IJJANA BHOGAYYA Vs. ARTHAMUR DEVARAVADA PARAPATHI SANGAM LTD

JUDGEMENT

(1.) The scops and extent of the bar of suits and other legal proceedings under Section 48 of the Madras Cc-oparative Societies Act 6 of 1932 arises for determination in this appeal. The plaintiff-appellant bid certain properties put up for sale by a Co-operative Society known as the Arthamur Devaravada Parapathi Sangham Ltd, Arthamur. He also made an initial deposit of over one-fourth of the bid and paid also the balance. The second defendant, to whom some of the properties belonged and who was a defaulter, was given back two of the items of properties on his paying the arrears of dues. The appellant instituted the present suit for specific performance of a contract of sale by virtue of his having bid at the sale in auction held on 19-7-1942 when he made the bid and made the initial payment. Specific performance was refused by the trial court. Alter the termination of the suit and before the filing of the appeal, the first defendant-Society was wound up, and a liquidator was appointed. In the appeal preferred by the appellant, a preliminary objection as to its maintainability was raised, relying on Section 48 of the Madras Co-operative Societies Act, 1932. The learned Subordinate Judge of Masulipatam upheld the objection and rejected the appeal without going into the finding on the other issues.

(2.) Section 48 of the Act is in the following terms :

(3.) It is urged that the words "other legal proceeding" in the section should not be construed as including an appeal, as was understood by the lower appellate court, and that the bar is only in respect of the initiation of a suit or other legal proceeding, which is not a suit but an original proceeding initiated for the first time and not an appeal, at any rate. In so far as the bar of a suit is concerned, apart from the clear language of Section 48, there is a decision of this court reported in --'Kuppu Govinda Chettiar v. Uttukottai Co-operative Society', AIR 1940 Mad 831