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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
MOUSHUMI BHATTACHARYA, B.R.MADHUSUDHAN RAO
Sant Damaji Sahakari Sakhar Kharkana Ltd. – Appellant
Versus
Ajaykumar Sushilkumar – Respondent
ORDER :
B.R. Madhusudhan Rao, J.
1. This Civil Revision Petition is filed aggrieved by the order passed by the Additional Special Court in the cadre of District Judge for Trial and Disposal of Commercial Disputes at Hyderabad in I.A.No.157 of 2024 in COS.No.18 of 2024, dated 12.11.2024, wherein the application filed by the petitioner under Order VII Rule 11 of Civil Procedure Code (CPC) was dismissed.
2.1 The contentions of the petitioners in I.A.No.157 of 2024 (under Order VII Rule 11 of CPC) is that respondent No.1/plaintiff filed suit for recovery of money and damages against the petitioners for a sum of Rs.2,32,88,194/- out of which Rs.1,12,13,218/- is the principal amount against the supply of material to the petitioner No.1/society. Petitioner No.1 is a Co-operative Society registered under the provisions of the Maharashtra Co-operative Societies Act, 1960 (hereinafter called as ‘the Act, 1960’) vide registration No.SUR/MDA/TRG(A)-15/S/1/1989 dated 26.04.1989 before the State of Maharashtra. The petitioner No.1 is running a sugar factory and for the purpose of the business used to purchase gunny bags from the respondent No.1. Earlier respondent No.1 used to supply gunny bags wit
The Commercial Court has jurisdiction over commercial disputes involving non-members, overriding the provisions of the Maharashtra Co-operative Societies Act, 1960.
Disputes between cooperative societies and their employees are not maintainable under Section 91 of the MCS Act, requiring civil suits for resolution.
The court clarified that statutory bar under Order VII Rule 11(d) requires clear prohibition for dismissal, emphasizing the distinction between jurisdiction and maintainability.
Civil courts maintain jurisdiction over disputes involving cooperative society resolutions, clarifying that maintainability isn't limited by cooperative statutes.
The jurisdiction to hear cooperative disputes lies with the Cooperative Court when the matters directly impact the society's business and management.
Jurisdiction of civil courts is barred in challenging cooperative society actions under the Maharashtra Co-operative Societies Act without prior notice as required by law.
Civil Courts have jurisdiction over disputes regarding agreements to sell flats, as such disputes do not pertain to the business of Cooperative Societies under the Haryana Co-operative Societies Act.
The court confirmed that guarantors are liable under the Maharashtra Cooperative Societies Act, and disputes against them are maintainable despite limitation challenges.
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