SAVITRI BAI NAGAN GOUD Vs. GUTTI THOTAPPA

JUDGEMENT

(1.) The petitioners herein are defendants 1 to 5 and 7 in O. S. No. 2 of 1950 on the file of the Sub-Court of Bellary and they seek to revise the finding given by the lower Court on issues 1 and 2, viz., that the suit is not tarred by Section 51 of the Co-operative Societies Act and that the lower Court has jurisdiction to try the suit.

(2.) The first six defendants in the lower Court, as well as the plaintiff, constituted the managing body of the Hospet Co-operative Stores Ltd., registered under the Co-operative Societies Act and the society was defendant 7 in the suit. The respondent-plaintiff sued for a declaration that the resolution of the managing body dated 30-10-1949 purported to have been passed by defendants 1 to 5 removing the plaintiff from the presidentship of the society and appointing defendant 1 as President of the Hospet Co-operative Stores is illegal, unconstitutional and ultra vires of the powers of the directors and consequently for a permanent injunction restraining defendant 1 from taking charge as president. The defence was that the suit is not maintainable in a civil Court because the subject-matter of the suit is one of domestic concern relating to the business and management of the society and therefore the suit is barred under Section 51, Co-operative Societies Act, as well as the bye-laws of the society. The learned Subordinate Judge tried the first and second issues as preliminary ones and held that as the matter is not a dispute touching the business of the society the suit as framed is maintainable. He directed that the further trial of the suit will go on.

(3.) The relevant portions of Section 51, Madras Co-operative Societies Act (VI [6] of 1932) run as follows :