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2019 Supreme(Kar) 1035

IN THE HIGH COURT OF KARNATAKA
B.V. Nagarathna, K. Natarajan, JJ.
L. Pandu - Appellant
Vs.
M. Mangala - Respondent
Regular First Appeal No. 1245 of 2018
Decided On : 13-06-2019

Advocates Appeared:
Alwyn Sebastin, Adv., Reny Sebastin, Adv., K. Jeevan, Adv., K. Krishna, Adv.

Headnote:

CIVIL PROCEDURE CODE - Rejection of Plaint under Order VII Rule 11 - Karnataka Co-Operative Societies Act, 1959 - Section 70, Section 125 - The court held that the rejection of the plaint was not justified as the dispute did not touch upon the constitution, management, or business of the co-operative society. The court concluded that Section 70 or Section 125 of the Act was not applicable to the facts of the case.

Fact of the Case:

The plaintiff sought a declaration of title and possession of a property against defendant Nos.1 to 8. The trial Court rejected the plaint under Order VII Rule 11 of the CPC, based on the contention that the suit was barred under Section 70 read with Section 125 of the Karnataka Co-Operative Societies Act, 1959.

Finding of the Court:

The court found that the rejection of the plaint was not justified as the dispute did not touch upon the constitution, management, or business of the co-operative society. The court set aside the impugned order and remanded the matter to the trial Court for fresh disposal.

Issues: Whether the trial Court was right in rejecting the plaint under Order VII Rule 11 of the CPC in the instant case?

Ratio Decidendi: The court held that the rejection of the plaint was not justified as the dispute did not touch upon the constitution, management, or business of the co-operative society. The court concluded that Section 70 or Section 125 of the Act was not applicable to the facts of the case.

Final Decision: The appeal was allowed, and the matter was remanded to the trial Court for fresh disposal. The court also directed the registry to refund the entire Court fee paid by the appellant.

JUDGMENT :

B.V. Nagarathna, J.

Though this appeal is listed for Admission, with the consent of learned counsel on both sides, it is heard finally.

2. Appellant was the plaintiff and respondents are defendant Nos.1 and 2 in Original Suit No.4718 of 2017. Respondent Nos.1 and 2 herein filed an application under Order VII Rule 11 of the Code of Civil Procedure, 1908 (for short, 'C.P.C') before the LXVI Additional City Civil and Sessions Judge, Bengaluru City. Said application has been allowed by order dated 23/06/2018. Consequently, plaint has been rejected. Being aggrieved by the rejection of the plaint, plaintiff has preferred this appeal.

3. The appellant-plaintiff herein sought the following reliefs, in respect of following Schedule property, in the suit:

"i) Declare that the Plaintiff is the absolute owner of the Schedule property;

(ii) Direct the Defendant Nos.1 to 8 to quit, vacate and deliver vacant possession of the Scheduled Property and simultaneously Direct the Defendant No.10 to demolish the temporary structure constructed on the Schedule Property in accordance with the direction of the Hon'ble High Court of Karnataka in No.6945/2010;

(iii) Direct the Defendant Nos.1 and 2, to pay the damages at the rate of Rs.25,000/- (Rupees Twenty-five thousand only) per month from the date of suit till delivery of vacant possession of the Schedule Properly to the Plaintiff;

(iv) Award the Plaintiff the cost of the suit; and

(v) Grant such other relief/reliefs."

SCHEDULE PROPERTY

"All that piece and parcel of immoveable property situated at Site Nos.3329, 3330, 3238, 3239, 3240 carved in Survey Nos.16, 17, 18, 19 of Gerahalli Village and 101, 103/1, 103/2, 104/1, 104/2, 105 and 106 of Hosakerehalli Village, Uttarahalli Hobli, Bangalore South Taluk, in 4th Phase of Girinagar, Bengaluru 560 085, measuring East to West, 80 feet and North to South 70 feet totally measuring 5600 sq.ft. and bounded on the:

East by : Road,

South by : Private Property (Part of Site Nos.3328 & 3241),

North by : Private Property (Site No.3237),

West by : Road"

4. In substance, the plaintiff sought for a declaration of title in respect of suit schedule property and for possession of the property as against defendant Nos.1 to 8 in the suit and direction to defendant No.10 to demolish the temporary structure constructed in the suit schedule property and for damages of Rs.25,000/- per month to be paid by defendant Nos.1 and 2 from the date of suit till delivery of vacant possession. In the said suit, an application was filed under Order VII Rule 11 of C.P.C. by respondent Nos.1 and 2 defendant Nos.1 and 2 seeking rejection of the plaint, contending that the suit was barred in view of Section 70 read with Section 125 of the Karnataka Co-Operative Societies Act, 1959 (hereinafter referred to as 'Act', for the sake of convenience). The trial Court has accepted the contentions of defendant Nos.1 and 2 and rejected the plaint. Being aggrieved, the plaintiff has preferred this appeal.

5. We have heard learned counsel for the appellant; learned counsel for respondent Nos.1 and 2 and learned counsel for respondent No.9-Bengaluru Development Authority. Respondent Nos.3 to 8 are served and unrepresented. We have perused the material on record.

6. Appellant's counsel contended that suit has been filed, essentially against respondent Nos.1 and 2 herein seeking the relief of declaration of title and possession and for damages. That the said suit was filed by the plaintiff as against defendant Nos.1 and 2 as well other defendants. That the suit is not filed touching upon any action or order made by defendant No.9- Vishwabharathi House Building Co-operative Society. It does not concern any dispute touching the constitution, management, or the business of the respondent Society. Therefore, Section 70 of the Act is not applicable to the instant case. He further contended that under Section 125 of the Act also, if any act touching upon the constitution, management or the business of the society i

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