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2025 Supreme(Jhk) 1240

IN THE HIGH COURT OF JHARKHAND AT RANCHI 
SANJAY KUMAR DWIVEDI, J.
Prabhakar Kanth, S/o. Late Janardan Kanth - Petitioner
Versus
The State of Jharkhand, through the Secretary, Department of Agriculture, Animal Husbandary and Cooperative & Ors. - Opp. Parties
C.M.P. No. 758 of 2023
Decided On : 29-04-2025

Advocates Appeared:
For the Petitioner: Mr. Chandrashekhar Pandey, Mr. Lakshmi Kant Choudhary, Mr. S.K. Jha, Mrs. Bina Pandey.
For the Opp. Parties : Mr. K.K. Bhatt, A.C. to S.C.-I, Mr. Parth Jalan.

Disputes concerning the business of a cooperative society must be resolved by a tribunal under the Jharkhand Self Supporting Cooperative Societies Act, barring jurisdiction of civil courts.

Headnote:(A) Jharkhand Self Supporting Cooperative Societies Act, 1996 - Sections 40, 41, and 50 - Petition filed under Article 227 of the Constitution of India challenging the rejection of an application under Order VII, Rule 11 of CPC - The court held that disputes touching the management and business of a cooperative society must be referred to a tribunal under the Act, barring jurisdiction of civil courts - Lower court's order rightly interpreted relevant provisions resulting in dismissal of suit as barred by law. (Paras 7, 10, 16, 17)

(B) Jurisdiction of Civil Courts - Civil Courts cannot adjudicate disputes that fall within the ambit of cooperative society management, which are to be settled by designated tribunals. (Paras 10, 16, 17)

Table of Content
1. filing of petition under article 227 (Para 1 , 2)
2. arguments surrounding removal and authority (Para 3 , 4 , 5)
3. jurisdiction and disputes under the act (Para 6 , 7 , 8 , 10 , 12)
4. statutory jurisdiction of civil courts barred. (Para 9)
5. criteria for rejecting a plaint (Para 14 , 15 , 16)
6. conclusion on jurisdiction and dismissal of suit (Para 17 , 18 , 19)

JUDGMENT :

Heard Mr. Chandrashekhar Pandey, learned counsel for the petitioner, Mr. K.K. Bhatt, learned counsel for the O.P. No.1-State and Mr. Parth Jalan, learned counsel for the O.P. No.2- Deoghar Zila (Sahakari Kshetra) Rastriyakrit Bank Karmachari Bachat Evam Swablambi Sahkari Samiti Limited, Deoghar.

2. This petition has been filed under Article 227 of the Constitution of India for setting aside order dated 20.02.2023 passed by learned Civil Judge (Sr. Division)-III, Deoghar in M.C.A. No. 250 of 2022 (arising out of Original Suit No. 27 of 2018) whereby the learned court has been pleased to reject the application filed under Order VII, Rule 11, read with Section 151 of the Code of Civil Procedure.

3. Mr. Chandrashekhar Pandey, learned counsel for the petitioner submits that the petitioner was the president of the respondent Co-operative Society namely (Sahakari Kshetra) Deoghar Zila Rastriyakrit Bank Karmachari Bachat Evam Swablambi Sahkari Samiti Limited, Deoghar, from 04.08.2004 to08.10.2017. He further submits that one of the secretary namely, Mr. Baliyase, in connivance with some of the directors got the petitioner removed from the post of President of Sahakari Samiti illegally without following the norms of the bye-laws of the said society. He then submits that one Sri Ashim Kumar Mukherjee was never elected as president in place of petitioner herein rather he was nominated by the conspirators in place of the petitioner and no intimation of removal of the petitioner was ever communicated and it was verbally informed that he has been removed from the post of president. He further submits that the petitioner was intent to have audit and inquiry of the Societies as he was apprehending that mischief will be played by the newly made committee member of the said society. He further submits that the petitioner was pursuing the audit account in view of that present Original Suit No. 27 of 2018 was instituted and it was instituted for recovery of Rs. 56,60,292/- along with interest against the petitioner. He then submits that on issuing the notice the petitioner has appeared and filed the written statement. He further submits that Nand Lal Baliyase is the Secretary of Sahakari Samiti and he has manipulated in getting the authorization of Director Council or by General Body to file the instant money suit in the civil court for recovery of loan amount to the tune of Rs.56,60,292/-. He submits that the said has been done against Section 50 of the Jharkhand Self Supporting Cooperative Societies Act, 1996 (hereinafter referred the Act). He further submits that Secretary and President are defaulter of more than Rs.1.37 Crores for which petitioner was always making question while he was the President of the Society. In this background he submits that the petitioner herein filed a petition under Order VII, Rule 11, read with Section 151 of the Code of Civil Procedure praying therein to reject the plaint filed by the respondent-plaintiff and the learned court has been pleased to reject the same by impugned order dated20.02.2023. He further submits that in the light of Section 40 and 41 read with Section 50 of the said Act the same is barred. He further submits that the learned court has wrongly interpreted provisions of Sections 40 , 41, 50 of the said Act in view of that the said order may kindly be set aside. He further submits that dispute in nature is coming within parameter of Section 40 of the said Act read with Section 41 of said Act. In view of that any proceeding with regard to dispute in question will lie before the tribunal constituted under the sa

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