JUDGMENT:

1. This appeal under section 96 of the CPC is from the defendant in the suit. Respondent herein is the sole plaintiff in the suit.

2. The appellant/ A.P. State Co-Operative Marketing Federation Ltd is a co-operative society registered under AP Co- Operative Societies Act, VII of 1964 (herein after referred to as Act, 1964). Respondent herein is a company incorporated under The Companies Act and does business in maintaining cold storages. Appellant procured and stored 51,218 bags of Red Chilies in the cold storage run by the respondent. In that regard, the respondent company in its books of accounts maintained a katha which commenced on 18.03.2004. The storage rental charges for season (season starts from 1st March and ends by 31st December of each calendar year) and off season (January and February) differ. Usual charges during season is Rs.70/- per bag weighing 45 Kgs. While the charges are at Rs.12/- per bag per month during off season. It is on these known terms, the business transactions between society and the company commenced.

Alleging that the society fell due and stating that despite notices there were neither payments nor responses, the respondent company filed O.S.No.14 of 2009 claiming Rs.12,59,298/- along with accrued interest from 21.06.2006 to 07.01.2009 at Rs.6,65,987 making a total claim of Rs.19,25,285/-. It claimed 18% interest per annum from the date of suit till the date of realization and for costs. It is to be noted that as per the calculations of the respondent company, the principal overdue amount stood at Rs.16,81,310. However, by virtue of conciliation meeting held by the Joint Collector, Guntur, it restricted its claim to Rs.13,97,954/-. Out of which, it received from the appellant society Rs.1,38,656/- by way of demand draft on 21.06.2006 and therefore it arrived at the principal sum of Rs.12,59,298/-.

3. The appellant society filed a written statement. It admitted its business transactions with the respondent company and questioned the correctness of the amounts claimed. At Para No.6 of the written statement, it stated that it was due to pay only Rs.1,784/- and not the amount claimed in the suit. It said that it made the last payment of Rs.1,38,656/- on 21.06.2006 and said that it completely discharged everything that was due (para No.7 in the written statement). Appellant society filed an additional written statement stating that respondent company failed to issue statutory notice under section 126 of the Act, 1964 and therefore suit shall fail. It also stated that in terms of Section 121 of the Act, 1964, a civil court has no jurisdiction to try the suit since AP Co-Operative tribunal as contemplated under section 75 of the Act, 1964 was constituted and the grievance raised in the plaint could be raised before the tribunal but not before the civil court. Finally, it sought dismissal of the suit. On the above rival pleadings, learned V Additional District Judge (Fast Track Court), Guntur settled the following issues and additional issues for trial:

Issues: -

1. Whether the discharge pleaded by the defendant is true and correct?

2. Whether the plaintiff is entitled for the suit claim, as prayed for?

3. Whether the suit claim is correct?

4. To what relief?

Additional Issues: -

1. Whether civil court has no jurisdiction to try the suit?

2. Whether suit is barred for non-compliance of statutory notice under section 126 of Co-Operative Societies Act?

4. During trial, plaintiff testified as PW.1 and got marked Exs.A1 to A10. Development officer (marketing) of the appellant society testified as DW.1 and got marked Exs.B1 to B6. The learned trial court considered the matter on record and considered the submissions argued before it on both sides and made specific reference to the admissions made by DW.1 during cross-examination and stated that the contentions concerning maintainability of the suit for omission to issue notices under section 126 of the Act, 1964 is not correct since Exs.A4 to A8 notices wou