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1962 Supreme(SC) 103

SUPREME COURT OF INDIA
14th March, 1962
B.P. SINHA, C.J.I., K. SUBBA RAO, N. RAJAGOPALA AYYANGAR, J.R. MUDHOLKAR, T.L. VENKATARAMA AYYAR, JJ.
Sugauli Sugar Works (Private) Ltd. Appellant
Versus
Assistant Registrar, Co-operative Societies, Motihari and others, Respondents.
Civil Appeal No. 100 of 1962.
Advocates appeared
M/s. A. N. Sinha, A. K. Nag and P. K: Mukherjee Advocates, for Appellant; Mr. C.K. Daphtary, Solicitor-General of India (Mr. S.P. Varma, Advocate with him), for Respondent No. 2; Mr. L.K. Jha, Senior Advocate (Mr. S.P. Varma, Advocate with him), for Respondent No. 3,

Advocates:
A.K.NAG, A.N.SINHA, C.K.DAFTARY, L.K.JHA, P.K.MUKHERJI, S.P.Varma

Judgment

SINHA, C.J.I. : This appeal, by special leave, is directed against the order of a Division Bench of the Patna High Court, dated October 30, 1961, dismissing in limine the appellant s petition dated October 24, 1961, under Arts. 226 and 227 of the Constitution, being Miscellaneous judicial Case No. 954 of 1961, for a writ of Prohibition directing the first respondent not to proceed with the Award Case No. 101 of 1961, and a writ of Certiorari for quashing the order of the said respondent, dated September 29, 1961. The appellant is a private limited company, incorporated under the Indian Companies Act, with its registered office at Calcutta. It carries on the business of manufacturing sugar in its factory at Sugauli in the district of Champaran, in Bihar. The first respondent is the Assistant Registrar, Cooperative Societies, Motihari Circle, Motihari, in the State of Bihar; the second respondent is the Union of Co-operative Societies, and is registered under the Bihar and Orissa Co-operative Societies Act (B. and O. Act VI of 1935) (to be referred to hereinafter as the Act); the third respondent is the State of Bihar.

2. On August 14, 196l, respondent No 2 made a reference under S. 48 of the Act, against the appellant, claiming the sum of Rs. 1,20,809/- odd, as commission and interest for supply of sugarcane during the crushing season 1959-60. The said reference was registered by the first respondent as Award Case No. 101 of 1961, on August 17, 1961. Notice of the said reference was issued to the appellant. On September 26, 1961, the appellant took a preliminary objection to the jurisdiction of, the 1st respondent to entertain the reference & to adjudicate upon it, and prayed that the reference be rejected. The first respondent, following a decision of the Patna High Court, reported in Union of India v. Registrar, Cooperative Societies, Patna, ILR 40 Pat 7, overruled the appellant s preliminary objection by his order dated September 29, 1961. Against that order, the appellant moved its application aforesaid before the High Court of Patna. The High Court, following its previous decision aforesaid, summarily dismissed the application. The appellant moved this Court and obtained special leave to appeal from the order of the High Court, dismissing his application. This court granted the special leave on 4-12-1961, The appellant moved this Court for stay, which was finally heard on January 11, 1962, and the Court directed that the appeal be heard peremptorily on February 15, this year. That is how the matter comes before us for hearing of the main appeal.

3. The only question for determination in this appeal is whether, under the provisions of the Act, the first respondent had jurisdiction to hear and determine the dispute referred to him at the instance of the second respondent. The answer to the question raised in this appeal must depend upon the interpretation of the provisions of the Act.

4. Before examining the provisions of the Act, as, it stands at present, it is necessary to set out the legislative history of the law on the subject. When the co-operative movement was set up in the beginning of this century, the law governing cooperative societies was enacted as The Cooperative Societies Act (II of1912), by the Indian Legislature. That Central Act continued in force in Bihar and Orissa until it was repealed by the Bihar Orissa Legislative Council by the Bihar and Orissa Co-operative Societies Act (B. and O. Act VI of 1935), after obtaining the previous sanction of the Governor-General, under sub-s. (3) of S. 80-A of the Government of India Act. The Act of 1935 was enacted with a view to consolidate and amend the law relating to co-operative societies in the Province of Bihar and Orissa, as it then was. As it displaced the Co-operative Societies Act of 1912, so far as the Province of Bihar and Orissa was concerned, S. 5 enacted that all references to the Co-operative Societies Act,1912, occurring in any enactment made by





























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