Case Note & Summary
The petitioner, Nanded Zilla Krushi Audyogik Society Ltd., filed a writ petition challenging two orders of the Maharashtra State Co-operative Appellate Court. The first order dated 6-8-1998 was passed in Review Petition No. 8/97, and the second order dated 18-04-2000 was passed in Review Petition No. 3/98. The petitioner was a supplying agent of seeds manufactured by respondent No. 5, Maharashtra State Seeds Corporation Ltd. Respondent Nos. 1 to 3, members of respondent No. 4 society, purchased seeds and obtained loans from respondent No. 4. A dispute arose regarding the loan repayment, and the Co-operative Appellate Court, in review, fixed liability on the petitioner. The petitioner contended that it was not a party to the loan transaction and could not be held liable. The court examined the facts and found that the petitioner was merely a supplying agent and not a borrower or guarantor. The court held that the Co-operative Appellate Court had no jurisdiction to fix liability on the petitioner in a review petition as the petitioner was not a party to the original dispute. The court allowed the petition, quashed the impugned orders to the extent they fixed liability on the petitioner, and directed that the petitioner shall not be liable for the loan amount.
Headnote
A) Co-operative Law - Liability of Supplying Agent - Sections 91, 97, 98 Maharashtra Co-operative Societies Act, 1960 - The petitioner, a supplying agent, was not a party to the loan transaction between the disputants and the society. The Co-operative Appellate Court, in review, fixed liability on the petitioner without jurisdiction. Held that the petitioner cannot be held liable as it was merely a supplying agent and not a borrower or guarantor. (Paras 1-5) B) Co-operative Law - Review Petition - Jurisdiction - Sections 97, 98 Maharashtra Co-operative Societies Act, 1960 - The Co-operative Appellate Court cannot in a review petition fix liability on a person who was not a party to the original dispute. Held that the review order was without jurisdiction and liable to be set aside. (Paras 4-5) C) Co-operative Law - Limitation - Filing of Petition - The petition was filed in 2001 challenging orders of 1998 and 2000. The court did not dismiss on limitation but considered the merits. Held that the petition is maintainable. (Para 1)
Issue of Consideration
Whether the petitioner, a supplying agent, can be held liable for the loan amount when it was not a party to the loan transaction and whether the Co-operative Appellate Court had jurisdiction to fix liability on the petitioner in a review petition.
Final Decision
The petition is allowed. The impugned orders dated 6-8-1998 and 18-04-2000 passed by the Maharashtra State Co-operative Appellate Court are quashed and set aside to the extent they fix liability on the petitioner. The petitioner shall not be liable for the loan amount.
Law Points
- Liability of supplying agent
- Co-operative dispute
- Review petition
- Limitation
- Jurisdiction of Co-operative Appellate Court
