1999 Supreme(Guj) 473
Gujarat High Court
Judgename :M.S.Shah
GOVINDBHAI MULJIBHAI PATEL - Appellant
Versus
J.T.REGISTRAR - Respondent
S.C.A. 3029 of 1997
Decided On : 09/15/1999
Headnote:Gujarat Co-operative Societies Act, 1961 - Sec. 96 - Jurisdiction of Board of nominees - Board entertained arbitration suit by Multi State Co-operative Society respondent 3 - Having admitted dues and computation of interest awarded by Board and confirmed by Tribunal - Petitioner challenged jurisdiction of Board of nominees to entertain such suit - Held, respondent 3 Bank is a Co-operative Society under Sec. 160(2) Gujarat Act - Sec. 74 of Multi State Act read with notification dated 16.9.1985 does not prohibit exercise of power by Nominees of Registrar - No substance in challenge to the jurisdiction of Board - Petitioner estopped from challenging computation of interest.
[See Para 7]
The notification dated 16.9.1985 clearly provides that the powers of the Central Registrar under the Multi State Act shall be exercisable by the Registrar of Co-operative Societies appointed under Sec. 3 of the Gujarat Co-operative Societies Act, 1961
There is nothing in the provisions of the Multi-State Act or in the provisions of the State Act which would prohibit the exercise of the powers under Sec. 74 of the Multi-State Act read with the notification dated 16.9.1985 by the Nominees of the Registrar appointed under the State Act.
[Para 9]
There is no substance in the challenge raised on behalf of the petitioners to the jurisdiction exercised by the Board of Nominees at Ahmedabad and the Gujarat State Co-operative Tribunal in passing awards against the petitioners. As regards the challenge on facts, in view of the fact that the petitions were filed after a considerable delay and the petitioners themselves had admitted the dues before the Board of Nominees and the Tribunal, and had even asked for instalments, the petitioners are estopped from raising any such challenge about computation of interest.
[Para 10]
The petitions are dismissed with costs.
[Para 11]
( 1 ) THESE petitions purporting to be petitions under Article 226 of the Constitution, but which are in substance petitions under Article 227 of the Constitution, raise a common question of law about the jurisdiction of the Board of Nominees of the Registrar of Co-operative Societies, Gujarat State at Ahmedabad in entertaining and deciding the arbitration suits (also known as Lavad Suits) under Section 96 of the Gujarat Co-operative Societies Act, 1961. The main contention is that the suit filed by respondent No. 3-Bombay Mercantile Co-operative Bank Ltd. being a Multi State Co-operative Society under the Multi State Co-operative Societies Act, 1984 and having its registered office as well as head office in Maharashtra State, was not maintainable before the Board of Nominees in the State of Gujarat.
( 2 ) THE facts leading to filing of these petitions are similar and may briefly be stated as under :-2. 1 special Civil Application No. 3029 of 1997 is filed by Govindbhai Muljibhai Patel who had taken a loan of Rs. 1,75,000. 00 in the year 1984 from respondent No. 3-Bank to purchase a truck and the petitioner alongwith his two guarantors had executed the documents such as promissory note, deed of hypothecation, letter of guarantee and such other documents in favour of respondent No. 3-Bank at Ahmedabad. Since the petitioner did not repay the dues of the banks, the respondent-bank filed Lavad Suit No. 1576 of 1985 for recovering a sum of Rs. 1,94,952-45 on 22. 2. 1985 before the Board of Nominees at Ahmedabad under Section 96 of the Gujarat Co-operative Societies Act, 1961 (hereinafter referred to as "the Gujarat Act" ). The petitioner admitted the dues of the respondent-bank before the Board of Nominees and also paid Rs. 1,01,000. 00 to the bank during pendency of the suit by selling the truck with the permission of the Board of Nominees. After considering the evidence on record, the Board of Nominees directed the defendant i. e. the petitioner herein to repay Rs. 93,952-35 with interest and costs. The said judgment and award (Annexure "a" to the petition) was passed on 28. 2. 1990. Since the petitioner did not pay the decretal dues, the respondent-bank filed recovery proceedings. After receiving the notice in such recovery proceedings, the petitioner filed Appeal No. 251/92 before the Gujarat State Co-operative Tribunal for challenging the above award. Before the Tribunal also, the petitioner gave a purshis admitting the suit claim and prayed for monthly instalments of Rs. 10,000. 00 each from 10. 7. 1993 and also deposited Rs. 12,000. 00 during pendency of the appeal. The Gujarat State Co-operative Tribunal passed the judgment and award dated 15. 7. 1993 (Annexure "b" to the petition ). Thereafter, in April, 1997 the present petition came to be filed challenging the award passed by the Board of Nominees and confirmed by the Tribunal mainly on the ground of lack of jurisdiction. 2. 2 petitioner in Special Civil Application No. 3035 of 1997, Babubhai M. Pokar, had taken a loan of Rs. 1,75,000. 00 in the year 1984 from the respondent-bank to purchase a truck. This petitioner also alongwith his guarantors executed the required documents such as promissory note, deed of hyphothecation, letter of guarantee and other relevant documents in favour of the respondent-bank at Ahmedabad. Non-payment of the dues required the respondent-bank to file Lavad Suit No. 3595/84 on 19. 12. 1984 for recovering Rs. 1,78,000. 00 before the Board of Nominees at Ahmedabad under Section 96 of the Gujarat Co-operative Societies Act, 1961. Here also the petitioner admitted the dues before the Board of Nominees and paid some amount after filing of the suit. The Board of Nominees considered the evidence on record and passed the award requiring the petitioner herein to repay Rs. 1,78,000. 00 with interest and costs. The said award was passed on 30. 6. 1992 and is at Annexure "a" to the petition. Since the petitioner did not pay the decretal dues