MADDIMSETTI RAMAYYA Vs. LIQUIDATOR OF BOLLANKA CO-OPERATIVE CREDIT SOCIETY, CARE OF DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES

JUDGEMENT

(1.) The question for decision in this second appeal is whether the plaintiff's suit is barred by Section 48 of the Madras Co-operative Societies Act. Both the lower Courts have dismissed the suit on the ground that it is so barred.

(2.) The question is whether this view is tenable. The facts briefly are as follows. The first defendant co-operative society obtained a decree against the second defendant in claim No. 2235 of 1932-33 for Rs. 604-13-4 and in execution of the same brought the properties to sale. The plaintiff preferred a claim under Rule 22 (17) (a) of the Rules made under the Madras Co-operative Societies Act on the ground that he was a purchaser of the property under a registered sale deed dated 7 February, 1922. But the said claim was dismissed by the sale officer on 29th June, 1938. The plaintiff thereupon filed the present suit on 16 November, 1938, within six months of the said order to set aside the said sale and to establish his right to the property.

(3.) The view taken by both the lower Courts is that under Section 48 of the Co- operative Societies Act the plaintiff should have obtained leave of the Registrar to institute the suit, that the said leave is a condition precedent to such institution and he having failed to do so, his suit must fail. Section 48 of the Cooperative Societies Act runs thus: Save in so far as is expressly provided in this Act, no civil Court shall take cognizance of any matter connected with the winding up or dissolution, of a society under this Act, and when a liquidator has been appointed no suit or other legal proceeding shall lie or be proceeded with against the society except by leave of the Registrar and subject to such terms as he may impose.