SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

1977 Supreme(Raj) 350

RAJASTHAN HIGH COURT
M.L.Jain, J.
The Central Cooperative Bank Ltd., Bikaner (Raj) and Others - Appellant
Versus
The State of Rajasthan and Ors. - Respondent
S.B. Civil Writ Petition No. 1099 of 1972.
Decided On : 22-09-1977

The Limitation Act, 1963, is specifically applicable to a dispute between two cooperative societies under Section 76 of the Rajasthan Cooperative Societies Act, 1965, and the period of limitation for such a dispute is 3 years.

Headnote:

LIMITATION ACT - CO-OPERATIVE SOCIETIES - DISPUTE BETWEEN TWO CO-OPERATIVE SOCIETIES - LIMITATION PERIOD - SECTION 76 OF THE RAJASTHAN COOPERATIVE SOCIETIES ACT, 1965 - WHETHER THE LIMITATION ACT, 1963, IS APPLICABLE - WHETHER THE PERIOD OF LIMITATION IS 3 YEARS OR 6 YEARS - WHETHER THE DECISION OF THE REGISTRAR WAS A CONSENT DECREE AND WAS THEREFORE, NOT APPEALABLE.

Fact of the Case:

A dispute arose between two cooperative societies, the Central Cooperative Bank Ltd., Bikaner, and the Churu Central Cooperative Bank Ltd., regarding the payment of a sum of money. The Central Cooperative Bank Ltd., Bikaner, filed a dispute before the Deputy Registrar, Cooperative Societies, Bikaner, under Section 76 of the Rajasthan Cooperative Societies Act, 1965, for recovery of the amount. The Deputy Registrar gave a decision in favor of the Central Cooperative Bank Ltd., Bikaner. The Churu Central Cooperative Bank Ltd., filed an appeal against this decision in the Rajasthan State Cooperative Tribunal, Jaipur. The Tribunal upheld the contention of the Churu Central Cooperative Bank Ltd., that the claim of the Central Cooperative Bank Ltd., Bikaner, was time-barred under Article 26 of the Limitation Act, 1963, and set aside the decision of the Deputy Registrar.

Finding of the Court:

The High Court held that the Limitation Act, 1963, was specifically applicable to the dispute between the two cooperative societies by virtue of Sub-section (2) of Section 76 of the Rajasthan Cooperative Societies Act, 1965. Therefore, the period of limitation for the dispute was 3 years, and the claim of the Central Cooperative Bank Ltd., Bikaner, was time-barred. The High Court also held that the decision of the Deputy Registrar was not a consent decree and was therefore, appealable.

Issues: 1. Whether the Limitation Act, 1963, is applicable to a dispute between two cooperative societies under Section 76 of the Rajasthan Cooperative Societies Act, 1965? 2. Whether the period of limitation for such a dispute is 3 years or 6 years? 3. Whether the decision of the Deputy Registrar was a consent decree and was therefore, not appealable?

Ratio Decidendi: 1. The High Court held that the Limitation Act, 1963, is specifically applicable to a dispute between two cooperative societies under Section 76 of the Rajasthan Cooperative Societies Act, 1965, by virtue of Sub-section (2) of Section 76. 2. The High Court held that the period of limitation for such a dispute is 3 years, as provided under Article 26 of the Limitation Act, 1963. 3. The High Court held that the decision of the Deputy Registrar was not a consent decree and was therefore, appealable.

Final Decision: The High Court dismissed the writ petition filed by the Central Cooperative Bank Ltd., Bikaner.

JUDGMENT

1. - This is a petition for grant of a writ of certiorari directed against the order of the Rajasthan State Go-operative Tribunal, Jaipur, dated June 29, 1971. The petitioner the Central Cooperative Bank Ltd., Bikaner, a cooperative society vas formed on 19-5-1951 with Bikaner and Churu districts within us area of operation On 27-3-1361, Churu Central Cooperative Bank Ltd., a cooperative society was formed for the district of Chura and the area of the Cooperative Bank. Bikaner was reduced to the district of Bikaner. The assests and liabilities of the district of Churu were transferred to the Churu Bank by a deed of transfer executed on 15-7-1961, whereby an amount of Rs. 7,71,577.10 paise were to be paid by the Churu Bank to the Bikaner Bank. In pursuance of this settlement, the Churu Bank made payment upto 30-5-64 bit thereafter refused to pay the balance of Rs. 42,736.48 paise on 23-4-1966. The Manager of Churu Bank addressed a letter to the Manager, Central Cooperative Bank, Bikaner, that there was some difficulty regarding reconciliation of the accounts of both the banks However, the Churu Bank will make the payment after recoveries from the various societies are made after the coming crop. The whole matter will be settled after personal discussion and payment of principal and interest will be made accordingly. On 16-3-1967, the Committee (appointed on 21-6-61 for division of assets and liabilities) was called by its convener, namely; the Deputy Registrar, Co-operative Societies, Bikaner. The proceedings were drawn by the said Deputy Registrar in which it is recorded that it was unanimously decided that Chum Bank shall soon make payment of the remaining amount of debt and its Chairman assured that the amount shall be paid after Kharif crop. These proceedings are not signed by any of the members of the Committee. The Committee was again summoned on 9th January, 1968. The proceedings were reduced to writing by the Deputy Registrar, Co-operative Societies, Bikaner. These proceedings contain a reference that a sum of Rs. 27,331.48 paise were payable by the Churu Bank besides interest. The Chairman of the Churu Bank b said to have stated that the payment shall be made after recoveries were made But the Churu Bank failed to abide by these decisions and the Bikaner Bank raised a dispute on 5-7-69 before the Deputy Registrar, Cooperative Societies, Bikaner, under Section 76 of the Rajasthan Cooperative Societies Act, 1965, (or recovery of Rs. 42,736 48 paise with interest. The Deputy Registrar gave a decision on 318-1970, granting a decree of Rs. 58,240.81 paise in favour of the petitioner Bikaner Bank against the respondent Churu Bank. An appeal was filed against this decision in the Rajasthan State Cooperative Tribunal, Jaipur It was urged before the said Tribunal that the claim of the petitioner Bikaner Bank was time barred under Article 26 of the Limitation Act, 1963. The learned Tribunal upheld the contention, accepted the appeal and set aside the decision of the Deputy Registrar. Aggrieved of the judgment of the learned Tribunal, the present writ petition has been filed.

2. The learned Counsel for the petitioner contends that the learned Tribunal committed an apparent, error of law by overlooking the provisions of Section 76 of the Rajasthan Cooperative Societies Act, 1965, hereinafter called the 'Act'. It was pointed out that according to Clause (b) of Sub-section (1) Section 76 of the Act, the Limitation Act, 1963, has been excluded and a separate period of limitation of six years has been provided in respect of such a dispute. It was further contended that the Churu Bank did not raise the question of limitation in its written statement before the Deputy Registrar. It was raised for the first time before the Tribunal and therefore, the petitioner, had no opportunity to meet this challenge by leading evidence to show that there were acknowledgements made on behalf of the respondent so as to bring the claim within li









Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top