High Court of Karnataka Dismisses Regular Second Appeal in Cooperative Society Property Dispute — Suit for Permanent Injunction Not Maintainable Due to Bar Under Section 125 of Karnataka Cooperative Societies Act, 1959. The court held that civil courts have no jurisdiction to entertain suits relating to cooperative society properties, as the Act provides a complete mechanism for resolution of disputes.

High Court: Karnataka High Court Bench: KALABURAGI In Favour of Prosecution
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Case Note & Summary

The present regular second appeal was filed by the unsuccessful plaintiff, Nazir Ahamad, against the judgment and decree dated 11.01.2008 passed in R.A. No. 199/2006 by the Principal Civil Judge (Sr.Dn.), Vijayapur, which confirmed the judgment and decree dated 22.09.2006 passed in O.S. No. 97/2005 by the Principal Civil Judge (Jr.Dn.), Vijayapur, dismissing the suit with costs of Rs.5,000/-. The appellant-plaintiff had filed a suit for permanent injunction restraining the defendants from evicting him from the suit house property bearing CTS No. 915/1A2 measuring 117.58 sq. meters of Ward No. V of Vijayapur city without due process of law. The appellant contended that the first defendant, Anwarpashya Sayyadmeera Mujwar, was the owner of the suit property and had approached the second defendant, Sri Siddeshwar Co-Op. Bank Ltd., for financial assistance during the year 2001. The appellant claimed to be in possession of the property. The trial court dismissed the suit on the ground that it was not maintainable in view of the provisions of Section 125 of the Karnataka Cooperative Societies Act, 1959, which bars the jurisdiction of civil courts in matters relating to cooperative societies. The first appellate court upheld this finding. In the second appeal under Section 100 of the Code of Civil Procedure, 1908, the appellant argued that the courts below erred in holding the suit not maintainable. The High Court, after hearing the counsel, found that the suit property belonged to the first respondent, who was a member of the second respondent cooperative society. The society had initiated proceedings under the Act for recovery of dues. The court held that the dispute relating to the property of a cooperative society falls within the exclusive jurisdiction of the authorities under the Act, and civil courts are barred from entertaining such suits. The appellant failed to raise any substantial question of law. Accordingly, the appeal was dismissed with no order as to costs.

Headnote

A) Civil Procedure - Second Appeal - Substantial Question of Law - Section 100 CPC - The court considered whether the suit was barred under Section 125 of the Karnataka Cooperative Societies Act, 1959. The appellant-plaintiff sought permanent injunction against eviction from a property owned by the first respondent, who had mortgaged it to the second respondent cooperative society. The trial court and first appellate court dismissed the suit holding it not maintainable due to the bar under Section 125 of the Act. The High Court upheld the concurrent findings, holding that no substantial question of law arose for consideration in the second appeal. (Paras 1-6)

B) Cooperative Societies - Jurisdiction of Civil Courts - Section 125 Karnataka Cooperative Societies Act, 1959 - The suit property belonged to the first respondent, who was a member of the second respondent cooperative society. The society had initiated proceedings under the Act for recovery of dues. The appellant, claiming to be a tenant, filed a suit for injunction. The court held that the dispute relating to the property of a cooperative society falls within the exclusive jurisdiction of the authorities under the Act, and civil courts are barred from entertaining such suits. (Paras 3-5)

C) Property Law - Permanent Injunction - Maintainability - The appellant failed to establish any independent right or title over the suit property. The suit was essentially to protect his alleged possession against the society's lawful action under the Act. The court held that the civil court cannot grant injunction when the suit itself is not maintainable due to statutory bar. (Paras 4-6)

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Issue of Consideration

Whether the civil suit for permanent injunction filed by the appellant against the respondent cooperative society and its member is maintainable in view of the bar under Section 125 of the Karnataka Cooperative Societies Act, 1959?

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Final Decision

The High Court dismissed the regular second appeal with no order as to costs, upholding the concurrent findings of the courts below that the suit was not maintainable in view of Section 125 of the Karnataka Cooperative Societies Act, 1959.

Law Points

  • Bar of jurisdiction of civil courts under Section 125 of Karnataka Cooperative Societies Act
  • 1959
  • Maintainability of suit for permanent injunction against cooperative society
  • Scope of Section 100 CPC in second appeal
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Case Details

2018 LawText (KAR) (02) 42

RSA NO.7510/2010

2018-02-27

B. Veerappa

Sri Umesh V. Mamadapur (for appellant), Sri Sanganagouda V. Biradar (for R2)

Nazir Ahamad, Abdularazak, Lakshari

Anwarpashya Sayyadmeera Mujwar, The Manager, Sri. Siddeshwar Co-Op. Bank Ltd.

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Nature of Litigation

Regular second appeal against concurrent findings of trial court and first appellate court dismissing suit for permanent injunction.

Remedy Sought

Appellant sought to set aside the judgments and decrees of the lower courts and decree the suit for permanent injunction restraining respondents from evicting him from suit property.

Filing Reason

Appellant claimed to be in possession of suit property and sought injunction against eviction by respondents without due process of law.

Previous Decisions

Trial court dismissed suit O.S. No. 97/2005 on 22.09.2006 holding it not maintainable under Section 125 of Karnataka Cooperative Societies Act, 1959. First appellate court dismissed R.A. No. 199/2006 on 11.01.2008 confirming the trial court's decision.

Issues

Whether the civil suit for permanent injunction is maintainable in view of the bar under Section 125 of the Karnataka Cooperative Societies Act, 1959? Whether any substantial question of law arises for consideration in the second appeal under Section 100 CPC?

Submissions/Arguments

Appellant argued that the courts below erred in holding the suit not maintainable under Section 125 of the Act. Respondents supported the concurrent findings that the suit was barred by Section 125 of the Act.

Ratio Decidendi

The civil court has no jurisdiction to entertain a suit relating to the property of a cooperative society when the dispute falls within the purview of Section 125 of the Karnataka Cooperative Societies Act, 1959, which bars the jurisdiction of civil courts in such matters. The Act provides a complete mechanism for resolution of disputes, and the suit for permanent injunction was not maintainable.

Judgment Excerpts

The unsuccessful plaintiff has filed the present regular second appeal against the judgment and decree dated 11.01.2008 made in R.A.No.199/2006 on the file of the Principal Civil Judge (Sr.Dn.), Vijayapur dismissing the appeal, confirming the judgment and decree dated 22.09.2006 made in O.S.No.97/2005 on the file of Principal Civil Judge (Jr.Dn.), Vijayapur dismissing the suit with cost of Rs.5,000/- mainly on the ground that the suit filed by the plaintiff was not maintainable in view of the provisions of Section 125 of the Karnataka Cooperative Societies Act, 1959. The present appellant was the plaintiff before the Trial Court filed a suit for permanent injunction restraining the defendants from evicting him from the suit house property bearing CTS No.915/1A2 measuring 117.58 sq. meters of Ward No.V of Vijayapur city without due process of law contending that the first defendant is the owner of the suit property and he was in financial difficulty during the year 2001.

Procedural History

The appellant-plaintiff filed O.S. No. 97/2005 before the Principal Civil Judge (Jr.Dn.), Vijayapur, seeking permanent injunction. The trial court dismissed the suit on 22.09.2006 holding it not maintainable under Section 125 of the Karnataka Cooperative Societies Act, 1959. The appellant appealed to the Principal Civil Judge (Sr.Dn.), Vijayapur, in R.A. No. 199/2006, which was dismissed on 11.01.2008, confirming the trial court's decision. The appellant then filed the present regular second appeal under Section 100 CPC before the High Court of Karnataka, Kalaburagi Bench, which was dismissed on 27.02.2018.

Acts & Sections

  • Karnataka Cooperative Societies Act, 1959: Section 125
  • Code of Civil Procedure, 1908: Section 100
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