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1990 Supreme(Mad) 1143

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE SRINIVASAN
Kancheepuram Murugan Silk Weavers Cooperative Production and Sales Society, by its Special Officer, Kancheepuram .
Versus
Kancheepuram Murugan Silk Weavers Cooperative Production and Sales Society Members and Another
A.A.O.No.1121of 1990
Decided On : 12-12-1990

Advocates:
G.Devadoss, for Appellant. S.N.Vimalanathan, for Respondent No.1.

The judgment establishes the principle that disputes regarding the induction of members in a cooperative society should be addressed through the forum prescribed under the Tamil Nadu Co-operative Societies Act, 1983, and not in the Civil Court.

Headnote:

Special Officer - Tamil Nadu Co-operative Societies Act, 1983 - Sec. 89, Sec. 4, Sec. 23, Sec. 90, Sec. 156 - The judgment discusses the appointment and actions of the Special Officer under the Tamil Nadu Co-operative Societies Act, 1983, and the validity of the induction of members by the Special Officer. It also addresses the jurisdiction of the Civil Court in matters related to statutory rights and the grant of interlocutory injunction.

Fact of the Case:

The appellant, appointed as Special Officer of the Society, faced a suit challenging the induction of members and seeking injunction against holding elections. The court found the suit to be an abuse of process due to its similarity to a prior suit and lack of maintainability.

Finding of the Court:

The court found the second suit to be an abuse of process and not maintainable due to the pendency of a similar prior suit. It also held that the dispute regarding the induction of members should be addressed through the forum prescribed under the Act, and not in the Civil Court.

Issues: Abuse of process, maintainability of the suit, jurisdiction of the Civil Court, validity of induction of members, and grant of interlocutory injunction.

Ratio Decidendi: The court emphasized that disputes regarding the induction of members should be addressed through the forum prescribed under the Act, and not in the Civil Court. It also highlighted the implied bar on the Civil Court's jurisdiction for statutory rights and the need to consider the balance of convenience in granting interlocutory injunction.

Final Decision: The appeal was allowed, the order granting injunction was set aside, and the application was dismissed with costs throughout.

Judgment :

This civil miscellaneous appeal is taken up with the consent of parties. It is directed against an order of injunction passed by the Subordinate Judge, Kancheepuram in I.A.No.1406 of 1990 in O.S.No.309 of 1990. The order is to the effect that the appellant herein shall hold election to the Board of management of the Society only with the list of Members of the Society prepared on 20.10.1990 and that no member whose name is not found in the said list is entitled to participate in the election.

2. It is necessary to set out a few facts prior to the filing of the present suit in order to show that the present suit is an abuse of process of Court.

3. The appellant was appointed as Special Officer of the Society on 24. 1989 under Sec.89 of the Tamil Nadu Co-operative Societies Act, 1983, hereinafter referred to as the ‘Act’. The State Government passed an Ordinance, which was Ordinance 4 of 1989 entitled as Tamil Nadu Co-operative Societies (Appointment of Special Officers) Ordinance. Under Clause 3 of the Ordinance the term of any committee or the board of management, President, Vice-President, Chairman, Vice-Chairman, Secretary and Treasurer of every primary society came to an end automatically on the appointed day, viz., 7. 1989 and such members shall vacate their office on or before the said date. Under Clause 4 the Government was empowered to appoint a person as Special Officer to manage the affairs of any primary society referred to in Sec.3. The Ordinance was substituted by Tamil Nadu Act 38 of 1989. The language of Secs.3 and 4 of the Act was the same as the language of Clauses 3 and 4 of the Ordinance. The term of the appellant as Special Officer was extended upto 310. 1989 by Notification Rc.No.40933/89/G2(1), dated 7. 1989. That was issued under Sec.4(1)(a) of the Ordinance. Another notification was issued on 22. 1990 in Rc.No.44280/Gl-l extending the period upto 312. 1990. That was issued under Sec.4of Act 38 of 1989. The Special Officer by virtue of his office as such and exercise of his powers under Sec.88 of the act admitted members to the Society. According to the Special Officer as many as 427 members were admitted between 38. 1989 and 19. 1989.

4. One of the membersof the society filed a suit O.S.No.165 of 1989 on the file of the Subordinate Judge’s Court, Kancheepuram, on 19. 1989. He claimed that he was representing all the members of the society. He filed an application under O.1, Rule 8 Civil Procedure Code. The prayer in the suit was for a declaration that the defendants therein were not entitled to induct or eject any person into or from membership of the society till the duly elected Board took charge. The defendants in the suit were the society represented by its Special Officer and the society represented by its Election Officer. That suit was decreed by the trial Court on 5. 1990. On appeal the decree of the trial Court was reversed. There was a second appeal in this Court in S.A.No.1511 of 1990. Pending the second appeal an application was made for injunction restraining the respondents therein from inducting any person as member of the society and for maintaining the status quo as on 38. 1989 as decreed in the suit, O.S.No.165 of 1989. Though interim injunction was granted by this Court at the time of admission of the appeal the same was vacated by me on 210. 1990.I passed the following order:

“There is no justification for continuing the injunction in this matter. The Special Officer is certainly entitled to carry out the functions of the Board in the absence of the Board. It is stated that the Special Officer has fixed up election of the committee for 310. 1990. Election shall go on. Interim injunction is vacated. Petition is dismissed.” Even before the ink in my order could become dry another member of the society filed the present suit in Subordinate Judge’s Court, Kancheepu-ram on 210. 1990 which has been numbered as O.S.No.309 of 1990. The prayer in the suit is that “there should be















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