M.R. Hariharan Nair, J.

1. The question arising for decision in the case is whether a contract entered into by a Cooperative Society with a builder is a business transaction for the purpose of S.69 (1) (f) read with S.100 of the Kerala Cooperative Societies Act. The revision petitioner Society, who was the defendant in O.S.No. 1428/97 of the IInd Additional Munsiff's Court, Ernakulam, contended that the suit was not maintainable before the civil court and that only an arbitration as provided under the Kerala Cooperative Societies Act would lie. The revision petitioner is aggrieved that the said contention was turned down by the civil court.

2. During hearing today, the learned counsel for the revision petitioner relied on the decision in Sekharan v. State of Kerala (1976 KLT 137) in support of the contention that the civil suit is not maintainable.

3. The learned counsel for the respondent, on the other hand, relied on the decisions in K.C. Varkey v. Director of Industries and Commerce, Trivandrum ILR1978 (2) Kerala 143), Meeran Unni v. Kottayam District Cooperative Bank (1985 KLT 384 (F.B.)) and K.Khader v. Rajamma John Kandathil and others (AIR 1992 Kerala 15) to contend that the bar under S.100 would be applicable only if the transaction in question relates to or touches the business of the society as contemplated in bye laws concerned and that as far as the present case is concerned, the purpose for which the Society was formed was to deal with Handloom Weaving and that construction activity is not the business of the Society.

4. Section 69(1)(f) of the Kerala Cooperative Societies Act provides as follows:-

"69. Dispute to be decided by Cooperative Arbitration Courts: (1) Notwithstanding anything contained in any law for the time being in force, if a dispute arises.

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(f) between the society and a person other than a member of the society who has been granted a loan by the society or with whom the society has or had business transactions or any person claiming through such a person;

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such dispute, shall be referred to and decided by the Cooperative Arbitration Court constituted under S.70A and no other court or authority shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute."

5. It is clear from the above provision that if the Society has or had 'business transaction' with the respondent herein, the bar under S.100 of the Kerala Cooperative Societies Act would be attracted. In other words, the question for consideration is whether the contract for construction of a building between plaintiff and defendant in the suit is a business transaction of the Society.

6. It is true that in Sekharan's case (1976 KLT 137) a learned Judge of this Court took the view that the definition is an inclusive definition and that even a claim for damages against a contractor for construction of godown for the Society would be within the scope of S.69(1)(f). However, later decisions of this Court are to be contrary. A Bench of this Court in K.C.Varkey's case (ILR 1978 (2) Kerala 143) considered the question whether a dispute between the Society and its landlord with regard to the tenancy in respect of the building occupied by the Society will fall within the purview of S.69(1) (f) of the Act. It took note of the fact that the Cooperative Society involved there was formed for the purpose of doing business in handicrafts articles and that it was no part of the business of the Society to take a place on rent although the tenancy concerned was for the purpose of the Society. That transaction was only incidental to the functioning of the Society and in entering into the lease for the sai