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2004 Supreme(Ker) 391

Judges : CYRIAC JOSEPH,K.K.DENESAN
P.R.Umadevi - Appellant
Versus
The Assistant Registrar of Co-operative Societies (General) - Respondent
Case No : WA.No.1648 of 2004
Decided On : 09/07/2004
Advocates Appeared :
For the Appellant : B.N. Shivsankar, Advocate.For the Respondents: P.V. Lonachan, Government Pleader.

Headnote:

Kerala Co operative Societies Act, 1969 –Sections .69(2)(a) and 2(i) – Writ Appeal is filed against the judgment dated 27th July, 2004 in W.P.(C) No.22171 of 2004. appellant is the petitioner in the Writ Petition – appellant is a member of the People's Urban Co-operative Bank Ltd., No.51, Tripunithura Two rooms of the building bearing Door Nos. XX/966 and XX/967 of the Tripunithura Municipality and the charthu adjoining those rooms were rented out to the appellant by the Bank –Held, Supreme Court held that in sub-s.(1) of S.91 of the said Act, the word "business" was used in a narrower sense and it meant the actual trading or commercial or other similar business activity of the society which the society is authorised to enter into under the Act and the Rules and its bye-laws – Writ Appeal is dismissed.

Judgment :-

Cyriac Joseph, J.

1. This writ appeal is filed against the judgment dated 27th July,2004 in W.P.(C) No.22171 of 2004. The appellant is the petitioner in the writ petition.

2. Admittedly, the appellant is a member of the People’s Urban Co-operative Bank Ltd., No.51, Tripunithura (hereinafter referred to as the ‘Bank’). Two rooms of the building bearing Door Nos. XX/966 and XX/967 of the Tripunithura Municipality and the charthu adjoining those rooms were rented out to the appellant by the Bank. The Bank filed A.R.C. No.3137 of 2003 claiming an amount of RS.2,32,007/- with interest at the rate of 19% per annum from the appellant towards arrears of rent. The appellant raised a preliminary objection regarding the maintainability of the arbitration case. According to the appellant, a dispute between a Co-operative Bank as landlord and a member as tenant with regard to matters which are governed by the Kerala Buildings (Lease and Rent Control) Act or the Civil Procedure Code is not a dispute referable to the Registrar under the provisions of the Kerala Co-operative Societies Act. It was also contended that the dispute between the Bank and the appellant was not a dispute touching the business of the Bank. The appellant relied on the decision of the Supreme Court in Deccan Merchants Co-operative Bank Ltd. v. Dalichand Jugraj Jain and others (AIR 1969 S.C. 1320). The preliminary objection raised by the appellant was overruled by the Arbitrator as per Ext.P6 order. In Ext.P6 order, the Arbitrator held that since the appellant is a member of the Bank and since the amount claimed is an amount due to the Bank from the appellant towards arrears of rent it is a dispute coming under the purview of Sec. 2(1) and Sec. 69(1)(b) of the Kerala Co-operative Societies Act. Challenging Ext.P6 order the appellant filed the writ petition praying for quashing Ext.P6 order and for a declaration that the Arbitrator has no jurisdiction under Sec. 69 read with Sec. 2(1) of the Kerala Co-operative Societies Act, 1969 to entertain the rent control matter. The learned Single Judge dismissed the writ petition at the admission stage itself. The learned Single Judge did not find any merit in the writ petition and hence dismissed the writ petition. Aggrieved by the dismissal of the writ petition, the appellant has filed this writ appeal.

3. According to Sec. 69(1)(b) of the Kerala Co-operative Societies Act, notwithstanding anything contained in any law for the time being force, if a dispute arises between a member and the society such dispute shall be referred to the Registrar and the Registrar shall decide such dispute and no other court or other authority shall have jurisdiction to entertain any suit or other proceedings in respect of such dispute. According to Sec. 2(i) of the Act, ‘dispute’ means any matter touching the business, constitution, establishments or management of a society capable of being the subject of litigation and includes a claim in respect of any sum payable to or by a society, whether such claim be admitted or, not. According to Section 69(2)(a) of the Act, a claim by the society for any debt or demand due to it from a member, whether such debt or demand be admitted or not, shall be deemed to be a dispute for the purpose of sub-sec.(1) of Sec. 69. In the present case, admittedly the Bank is a co-operative society governed by the provisions of the Kerala Co-operative society governed by the provision of the Kerala Co-operative Societies Act and the appellant is a member of the Bank. The dispute relates to amounts due from the appellant who is a member of the Bank to the Bank towards arrears of rent. As per Sec. 2(i) ‘dispute’ includes a claim in respect of any sum payable to a society whether such claim be admitted or not. According to Sec. 69(2)(a) a claim by the society for a demand due to it from a member, whether such demand be admitted, or not, shall be deemed to be a dispute for the purposes of sub-sec. (1) of Sec. 69. Admitt






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