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2024 Supreme(P&H) 1117

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
DEEPAK GUPTA, J.
S.C. Land Owning Society – Appellant
Versus
Surjit Kaur – Respondent
RSA NO.1672 of 1993
Decided On : 21-05-2024

Advocates Appeared:
Mr. G.S. Dhaliwal, Advocate; For the Appellant
None; For the Respondent

A cooperative society must act through authorized resolutions; without such authority, suits filed are not maintainable.

Headnote:(A) Punjab Cooperative Societies Act - The plaintiff-Society's suit for permanent injunction was dismissed due to lack of locus standi, as the Society was found to be dissolved and the suit was not filed by an authorized person. (Paras 1, 4.2, 10)

(B) Locus Standi - The court held that a cooperative society must act through a resolution authorizing its officers to file suits, and without such resolution, the suit is not maintainable. (Paras 9, 10)

Facts of the case:
The plaintiff-Society claimed ownership of the disputed property and sought an injunction against the defendant, who claimed ownership through inheritance. The trial court initially ruled in favor of the plaintiff, but the appellate court reversed this decision based on the Society's dissolution and lack of authorization for the suit.

Findings of Court:
The appellate court found that the plaintiff-Society was dissolved and that Dalip Singh lacked the authority to file the suit, leading to the dismissal of the case.

Issues: The main issues included whether the plaintiff-Society was dissolved and whether Dalip Singh had the authority to file the suit.

Ratio Decidendi: The court ruled that a cooperative society must act through a resolution, and without such authorization, the suit is not maintainable.

Result: Appeal dismissed.

JUDGMENT

Mr. Deepak Gupta, J.

This Regular Second Appeal is filed by the plaintiff-Society, which is registered under the Punjab Cooperative Societies Act. Plaintiff's suit for permanent injunction regarding property in dispute against the defendant- Surjit Kaur (respondent herein) was decreed by the trial court on 7.6.1988 but the appeal of the defendant was allowed and the suit of plaintiff society (appellant herein) was dismissed on the ground of lack of locus standi.

2.1 Plaintiff claimed to be owner in possession of the suit property. Alleging interference in its possession on the part of the defendant, plaintiff sought a decree for permanent injunction.

2.2 Defendant on the other hand claimed to be owner in possession. According to her, her mother Smt. Bachni had performed Karewa marriage with Bakhtaur Singh and that she is the picchlag daughter of Bachni Kaur. After Karewa marriage of Bachni with Bakhtaur Singh, she had been adopted by Bakhtaur Singh and had inherited the membership rights of Bakhtaur Singh in the plaintiff Society. She also challenged the locus standi of the plaintiff in filing the suit, filed through President Dalip Singh, as the plaintiff- Society stood dissolved since 16.4.1986 and so, Dalip Singh did not have the locus standi to bring the suit on behalf of the Society.

3. Following issues were framed by the trial court for adjudication:-

"1. Whether the plaintiff-society has been dissolved? If so, its effect? OPD

2. Whether the plaintiff is owner in possession of the land in dispute? OPP

3. Whether the plaintiff has got no locus-standi to file the suit? OPD

4. Whether the defendant is the daughter of deceased Bachni and is entitled to be a member of the plaintiff- Society? If so, its effect? OPD"

5. Relief.

4.1 Vide judgment dated 07.06.1988, trial court decided Issues no. 1, 3 and 4 against the defendant; whereas, issue no.2 was decided in favour of plaintiff and consequently, decreed the suit.

4.2 In the appeal filed by the defendant, though it was held that she was neither the owner nor in possession of the suit property, as was claimed by her; nor she had been able to prove that she had inherited the membership rights of Bakhtaur Singh in the Society. It was also held that she was unable to prove that she had been adopted by said Bakhtaur Singh. As such, the finding on issue no.2 in favour of plaintiff society was maintained. However, by holding that the plaintiff Society had already been dissolved and there was no resolution in favour of Dalip Singh so as to file the suit, it was held that suit had not been filed by a property authorised person and as such, findings on issues no.1 and 3 were reversed and these were decided in favour of the defendant. Consequent to findings on Issues no.1 and 3, the suit was dismissed.

5. Assailing the above findings of appellate court on the issue of locus standi, it is contended by the learned counsel that learned trial court had rightly held that Dalip Singh being the President of the Society was competent to file the suit against the defendant-respondent and so, issue relating to locus standi was rightly decided in favour of the plaintiff. Prayer is made for setting aside the judgment passed by the first Appellate Court and to restore the judgment of the Trial Court.

6. Despite notice to the respondent-defendant, no body turned up so as to contest the appeal on her behalf.

7. Submissions considered. Trial court record perused.

8. It has been found by the learned Appellate Court on the basis of evidence on record that plaintiff Society is registered under the Punjab Cooperative Societies Act and it is for this reason that dispute between the plaintiff and Darshan Kaur about entitlement to inherit the membership of Bakhtaur Singh had gone to Assistant Registrar, Cooperative Society, Barnala and then to Deputy Registrar, Cooperative Society, Sangrur and even the Register of the members of the plaintiff Society (copy Ex.D-1); and Rokar Bahi (copy Ex.D-2) revealed bey

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