NATIONAL CO-OPERATIVE CONSUMERS FEDERATION LTD Vs. WEST BENGAL STATE HANDLOOM CO-OPERATIVE SOCIETY LTD

JUDGEMENT

(1.) This revisional application is against the judgement and order passed on 3rd June, 2008 by the learned Member of the West Bengal Co-operative Tribunal in Appeal No. 2 of 2008.

(2.) The brief fact leading to the case is that the petitioner is a National Level Co-operative Society governed by the provisions of the Multi State Co-operative Societies Act, 2002 previously governed by the Multi Unit Co-operative Societies Act, 1942. It carries on business in different States of Union of India through its Branch Offices including the business in West Bengal through its Branch at 27, Mirza Ghalib Street, Kolkata 700 001. The opposite party, the West Bengal State Handloom Co-operative Societies Ltd. was governed by the West Bengal Co-operative Societies Act, 1983 (repealed and substituted by the West Bengal Co-operative Societies Act, 2006 which came into effect from 18.01.2011). The opposite party received supply of handloom and textile goods for its business purely on credit from the year 1999 and made part payments from time to time but did not make payment in full for which some amount of dues payable by the opposite party to the petitioner fell due in the running account. The opposite party purchased on credit for its business, large quantity of liveries and other textile goods costing Rs. 59,16,490.85 towards the value of the goods and the interest payable at the rate of 12% per annum, a sum of Rs. 91,11,396/- including interest of Rs. 31,94,905/- was payable by the opposite party to the petitioner upto 31st August, 2006. The opposite party filed written statement/objection to the authority of the Branch Manager, Kolkata of the plaintiff society to file the dispute case and questioned the jurisdiction of the Registrar of Co-operative Societies, West Bengal to admit the dispute under Section 95(1) of the West Bengal Co-operative Societies Act, 1983. However, opposite party initially admitted the dues of Rs. 57, 74,000/- but later changed its stand. A rejoinder was also submitted by the opposite party on 9th April, 2007 in which the opposite party took a plea that the petitioner was registered under the Multi State Co-operative Societies Act, 1984 but as the opposite party was registered under the West Bengal Co-operative Societies Act, 1973, the petitioner was not entitled to file a dispute case under the provision of the Act, 1983 against the opposite party. It was further contended that the petitioner society being a National Co-operative Society under the Multi State Co-operative Societies Act, 1984, the Registrar of Co-operative Societies, West Bengal has no jurisdiction to pass any order in terms of the provisions of the Multi State Co-operative Societies Act and an award was passed by the Arbitrator on 31-08- 2008 directing the opposite party to pay the petitioner a sum of Rs. 59,16,490.85 together with interest at the rate of 12% from the filing of the dispute.

(3.) Being aggrieved, the opposite party preferred an appeal before the West Bengal Co-operative Tribunal which was registered as Appeal Case No. 2 of 2008 and the learned Tribunal held that since the dispute was against a nonmember of the plaintiff, the case ought to have been instituted as a suit before the civil court. On being aggrieved by judgement dated 3rd June, 2008 passed in Appeal No. 2 of 2008 by the West Bengal Co-operative Tribunal, the Notational Co-operative Consumers' Federation Ltd. as the petitioner has preferred this revision under the scheme of Article 227 of the Constitution of India contending that Section 95(1) of the West Bengal Co-operative Societies Act of 1983 provides that any dispute concerning business or affairs of a Co-operative Society, capable of being a civil litigation is required to be referred to the Registrar, if the parties include, inter alia, any person having transaction with a Co-operative Society and this fact has not been taken into consideration by the learned Tribunal as the National Cooperative Consumers' Federation Ltd. being a juristic person having right to or be sued falls within the meaning of any person as provided in Section 95(1) of the West Bengal Co-operative Societies Act, 1983 which the learned Tribunal failed to take into account and committed an error. It is urged that if any person is capable of filing a dispute, there could be no reason why the National Co-operative Consumers' Federation Ltd. should be denied such liberty, simply because there is no provision in the Multi State Co-operative Societies Act for filing dispute against the non-member of the said Act. It would be pertinent to note that the Section 134(2)(d) of the West Bengal Co-operative Societies Act, 1983 which bars the civil court jurisdiction to decide the disputes which are required to be referred to the Registrar under the ambit of Section 95(1) and such disputes cannot be tried by a civil court if the parties there within (a) to (d) of Section 95(1) of the said Act. Accordingly, if the National Co-operative Consumers' Federation Ltd. is compelled in terms of the order passed by the learned Tribunal to file civil suit, the civil court can be persuaded by the other side to reject the suit. Secondly, it is submitted with regard to Co-operative Societies and Multi Unit Co-operative Societies Act, 1942 that before enactment of the Multi State Co-operative Societies Act, the Government of India enacted the Multi Unit Co-operative Societies Act, 1942 for those types of Co-operative Societies which were registered in one State but doing business in another State or other State. In the cases of dispute by and between Multi Unit Co-operative Societies and others, the Hon'ble Court held that such dispute shall be decided in accordance with law relating to Cooperative Societies of the State where the business has been transacted.