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1976 Supreme(Cal) 100

High Court Of Calcutta
A. N. Sen
JESSOPs CO-OPERATIVE SOCIETY LTD. - Appellant
Versus
REGISTRAR OF CO-OPERATIVE SOCIETIES, W.B. - Respondent
Matter 284  Of  1975
Decided On : 03/17/1976

Advocates Appeared:
I.P.MUKHERJI, P.P.GHOSH, SOMNATH CHATTERJI

The change in language from 'touching the business' of the Society to 'relating to the affairs' of the Society in Section 86 of the West Bengal Co-operative Societies Act, 1973 indicates a legislative intent to bring about a change in the law and to expand the scope of disputes that could be referred to the Registrar.

Headnote:

CO-OPERATIVE SOCIETY - DISPUTE - JURISDICTION - REFERENCE TO REGISTRAR - VALIDITY - INTERPRETATION OF SECTION 86 OF THE WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 1973 - WORDS 'RELATING TO THE AFFAIRS' OF THE SOCIETY - MEANING AND SCOPE - CHANGE IN LANGUAGE FROM 'TOUCHING THE BUSINESS' OF THE SOCIETY TO 'RELATING TO THE AFFAIRS' OF THE SOCIETY - LEGISLATIVE INTENT - OUSTER OF JURISDICTION OF CIVIL COURTS - SECTIONS 132 (2) (D) AND 141 OF THE ACT.

Fact of the Case:

A dispute arose among members of a Co-operative Society regarding the validity of a notice for holding the annual general meeting, the legality of the proceedings of the meeting, and the constitution of the Managing Committee and election of office bearers. The dispute was referred to the Registrar under Section 86 of the West Bengal Co-operative Societies Act, 1973. The Arbitrator appointed by the Registrar held that he had jurisdiction to decide the dispute. The petitioner, a member of the Society, challenged the Arbitrator's decision by filing a writ petition under Article 226 of the Constitution.

Finding of the Court:

The Court held that the words 'relating to the affairs' of the Society used in Section 86 of the Act have a much wider import than the words 'touching the business' of the Society used in the earlier Act of 1912 and the Act of 1940 prior to its amendment. The Court found that the Legislature deliberately changed the language of the section to bring about a change in the law and to expand the scope of disputes that could be referred to the Registrar. The Court also held that the provisions of Sections 132 (2) (d) and 141 of the Act clearly take away the jurisdiction of the Civil Courts in respect of disputes covered by Section 86.

Issues: 1. Whether the disputes referred to the Registrar under Section 86 of the West Bengal Co-operative Societies Act, 1973 relate to the affairs of the Society and are covered by the said section? 2. Whether the change in language from 'touching the business' of the Society to 'relating to the affairs' of the Society in Section 86 of the Act indicates a legislative intent to bring about a change in the law?

Ratio Decidendi: 1. The words 'relating to the affairs' of the Society used in Section 86 of the Act have a much wider import than the words 'touching the business' of the Society used in the earlier Act of 1912 and the Act of 1940 prior to its amendment. 2. The deliberate change in the language of Section 86 by the Legislature indicates an intent to bring about a change in the law and to expand the scope of disputes that could be referred to the Registrar. 3. The provisions of Sections 132 (2) (d) and 141 of the Act clearly take away the jurisdiction of the Civil Courts in respect of disputes covered by Section 86.

Final Decision: The Court dismissed the petition and upheld the Arbitrator's decision that he had jurisdiction to decide the dispute.

A. N. SEN, J.

( 1 ) AN interesting question of some importance involving the interpretation of Section 86 of the West Bengal Cooperative Societies Act, 1973 arises for consideration in this writ proceeding.

( 2 ) JESSOP's Co-operative Society Ltd. (hereinafter referred to as the Society) is a duly registered Society and as such is a body corporate. Ajit Narayan Sinha, the respondent No. 5 herein, is a member of the Society. Ajit Narayan Sinha disputed the validity of the notice dated 5th of May, 1975 for holding the annual general meeting dated 20th of May, 1975 of the Society, the proceedings of the said annual general meeting, re-constitution of the Managing Committee at the said meeting and the election of the office bearers of the Managing Committee on various grounds. He referred the disputes in accordance with the provisions contained in Section 86 of the West Bengal Co-operative Societies Act, 1973 (hereinafter referred to as the Act) and he filed a plaint verified by him on the 19th of June, 1975 before the Assistant Registrar Co-operative Societies. Shri D. K. Sanyal Co-operative Development Officer (Arbitration) II Cal was appointed the Arbitrator to decide the disputes in terms of the provisions contained in Section 87 of the Act, The case was numbered as Dispute Case No. 50/cal of 1974-75. The parties to the said case were Ajit Narayan Sinha who was the plaintiff in the case, and the Society, the Managing Committee of the Society, Shri Santosh Kumar Sengupta, Chairman of the Society and Shri Nemai Dulal Sinha, the Hony. Secretary of the Society, who were all made defendants. In the said case the plaintiff Ajit Narayan Sinha prayed on the basis of the averments made in the plaint:"in the circumstances, stated herein-above the Plaintiff prays that your Honour may be graciously pleased to set aside the impugned notice dated 5th May 1975, proceedings of the Annual General Meeting dated 20th May 1975, reconstitution of the Managing Committee at the meeting dated 20th May 1975 and impugned election of office bearers of the impugned reconstituted Managing Committee on the grounds mentioned hereinabove. "

( 3 ) A statement of defence was filed on behalf of the defendants in answer to the plaint filed by the plaintiff Ajit Narayan Sinha. In the written statement of defence it was contended on behalf of the defendants in paragraph 1:"the defendants submit that the disputes purported to be raised by Sri Ajit Narayan Sinha describing himself as the plaintiff abovenamed as detailed in paragraph 9 of the application for purposes of reference of the disputes wrongly described as plaint as also in the prayer thereof, viz. , the matter relating to the notice dated the 5th May 1975, proceeding of the Annual General Meeting, dated the 20th May 1975, the Annual General Meeting, election of directors, reconstitution of the Managing Committee at the meeting dated 20th May 1975 and election of the office bearers of the reconstituted Managing Committee are not disputes relating to the affairs of the Jessop's Co-operative Society Ltd. , the alleged defendant No. 1 abovenamed, nor is Messrs. Jessop's Co-operative Society Ltd. a party to any of the said disputes. As such, the said disputes nor any of them can be legally referred to the Registrar of Cooperative Societies, Calcutta under Section 86 of the West Bengal Co-operative Societies Act. 1973. And the Registrar has no jurisdiction to entertain any such purported reference and to transfer the same to any Arbitrator under Section 87 (1) (c) of the said Act. "

( 4 ) ON the application of the defendants a preliminary issue as to jurisdiction was raised and considered by the Arbitrator. By an order passed by the Arbitrator on 19-8-1975, the Arbitrator held that he had jurisdiction to decide the suit. In his order the Arbitrator has stated--"in its petition dated 21-7-1975 the defendants have raised certain points as to the jurisdiction of the Registrar of Cooperative Societies to refer the






















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