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1982 Supreme(Cal) 346

High Court Of Calcutta
C. Mookerjee, J.
Eastern Railway Employees Co-Operative Bank – Appellant
Versus
Saroj Nath Dhar Gupta – Respondent
Decided On: October 05, 1982

Advocates:
Advocate Appeared:
R.N.Dai, R.N.Sil, Sailendra Nath Ray

The jurisdiction of Civil Courts is barred in respect of disputes required to be referred to the Registrar under Section 86 of the West Bengal Co-operative Societies Act, 1973, including disputes relating to the recovery of money from a defaulting member or surety.

Headnote:

WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 1973 - SECTION 132(2)(D), 86, 126 - JURISDICTION OF CIVIL COURT - SUIT BY SURETY AGAINST CO-OPERATIVE BANK FOR DECLARATION THAT LOAN TAKEN BY PRINCIPAL BORROWER WAS TIME BARRED AND THAT IT WAS LIABILITY OF BANK TO REALISE DUES FROM BORROWER - WHETHER SUIT MAINTAINABLE - HELD, SUIT BARRED BY SECTION 132(2)(D) OF ACT - CIVIL COURT HAD NO JURISDICTION.

Fact of the Case:

Plaintiff, a surety for a loan taken by the principal borrower from the defendant Co-operative Bank, filed a suit in the Civil Court seeking a declaration that the defendants were not entitled to realise any amount from him in respect of the loan and that it was the liability of the defendants to realise the said dues from the principal borrower. The defendant Bank objected to the maintainability of the suit on the ground of lack of jurisdiction of the Civil Court under Section 132(2)(d) of the West Bengal Co-operative Societies Act, 1973.

Finding of the Court:

The Court held that the Civil Court had no jurisdiction to try the suit as the subject matter of the dispute was covered by Clause (d) of Sub-section (2) of Section 132 of the West Bengal Co-operative Societies Act, 1973, which bars the jurisdiction of Civil Courts in respect of disputes required to be referred to the Registrar under Section 86 of the Act.

Issues: Whether the Civil Court had jurisdiction to try the suit filed by the plaintiff against the Co-operative Bank for a declaration that the loan taken by the principal borrower was time-barred and that it was the liability of the Bank to realise dues from the borrower.

Ratio Decidendi: The Court interpreted the provisions of the West Bengal Co-operative Societies Act, 1973, particularly Sections 132(2)(d), 86, and 126, and concluded that the dispute between the plaintiff and the Bank was required to be referred to the Registrar for settlement under Section 86 of the Act. The Court held that the Civil Court's jurisdiction was barred under Section 132(2)(d) of the Act, which excludes the jurisdiction of Civil Courts in matters specified in Clauses (a) to (e) of Sub-section (2), including disputes required to be referred to the Registrar under Section 86.

Final Decision: The Court allowed the Civil Rule filed by the defendant Bank and set aside the order of the Munsif Court that had overruled the Bank's objection to the maintainability of the suit. The Court directed that the plaint of the suit be returned to the plaintiff under Order 7 Rule 10 of the Civil Procedure Code.

JUDGMENT

1. THE plaintiff opposite party, Sarej Nath Dhar Gupta, had instituted Title Suit No. 417 of 1975 in the First Munsif's Court, Asansol against the petitioner, Eastern Railway Employees Co-operative Bank Ltd., and the Divisional superintendent, Eastern Railway, Asansol, inter alia, for a decree declaring that the defendants were not entitled to realise any amount from the plaintiff in respect of the loan taken by the principal borrower, Srikrishna Chatterjee in January, 1963 and that it was the liability and responsibility of the defendants to realise the said dues from the said principal borrower and that the realisation was time barred. The said plaintiff has also prayed for permanent injunction restraining the defendants from realising any amount from the plaintiff's salary towards repayment of the said, loan taken by the principal borrower from the defendant No. 2 the Co-operative Bank.

2. THE defendant No. 2, the Eastern Railway Employees Co-operative Bank Ltd., in its written statement filed in the trial court, inter alia; claimed that the Civil Court had no jurisdiction to try the Suit because of clause (d) of sub-section (2) of section 132 read with clause (q) of section (2) and sub-clauses (6) and (e) of sub section (1) of section 86 of the West Bengal Co-operative societies Act, 1973 It is not necessary to set out the other- averments in the said written statement.

The learned Munsif, 1st Court, Asansol by the order complained of has over-ruled the objection of the defendant No. 2 about the maintainability of the aforesaid suit and has held that he has jurisdiction to try the said suit. Being aggrieved, the petitioner has obtained the present Civil Rule.

3. THE plaintiff opposite party in paragraph (1) of his plaint has averred that while he was engaged as Head Train Examiner, Eastern Railway, Gomoh, he stood as a Surety for one Srikrishna Chatterjee, Assistant security Officer, Eastern Railway, Dhanbad for a loan taken by the latter in January, 1968. The plaintiff's case in the aforesaid suit is that the amount of the said lean outstanding has become time barred and the said sum could not be realised from making deductions of the plaintiff's salary.

4. IN my view, the learned Munsif has committed an error apparent on the face of the record in holding that the instant suit is barred by section 132 (2) clause (d) of the west Bengal Co-operative Societies Act, 1963 and that he has jurisdiction to try the suit.

Under sub-section (2) of section 132 of the West Bengal Co-operative Societies act, 1973 the Civil Court's jurisdiction has been barred in respect of the matters specified in clause (a) to (e) of the said subsection (2). The subject-matter of dispute in the instant suit brought by the plaintiff opposite party is clearly covered by clause (d) of sub-section (2) of section 132 of the said Act. The said clause (d) is in the following language "any dispute required under section 86 to be referred to the Registrar"

5. THE expression "dispute" according to section 2 (q) of the West Bengal Co-operative Societies Act, 1973 means "any matter capable of being a subject-matter of litigation and includes a claim in respect of any sum payable to or by a co-operative society whether such claim be admitted or not. " by filing the instant suit the plaintiff opposite party has in effect denied and disputed the claim of the defendant Co-operative bank Ltd. to recover the balance sum of the loan taken by. Srikrishna Chatterjee from the plaintiff who allegedly stood Surety for the said borrower, Srikrishna Chatterjee unless the civil court's jurisdiction has been excluded the said matter would be certainly capable of being subject matter of civil litigation. But the said claim of the co-operative bank, the petitioner, in respect of the sum payable is covered by section 86 (1) of the West Bengal Co-operative Societies Act, 1973. The dispute was among the two parties, one of whom was the Bank and the other was the plaintiff, w






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