PAL Vs. U P RAJYA SAHKARI VIKAS BANK

JUDGEMENT

(1.) A few legal questions which arise for consideration in this second appeal, in context with Section 70 of the U.P. Cooperative Societies Act, 1965, hereinafter referred to as the Act, are as to what constitutes a dispute relating to the business of a society as may be referable to the arbitration, and further as to whether an auction-purchaser of property in proceedings for realisation of dues standing against a member of the society would be a stranger to the arbitration proceedings or he would be one claiming through a member of the society. Yet another question is about notice which is required to be given under Section 117 of the Act to a cooperative society, before filing a suit in the Court of law.

(2.) Brief facts necessary for appreciating the questions which have arisen for consideration, are that plaintiffs Shri Pal and Siyaram had taken loan of Rs. 1200.00 from Rajya Sahakari Vikas Bank, Barabanki on 21-12-1965, pledging some plots of land, situate in village Shahpur, Pargana Deva, Tahsil Nawabganj, District Barabanki in security. It appears that the loan could not be repaid, hence a demand notice was served on Shri Pal demanding an amount of Rs. 1786.00, in realisation whereof the land of the appellants was auctioned in June, 1974 and it was also confirmed around the same period. Plaintiffs Shri Pal and Siyaram filed a suit for cancellation of the sale deed which was executed in favour of respondent No. 2. It may be mentioned here that respondent No. 2. Chhote Lal transferred the land to respondents Nos. 3 to 6. A number of pleas were raised by the parties which gave rise to nine issues framed by the trial Court in two stages, which may be quoted as below:

(3.) Aggrieved by the judgment of the trial Court, the appellants preferred a first appeal, which too, was dismissed by the Ist Appellate Court by judgment and order dated 12-12-1978. The appellate Court upheld the finding of the trial Court about the bar of the suit as well as about the notice under Section 117 of the Act. So far the question of payment of Rs. 1786.59 p. by the plaintiffs and having obtained receipt of the same was concerned, that was not accepted by the Ist Appellate Court and the case of the plaintiffs in that regard had been found to be without force and the document which was relied upon by the plaintiffs was held to be suspicious. Thus the finding of the trial Court in respect of that matter had also been upheld. So far as the sale of the crop worth Rs. 5025.00 was concerned, the Ist Appellate Court observed that no such issue was framed; therefore, that aspect could not be looked into in appeal. This is how the appeal also stood dismissed.