LexCO-OPERATIVE SOCIETY OF DEBTS versus NANDLAL
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
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S.C.R.
SUPREME COURT REPORTS
741
I, therefore, agree with my Lord the Chief Justice
that this appeal should be allowed and the judgments
and orders of the Courts below should be set aside and
the petition should stand dismissed. I also agree to the
order for costs made by my Lord the Chief Justice.
Appeal allowed.
Agent for the appellant: Ranjit Singh Narula.
Agent for the respondents Nos. 1 (a) and 1 (b) :
Rajinder Narain.
lIN THE SUPREME COURT OF INDIA (HYDERABAD).]
CO-OPERATIVE SOCIETY OF DEBTS
v.
NANDLAL
[MEHR CHAND MAHAJAN and R. s. NAIK JJ.J
Co-operative Cr<dit Societies Act, 1340 ]!'., (Hyderabwi), s. 42
--Award-Remission by Registrar to Civil Court for execution-
Poicers of Registrar-Instal1nent decree-Defa'U,lt-Exer:tltion pro·
ceedinas for whole amount in Civil Oourt-P(,wer of Registrat· to
a.ccept instalment and direct Civil Oottrt to stop proceedings.
Section 42 of the Co-operative Credit Societies Act, 1340 F.,
{Hyderabad) provided as follows: "If an award g:ven by the
Registrar or by a person nominatecl by him, or by a comruittee
of arbitrators is not acted upon, then tbe Registrar can J~ave it
enforced-(a) through a civil court on a certificate issu~d by him.
The civil court will treat the award in the satne way as itB own
decree; l_b) through a Revenue Court or officer by issuing a certi-
':ficate to that court or officer."
Held, that under the section the Registrar was not in the
same position as a court passing t.he decree unUer the Civil Pro-
cedure Code in the matter of execution of the decree and be does
not possess all the powers of an executing court.
Where a dispute arose bet,veen a m<:mber of a society and
the society and an arbitrator appointed under the Act passed a
decree for payruent of a certain sum in six monthly instaln1ents
with a condition that if default was made in the payment of any
inRtaln1ent the who!e amount will become due, and under the
provisions of s. 42 the decree was sent for execution to the Civil
Court au a. certificate of Registrar :
95
1950
Province of
Bonibay
v.
K. S. Advani
and Others,
Das J,
1950
Oc~. 12.
742
SUPREME COURT REPORTS
[1950]
1950
Held, that after a default bad been made in the payment of
the first instalment and the whole decree de.bt had become duo
Oo-ope1 alive
and execution had been taken out for recovery of tht:l \vhole
Soc1et11 of Debts amount, the Rei;(istrar had no pJwer to accept the amount of first
v.
instalment and direct the executing co1.1rt to stop further pro-
Nandlo,f,
ceed.inga, and the executing court wa.s entitled to ignoro the
Registrar's order and ta proceed with the execution.
APPEAL under article 37 4( 4) of the Cons ti tu tion from
a judgment and decree of the High Court of Hydera-
bad dated 24th Aban 1356 F., in Civil Appeal No.
374/4 of 1356 F.
Devi Pershad, for the appellant.
Appa Rao and Sada Shiva Rao, for the respondent.
1950. October 12.
The judgment of the Court was
delivered by
»ahajan J.
MAHAJAN ].-This appeal arises out of execution
proceedings of a decree passed by an arbitrator under
the Co.operative Credit Societies Act.
The appeal was
presented to the Judicial Committee of the State and
is now before us under article 374 (4) of the Constitu-
tion.
Raja Nandlal was a member of the decree-holder
society and was also its debtor. A dispute arose
between him and the society and under the rules
governing such societies the matter was referred to
arbitration. The arbitrator on the 19th Meher 1352 F.,
passed a decree against him in the sum of Rs. 8,100
payable' in equal six monthly instalments with six
per cent. interest, the first instalment being payable at
the end of Azur 1353 F. On the 2nd Dai 1353 F.,
under the provisions of section 42, clause ( d), of the
Co-operative Societies Act the decree was sent for execu-
tion to the civil court on a certificate issued under the
signature of one Moulvi Mohammed Hasan, Madadgar
Nazim.
The amount recoverable was stated as
Rs. 8, 100 principal and Rs. 666·9-0 interest.
On the
same day the decree-holder presented an application
for execution of the decree to the Civil Court, Balda,
claiming recovery of Rs. 10,339 14-9. It was alleged
that as default had been committed in the payment of
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$.C.R.
SUPREME COURT REPORTS
743
the first instalment due in the month of Azur 1353 F.,
1950
the wh<J!e decretal amount had become recoverable.
It was prayed that the property detaExcerpt shown. Read the full judgment & AI analysis in Lexace.