2003 Supreme(AP) 1345
Andhra Pradesh High Court
Judges : B.PRAKASH RAO, CH.S.R.K.PRASAD
Jas Raj Ganeshmal, Wholesale Ghee Merchant and Commission Agent - Appellant
Versus
A.P.Dairy Development Co-operative Federation Ltd., Hyderabad - Respondent
C.C.C.A.No.94/92
Decided On : 11-12-03
Advocates Appeared :
Mr.M.P. Ugle
Headnote:AP CO-OPERAIVE SOCIETIES ACT, Secs8 & 126 - Suit against AP Dairy Development Corporation for recovery of security deposit - Trial Court dismissing suit on ground that plaintiff did not issue notice u/Sec126 of Societies Act to Registrar - Plaintiff was appointed as authorised dealer of defendant for selling “Vijaya Ghee” and suit claim pertains to refund of security deposit - Contention that there is no evidence with regard to nature of business doing by defendant and suit transaction not connected with business - Evidently defendant, Society registered under Co-operative Societies Act - Such transactions and business dealings between plaintiff and defendant squarely pertains to said business and touches upon business of Society - Filing of any suit is barred unless and until notice is given to Registrar u/Sec126 - Admittedly no such notice is given to defendant in this case - Hence, suit not maintainable
( 1 ) HEARD Sri M. P. Ugle, the learned counsel for the appellant. Though served, none appeared on behalf of the respondent.
( 2 ) UNSUCCESSFUL plaintiff is the appellant herein, who is aggrieved against the judgment and Decree in O. S. No. 89 of 1984 dated 29-8-1992 on the file of II Additional judge, City Civil Court, Hyderabad dismissing the suit filed for recovery amounts towards the security Deposit of rs. 2,17,96-51 ps and damages of rs. 17,136/- with future interest.
( 3 ) BRIEFLY the case of the plaintiff, before the court below, is that it has been appointed as the authorised dealer on behalf of the defendant for selling the goods namely, vijaja Ghee in the State of Rajasthan. Accordingly, there had been supply of the goods, for which the plaintiff gave security deposit. However, the Ghee supplied was found in reddish colour and not saleable. The quality of goods was inferior with bad smell. Therefore, the plaintiff protested with the defendant. After long dealings and correspondence, the defendant sought to cancel the contract and forfeit the amount, which action is illegal.
( 4 ) CONTESTING the suit claim, the defendant, denied the allegation on the claim and stated that the plaintiff did not comply his obligation and the suit is bad for want of notice under Section 126 of the A. P. Cooperative Societies Act, 1964 hence the suit is liable to be dismissed.
( 5 ) THE Court below, on the pleadings of either side, framed the issues and during the trial, the plaintiff examined P. Ws. 1 to 3 and marked Exs. A-1 to A-47 and the defendant examined D. W. 1 and marked Exs. B-1 to b-37.
( 6 ) CONSIDERING the evidence, both oral and documentary, and on hearing the counsel on either side, the court below having held that even though the plaintiff is entitled for recovery of the suit amount, dismissed the suit on the ground that the plaintiff did not issue notice under Sec. 126 of the A. P. Co-operative Societies Act. Hence the appeal.
( 7 ) IN this appeal, Sri M. P. Ugle, learned counsel for the appellant submits that having regard to the specific plea raised as to whether the defendant is a Society and an issue has been framed to that effect, the defendant did not discharge the burden except marking Ex. B-1, which is true copy of certificate of Registration dated 5-5-1981 issued under Section 8 of the Co-operatives act and neither the bye-laws nor any regulations of the defendant have been filed. Further, he submitted that there is no evidence with regard to the nature of the business which the defendant is doing and thus, the suit transaction not connected with the business, the suit could not have been dismissed.
( 8 ) HAVING heard the learned counsel for the appellant and on perusal of the record, the main question which arises in this appeal is - whether the suit of the appellant is liable to be dismissed for want of notice under section 126 of the A. P. Co-operative societies Act. The suit claim pertains to the refund of the Security Deposit made by the appellant with the respondent on various grounds of non supply of proper material. Having regard to the findings arrived at by the court below on all other issues with regard to the entitlement of the suit claim by the plaintiff, it is not necessary to go into the merits of the case as there are no cross- objections or appeal by the respondent- defendant.
( 9 ) FOR convenience sake, Section 126 of the A. P, Co-operative Societies Act is extracted which reads as follows:"no suit shall be instituted against a society or any of its officers in respect of any act touching the constitution, management or the business of the society until the expiration of sixty days next after notice in writing has been delivered to the Registrar, or left at his office stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims and the plaint shall contain a statement that such notice has been so delivered or left