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1969 Supreme(Guj) 13

Gujarat High Court
Judgename :D.A.DESAI
POPATLAL RAVCHAND BHAU - Appellant
Versus
DASHA PORWAD JAIN CO OPERATIVE HOUSING SOCIETY LIMITED - Respondent
S.C.A. 250 of 1964
Decided On : 01/29/1969

Advocates Appeared: GIRISH D.BHATT, H.B.DESAI, M.F.SOLANKI

Headnote:

Gujarat Co-operative Societies Act, 1961 - Section 96 and 98 – Contract Loan – Construction - Money claim - Petitioner is a member of respondent No. 1 society and has built a bungalow as a member of the said society - It appears that for the purpose of constructing the bungalow the petitioner had taken a loan from respondent No. 1 society and he was repaying the loan by monthly installment - Was indebted to the society - As the petitioner failed to repay the loan by installments – Petitioner has challenged the decision of the Tribunal and award of the Nominee in this petition - Held, In fact the Legislature never wanted to permit any member of the society during his continuance to avoid his liability to repay the money claim of the society by any bar of limitation - Effect of the provisions contained in sec. 97 (1) (a) is that during the period the member continues to be a member or during his life time whichever event occurs earlier the money claim of the society against such a member including interest thereon would not be barred by limitation - In other words the society can recover its dues from its member during the time of his continuance of his membership or during his life time whichever event occurs earlier without any bar of limitation - In the instant case the petitioner is a member of the society and continues to be so till today - Claim is a money claim of the society due from its member including the interest thereon the case falls within the four corners of sec. 97 (1) (a) of the Act and therefore this claim would not be barred by limitation as there is no bar of limitation provided therein - Contention rejected

D. A. DESAI, J.

( 1 ) THE petitioner is a member of respondent No. 1 society and has built a bungalow as a member of the said society. It appears that for the purpose of constructing the bungalow the petitioner had taken a loan from respondent No. 1 society in the year 1949 and he was repaying the loan by monthly installment of Rs. 150. 00. The petitioner was indebted to the society to the tune of Rs. 5409-92. As the petitioner failed to repay the loan by installments respondent No. 1 society approached the Assistant Registrar of Co-operative Societies with a request to refer the dispute to the Nominee for adjudication. Accordingly the Assistant Registrar Co-operative Societies referred the dispute to the Nominee for adjudication. Various contentions were taken by the petitioner before the Nominee. At the time of the arguments a further contention was raised that the Nominee had no jurisdiction to adjudicate upon the dispute as the reference may by the Assistant Registrar was illegal and invalid. The Nominee repelled all the contentions and made an award in favour of the respondent No 1 society. The petitioner carried the matter in appeal to the Gujarat State Co-operative Tribunal (hereinafter referred to as the Tribunal ). The Tribunal dismissed the appeal and confirmed the award of the Nominee. The petitioner has challenged the decision of the Tribunal and award of the Nominee in this petition.

( 2 ) MR. H. B. Desai learned advocate who appeared for the petitioner submitted the following propositions for consideration in this petition :- (1) The reference of the dispute to the Registrars Nominee is bad and illegal as the Assistant Registrar had not applied his mind to the existence or otherwise of the dispute and therefore the Registrars Nominee had no jurisdiction to entertain and adjudicate upon the dispute. (2) The Assistant Registrar had no jurisdiction to refer the dispute to the Registrars Nominee for adjudication as respondent Co-operative Society had not resolved in a general meeting to refer the dispute between itself and the petitioner to the Registrar. (3) The claim of the respondent No. 1 society is barred by limitation. The aforementioned propositions will be disposed of in the order in which they are set out.

( 3 ) RE. Ground No. 1. The first contention of Mr. Desai was that while making a reference of a dispute under sec. 98 of the Gujarat Co-operative Societies Act 1961 (hereinafter referred to as the Act) the Assistant Registrar is a quasi judicial authority and has a duty to act judicially and as a necessary corollary the Assistant Registrar must hear the parties before making a reference of a dispute to the Registrars Nominee and if reference is made at the back of the. party without giving any opportunity to the party affected by the dispute to challenge the existence of the dispute the reference would be bad in law and consequently the Registrars Nominee to whom the reference is made would have no jurisdiction to adjudicate upon the dispute. In order to appreciate this contention the scheme of Chapter IX of the Act which provides for procedure for deciding dispute will have to be examined. Sec. 96 provides as to which type of dispute and between what particular parties shall be referred to the Registrar. Sec. 96 provides as under :-96 (1) Notwithstanding anything contained in any other law for the time being in force any dispute touching the constitution management or business of a society shall be referred in the prescribed form either by any of the parties to the dispute or by a federal society to which the society is affiliated or by a creditor of the society to the Registrar if the parties thereto are from amongst the following :- (A) a society its committee any past committee any past or present officer any past or present agent any past or present servant or nominee heir or legal representative of any deceased officer deceased agent or deceased servant of the society or the Liquidator of the society









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