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2015 Supreme(Bom) 1950

IN THE HIGH COURT OF JUDICATURE OF BOMBAY AT AURANGABAD
T.V. NALAWADE, J.
Mula Pravara Electric Co-operative Society Limited – Petitioner
Versus
Maharashtra State Electricity Distribution Company Limited – Respondent
Civil Revision Application No. 128 of 2014
Decided On : 27.11.2015

Advocates:
Advocate Appeared:
For Petitioner: Mr. V.D. Hon, Senior Counsel.
For Respondent:Mr. P.M. Shah, Senior Counsel and Mr. S.S. Dande, Advocate.

The central legal point established in the judgment is that the jurisdiction of the Civil Court is not ousted unless the conditions laid down in section 91 of the Maharashtra Co-operative Societies Act, 1960 are fulfilled.

Headnote:

Jurisdiction - Maharashtra Co-operative Societies Act - 91 - 9A

Fact of the Case:

The case involves a dispute over the jurisdiction of the Civil Court to hear a suit filed by an Electricity Distribution Company for recovery of a substantial amount from a cooperative society. The society contended that the suit was barred by section 91 of the Maharashtra Co-operative Societies Act, 1960.

Finding of the Court:

The trial Court held that the plaintiff was not a member of the society and that the suit for recovery of money was tenable in the Civil Court.

Issues: The main issue was whether the jurisdiction of the Civil Court was barred under section 91 of the Maharashtra Co-operative Societies Act, 1960.

Ratio Decidendi: The court analyzed the provisions of the Act and relevant case law to determine that the dispute did not fall within the purview of section 91, and therefore, the Civil Court had jurisdiction to hear the matter.

Final Decision: The revision was dismissed, and the request for stay of the proceeding before the trial Court was refused.

ORDER

1. The proceeding is filed to challenge the order made on preliminary issue, of jurisdiction framed in Special Civil Suit No. 5 of 2011 which is pending in the Court of Civil Judge, Senior Division, Shrirampur, District Ahmednagar. In a suit filed by present respondent, Electricity Distribution Company, a Company of the State Government for recovery of the amount of Rs. 23,16,98,49,078.85 (Rupees Two thousand three hundred sixteen Crore ninety eight lakhs forty nine thousand seventy eight and paisa eighty five) in respect of electricity supplied to present applicant, the present applicant had filed application at Exh. 63 for framing preliminary issue. Applicant had contended that the suit is barred by section 91 of the Maharashtra Co-operative Societies Act, 1960 (hereinafter referred to as the Act for short) and the dispute mentioned in the plaint is covered by section 91 of the Act. The trial Court framed the preliminary issue by the order dated 10.4.2014. Opportunity was given to both the sides even to lead evidence on the preliminary issue and then the preliminary issue is decided against the present applicant and it is held that the suit is tenable in Civil Court. Both the sides are heard.

2. It is the case of present applicant, Society that Society used to purchase electricity from erstwhile Maharashtra State Electricity Board and later on from the present plaintiff Company and it used to supply the electricity to its members. It is contended that the dispute between the plaintiff and the defendant is in respect of recovery of alleged due amount, aforesaid amount and that dispute is touching the business of the society. The applicant contended that as the plaintiff is also its member, in view of provision of section 91 of the Act, the jurisdiction of Civil Court is barred. By making such contention, prayer was made to frame preliminary issue as provided under section 9A of Civil Procedure Code.

3. The trial Court has held that the plaintiff is not member of Society and the electricity was supplied to the society, which was consumer of the plaintiff and it is simple suit for recovery of money in respect of the said supply.

4. The learned Senior Counsel for present petitioner, defendant took this Court through some record and submitted that the amount of Rs. five lakh was paid as share capital by M.S.E.B. in 1973 and so, it is the member of the Society. The learned Senior Counsel also took this Court through Bye-laws of the Society and submitted that the persons, who are consumers of the Society are also members. He took this Court through Byelaw No. 1.7 (1). He took this Court through some record showing that the connection of electricity was given to the plaintiff's office by Society at a place. The learned Senior Counsel further submitted that as per the Bye-laws of the Society with regard to the management [Bye-law No. 9 (1) (a)] the nominee of M.S.E.B. is accepted in Board of Directors and it also shows that plaintiff is member of the defendant Society. The learned Senior Counsel then took this Court through the license given by the State Government to the Society under the Indian Electricity Act, 1910.

5. It is not disputed that the defendant, Society was purchasing electricity from plaintiff, a Government Company and it was distributing the electricity in villages. This Court has carefully gone through the objects of the Society and the provisions regarding kinds of members. The main object of the Society was to make electric energy available to the members and others in the area of operation and in furtherance of this object, Society can undertake one or more activities mentioned in the object. In Bye-laws, four kinds of members are mentioned. Bye-laws do not show that a category of members was created which was to supply, sell the electricity to Society. It appears that under the license, liberty was given to the Society to purchase the electricity from present plaintiff or from any State Government generatin












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