Judges : N.D.P.NAMBOODIRIPAD
ANGADIPURAM SERVICE CO-OPERATIVE BANK LTD. - Appellant
Versus
K.AHAMMED KUNHI - Respondent
Case No : C. R. P. No. 1944 of 1975
Decided On : 02/18/1976
Advocates Appeared :
V. R. Venkitaskrishnan; For Petitioner U. K. Ramakrishnan; For Respondent
Co-operative Society - Jurisdiction of Civil Court - Kerala Co-operative Societies Act, Act 21 of 1969, Section 69(1)(c)
Fact of the Case:
The defendant, a Co-operative Society, entered into an agreement with the plaintiff for transporting rationed articles. A dispute arose when the society unilaterally forfeited the security amount deposited by the plaintiff. The plaintiff filed a suit for the return of the security amount and other reliefs. The defendant contended that the civil court had no jurisdiction to entertain the suit due to Section 69 of the Kerala Co-operative Societies Act.
Finding of the Court:
The court held that the plaintiff could not be treated as an agent of the defendant society for the purpose of Section 69(1)(c) of the Act. The court confirmed the lower court's order and dismissed the revision.
Issues: The main issue was whether the civil court had jurisdiction to entertain the plaintiff's suit against the Co-operative Society.
Ratio Decidendi: The court analyzed the terms and conditions of the agreement between the parties and concluded that the plaintiff was not an agent of the society but an independent contractor. The court interpreted the definition of 'agent' under Section 182 of the Indian Contract Act and found that the plaintiff did not represent the society in dealings with third parties and was not employed to do any act for the society.
Final Decision: The court confirmed the lower court's decision and dismissed the revision, ruling that the civil court had jurisdiction to entertain the plaintiff's suit.
Key Points: - The main legal point is the interpretation of "agent" under Section 69(1)(c) of the Kerala Co-operative Societies Act to determine civil court jurisdiction in disputes between a Co-operative Society and third parties (!) . - Section 100 of the Kerala Co-operative Societies Act states that no civil or revenue court shall have jurisdiction in respect of matters for which provision is made in the Act (!) . - Section 69(1)(c) of the Act mandates that disputes between a society and its agent shall be referred to the Registrar for decision, barring court jurisdiction (!) . - The court analyzed the agreement (Ext. B1) to determine if the plaintiff was an "agent" for the purpose of Section 69(1)(c) (!) . - The definition of "agent" from Section 182 of the Indian Contract Act was considered, defining an agent as a person employed to do any act for another or to represent another in dealings with third persons (!) . - The court found that the plaintiff was not an agent because they did not represent the society in dealings with third parties and were not employed to act for the society in the legal sense (!) . - The plaintiff was considered an independent contractor responsible for transporting goods at their own expense and risk (!) . - The plaintiff was solely responsible for damage, short delivery, or other losses during transportation (!) . - The court confirmed the lower court's order, ruling that the civil court had jurisdiction to entertain the plaintiff's suit (!) . - The revision petition was dismissed (!) .
1. The revision petitioner who is the defendant in the action is a Co-operative Society functioning under the Kerala Co-operative Societies Act, Act 21 of 1969, and which I may call the 'Act'. Besides banking the society was also transacting business as a wholesale dealer in foodgrains and other rationed articles. For the purpose of carrying on that business it was necessary to transport the rationed articles from the go-downs of the Food Corporation, situated in different parts of this State and also beyond the borders of this State to the stocking place of the Society. The society thought of entrusting this work to third parties, and invited tenders through a publication in the Malayalam Daily'Mathrubhumi' dated 20th of May, 1974. In answer to that advertisement the plaintiff in this suit submitted a tender, which was eventually accepted by the society. Then followed Ext. B1, the regular agreement between the society on the one part and the plaintiff on the other. Sometime later it appears that there was some dispute between the parties regarding the transporting business, and the society by a unilateral act forfeited the security amount deposited by the plaintiff. The plaintiff thereupon instituted the suit which gave rise to this revision for return of the security amount and allied reliefs. The defendant society inter alia contended that the civil court has no jurisdiction to entertain the lis in view of S.69 of the Act. That matter was heard preliminarily by the trial court, which answered it against the defendant.
2. The short question that falls for decision is whether the civil court has jurisdiction to entertain this action. That the suit in question has a civil nature is not disputed, and consequently, by virtue of S.9 of the Code of Civil Procedure the civil court has got jurisdiction unless the cognisance is barred either expressly or by necessary implication. The bar relied on in this case is the provisions contained in the Act. S.100 of the Act enjoins that no civil or revenue court shall have any jurisdiction in respect of any matter for which provision is made in this Act. S.69 of the Act makes provision for deciding certain disputes. Both sides agreed that the relevant provision applicable is S.69(1)(c) of the Act, which I may extract hereunder for convenience:
"69[1], Notwithstanding anything contained in any law for the time being in force, if a dispute arises
xx xx xx xx
[c] between the society or its committee and any past committee, 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, deceased agent, or deceased employee of the society; or
xx xx xx xx
such dispute shall be referred to the Registrar for decision, and no court shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute."
Even regarding the applicability of this provision the controversy lies within a narrow compass in the sense that the society rests its case exclusively upon the expression "agent" found in sub-section (c). The lower court took the view that by the terms and conditions provided for in Ext. BI the plaintiff cannot be considered as an agent of the defendant society and that he is an independent contractor. It is not necessary in this case to define with precision the exact legal status of the plaintiff in relation to Ext. B1 contract. I am concerned with the sole question whether the plaintiff is an "agent" for the purpose of S.69(1)(c) of the Act; and it is not relevant whether the plaintiff is an employee, independent contractor etc.
3. I am told that the expression "agent" is not defined in the Act, and consequently, one has to fall back upon the definition of 'agent" contained in S.182 of the Indian Contract Act. The section runs as follows:
"An "agent" is a person employed to do any act for another, or to represent another in dealings with third persons. The person for whom such act is
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