Case Note & Summary
The plaintiffs, who were members of the Shantinikethan Co-operative House Building Society, filed a suit (O.S. No.8/2008) before the II Additional Senior Judge at Bijapur seeking a declaration that the defendants (the society and its office bearers) had no right to alienate the suit schedule property and for a permanent injunction restraining them from doing so. The trial court, by order on I.A.No.2, rejected the plaint under Order 7 Rule 11 of the Code of Civil Procedure, 1908 (CPC) on the ground that the suit was barred by law, as the dispute fell within the exclusive jurisdiction of the authorities under the Karnataka Co-operative Societies Act, 1959. The plaintiffs appealed to the II Additional District Judge at Bijapur in R.A. No.118/2010, which was dismissed on 18.12.2010, confirming the trial court's order. Aggrieved, the plaintiffs filed the present Regular Second Appeal under Section 100 CPC before the High Court of Karnataka. The High Court, after hearing the parties, framed the substantial question of law as to whether the civil court had jurisdiction to entertain the suit. The court noted that the plaintiffs were members of the society and the dispute related to the management of the society, which is governed by the Karnataka Co-operative Societies Act, 1959. Referring to Section 9 CPC and the bar of jurisdiction of civil courts in matters covered by special statutes, the High Court held that the suit was not maintainable and the plaint was rightly rejected. The appeal was dismissed, and the judgment of the lower appellate court was confirmed.
Headnote
A) Civil Procedure Code - Order 7 Rule 11 - Rejection of Plaint - Barred by Law - Suit by members of a co-operative society against the society and its office bearers for declaration and injunction - Held that the suit is barred under Section 9 CPC as the dispute falls within the purview of the Karnataka Co-operative Societies Act, 1959, and the civil court has no jurisdiction (Paras 3-5).
B) Co-operative Societies - Jurisdiction of Civil Courts - Bar under Section 9 CPC - Disputes relating to the management of a co-operative society are to be decided under the provisions of the Karnataka Co-operative Societies Act, 1959, and not by a civil court - Held that the plaint was rightly rejected as barred by law (Paras 3-5).
Issue of Consideration
Whether the civil court has jurisdiction to entertain a suit filed by members of a co-operative society against the society and its office bearers, in view of the bar under Section 9 CPC and the provisions of the Karnataka Co-operative Societies Act, 1959?
Final Decision
The High Court dismissed the appeal, holding that the plaint was rightly rejected as barred by law under Order 7 Rule 11 CPC. The judgment and decree of the lower appellate court were confirmed.
Law Points
- Order 7 Rule 11 CPC
- Section 9 CPC
- Bar of jurisdiction of civil courts
- Karnataka Co-operative Societies Act
- 1959
- Section 70
- Section 105
- Plaint rejection
- Maintainability of suit
Case Details
2015 LawText (KAR) (11) 1
Regular Second Appeal No.7117/2011
Sri D. P. Ambekar (for appellants), Sri Gururaj Rao Kakkeri (for respondents)
The Shantinikethan Co-operative House Building Society & Ors.
Raghavendra S/o Hanamantharao Kolhar & Ors.
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Nature of Litigation
Regular Second Appeal against dismissal of appeal confirming rejection of plaint in a suit for declaration and permanent injunction.
Remedy Sought
The plaintiffs (respondents herein) sought a declaration that the defendants (appellants) had no right to alienate the suit schedule property and a permanent injunction restraining them from doing so.
Filing Reason
The plaintiffs, being members of the society, alleged that the defendants were attempting to alienate the suit property illegally.
Previous Decisions
The trial court rejected the plaint under Order 7 Rule 11 CPC as barred by law. The appellate court dismissed the appeal under Section 96 CPC, confirming the trial court's order.
Issues
Whether the civil court has jurisdiction to entertain a suit filed by members of a co-operative society against the society and its office bearers, in view of the bar under Section 9 CPC and the provisions of the Karnataka Co-operative Societies Act, 1959?
Submissions/Arguments
Appellants argued that the suit was not maintainable as the dispute falls within the purview of the Karnataka Co-operative Societies Act, 1959, and the civil court has no jurisdiction.
Respondents argued that the suit was maintainable as the dispute related to property rights and not to the management of the society.
Ratio Decidendi
A suit by members of a co-operative society against the society and its office bearers relating to the management of the society is barred under Section 9 CPC, as the dispute falls within the exclusive jurisdiction of the authorities under the Karnataka Co-operative Societies Act, 1959. The civil court has no jurisdiction to entertain such a suit, and the plaint is liable to be rejected under Order 7 Rule 11 CPC.
Judgment Excerpts
The plaintiffs have filed this appeal challenging the judgment/decree of the Appellate Court dismissing the appeal filed by them under Section 96 of CPC and confirming the order passed on A.No.2 by the Trial Court, whereby, the plaint was rejected 'as barred by law'.
The suit filed by the plaintiffs is not maintainable in view of the bar contained under Section 9 of CPC and the provisions of the Karnataka Co-operative Societies Act, 1959.
The appeal is devoid of merit and is dismissed.
Procedural History
The plaintiffs filed O.S. No.8/2008 before the II Additional Senior Judge at Bijapur. The trial court rejected the plaint under Order 7 Rule 11 CPC. The plaintiffs appealed to the II Additional District Judge at Bijapur in R.A. No.118/2010, which was dismissed on 18.12.2010. The plaintiffs then filed the present Regular Second Appeal No.7117/2011 before the High Court of Karnataka, which was dismissed on 02.11.2015.
Acts & Sections
- Code of Civil Procedure, 1908 (CPC): Section 9, Section 96, Section 100, Order 7 Rule 11
- Karnataka Co-operative Societies Act, 1959: Section 70, Section 105
