

the respondent No.4 the amalgamation. The law does not

preclude withdrawal of respondent No.4 from the

amalgamation. Whatever deposits were to be assumed

and taken over by respondent NO.4, will continue with

the respondent No.5 and respondent No.5 has already

undertaken to satisfy the liability.

-: QUESTIONS ARISING FOR CONSIDERATION :-

11] Now, this court has to consider the present

LPA on the following questions:-

[a] Whether the interest of the present

appellants is prejudiced by virtue of restoration

of the status in favour of respondent No.5 which

existed prior to the date of amalgamation ?

[b] If, by virtue of efforts taken by

respondent No.5 and their members, the said

society has become viable and adequate funds have

been raised, can any member insist on

amalgamation ?

{24} revised (3) lpa 206.12.odt

[c] Is it necessary to substitute the order

passed by the Honourable Minister in the interest

of the society ?

:FINDINGS :

Answer to question (a) :- Interest of

appellants, intervenors and similarly situated

depositors is not prejudiced due to revival of

respondent No.5 and order passed by Honourable

Minister setting aside amalgamation is legal and

proper.

Answer to question (b) :- Respondent No.5

has shown and appellants and the intervenors have

failed to show that by virtue of efforts of

revival done by respondent Nos. 5 and 6, now the

society continues to be viable. Appellants'

interest is in closing down activity of

respondent No.5 than its revival and interest of

members thereof.

Answer to question (C) :- It is not

necessary to set aside the order of Honourable

Minister in law, justice, equity or

technicalities.

{25} revised (3) lpa 206.12.odt

12] It is seen from the facts which are admitted

as well as the disputed issues, that certain things

are vivid, namely :-

[1] Initially, the financial health of

respondent No.5 had gone worse.

[2] It is not clear whether the creditors

had applied for liquidation on the ground of

erosion of net worth.

[3] It appears to be a case where the

respondent No.5 had crunch of liquidity than

erosion of assets.

[4] The move was made by members to

amalgamate the society with other viable/sound

society.

[5] The move for amalgamation was not

unanimous or unopposed.

[6] Admittedly, to the appellants, 5/6

members had objected.

[7] Proviso (ii) to Section 17 (1) of the

Maharashtra Cooperative Societies Act provides

that, "all members" and "all creditors" have to

consent for amalgamation.

{26} revised (3) lpa 206.12.odt

[8] Admittedly, all members have not

consented.

[9] Exact division of votes in favour and

against the motion was not ascertained.

-: OBSERVATIONS, DISCUSSION AND REASONS :-

13] It is important to note that whenever a

society has to be taken in liquidation, it may

possibly mean loss to the depositors suggesting that

they will have to share in the proceeds after

liquidation of assets.

14] Whenever members are of the considered view

that either the society can be rendered viable, or

assets are more than liabilities, and liquidation may

be more favourable to the creditors and members, they

are bound to oppose, the amalgamation on the ground of

personal pecuniary loss.

15] It is clear that the appellants who are

interested in amalgamation have primary AND TANGIBLE

interest in their deposits.

{27} revised (3) lpa 206.12.odt

16] It is vivid from the contents of paragraph

number 2 of W.P.No. 7649 of 2011 that interest of

petitioners is incapacity as depositors. Relevant

averment reads thus :-

"The petitioners state that, the

petitioners are the depositors who had deposited their deposits with the respondent No.5 society and subsequently said deposits

have been renewed by the respondent No.4

society. The petitioners also were Members of the respondent No.5 society and are supporting the action of the amalgamation

which has been taken by taking into account the larger public interest and also of the members and borrowers."

17] Interest of intervenors is concurrent to

that of the appellants.

18] It is sure that upon amalgamation, the

appellants will get refund of their deposits. Members

of respondent shall lose their membership with

respondent No.5 and shall not get it with respondent

No.4 except on fresh application, which they can get

even if the respondent No.5 is not amalgamated.

{28} revised (3) lpa 206.12.odt

19] It is evident that interest of respondent

No.5 is in negativity than in positivity. The

appellants have not disputed that certain funds are

brought in with the effort of the respondent No.5,

part thereof is paid towards settlement and

arrangements to pay to the depositors are already

made. The appellants and intervenors have not disputed

before us that equity or deposits now brought in the

respondent No.5 are not adequate to render the

respondent No.5 economically viable enterprise. There

is no whisper to that effect in writ petition, appeal

or anywhere. Moreover, the act of amalgamation is

such, that it is based on record, accounts and

decision as regards financial viability.

20] This court has to keep in mind that an order

of amalgamation is not like an auction sale in

execution of a decree of a civil court, which, upon

finalization would be rendered irreversible.

21] Moreover, if a group of members who have

taken efforts for revival of society, cannot be forced

into amalgamation. This is so, particularly, when the

{29} revised (3) lpa 206.12.odt

respondent No.4 has shown its readiness and

willingness to dispense with the amalgamation and has

rescued itself from the possible liabilities,

amalgamation cannot be thrusted upon it.

22] Appellants' effort is like forcing

restitution of a matrimony in whom appellants'

interest is not as a spouse, child or parent even.

Appellants' role is that of creditor and their

interest cannot exceed beyond their deposits.

23] It has to be believed that the interest of

the appellants is in putting an end to the status of

the respondent No.5 i.e. ensuring its death as a

legal entity.

24] The agreement between respondent No.4 and

respondent No.5 as regards amalgamation, is like any

other agreement and it could be rescinded if it is not

rendered irrevocable.. Moreover, its revocation when

is done during the pendency of a proceeding in court,

and interest of depositors is safeguarded. Moreover,

the appellants have not shown any reason as to why

{30} revised (3) lpa 206.12.odt

such revocation should be branded as defeating the

provisions of the MCS Act, the existence of society

and cooperative movement.

25] In the aforesaid premises all that the

appellants want, is confirmation of the death warrant

of respondent No.5. They are insisting on an

inauspicious cause than a cause of law and of

justice. This court ought not be brought into use and

exploited for vindication of such impious task of

soliciting and exerting for cause of death of a

society.

26] The appellant's interest by way of payment

of money and of intervenors as well as many other

depositors is wholly protected.

27] Since the respondent No.4 society with whom,

amalgamation was sought, itself has backed up, there

is no cause available to the petitioner against the

respondent No.4 or respondent No.5, either.

28] Therefore, the appeal is nothing but a

{31} revised (3) lpa 206.12.odt

voracious exercise. The appellants cannot continue to

espouse pursuing the amalgamation which could be the

cause of respondent No.4 in which it is totally

unwilling.

29] Ordinarily, locus-standing of depositors

passes through the channel which assures recovery of

dues and not incentives or sharing in the surplus.

Learned Advocates for the appellants as well as

intervenors were fair enough to be transparent. They

did not hesitate in making their stance very specific

and clear that :-

"while the pecuniary interest of depositors needs to be protected, being honest citizens

they are keen on upholding the prestige of law. Therefore, once amalgamation has taken effect, come what may, now the respondent

No.5 should and cannot be revived, and its merger in respondent No.4 should alone be the rule of the court."

30] It is seen that the Honourable Minister's

order which is impugned is cryptic than laconic.

However, when on facts and law, it is seen that the

order is otherwise serving the cause and ends of

{32} revised (3) lpa 206.12.odt

justice, the order need not be set aside on any

technicalities or deficiencies.

31] It is thus vivid that appellants are out to

sell a coffin than a cradle. Why should appellants

adopt this course cannot be a question for

consideration of this Court. All that is left to our

judgment is to approve or disapprove the appellants'

lis by guaging and assessing it in the balance of

justice.

32] Had appellants and intervenor been espousing

the lis for a cause of justice for good of larger

number of depositors' pecuniary interest, it could

have received applause. Appellants and intervenor

seem to be interested in condolence than consolation

and applause. The interest of these litigants which

is vested in present lis seems to be more of such

nature that it is not pecuniary. It does not appear

to be social. Only interest which remains as residue,

as alleged by respondent No.6 against appellants and

intervenor is political.

33] There is no point in avoiding to notice that

{33} revised (3) lpa 206.12.odt

for their political ends, litigants have been using

courts as battle grounds. When access to court is

available, such use cannot be stopped, however, when

intents do adequately surface, such exercise which is

by way of abuse needs to be curbed, deprecated and

deplored.

34] We hold that rights claimed by appellants

and intervenor are not in existence. Entire exercise

is vexatious and totally devoid of bonafides.

Appellants and intervenors deserve to suffer an order

of costs.

35] The appeal has no merit. The same is

dismissed.

36] We shall hear Advocates from all sides on

costs separately and shall pass suitable order

separately.




            [RAVINDRA V. GHUGE]               [A.H. JOSHI]
                   JUDGE                          JUDGE
     grt/





 

 
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