High Court Of Calcutta
M. K. MUKHERJEE, SUDHANSHU SEKHAR GANGULY
NATIONAL AGRICULTURAL CO-OPERATIVE MARKETING FEDERATION OF INDIA LTD - Appellant
Versus
RAM NARAYAN TEKCHAND - Respondent
Civil Revision . Of .
Decided On : 04/15/1988
CO-OPERATIVE SOCIETIES ACT - LIMITATION - CLAIM FOR RECOVERY OF MONEY FROM CO-OPERATIVE SOCIETY - WHETHER LIMITATION ACT, 1963 APPLIES - WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 1973, SECTIONS 46, 86, 123, 125, 133, 134, 135, 152 - INDIAN LIMITATION ACT, 1963.
Fact of the Case:
A dispute arose between a co-operative society and a customer regarding the supply of mustard seeds. The customer filed a money suit, which was dismissed for want of service of notice under Section 70 of the Bombay Cooperative Societies Act. The customer then filed a dispute case under Section 86 of the West Bengal Cooperative Societies Act. The Registrar passed an award in favor of the customer, but the Cooperative Tribunal set aside the award.
Finding of the Court:
The court held that the claim was hopelessly barred by limitation on the day it was lodged with the Registrar. The court held that the provisions of the Limitation Act, 1963 apply to the disputes contemplated by the West Bengal Co-operative Societies Act, 1973, since the Act does not specifically provide any period of limitation for money-claims against a co-operative society. The court also held that the Deputy Registrar adjudicating upon the dispute under Section 87 (1) (b) of the Act was a "court" and not a mere quasi-judicial Tribunal.
Issues: Whether the claim was hopelessly barred by limitation on the day it was lodged with the Registrar.
Ratio Decidendi: The court held that the provisions of the Limitation Act, 1963 apply to the disputes contemplated by the West Bengal Co-operative Societies Act, 1973, since the Act does not specifically provide any period of limitation for money-claims against a co-operative society. The court also held that the Deputy Registrar adjudicating upon the dispute under Section 87 (1) (b) of the Act was a "court" and not a mere quasi-judicial Tribunal.
Final Decision: The court allowed the revisional application, set aside the judgment and order passed by the learned Member in Appeal No. 69 of 1986, and rejected the dispute case preferred by the respondent giving rise to Dispute case No. 1-C2 of 1983-84/5 Cal. of 1983-84.
( 1 ) THIS revisional application has been preferred from judgment and order dated 2-12-86 passed by Shri L. N. Ray, member, West Bengal Co-operative Tribunal in Appeal No. 69 of 1985 arising out of dispute case No. 1 CZ of 1983-84/5 Cal of 1983-84.
( 2 ) ADMITTEDLY the plaintiff-respondent-opposite party M/s Ram Narayan tekchand placed an order for 1500 bags of Mustard seeds at the rate of rs. 225/-per quintal with the present defeadant-appellant-petitioner National agricultural Co-operative Marketing Federation of India Limited a Co-operative society registered in the State of Maharashtra under the Bombay Cooperative societies Act, 1925 and having its branch office at No. 20, British india Street, Calcutta, The opposite party deposited Rs. 10,000/- as advance. Subsequently, the price was reduced to Rs. 220/- per quintal in January, 1976. The opposite party took delivery of 710 bsgs and made payment on various occasions which together amounted to Rs. 1,32,000/ -. It is not disputed that the opposite party did not make arrangement for taking delivery of the remaining bags on payment of the price thereof. As such an amount of Rs. 11,124. 63 which remained due to it was ultimately forfeited by the present petitioner towards the loss allegedly suffered by it. The opposite party filed Money Suit no. 458 of 1979 in the City Civil Court, Calcutta, 6th Bench for recovery of this amount. The suit was dismissed on the ground of want of service of notice under Section 70 of the Bombay Co operative Societies Act. 1 hereafter the opposite party filed dispute case No. 1 CZ of 1983-84/5 Cal of 1983-84 under section 86 of the West Bengal Co-optrative Societies Act. The petitioner challenged the jurisdiction of the Registrar under Co-operative Societies Act to entertain the dispute and the application of the West Bengal Co-operative societies Act, 1973 So it. It was also urged the claim that which was the subject matter of the dispute was hopelessly barred by limitation. While admitting that the respondent had a sum of Rs. 11,124. 63 lying with it, it was urged that the same had been appropriated to cover up its losses and damages as the respondent in spite of notice containing a specific warning of forfeiture of the said amount refunded or failed to lift the remaining 782 bags of mustard seeds without any valid reason.
( 3 ) THE dispute case was disposed of by the Deputy Registrar Co-operative societies, Central Zone, Government of West Bengal. He held that with the lowering of the price per quintal of the mustard seeds a new contract come into being between the parties. While holding further that the dispute was maintainable and not barred by limitation the learned Deputy Registrar held that the present petitioner could not lawfully forfeit the amount. Hence he passed an award for Rs. 11,124. 63 in favour of the opposite party.
( 4 ) THE appeal from this award being appeal No. 69 of 1985 was heard and disposed of by Shri L. N. Ray, Member, West Bengal Co-operative Tribunal on 24-1-86 and his findings are the following : (1) There was only a variation in the agreed price and not in the quantity to be supplied. The contract entered into between the parties subsisted- The opposite party therefore committed a breach of contract by not taking delivery of the balance 782 bags or paying the price therefor. (2) The petitioner was not entitled to forfeit the amount in question without proving actual loss or without raising any counter claim. (3) The reference case was hit by res judicata in view of the decision of the City Civil Court in M. S. No. 468 of 1979. (4) The Limitation Act did not apply to a claim for money filed against the Co-operative Society since the Deputy Registrar, Co-operative society was a quasi-judicial or Administrative Tribunal and not a court. (5) The dispute in the present case was not maintainable in view of the provisions of Section 86 of the West Bengal Co-operative Societies act and the
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