2010(6) ALL MR 185
IN THE HIGH COURT OF JUDICATURE AT BOMBAY (NAGPUR BENCH)
A. P. BHANGALE, J.
Jijamata Sahakari Sakhar Karkhana Ltd.
Versus
Sukhedeo Rambhau Fulzade & Anr.
Second Appeal No.92 of 1999
Decided on : 16th July, 2010.
Co-operative Society - Jurisdiction of Civil Court - Maharashtra Co-operative Societies Act, 1960, Section 164
Fact of the Case:
The plaintiff sued the defendant Co-operative society to recover a sum of Rs.15,828 for supplying sugarcane for sowing, but the defendant resisted the suit on the ground of lack of pre-suit statutory notice as required under section 164 of the Maharashtra Co-operative Societies Act, 1960.
Finding of the Court:
The court found that the suit was instituted without pre-suit statutory notice, and no waiver was established before the Civil Court. Therefore, the suit was correctly dismissed by the trial Court.
Issues: The substantial question of law was whether the Civil Court had jurisdiction to entertain the suit against the Co-operative Society without pre-suit statutory notice, as required under section 164 of the Act of 1960.
Ratio Decidendi: The court held that the mandatory requirements of Section 164 of the Act serve the policy of law and a public purpose to protect Cooperative Societies from expensive, avoidable, and lengthy litigation. It emphasized that the provision of pre-suit statutory notice is capable of being lawfully waived by the party-defendant, but the waiver has to be established by the plaintiff. The court also highlighted that the defect as to non-compliance of Section 164 is not such a defect which can absolutely take away the inherent jurisdiction of the Court to decide the plea of waiver raised by the plaintiff.
Final Decision: The impugned judgment and order were set aside, and the judgment and decree passed by the learned Joint Civil Judge in RCS No.39/1991 were restored. The Appeal was allowed accordingly.
2. The plaintiff had instituted the suit in the Court of learned Civil Judge, J.D. Chikhli, Dist. Buldana, to recover a sum of Rs.15,828/- from the Jijamata Sahakari Sugar factory, on the ground that it was part of its business to supply sugarcane for the purpose of sowing (Bene) to the farmers and to accept sugarcane for the purpose of production of sugar. The plaintiff had, therefore, appointed some trucks for the transportation of sugarcane from the field of farmers to the factory or to supply sugarcane for farmers for sowing purposes. The subordinate office of the defendant society at Chikhli had called tender to appoint trucks pursuant to which the plaintiff was appointed to supply sugarcane for sowing to places like, Mera, Dhad, Utarapeth for a consideration of Rs.350/- per day as the truck charge and the society agreed to bear other charges like diesel, oil etc. within one month after completion of work.
3. The plaintiff performed his part of contract during the period between 2.2.1988 and 29.9.1988 by using his truck MWD-7270, for which sum of Rs.11,880/- became due from the defendant society. The dues remained unpaid despite notice dated 10.6.1988 by registered post. Thus, the plaintiff sued the defendant to recover sum of Rs.15,828/- along with future interest at the rate of 12 per cent per annum till full realisation thereof.
4. The defendant had resisted the suit on the ground that the suit was not competent for want of pre-suit statutory notice as required under section 164 of the Maharashtra Co-operative Societies Act, 1960 (in short, "the Act of 1960") and, therefore, trial Court could not have entertained it.
5. The Appeal was admitted on 28.11.2000. The substantial question of law is as to whether Civil Court had jurisdiction to entertain the Civil Suit instituted against the Co-operative Society without pre-suit statutory notice, as required under section 164 of the Act of 1960.
6. Heard submissions at the Bar and perused the records.
7. Learned counsel for appellant placed reliance upon Section 164 of the Act of 1960 which reads thus:
"No suit shall be instituted against a society, or any of its officers, in respect of any act touching the business of the society, until expiration of two months 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."
It is clear from the provision of Section 164 of the said Act that it is prohibitory in terms that no suit can be instituted against a society or any of its officers in respect of any act touching the business of the society until pre-suit statutory notice in writing has been delivered to the Registrar of left at his office stating;
(i) the cause of action for the proposed suit;
(ii) name, description and place of residence of the plaintiff;
(iii) the relief which the plaintiff claims.
Furthermore, the plaint shall contain a statement that such notice has been so delivered or left. Such notice though mandatory is capable of being express or implied waiver. The requirements stated above are mandatory and for the benefit of Cooperative society or its Officers to be sued in respect of any act touching the business of society.
8. The mandatory requirements of Section 164 of the said Act serves policy of law and a public purpose to protect Cooperative Societies from expensive; avoidable and lengthy litigation. The object of pre-suit statutory notice is to alert the noticee-society about the proposed suit so that it may through its respon
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