Bombay High Court Allows Second Appeal in Cooperative Society Dispute — Mandates Return of Plaint Under Order 7 Rule 10 CPC. Civil Court Lacked Jurisdiction Over Cooperative Dispute; Plaint Must Be Returned for Presentation to Proper Court Despite Delay.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The appellant, Gangabisan Mayaramji Paliwal, filed Second Appeal No.447/1998 before the Bombay High Court, Nagpur Bench, against the judgment and decree of the lower appellate court in Regular Civil Appeal No.176/1974. The suit, originally filed as Reg. C. S. No.176/1974, involved a dispute with respondent no.1, Sindi Vividha Karyakari Sahakari Society Ltd., and other respondents. The trial court and the first appellate court concurrently held that the civil court lacked jurisdiction to try the suit and that the Cooperative Court had jurisdiction under the Maharashtra Cooperative Societies Act, 1960. However, instead of returning the plaint under Order 7 Rule 10 of the Code of Civil Procedure, 1908 (CPC), they dismissed the suit. The appellant challenged this on the ground that the courts below committed an error in not following the mandate of Order 7 Rule 10 CPC. The High Court framed a substantial question of law on this issue. After hearing Mr. Gode, counsel for respondent no.8, and noting that the appellant's counsel was absent despite a rejected adjournment request, the court held that the courts below erred in law. The High Court allowed the appeal, set aside the judgments of the lower courts, and directed that the plaint be returned to the appellant for presentation to the proper court, i.e., the Cooperative Court. The court clarified that it did not express any opinion on the merits of the case.

Headnote

A) Civil Procedure - Return of Plaint - Order 7 Rule 10 CPC - Jurisdiction - Where courts below concurrently held that civil court lacked jurisdiction and cooperative court had jurisdiction, they were bound to return the plaint for presentation to the proper court. Failure to do so constitutes an error of law. (Para 2)

B) Cooperative Law - Jurisdiction - Section 91 Maharashtra Cooperative Societies Act, 1960 - Dispute relating to cooperative society falls within exclusive jurisdiction of cooperative court. Civil court cannot entertain such suit. (Para 2)

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Issue of Consideration

Whether the courts below committed error in not following the mandate of Order 7 Rule 10 of the CPC having concurrently held that the civil Court did not have jurisdiction to try the suit and that the Cooperative Court had jurisdiction.

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Final Decision

Second appeal allowed. Judgments and decrees of courts below set aside. Plaint in Reg. C. S. No.176/1974 ordered to be returned to appellant for presentation to proper court. No order as to costs.

Law Points

  • Order 7 Rule 10 CPC
  • Section 91 Maharashtra Cooperative Societies Act
  • 1960
  • jurisdiction of civil court
  • return of plaint
  • substantial question of law
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Case Details

2014 LawText (BOM) (07) 159

Second Appeal No.447/1998

2014-07-28

A. B. Chaudhari

Mr. S. D. Paliwal (absent), Mr. Prashant Gode for respondent no.8

Gangabisan Mayaramji Paliwal

Sindi Vividha Karyakari Sahakari Society Ltd. & Ors.

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Nature of Litigation

Second appeal against concurrent findings of courts below dismissing suit for lack of jurisdiction.

Remedy Sought

Appellant sought setting aside of lower court judgments and direction to return plaint for presentation to proper court.

Filing Reason

Courts below held civil court lacked jurisdiction but did not return plaint under Order 7 Rule 10 CPC.

Previous Decisions

Trial court and first appellate court dismissed suit holding civil court had no jurisdiction; cooperative court had jurisdiction.

Issues

Whether courts below erred in not returning plaint under Order 7 Rule 10 CPC after holding they lacked jurisdiction.

Submissions/Arguments

Appellant argued that courts below should have returned plaint for presentation to proper court instead of dismissing suit. Respondent no.8 opposed the appeal.

Ratio Decidendi

When a court holds that it lacks jurisdiction, it must return the plaint under Order 7 Rule 10 CPC for presentation to the proper court, and cannot dismiss the suit.

Judgment Excerpts

Whether the courts below committed error in law in not following the mandate of Order 7 Rule 10 of the CPC having concurrently held that the civil Court did not have jurisdiction to try the suit namely; Reg. C. S. No. 176/1974 and that the Cooperative Court has?

Procedural History

Suit filed as Reg. C. S. No.176/1974 in civil court. Trial court dismissed suit for lack of jurisdiction. First appeal dismissed. Second appeal filed in High Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 7 Rule 10
  • Maharashtra Cooperative Societies Act, 1960: Section 91
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High Court Bombay High Court Allows Second Appeal in Cooperative Society Dispute — Mandates Return of Plaint Under Order 7 Rule 10 CPC. Civil Court Lacked Jurisdiction Over Cooperative Dispute; Plaint Must Be Returned for Presentation to Proper Court Despite ...
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