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2023 Supreme(Cal) 1496

IN THE HIGH COURT AT CALCUTTA
HARISH TANDON, MADHURESH PRASAD, JJ.
Vikram Constructions - Appellant
Versus
Anustup Co-operative Housing Society Ltd. – Respondent
FA 62 of 2023, CAN 1 of 2023
Decided On : 21-12-2023

Advocates Appeared:
For the Appellant : Mr. Souradipta Banerjee, Adv., Ms. Fatima Hassan, Adv.
For the Respondent: Mr. Ashim Kumar Roy, Adv., Mr. Ashok Kumar Roy, Adv., Mr. Anirban Roy, Adv.

The jurisdiction of Civil Courts is ousted in disputes concerning cooperative societies, which must be adjudicated by the Registrar according to Section 102 of the West Bengal Cooperative Societies Act, 2006.

Headnote:(A) West Bengal Cooperative Societies Act, 2006 - Section 102 - Jurisdiction of Civil Court - The Civil Court's jurisdiction is ousted concerning disputes defined under Section 102(1), mandating resolution by the Registrar. The definition of 'dispute' includes monetary claims related to cooperative societies. (Paras 4, 5, 16)

(B) Jurisdictional Ouster - The court emphasized that the jurisdiction of the Civil Court is only retained unless explicitly excluded by statute, affirming the broad interpretation of disputes under cooperative law. (Paras 10, 17)

Facts of the case:
The appellant, a construction firm, sought recovery of unpaid dues from the respondent housing society, which contended that the Civil Court lacked jurisdiction due to the West Bengal Cooperative Societies Act. (Paras 3, 4)

Findings of Court:
The court upheld the dismissal of the suit, confirming that disputes concerning cooperative societies fall under the jurisdiction of the Registrar, not the Civil Court. (Paras 18, 19)

Issues: The primary issue was whether a suit for recovery of money against a cooperative housing society could be maintained in the Civil Court or if it must be resolved by the Registrar under the Act. (Paras 12, 17)

Ratio Decidendi: The court ruled that the definition of 'dispute' under the Act encompasses monetary claims and affirmed that the jurisdictional ouster applies to disputes related to the management or affairs of the cooperative society. (Paras 10, 16)

Result: Appeal dismissed.

JUDGMENT :

(Harish Tandon, J.)

While assailing the judgment of the High Court, the appellant tried to interpret of provisions of law enunciated in a plethora of judgments rendered by this Court concerning an issue raised in the instant appeal.

2. Before we proceed to deal with the points urged by the appellant, it would be profitable to narrate the salient facts involved in the instant litigation which are more or less undisputed.

3. The appellant is a partnership firm and is engaged in the business of construction in the housing sector. The respondent is a housing society registered under the West Bengal Housing Society Cooperative Act and purchased the land from the West Bengal Housing Infrastructure Development Corporation for setting up the housing society with an intent to provide the residential units to each of its members. An agreement was entered into on 25th January, 2017 between the appellant and the respondent for construction of the housing complex to cater the residential need of the members of the housing cooperative society on a consideration as mentioned therein. Upon completion of the construction the dispute arose in relation thereto and certain RA Bills which were submitted by the appellant remained unpaid. The suit was instituted for recovery of the said amount together with an interest and the damages which the appellant allegedly suffered because of the non-payment of the dues.

4. The respondent appeared and took a plea of demurer in taking out an application under Order 7 Rule 11 (d) of the Code of Civil Procedure seeking rejection of the plaint solely on the ground that the jurisdiction of the Civil Court is expressly ousted in relation to the nature of the dispute raised in the plaint by virtue of the provision contained in Section 102 (1) (d) and Section 102 (4) of the West Bengal Cooperative Society Act. The Trial Court rejected the plaint on the ground that the moment the jurisdiction of the Civil Court is ousted by an expressed provision in the statute, the Civil Court is denuded of its jurisdiction to adjudicate the disputes raised therein. It would be relevant to refer and understand the provision contained in Section 102 of the said Act which runs thus:

    “102. Disputes to be filed before Registrar.- (1) Any dispute concerning the management or business or affairs of a Co-operative society other than the dispute relating to election in a Co-operative society as and when such election is conducted by the Co-operative Election Commission and disciplinary action taken by Cooperative society against its paid employees regarding the terms and conditions of the service shall be filed before the Registrar for settlement if it arises-

    (a) among members, past members and persons claiming through members and deceased members or then sureties: or

    (b) between member, past member or a person claiming through a member, past member or deceased member representing through heirs or legal representatives and the Co-operative society, its board or any officer, agent or employees of the Co-operative society or liquidator, past or present; or

    (c) between the Co-operative society or its board and any past board, any officer, agent or employee or any past officer, past agent; or past employee or the nominee, heirs or legal representatives of any deceased officer or deceased employee of the Co-operative society; or

    (d) between two Co-operative society or between a Co-operative society and a liquidator of another Co-operative or between liquidator of two different Co-operative or between a Co-operative society and any person having transaction with it or between a Co-operative society and its financing bank.

    (2) Any dispute mentioned in sub-section (1) other than a dispute relating to recovery of money shall be filed before the Registrar within three months from the date on which the cause of action arises.

    (3) Notwithstanding anything contained in this section or in any other law for the time being in force. the Registrar may adm

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