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1976 Supreme(Online)(Cal) 1

CALCUTTA HIGH COURT
Rankin, C.J., CJ
Jessop's Co-operative Society (M/s.) Ltd. v. Registrar of Co-operative Societies W.B.
Writ Proceeding | Dispute Case No. 50 / Cal. of 1974-75



Advocates:
For the Appellants/Petitioners: I.P. Mukherjee
For the Respondents: Somnath Chatterjee, P.P. Ghosh

The interpretation of 'affairs' in the West Bengal Co-operative Societies Act, 1973 encompasses all society-related activities, including governance and management, ousting civil court jurisdiction over such disputes.

Headnote:(A) West Bengal Co-operative Societies Act, 1973 - Sections 86, 87, and 132(2)(d) - Jurisdiction of the Arbitrator - Dispute regarding the validity of notice for Annual General Meeting and the ensuing reconstitution of the Managing Committee deemed an affair of the Society under Section 86 - Change in legislative language from 'touching the business' to 'relating to the affairs' indicates legislative intent for broader interpretation - Orders the upholding of the Arbitrator's jurisdiction to decide disputes involving society affairs. (Paras 14, 22, 24)

(B) Statutory Interpretation - The interpretation of statutory language must adhere to legislative intent and the ordinary meanings of the words used therein, with courts presumed to know existing laws and decisions when enacting amendments. (Paras 20, 25)

(C) Jurisdiction of Civil Courts - The jurisdiction of Civil Courts has been explicitly ousted in matters covered by Section 86, as stated in Section 132(2)(d). (Paras 11, 25) Fact of the case: The disputes arose from the validity of a notice for an annual general meeting and subsequent managing committee reconstitution within a registered co-operative society, referred to the Registrar under Section 86 for arbitration.

Findings of Court:
The Arbitrator has jurisdiction to adjudicate the disputes concerning the administrative aspects of the cooperative society under the scope of the Act.

Issues: Whether the disputes referred relate to the affairs of the Society and whether the Registrar has the jurisdiction to adjudicate disputes based on the interpretation of Section 86.

Ratio Decidendi: The court aligns the broader interpretation of 'affairs of the Society' with amendments in the law, affirming that administrative issues regarding meetings and leadership elections are within the purview of the disputes covered by Section 86.

Result: Petition dismissed.

Table of Content
1. interpretation of s.86 of the co-operative societies act. (Para 1 , 2)
2. defendants' argument against jurisdiction. (Para 3 , 6 , 7)
3. jurisdiction ruling by the arbitrator. (Para 4 , 8 , 11)
4. plaintiff's argument supporting jurisdiction. (Para 9 , 10 , 12)
5. legislative intent and interpretation principles. (Para 14 , 15 , 18)
6. legal differentiation of 'business' and 'affairs'. (Para 20 , 21)
7. disputes deemed as affairs of the society. (Para 22 , 24)
8. conclusion and dismissal of the petition. (Para 25 , 26)

1. An interesting question of some importance involving the interpretation of S.86 of the West Bengal Co - operative Societies Act, 1973 arises for consideration in this writ proceeding.

2. Jessop's Co - operative Society Ltd. (hereinafter referred to as the Society) is a duly registered Society and as such is a body corporate. Ajit Narayan Sinha, the respondent No. 5 herein, is a member of the Society. Ajit Narayan Sinha disputed the validity of the notice dated 5th of May, 1975 for holding the annual general meeting dated 20th of May, 1975 of the Society, the proceedings of the said annual general meeting, reconstitution of the Managing Committee at the said meeting and the election of the office bearers of the Managing Committee on various grounds. He referred the disputes in accordance with the provisions contained in S.86 of the West Bengal Co - operative Societies Act, 1973 (hereinafter referred to as the Act) and he filed a plaint verified by him on the 19th of June, 1975 before the Assistant Registrar Co - operative Societies. Shri D.K. Sanyal Co - operative Development Officer (Arbitration) II Cal was appointed the Arbitrator to decide the disputes in terms of the provisions contained in S.87 of the Act. The case was numbered as Dispute Case No. 50 / Cal. of 1974-75. The parties to the said case were Ajit Naravan Sinha who was the plaintiff in the case, and the Society, the Managing Committee of the Society, Shri Santosh Kumar Sengupta, Chairman of the Society and Shri Nemai Dulal Sinha, the Hony. Secretary of the Society, who were all made defendants. In the said case the plaintiff Ajit Narayan Sinha prayed on the basis of the averments made in the plaint:
"In the circumstances, stated hereinabove the Plaintiff prays that your Honour may be graciously pleased to set aside the impugned notice dated 5th May 1975, proceedings of the Annual General Meeting dated 20th May 1975, reconstitution of the Managing Committee at the meeting dated 20th May 1975 and impugned election of office bearers of the impugned reconstituted Managing Committee on the grounds mentioned hereinabove."

3. A statement of defence was filed on behalf of the defendants in answer to the plaint filed by the plaintiff Ajit Narayan Sinha. In the written statement of defence it was contended on behalf of the defendants in paragraph 1:
"The defendants submit that the disputes purported to be raised by Sri Ajit Narayan Sinha describing himself as the plaintiff abovenamed as detailed in paragraph 9 of the application for purposes of reference of the disputes wrongly described as plaint as also in the prayer thereof, viz., the matter relating to the notice dated the 5th May 1975, proceeding of the Annual General Meeting, dated the 20th May 1975, the Annual General Meeting, election of directors, reconstitution of the Managing Committee at the meeting dated 20th May 1975 and election of the office bearers of the reconstituted Managing Committee are not disputes relating to the affairs of the Jessop's Co - operative Society Ltd., the alleged defendant No.1 abovenamed, nor is Messrs. Jessop's Co - operative Society Ltd. a party to any of the said disputes. As such, the said disputes nor any of them can be legally referred to the Registrar of Co - operative Societies, Calcutta under S.86 of the West Bengal Co - operative Societies Act, 1973. And the Registrar has no jurisdiction to entertain any such purported reference and to transfer the s














































































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