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1969 Supreme(MP) 24

High Court Of Madhya Pradesh
A. P. Sen, J.
STATE BANK OF INDIA EMPLOYEES CO OPERATIVE HOUSING SOCIETY LTD RAIPUR
Versus
NAWAL SHANKER DAVE
Decided On : Feb 14,1969

Advocates Appeared:
P.R.Padhye, Y.S.Dharmadhikari,

Headnote:(1) Co-operative Societies Act, 1961 (MP) - S. 82 (l) (c) - exclusion of jurisdiction of civil Courts - should not be readily inferred.

       The ordinary rule of construction is that statutes affecting the jurisdiction of Civil Courts, i.e., ousting their jurisdiction, must be very strictly construed. Every presumption should be made in favour of the jurisdiction and its exclusion is not to be readily inferred, but must be either explicitly expressed or clearly implied. AIR 1940 PC 105 relied on. [Para 3

       (2) Co-operative Societies Act, 1961 (MP) - Ss. 82 & 64 - jurisdiction of Civil Court when barred - dispute must come within the ambit of S. 64. [Para 8

       (3) Co-operative Societies Act, 1961 (MP) - S. 64 - what disputes covered by the section - it should be touching the business of the society - transactions by other persons - must be in a series of business transactions - society encroaching on land of other person-is not a dispute falling under S. 64.

       The Housing Society, defendant, was incorporated with the object of providing housing accommodation to its members. It purchased some land from the plaintiffs. The suit of the plaintiff was for eviction of the society from the land which they had encroached beyond the land sold. The defence was that the civil Court had no jurisdiction to try the case as the dispute fell within the ambit of section 64 of the Act. According to the defendant society the acquisitions of land by purchase or otherwise is in the course of its ordinary business.

       Held : The nature of business which a society carries on has necessarily to be ascertained from the object for which the society is constituted, but it is difficult to subscribe to the proposition that whatever the society does in the course of its activities can be said to be part of its 'business'. By no stretch of imagination, an act of trespass by a housing society over another's land can be treated as acquisition of such land for the purposes of providing residential accommodation to its members, which normally is its business. [Para 6

       The use of the word 'transactions' in plural clearly suggests a "continued course of dealing", i.e., a trading or commercial activity between a society and a non-member giving rise to a dispute which still remains outstanding. Now, the mere acquisition of a certain piece of land by the defendant society by means of a deed of conveyance in its favour would not be any such business transaction falling within the ambit of that section, as the purchase of land for a price need not of necessity be a trading or commercial activity, i.e., one entered with the motive of earning profits, which is a sine qua non of any business, profession or trade. Case-law discussed. [Para 7

       (4) Words and phrases-words 'trade' and 'business' - meaning of.

       The legal connotation of the words 'trade' and 'business' is now well settled. 'Trade' means 'exchange of goods for goods or goods for money' or 'any business carried on with a view to profit, whether manual or mercantile, as distinguished from the liberal arts or learned professions and from agriculture', while 'business" means 'an enterprise which is an occupation as distinguished from pleasure'. AIR 1968 SC 554 followed. [Para 7

JUDGMENT :

( 1. ) THIS revision under seetion 115 of the Code of Civil Procedure, filed by the defendant, is directed against an order of the Second Additional district Judge, Raipur, dated 26th September 1968, holding that the subject-matter in dispute is not covered by section 82 (1) (c) of the Madhya Pradesh co-operative Societies Act (No. XVII of 1961) (hereinafter referred to as the act), inasmuch as it was not a dispute required to be referred to the Registrar under section 64 (1) (c) of the Act.

( 2. ) THE material facts are these. The State Bank of India Employees housing Co-operative Society Limited, Raipur is a housing Society within the meaning of section 2 (n) of the Act, as its object is to provide its members with residential accommodation, and is also a society as defined in section 2 (z), as it is registered as a co-operative society under the Act. By virtue of a sale deed dated 5-1-1966, the society purchased a piece of land in Dumar Talab, raipur, from the plaintiff: Naval Shankar and Kanti Lal,who have now filed this suit for ejectment of the Society from the portions delineated by letters dhid and FEHGF in the plaint map, alleging that it has encroached upon these areas which are outside the property conveyed under the deed. The society thereupon raised an objection to the maintainability of the suit, and, accordingly, a preliminary issue was framed on the question of jurisdiction.

( 3. ) THE revision must be dismissed on the short ground that the learned judge has rightly held that the jurisdiction of Civil Court to entertain a suit of this kind is not barred under the terms of section 82 (1) (c) of the Art. That section reads:

"save as provided in this Act, no civil or revenue Court shall have any jurisdiction in respect of any dispute required to be referred to the Registrar. " While interpreting this section, the general rule as regards construction of statutes excluding the jurisdiction of Civil Courts must be kept in view. The ordinary rule of construction is that statutes affecting the jurisdiction of Civil courts, i. e. , ousting their jurisdiction, must be very strictly construed. Every presumption should be made in favour of the jurisdiction and its exclusion is not to be readily inferred, but must be either explicitly expressed or clearly implied. [see, Secretary of State v. Mask and Co. (AIR 1940 P. C. 105.)]. Now, the bar of jurisdiction under section 82 (1) (c) is in respect of any dispute required to be referred to the Registrar. The disputes which are so required to be referred are enumerated in section 64 ibid. The relevant portion of that section reads :

"notwithstanding anything contained in any other law for the time being in force, any dispute touching the business of a society shall be referred to the Registrar by any of the parties to the dispute, if the parties thereto are among the following: * * * (c) a person other than a member of the society with whom the society has or had business transactions and any person claiming through such a person. "

(Italics mine)

( 4. ) THE short questions for consideration in this case are-

(1) Whether the suit is in respect of any dispute touching the business of the defendant society within the meaning of section 64 (I) : and

(2) If so, whether, by reason of the purchase of the land in its favour, the society had any business transaction with its vendors, the plaintiffs herein. It is common ground that the main object with which the defendant society has been incorporated is to provide housing accommodation to its members, and it is, therefore, urged that acquisition of any land, bv purchase or otherwise, by the defendant society is in the course of its ordinary business and necessarily any dispute touching its assets would fall within the ambit of

section 64 ibid. The contention cannot re accepted, for the reasons that I shall presently state

( 5. ) AS to the first, the phrase touching the business of a society had been interpreted by a Full Bench of thi

















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