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1969 Supreme(SC) 581
SUPREME COURT OF INDIA
J.C. Shah, V. Ramaawami, A.N. Grover, JJ.
Keshava Narayan - Appellant
Versus
Mandal Co-operative Marketing Society and others - Respondents
C.A. No. 1224 of 1966
Decided On : 18-08-1969
Headnote:
Code of Civil Procedure, 1908 – Order 7, rule 10 – Madhya Pradesh Co-operative Societies Rules, 1962 – Rule 29 – Madhya Pradesh Co-operative Societies Act, 1960 – Section 82 – Credit Goods Provided – Default in Payment – Appellant claimed to have been supplied to Mandal Society on credit wheat, pulses, oil and other food-stuff – Appellant thus claimed to receive from Mandal Society an amount – By letter Adivasi Society agreed to pay amount due by Mandal Society within one month from date of letter – Since two societies failed to discharge obligation, appellant instituted an action in Court of Additional District Judge, for a decree for Rs. 11,299 against Mandal Society, Adivasi Society and Sobha Ram and Panchu last two being respectively member and President of Mandal Society. – Action was resisted on plea that civil Court had no jurisdiction to try suit and Registrar, Co-operative Societies or his nominee had exclusive jurisdiction to adjudicate upon claim. – Additional District Judge rejected contention. – Against that order a revision application was filed before High Court of Madhya Pradesh. – High Court set aside order passed by District Judge and declared that civil Court was incompetent by virtue of section 82 (1) (c) of Madhya Pradesh Co-operative Societies Act, 1960 to try suit, and directed that suit be dismissed. – Against order passed by High Court, this appeal is preferred with special leave – Held, Bye-laws of society permit Mandal Society to enter into such transaction and it was not contended that previous sanction of Registrar for entering into transactions for purchase of good was not obtained by Mandal Society – It was then submitted that in any event the claim against Adivasi Society was not barred – But question that a contract entered by Adivasi Society agreeing to stand surety for another co-operative society in respect of a debt due by that other society was not within bye-laws of the Adivasi Society has not been raised and court will not be justified in allowing counsel to raise that contention for first time in this Court – Assuming that Registrar of Cooperative Societies is not a Court within meaning of Order 7, rule 10, Code of Civil Procedure, High Court would still have been justified in directing that claim made before civil Court should be returned so that appellant may be entitled to present that claim before Registrar and ask for condonation of delay, if any, in presenting claim before Registrar – Counsel for respondents raised no objection to order that plaint instead of being dismissed be returned for presentation to Registrar – Court modify order of High Court and direct that plaint be returned to appellant for presentation to Registrar Cooperative Societies under Madhya Pradesh Co-operative Societies Act, 1960 – Order Accordingly
JUDGMENT :
J.C. Shah, J.
The Mandal Co-operative Marketing Society and the Adivasi Co-operative Society (respondents Nos. 1 and 2 in this appeal) are societies registered under the Madhya Pradesh Co-operative Societies Act, 1960. Section 82 of that Act provides, in so far as it is material:
"(1) Save as provided in this Act, no civil or revenue Court shall have any jurisdiction in respect of—
(a) * * * * *
(b) * * * * *
(c) any dispute required to be referred to the Registrar or his nominee or board of nominees;
* * * * *
Section 64 provides:
"(1) Notwithstanding anything contained in any other law for the time being in force, any dispute touching the constitution, management or business of a society or the liquidation of a society shall be referred to the Registrar by any of the parties to the dispute if the parties thereto are among the following:—
(a) * * * * *
(b) * * * * *
(c) a person other than a member of the society who has been granted a loan by the society or with whom the society has or had business transactions and any person claiming through such a person;
* * * *"
Section 66 provides for settlement of disputes. By sub-section (1) it is provided :
"The Registrar may, on receipt of the reference of dispute under section 64 decide the dispute himself, or transfer it for disposal to a nominee or board of nominees to be appointed by the Registrar.".
Section 67 sets out the procedure for settlement of disputes and the powers of the Registrar, his nominee or board of nominees. An appeal lies under section 77 against every original order under the Act or the Rules made there under to the Registrar if the order is passed by any officer subordinate to the Registrar, and a second appeal lies to the State Government against the order of the Registrar.
2. The appellant Keshava Narayan claimed to have been supplied to the Mandal Society on credit wheat, pulses, oil and other food-stuff of the value of Rs. 3,458.64 p. and a quantity of jowar of the value of Rs. 6,808.83p. The appellant thus claimed to receive from the Mandal Society an amount of Rs. 10,267.47p. By letter dated January 6, 1964, the Adivasi Society agreed to pay the amount due by the Mandal Society within one month from the date of the letter. Since the two societies failed to discharge the obligation, the appellant instituted an action in the Court of the Additional District Judge, Shivpuri for a decree for Rs. 11,299 against the Mandal Society, the Adivasi Society and Sobha Ram and Panchu the last two being respectively member and President of the Mandal Society. The action was resisted on the plea that the civil Court had no jurisdiction to try the suit and the Registrar, Co-operative Societies or his nominee had exclusive jurisdiction to adjudicate upon the claim. The learned Additional District Judge rejected the contention. Against that order a revision application was filed before the High Court of Madhya Pradesh. The High Court set aside the order passed by the District Judge and declared that the civil Court was incompetent by virtue of section 82 (1) (c) of the Madhya Pradesh Co-operative Societies Act, 1960 to try the suit, and directed that the suit be dismissed. Against the order passed by the High Court, this appeal is preferred with special leave.
3. Counsel for the appellant contended that a claim for recovery of price of goods purchased by the Mandal Society did not raise a dispute "touching the business of the society and the jurisdiction of the civil Court to entertain the action was not barred. The Mandal Society carries on the business of purchase and sale of food-grains and other goods. It appears from the Bye-laws that the Society was formed with the object of purchasing "forest produce" from members of the Scheduled Tribes and of supplying them foodstuff. The business of a Society is clearly the function or activity of the Society having some continuity and regularity. The expression "touching the business of a society" means in reference or in relatio
