The Registrar of Co-operative Societies' jurisdiction over non-members is limited to specific categories, such as disputes involving financing banks. The inclusion of "non-member" in the Explanation to Section 48(1) does not expand jurisdiction to all disputes between a registered society and a non-member.

Headnote:(A) Co-operative Societies Act - Section 48 - Jurisdiction of the Registrar - The addition of the term "non-member" in the Explanation to Section 48(1) does not enlarge the scope of the main section to make all disputes between a registered society and a non-member cognizable by the Registrar - The Explanation is intended to clarify that even admitted debts are disputes and does not add a new category of disputes to those listed in clauses (a) to (e) of Section 48(1). (Para 10)

(B) Co-operative Societies Act - Section 2(c) and Section 48(1)(e) - Disputes between a financing bank and a non-member - Jurisdiction of the Registrar is limited to disputes between an authorized financing bank and a person who is not a member of a registered society. (Para 10)

Facts of the case:
A registered co-operative society initiated a reference against a private limited company, which is a non-member, claiming commission and interest for the supply of sugarcane. The company raised a preliminary objection regarding the jurisdiction of the Assistant Registrar to adjudicate the dispute. The High Court dismissed the company's petition, upholding the jurisdiction of the Registrar.

Findings of Court:
The dispute involves a claim for commission and interest between a registered society and a non-member. Since the society is not a financing bank and the non-member is not an agriculturist to whom advances were made, the dispute falls outside the purview of Section 48 of the Act.

Issues: Whether the Registrar of Co-operative Societies has jurisdiction to hear and determine a dispute between a registered society and a non-member under the provisions of the Act.

Ratio Decidendi: The special tribunal created under the Act is intended for specific disputes to provide speedy relief. The amendments to the Act expanded jurisdiction to include disputes between financing banks and non-members, but did not extend it to all dealings between registered societies and non-members. The Explanation to Section 48(1) cannot be read as creating a new head of jurisdiction; therefore, disputes between a society and a non-member, not falling under the specific categories mentioned in the Act, must be decided by ordinary courts.

Result: Appeal allowed.

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