Andhra Pradesh High Court
Judges : R.BAYAPU REDDY
KONA RAMU - Appellant
Versus
PAYAKARAOPETA PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY LTD., PAYAKARAOPET, VISAKHAPATNAM DIST. - Respondent
Decided On : 06-27-97
A - P Co-operative Societies Act, 1964 - Section 126 - Civil Procedure Code, 1908 - Sections 80, 115 - Loan Borrowed - Loan Transaction - But such contention raised before lower Court was not accepted and rightly so in my view states that no suit shall be instituted against a society or any of its officers in respect of any act touching constitution management or business of society until expiration of sixty days next after notice in writing has been delivered to Registrar or left at his Office stating cause of action name description and place of residence of plaintiff and relief which he claims and plaint shall contain a statement that such notice has been so delivered or left - In present case it is clear from a perusal of plaint and averments made therein that plaintiff is questioning validity and legality of two loans alleged to have been granted to him by first defendant s society contending that no such loans were in fact borrowed by him that respondents committed fraud upon him and obtained his signatures in some blank papers and subsequently fabricated relevant documents to evidence loan transactions and that therefore relief of declaration that such loans are null and void may be granted - Held, He has also produced a copy of said reply notice before this Court and it is also submitted by him that said copy of notice was enclosed to plaint - But it is to be seen from a perusal of said reply notice issued on behalf of plaintiff to first defendant society that it does not conform to provisions of notice as contemplated is to be delivered to Registrar of Co-operative Societies and plaintmust contain a statement that such notice as contemplated has been in fact delivered to Registrar of Society reply notice admittedly is addressed only to Secretary of first defendant society putting forward contention of plaintiff regarding validity of loan transaction suit is filed against Society and its officials and suit contemplated is also against society or any of its officiers in respect of any act touching constitution management or business of such society - Petition is dismissed.
( 1 ) THIS revision is filedby the plaintiff in the unnumbered suit in G. R. No. 1389, dated 15-3-1994 against the orders of the Principal District Munsif, yellamanchili dated 26-7-1994 by which the plaint filed by him was rejected under Order 7 Rule ll (d) C. P. C.
( 2 ) THE petitioner had filed the suit against the respondents 1 to 3 seeking the relief of declaration that the loan No. 24403, dated 30-7-1992 and another loan No. 24676, dated 4-8-1992 said to have been granted by the first respondent society to him are null and void and for consequential relief of permanent injunction restraining the defendants from proceeding against him and his properties for realising such loans. The Office took an objection in the lower court that the suit is not maintainable for want of notice under Section 126 of A. P. Co-operative Societies Act, 1964 (for short the Act ).
( 3 ) AFTER hearing the contentions of the learned Counsel for the plaintiff the lower Court came to the conclusion that the suit was not maintainable for want of notice under Sec. 126 of the Act 1964 and as such the plaint was rejected under Order 7 Rule11l (d) C. P. C. Questioning such orders of the lower court the present revision is filed by the plaintiff.
( 4 ) HEARD both sides.
( 5 ) THE learned Counsel for the petitioner firstly tried to contend that the notice under Sec. 126 of the Act 1964 is not mandatory in a suit of the present nature, that the suit is not filed by him rein ting to any management or business of the first defendant society or touching its constitution and that therefore the lower Court has erred in rejecting the plaint on the ground that notice under Sec. 126 of the Act 1964 is not issued. But such contention raised before the lower Court was not accepted and rightly so in my view. Section 126 of the Act states that 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. In the present case, it is clear from a perusal of the plaint and the averments made therein that the plaintiff is questioning the validity and legality of two loans alleged to have been granted to him by the first defendant s society contending that no such loans were, in fact, borrowed by him that the respondents committed fraud upon him and obtained his signatures in some blank papers and subsequently fabricated the relevant documents to evidence the loan transactions and that therefore the relief of declaration that such loans are null and void may be granted. Even though it is alleged in the plaint that the employees of the defendant committed fraud upon him by obtaining his signatures in some blank papers, the relief prayed for in the plaint relates only to the loans said to have been sanctioned by the first respondent society to the plaintiff. As a matter of fact, even prior to the filing of the suit a notice was issued by the plaintiff to the society by way of reply to a notice issued to him by the society that the plaintiff had borrowed such loans from the society and tha t he is still liable to discharge those loans. It is clear from such circumstances that the suit is filed only to question the validity and legality of such loans said to have been granted to him. When the suit is of such a nature regarding the validity of the loan said to have been granted notice under Section 126 of the Act is mandatory inasmuch as the relief prayed for in the plaint can be said to be touching the business of the society as the act of granting and collecting loans will be in the course of business of such society. Therefore, as p
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