Case Note & Summary
The case involves a Civil Revision Application filed by the applicants (original defendant nos. 1 and 2) against an order dated 17th July 2013 passed by the 11th Joint Civil Judge, Junior Division, Kolhapur, rejecting their application (Exhibit 130) under Order 7 Rule 11(d) of the Code of Civil Procedure, 1908 (CPC). The applicants sought rejection of the plaint in Regular Civil Suit No. 343/2013 filed by the respondent nos. 1 and 2 (original plaintiffs) for a declaration that a sale deed executed by the defendant nos. 1 to 4 was null and void and for a permanent injunction. The applicants argued that the suit was barred under Section 91 of the Maharashtra Cooperative Societies Act, 1960, as the dispute related to the business of a cooperative society. The trial court rejected the application, holding that the plaint disclosed a cause of action and that the civil court had jurisdiction. The High Court, after hearing the parties, dismissed the revision application, affirming the trial court's order. The court held that the dispute did not pertain to the business of the society but to the validity of a sale deed executed by the defendants, and thus the civil suit was maintainable. The court also noted that the plaint disclosed a cause of action and the application for rejection was rightly rejected.
Headnote
A) Civil Procedure - Rejection of Plaint - Order 7 Rule 11(d) CPC - Jurisdictional Bar - The court considered whether the suit for declaration and injunction was barred under Section 91 of the Maharashtra Cooperative Societies Act, 1960. The trial court rejected the application for rejection of plaint. The High Court held that the suit was not barred as the dispute did not relate to the business of the society but to the validity of a sale deed executed by the defendants. The plaint disclosed a cause of action and the civil court had jurisdiction. (Paras 4-8)
B) Cooperative Societies - Jurisdiction of Civil Court - Section 91 Maharashtra Cooperative Societies Act, 1960 - The court examined the scope of Section 91 which bars civil courts from entertaining disputes touching the business of a cooperative society. The High Court held that the dispute regarding the sale of property by the society to third parties does not fall within the ambit of 'business of the society' as the sale was not in the course of the society's business. Therefore, the civil suit was maintainable. (Paras 6-8)
Issue of Consideration
Whether the suit filed by the respondents is barred by the provisions of the Maharashtra Cooperative Societies Act, 1960, and therefore liable to be rejected under Order 7 Rule 11(d) of the Code of Civil Procedure, 1908.
Final Decision
The High Court dismissed the Civil Revision Application, upholding the trial court's order rejecting the application under Order 7 Rule 11(d) CPC. The court held that the suit was not barred under Section 91 of the Maharashtra Cooperative Societies Act, 1960, and the plaint disclosed a cause of action.
Law Points
- Order 7 Rule 11(d) CPC
- jurisdiction of civil court
- bar under Section 91 of Maharashtra Cooperative Societies Act
- 1960
- plaint rejection
- cause of action
Case Details
2015 LawText (BOM) (02) 66
Civil Revision Application No. 683 of 2013
Mr. Amit B. Borkar for the Applicants, Mr. Sagar Ghogare i/b. S. J. Ghogare for the Respondent No.1
Bhairavnath Sahakari Vikas, Seva Sanatha Limited and Kumbhikasari Sahakari Bank Ltd.
Shamrao Anandrao Patil and Sou. Jayshree Shamrao Patil
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Nature of Litigation
Civil Revision Application against rejection of application under Order 7 Rule 11(d) CPC for rejection of plaint.
Remedy Sought
The applicants (defendant nos. 1 and 2) sought rejection of the plaint in Regular Civil Suit No. 343/2013 on the ground that the suit was barred under Section 91 of the Maharashtra Cooperative Societies Act, 1960.
Filing Reason
The applicants contended that the suit filed by the respondents for declaration and injunction regarding a sale deed was not maintainable before the civil court as the dispute fell within the jurisdiction of the cooperative court under the Maharashtra Cooperative Societies Act, 1960.
Previous Decisions
The trial court (11th Joint Civil Judge, Junior Division, Kolhapur) rejected the application Exhibit 130 filed by the defendant nos. 1 and 2 under Order 7 Rule 11(d) CPC vide order dated 17th July 2013.
Issues
Whether the suit filed by the respondents is barred by the provisions of the Maharashtra Cooperative Societies Act, 1960, and therefore liable to be rejected under Order 7 Rule 11(d) of the Code of Civil Procedure, 1908.
Submissions/Arguments
The applicants argued that the suit was barred under Section 91 of the Maharashtra Cooperative Societies Act, 1960, as the dispute related to the business of a cooperative society.
The respondents contended that the suit was for declaration and injunction regarding a sale deed and was not barred, as the dispute did not pertain to the business of the society.
Ratio Decidendi
The dispute regarding the sale of property by a cooperative society to third parties does not fall within the ambit of 'business of the society' under Section 91 of the Maharashtra Cooperative Societies Act, 1960. Therefore, the civil court has jurisdiction to entertain the suit, and the plaint cannot be rejected under Order 7 Rule 11(d) CPC.
Judgment Excerpts
The suit in question being Regular Civil Suit No.343/2013 is filed by the Respondent Nos.1 and 2 herein. The said Suit has been filed for a declaration that the sale deed executed by the Defendant Nos.1 to 4 is null and void and for a permanent injunction.
The learned Judge has come to a conclusion that the plaint discloses a cause of action and the suit is not barred by the provisions of the Maharashtra Cooperative Societies Act, 1960.
Procedural History
The applicants (defendant nos. 1 and 2) filed an application Exhibit 130 under Order 7 Rule 11(d) CPC before the trial court seeking rejection of the plaint in Regular Civil Suit No. 343/2013. The trial court rejected the application on 17th July 2013. The applicants then filed the present Civil Revision Application No. 683 of 2013 before the High Court challenging that order. The High Court heard the matter and dismissed the revision application on 23rd February 2015.
Acts & Sections
- Code of Civil Procedure, 1908: Order 7 Rule 11(d)
- Maharashtra Cooperative Societies Act, 1960: Section 91
