SHAMJI RAKHAMA PATIL Vs. MAHADEV SADASHIV PATIL

JUDGEMENT

(1.) It is necessary to state the facts which led to the present litigation.

(2.) The Darogaon Co-operative Credit Society, of which the plaintiff, the defendants, and others were members and Shravan Shamji was chairman, executed an agreement with the Malegaon Municipality to purchase and remove the manure for five years at the rate of Rs. 2,500 for 1916-1917 and Rs. 100 in addition for each subsequent year. The plaintiff and defendant No. 1 were sureties of the society for the due performance of the agreement. The contract was carried out for some years and was subsequently broken on October 1, 1918. The Malegaon Municipality thereupon brought Suit No. 304 of 1921 against Shravan Shamji, the plaintiff, defendant No. 1., and the liquidator representing the co-operative society. On November 21, 1922, a decree was passed awarding the plaintiff's claim against the society as regards its property represented by the liquidator and against defendant No. 1 and the plaintiff. The claim was dismissed as against the chairman. In the liquidation proceedings the liquidator recovered Rs. 825 and paid it to the Municipality. The present plaintiff paid as surety Rs. 2,891-1-10 and costs and has brought this suit against the co-surety defendant No. 1 and some of the members of the Daregaon Co-operative Credit Society. The defence of the defendants other than defendant No. 1 was that if the society were to be held responsible, 111 members of the society were necessary parties. It was also objected that the contract was ultra vires of the co-operative society and that Section 42 of the Co-operative Societies Act barred the present suit.

(3.) The learned Subordinate Judge held that defendant No. 1, the cosurety, was liable to pay the amount of Rs. 1,398-12-5 and the suit as against defendants Nos. 2 to 17 was dismissed.