1999 Supreme(Raj) 1235
RAJASTHAN HIGH COURT
Mohd.Yamin, J.
Pratap Singh - Appellant
Versus
Manager, Mahadev Nagrik Bank Ltd. Branch Abu Road & Anr. - Respondent
S.B. Civil Misc. Appeal No. 402 of 1999.
Decided On : 8-07-1999
The bank had the authority and power to recover the amount under Sections 117 and 118 of the Act of 1965, and Pratap Singh did not have a prima facie case to injunct the bank's recovery proceedings.
Headnote:
CO-OPERATIVE SOCIETIES ACT, 1965 - SECTIONS 117, 118 - RECOVERY OF DEBT - POWER OF REGISTRAR - INTERPRETATION OF NOTIFICATION - JURISDICTION OF CIVIL COURTS - BARRED.
Fact of the Case:
Pratap Singh, a member of a cooperative society bank, obtained a loan of Rs. 50,000/- and failed to repay the balance amount of Rs. 50,195/-. The bank issued notices under Sections 117 and 118 of the Rajasthan Co-operative Societies Act, 1965 (Act of 1965), demanding payment. Pratap Singh filed a suit seeking an injunction against the bank's recovery proceedings and an application for a temporary injunction under Order 39 Rule 1 and 2 CPC.
Finding of the Court:
The court held that the bank had the authority and power to recover the amount under Sections 117 and 118 of the Act of 1965. It interpreted the notification issued by the Co-operative Department as relating to recoveries against the bank, not recoveries made by the bank. The court found that Pratap Singh did not have a prima facie case to injunct the bank's recovery proceedings and that no irreparable loss would be caused to him as the suit involved recovery of money.
Issues: 1. Whether the bank had the authority to recover the amount under Sections 117 and 118 of the Act of 1965? 2. Whether the notification issued by the Co-operative Department barred the bank's recovery proceedings? 3. Whether Pratap Singh had a prima facie case to injunct the bank's recovery proceedings?
Ratio Decidendi: 1. Sections 117 and 118 of the Act of 1965 empower the Registrar (Chief Executive Officer of the Bank) to recover money from members. 2. The notification issued by the Co-operative Department related to recoveries against the bank, not recoveries made by the bank. 3. Pratap Singh did not have a prima facie case to injunct the bank's recovery proceedings as he had admitted the amount was due and no irreparable loss would be caused to him.
Final Decision: The court dismissed Pratap Singh's appeal and upheld the lower court's order dismissing his application for a temporary injunction.
JUDGMENT
1. - This misc. appeal has been directed against the order of iearned Additional District Judge, Abu Road dated 6.4.1999 by which he dismissed application under Order 39 Rule 1 and 2 CPC filed on behalf of the plaintiff appellant.
2. Admitted facts are that appellant Pratap Singh is a member of Co-operative Societies which runs the respondents Bank. He obtained a loan of Rs. 50,000/-. He did pay some amount but a balance of Rs. 50,195/- was due against him. Respondents bank issued him a notice under Section 117 of the Rajasthan Co-operative Societies Act, 1965 (hereinafter referred as 'the Act of 1965') asking him to deposit the said sum alongwith interest accrued from 1.10.1998. Another notice dated 20.10.1998 was issued to deposit the balance money within seven days and the appellant was informed that in case he does not deposit the amount within this period, proceedings under Section 118 of the Act of 1965 will be token against him. Then a demand notice was issued on 17.11.1998. The plaintiff then filed a suit against the defendants respondents asking for an injunction for recovery of the amount. An application under Order 39 Rule 1 and 2 CPC for temporary injunction was also filed.
3. The case of the defendants respondents is that no such suit can be filed as they have a right to recovery the amount from the appellant. The defendants have a right and are empowered to recover the amount according to the provisions of the Act of 1965. The learned trial court was of the view that the case of the defendants has force. He was also of the view that the plaintiff appellant has no prima facie case and no balance of convenience in his favour and no irreparable loss was likely to be caused to him as he was simply to pay the amount. Therefore, it dismissed the petition.
4. Learned counsel for the appellant submitted that the facts are admitted and the only submission of the plaintiff is that the defendants respondents are not competent to recover the amount as they want bypassing the civil court and, therefore, it was necessary to injunct the defendants.On the other hand, learned counsel for the defendant respondents submitted that the Chief Executive Officer of the Bank has powers of the Registrar, Co-operative Societies as per Notification dated 16.2.1987 issued by the Co-operative Department. He has powers to recover the money under Sections 117 and 118 of the Act of 1965. He has further contended that since it is a matter of recovery of money and the appellant plaintiff has admitted that the amount is due, no irreparable loss will be caused to the plaintiff because the recovery of the money does not cause any irreparable loss. In substance he has prayed that revision petition should be dismissed.4-A. Section 117 of the Act of 1965 provides that Notwithstanding anything contained in Chapter IX, or any other lav/ for the time being in force, but without prejudice to any other mode of recovery provided in this Act, the Registrar or any person subordinate to him empowered by the Registrar in this behalf, may, on his own motion or on the application of a co-operative society, make an order directing the payment of any debt or outstanding demand due to the society by any member or past or deceased member, by sale of the property or any interest therein, which is subject to a charge under sub-section (1) of Section 38. The relevant provision of Section 118 of the Act of 1965 is that every order made by the Registrar on a certificate signed by him shall be deemed to be a decree of a civil court and shall be executed in the same manner as a decree of such court or be executed according to law and under the rules for the time being in force for the recovery of arrears of land revenue. Thus, these provisions do empower the Registrar (Chief Executive Officer of the Bank) to recover the money from the members.
5. My attention was drawn by the learned counsel for the appellant to the Notification No. F. 4 (6) Co-op/65 dated 11.10.1995 iss
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