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IN THE HIGH COURT AT CALCUTTA
PRASENJIT BISWAS, J.
The Secretary, E. & NF Railway Junior Co-operative Credit Society Limited, Eastern Railway – Petitioner
Versus
Sri Jyotish Chandra Sarkar & Anr. – Respondents
C.O. No. 3243 of 2013
Decided On : 20-02-2024
Consumer Dispute - Multi-State Co-operative Societies Act, 2002 - Section 84
Fact of the Case:
The petitioner, a multi-state co-operative society, was challenged by the opposite party, a member of the society, for non-disbursement of dues. The lower forums ruled in favor of the opposite party, but the petitioner argued that the dispute should have been referred to arbitration under the Multi-State Co-operative Societies Act, 2002.
Finding of the Court:
The court found that the lower forums erred in entertaining the application without considering the statutory provisions of the Multi-State Co-operative Societies Act, 2002. The court held that the dispute should have been referred to arbitration as per Section 84 of the Act.
Issues: The main issue was whether the lower forums had jurisdiction to entertain the dispute under the Consumer Protection Act, considering the specific provisions of the Multi-State Co-operative Societies Act, 2002.
Ratio Decidendi: The court emphasized that the special law overrides the general law, and the Consumer Protection Act had no application in this case. It held that disputes between members and the society should be referred to arbitration as per the Multi-State Co-operative Societies Act, 2002.
Final Decision: The court allowed the revisional application, set aside the impugned orders, and disposed of the connected applications. It clarified that the opposite party could approach the appropriate forum for addressing the grievance.
JUDGMENT :
Prasenjit Biswas, J.
1. Both the Tribunals have decided the case against the present petitioner.
2. Feeling aggrieved and dissatisfied with the impugned order dated 02.08.2013 passed by the State Consumer Disputes Redressal Commission, Kolkata, in connection with S.C. Case No. FA/451/2012 this instant revisional application is filed. By passing the impugned order the said Consumer Disputes Redressal Commission, Kolkata, affirmed the ex-parte order dated 04.06.2012 passed by the learned District Consumer Disputes Redressal Forum, Jalpaiguri passed in connection with C.C. No. 77 of 2011.
3. Opposite party no. 1 (herein) filed a complaint before the District Consumer Disputes Redressal Forum, Jalpaiguri stating that while he was in service of North Frontier Railway took a loan of Rs. 9,960/-on 14.01.1993 and another loan of Rs. 32400/-on 07.12.2001 although the recovery of loans were completed before the retirement of the complainant from service on 30th September, 2007 but dues payable to him amounting to Rs. 12,608/-had not been disbursed. The reason assigned by the petitioner/society that overdue interest for the first loan from April, 1991 onwards and overdue interest for the second loan from October, 2007 onwards were not paid. Another reason for not releasing the dues payable to complainant is that he stood as a guarantor/surety of Sashodhar Roy (since deceased) who has not cleared the loan amount.
4. It is stated by the opposite party no. 1 (herein) complainant that a clearance certificate has already been issued in respect of late Sashodhar Roy and a result of which wife of late Sashodhar Roy is getting the family pension and their son was got employed under the railway on compassionate ground. As per statement of the opposite party no. 1 he is necessary to hold responsible for clearing the dues shown in the record against the name of late Sashodhar Roy only because he stood as a guarantor to him. As the dues payable to him had not been released/disbursed to him he sent notice to the present petitioner/society with a request to disburse the dues within one month from receiving notice. No response was received by the opposite party and under compelling circumstances he filed a case with a prayer for getting the dues payable to him before the District Consumer Disputes Redressal Forum. Although the summon from the learned District Forum was received by the present petitioner he did not venture to contest the said case and as such the same was decided by the District Forum ex-parte on 04.06.2012. The learned District forum directed the petitioner/society to pay sum of Rs. 12,608/-along with interest and the same interest is to be calculated on and from 01.10.2007 till the realization of the entire amount. The District Forum further directed upon the petitioner to pay a sum of Rs. 3000/-as compensation for harassment and mental injury of the opposite party no. 1. Thereafter an execution case has been taken out by the complainant/opposite party no. 1 (herein) to execute the ex-parte order passed by the District Consumer Disputes Redressal Forum, Jalpaiguri, in C.C. No. 77 of 2011.
5. Being aggrieved and dissatisfied with the order passed by the District Forum the present petitioner preferred an appeal before the State Consumer Disputes Redressal Commission, West Bengal being S.C. Case No. FA/ 451 of 2012. The said appeal was decided against the present petitioner by affirming the order of District Consumer Forum by passing an order dated 02.08.2013. Against the said impugned order passed by the Appellate Tribunal dated 02.08.2013 this revisional application is filed by the petitioner on the ground that the petitioner/society has been registered under the Multi-State Co-operative Societies Act, 2002 and if any dispute touching the constitution/management or business of Multi-State Co-operative Society arises, such disputes shall be referred to the arbitration as provided in Sub-Section 1(b) of Section 84 of the said Ac
AI
The main legal point established in the judgment is that disputes between members and a multi-state co-operative society should be referred to arbitration as per the provisions of the Multi-State Co-....
Dispute involving rendition of accounts & excess interest on loan between parties fell under business domain of cooperative society, requiring to be adjudicated by arbitration.
The provisions of the Kerala Co-operative Societies Act, 1969 do not oust the jurisdiction of the Consumer Forum under the provisions of the Consumer Protection Act, 1986.
Consumer claims are maintainable notwithstanding alternative remedies under cooperative society laws.
Statutory arbitration under the Multi-State Cooperative Societies Act governs disputes between cooperatives and members, with a 6-year limitation period applying, overriding general limitation laws.
Arbitral award liable to be set aside under Section 34 for patent illegality where arbitrator assumes jurisdiction under Section 84 of Multi-State Cooperative Societies Act without proof of borrowers....
Consumer Protection Forums operate as judicial authorities, thus arbitration agreements do not automatically impede their jurisdiction.
Revisional Jurisdiction – Concurrent decisions of District Forum & State Commission cannot be set aside by this National Commission as it cannot go into re-appreciation of evidence.
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