Cooperative society dispute maintainability under Section 91 depends on usual business and prescribed restrictions for non-members

A dispute arising from a hire-purchase transaction between a cooperative society and a non-member is maintainable under Section 91 of the Maharashtra Cooperative Societies Act, 1960 only if the transaction is in the course of the society's usual business and, where Section 45 is invoked, if it is subject to prescribed restrictions. On the facts found, the hire-purchase arrangement was not part of the society's usual business, Sections 43 and 44 did not apply, and no rule prescribing restrictions under Section 45 was shown. The dispute was therefore not maintainable under Section 91.

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Issues: Whether the dispute arising out of a hire-purchase transaction between a cooperative society and non-members was maintainable under Section 91 of the Maharashtra Cooperative Societies Act, 1960.

Analysis: The dispute could fall within Section 91 only if the transaction was entered into in the course of the society's usual business and, where the transaction was with non-members, if it also answered the requirements of Sections 43, 44 or 45 of the Act. On the facts found, the hire-purchase arrangement was not part of the society's usual business. Sections 43 and 44 were inapplicable. As to Section 45, the provision applies only to transactions with non-members that are subject to prescribed restrictions, and no rule prescribing such restriction was shown to exist.

Conclusion: The dispute was not maintainable under Section 91 of the Maharashtra Cooperative Societies Act, 1960, and the challenge to the High Court's decision failed.

Ratio Decidendi: A dispute involving a cooperative society and a non-member is maintainable under Section 91 only when the transaction is in the course of the society's usual business and, where reliance is placed on Section 45, when the transaction is subject to prescribed restrictions.

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