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2013 Supreme(Guj) 488

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
C.L. Soni, J.
Chinmay Premalkumar Gandhi and 2 Ors. – Appellants
Vs.
Adarsh Multi State Cooperative Bank Ltd. and 1 Anr. – Respondent
Special Civil Application No. 7659 of 2013
Decided On: 04.12.2013

Advocates:
Advocate Appeared:
For Appellant/Petitioner/Plaintiff:Mr. Baiju Joshi, Advocate for the Petitioner(s) No. 1 – 3
For Respondents/Defendant:Mr. Snthakkar, Advocate for the Respondent No. 1

Headnote:

Multi-State Co-operative Societies Act, 2002 – Sections 17, 22 and 84 – Gujarat Co-operative Societies Act, 1961 – Sections 17(4), 96, 98 and 99 – What is effect of merger of a co-operative society registered under the Co-operative Societies Act, 1961 with multi state co-operative society registered under the Multi State Co-operative Societies Act, 2002 on the pending proceedings of Lavad Suit instituted by the state co-operative society before the Board of Nominee for the disputes under Section-96 of the Act – Held, absence of provisions for transfer of the suit on merger of state cooperative society into multi state co-operative society, would create hiatus if the contention raised by the petitioners about losing of jurisdiction by the Board of Nominee on merger of the society is accepted – when specific provision is made for continuation of legal proceedings after merger especially with phrase 'transferee', legislature clearly intended to continue legal proceedings by or even against other kind of the society on merger of the state cooperative society – Such being clear intention of legislature emerging from Sub Section 4 of Section 17 of Act, Tribunal could be said to have come to correct conclusion on interpretation of Section 17 of Act that Board of Nominee committed grave error in returning plaint to plaintiff – No interference in such order of Tribunal is called for in exercise of powers under Article 226/227 of Constitution of India – Petition Dismissed

JUDGMENT

C.L. Soni, J.

1. Following question has arisen for the consideration of this Court.

What is the effect of merger of a co-operative society registered under the Co-operative Societies Act 1961 ('the Act' for short) with multi state co-operative society registered under the Multi State Co-operative Societies Act, 2002 (Central Act for short) on the pending proceedings of Lavad Suit instituted by the state co-operative society before the Board of Nominee for the disputes under Section - 96 of the Act.

Facts relevant for deciding the above question are as under:

2.1) Shri Deesa Nagrik Sahkari Bank Ltd., a co-operative society functioning as a co-operative bank filed Summary Suit No. 702/2005 against the petitioners for recovery of Rs. 31,78,681/- with interest at the rate of 19.5% per annum from 01/04/2004 till the said amount is recovered from the petitioners.

2.2) Shri Deesa Nagrik Sahkari Bank Ltd. decided to merge with Madhav Nagrik Sahakari Bank Ltd., multi state cooperative bank. The Registrar-Co-operative Societies, Gujarat State passed order dated 23/04/2009 under Section - 17 of the Act approving merger of Shri Deesa Nagrik Sahakari Bank Ltd. with Madhav Nagrik Sahakari Bank Ltd. which subsequently changed its name to Adarsh Multi State Cooperative Bank, the respondent No. 1.

2.3) On account of the above development, Shri Deesa Nagrik Sahakari Bank Ltd. filed an application in summary suit for amendment in the name of plaintiff so as to read Adarsh Multi State Cooperative Bank as plaintiff in the suit. In response to such application, learned advocate for the petitioners-opponents in the suit submitted before learned Board of Nominee that as per the amendment, the plaintiff shall be multi state co-operative society and therefore, the Board of Nominee will have no jurisdiction to decide the suit of multi state cooperative society.

2.4) Learned Board of Nominee accepted such plea raised by learned advocate for the petitioners and passed order dated 10/08/2010 for return of the suit plaint to the plaintiff for presenting it before the competent authority.

2.5) The above order passed by learned Board of Nominee came to be challenged by respondent No. 1 by filing Appeal No. 24 of 2012 before the Gujarat State Co-operative Tribunal. The Tribunal heard and decided the said appeal with other appeals which were also filed against the order passed in other two suits. The Tribunal allowed all appeals by the order dated 30/01/2013 and set aside the orders made by learned Board of Nominee and directed learned Board of Nominee to accept the application for amendment preferred by the plaintiff bank, frame necessary issues and decide the suits on merits on the basis of evidence which may be led by the parties within three months from the date of the order.

2. The petitioners have challenged above said order passed by the Tribunal mainly on the ground that on Shri Deesa Nagrik Sahakari Bank Ltd. merging with Madhav Nagrik Sahakari Bank Ltd., now respondent No. 1, the Board of Nominee will cease to have jurisdiction to decide the summary Lavad Suit preferred by Shri Deesa Nagrik Sahakari Bank Ltd. and therefore learned Board of Nominee was justified in returning plaint to the plaintiff.

3. The petition is opposed on behalf of respondent No. 1 by filing affidavit in reply mainly contending that on merger of Shri Deesa Nagrik Sahakari Bank Ltd. with multi state cooperative society, the Board of Nominee would not be divested of its jurisdiction to decide the dispute in suit filed by the cooperative bank under Section 96 of the Act. It is also contended that learned Board of Nominee has no jurisdiction to return the plaint but was required to decide the question whether after merger of a cooperative society with multi state cooperative society, it would lose jurisdiction to decide the suit filed by the cooperative society.

4. Learned advocates appearing for the parties requested to decide the question about jurisdiction of Board of Nominee for th










































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