IN THE HIGH COURT OF MADRAS
R.M.T. TEEKAA RAMAN, J.
Dharmapuri Handloom Weaver's Cooperative Production Sales Society Limited – Appellant
Versus
P. Sambantham – Respondent
C.R.P.(NPD) No. 4438 of 2012 and M.P. No. 1 of 2012
Decided On : 14-02-2020
Civil Revision Petition - Tamil Nadu City Tenants' Protection Act - Section 9 - Tamil Nadu Cooperative Societies Act - Sections 137(2)(b), 138, 141 - seeking protection and also for sale of the Petition property in his favour – Held, Section 89 of Madras Cooperative Societies Act bars the institution or continuation of Legal proceedings against a registered Society when once the society enters upon liquidation. The policy behind the Section is the same as the one behind similar provisions in the Companies Act or in Law of Insolvency. A claim made or which is pending, when a Society is wound up cannot be proceeded within a Civil Court. The 'affairs of the Society' referred to in the Section will embrace also a claim or liability against the Society- Civil Revision Petition stands allowed.
JUDGMENT :
R.M.T. Teekaa Raman, J.
1. This Civil Revision Petition has been filed against the Order passed by the learned District Munsif, Dharmapuri, in R.E.A. No. 190 of 2010 in R.E.P. No. 37 of 2008 in CTOP. No. 3 of 2000, dated 7.12.2011.
2. The Defendant in CTOP. No. 23 of 2000, is the Revision Petitioner herein.
3. Brief facts of the case are as follows:
The Respondent herein/Plaintiff viz., P. Sambantham has filed the said Petition viz., C.T.O.P. No. 3 of 2000, before the learned District Munsif, Dharmapuri, under Section 9 of the Tamil Nadu City Tenants' Protection Act, against the Revision Petitioner/Society, seeking protection and also for sale of the Petition property in his favour. The said C.T.O.P. No. 3 of 2000, was decreed on 1.12.2004. Thereafter, the Respondent herein has filed an Execution Petition in R.E.P. No. 37 of 2008 on 3.9.2008, before the learned District Munsif, Dharmapuri, wherein, he sought for Execution of the Sale Deed in his favour. Against the same, the Revision Petitioner/Defendant has filed a Rent Control Application in R.C.A. No. 190 of 2010, alleging that the Society was dissolved on 11.7.2008 under Sections 137(2)(b) & 138 of the Tamil Nadu Cooperative Societies Act, 1983 and hence, by virtue of Section 141 of the Tamil Nadu Cooperative Societies Act, 1983, there is a bar in continuing the Civil Suit or proceedings without prior permission of the Registrar of Cooperative Societies. The said Rent Control Application was dismissed and hence, the Civil Revision Petition.
4. Heard the both the Counsel and perused the materials placed on record.
5. On a perusal of the records, it is seen that the Revision Petitioner/Handloom Weaver's Cooperative Production Sales Society Limited was registered in the year 1983 and on 11.7.2008 the Society was dissolved under Sections 137(2)(b) & 138 of the Tamil Nadu Cooperative Societies Act, 1983. Pursuant to which, one Mr. Babu, was appointed as a Liquidator, Deputy Director of Handloom and Textiles, Salem.
6. A short point which arises for consideration is whether after appointment of Liquidator, without permission of the Registrar can a Civil proceedings be instituted or continued under Section 141 of the Tamil Nadu Cooperative Societies Act, 1983, which reads as under:
7. The Judgment reported in Thiruchenkattankudi Tenants Co-operative Farming Society by its Liquidator v. Sri Redrapathiswaraswami Devasthana, Thiruchankattankudi, by its Hereditary Managing Trustee, 1970 (1) MLJ 18, wherein, this Court has held as follows:
Section 89 of Madras Cooperative Societies Act bars the institution or continuation of Legal proceedings against a registered Society when once the society enters upon liquidation. The policy behind the Section is the same as the one behind similar provisions in the Companies Act or in Law of Insolvency. A claim made or which is pending, when a Society is wound up cannot be proceeded within a Civil Court. The 'affairs of the Society' referred to in the Section will embrace also a claim or liability against the Society."
The said Judgment of our Hon'ble High Court relates to Section 18 in of old Act and after amendment, Section 141 is applicable.
8. Upon reading of said Judgments,
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