LexTHE SUGAULI SUGAR WORKS (PRIVATE) LTD. versus THE ASSTT. REGISTRAR, CO-OPERATIVE SOCIETIES
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
Ma,ch l·l.
..
S04 SUPREME COURT H.EPOHTs [i962] SUPP.
THE SUGAULI SUGAli WORK') (PltIVATE) LTD.
v.
THE ASSTT. HEGISTRAl1, 00-0PERATJ\'E
SOCIETIES
(B. P. SINHA, c. J., K. SUBBA RAO, N. IiAJAOOl',\J,A
AYYAJSOAit, J. l{. MuDHOLitAit and T.J,.
VE:SKATARAMA AIYAR, JJ.)
(}o-operatii·e Society-R,,fercnce_:._Juri.vdt"ction of /(eyist,-cir
-If can entertain claim f,y registered society ayainJi non-1uernfxr
-Bilzar and Orisu1 Co-operative Socielies Act, 1935(/J. & 0. Ii
i-
of WJ!i), a.s amenrlcd l1y Jlihar Co-operatiuc Societie• (. l me nrl-
mc11t) Act, 19·18 (llihar W of 1948), ss.48 (1), 16(1) ,,,,,/
2(c).
The point for ~etennination in the appeal was wl~hcr
the Registrar of Co-opcrati\'C Sr1cieties under the Bihar nnJ
Orissa Co-operative Societies Act, 1935, as amended by Act
16 of 1948, had the jurisdiction under s. 48(1) of the Act to
hear and decide a reference made by a registered society
against a non-member. The appellant company, incorporated
under the Indian Companies J\ct, with its registered office
at Calcutta, 1nanufacturcd s11gar in Dihar. 'fhe second res-
pondent the Union of Cn-operative Societies, registered under
the Co-operative Societies Act, mad,c a reference under s. tB
of the Act, against the appellant claiming the sum of
Rs. 1,20,809/- odd as co1nmission and interest for supplying
sugarcane in 1950-60.
The first respondent, the 1\ssistant
Registrar of Co-operative Societies registered the reference and
issued notice to the appellant.
The appellant took the preli-
minary objection that the 1\ssistant Registrar ha<l no juris·
diction under the 1\ct to entertain the reference.
'fhat objcc·
tion was overruled by the Assistant Registrar relying on a
decision of the High Court and the High Court upheld that
order by dismissing in limine the appellant's petition under
Arts. 226 and 227 of the Constitution.
Held, that the High C'.ourt had taken a wrong view of
the law.
Althoush under s. ·18 of the Act the claim by a financing
bank again.~t a non-1nen1.ber to whon~ it had 1n~cle ~n advance
either in cash or kind, \Ylth lhe s~nctlon of the ReglStrar under
s. 16( I), could l?e entertained l~y the Registrar_, that did not
mean that a c\a11n not nf the kind referred to 111 s, lfi( I), read
3 S.C.R.
SDPREME COURT REPORTS
805
withs. 2(c), made by a registered society against a non-
member, who was not an agriculturist, was \Vithin the purview
of s 48(1), read with the Explanation!. The addition of the
word 'non-member' by the amending Act of 1948 to the
Explanation I, did not enlarge the scope of the main section
so as to make all kinds of dispute between a registered society
and a non-member cognizable by the Registrar.
Since in the present case, the second respondent was not
a financing bank nor was the appellant an" agriculturist,
s. 48(l)(e) and the Explanation I could have no application.
Union of India v. Registrar, Co-operative Societies, Patna,
(1961) I.L.R. 40 Pat. 7, overruled.
·
CIVIL APPELLATE JURISDICTION: Civil Appeal
No. 100 of 1962.
Appeal by special leave from the judgment
and- ordilr dated October 30, 1961, of the Patna
High Court in M.J.C. No. 954 of 1961.
A. N. Sinha, A. K. Nag and P. ](. Mulche1jee,
for appellant ..
0. K. D~phf£!ry, Soliciwr General of India and
S. P. Varma, for respondent No. 2.
L. K . .fh'J and S. P, Varma, for respondent
No. 3.
1962. March 14. The Judgment of the Court
was delivered by
SINHA, C. J.-This appeal, by special leave, is
directed again~t the order of a Division Bench of the
Patna High Court, dated October 30, 1961, dismis-
sing in limine the appellant's petition dated October
24, 1961, under Arts. 226 and 227 of the Constitu-
tion, being Miscellaneous Judicial Case No. 954 of
1961, for a writ of Prohibition directing the first
respondent not to· proceed with the A ward Case
No. IOI of 1961, and a writ of Certiomri for quash- ·
ing the order of the said respondent, dat~d Septem-
ber · 29, l!l6 I. The appellant is a private limited
compa.ny, incorporated under the Indian Companies
Act, with its registered offlce · at
Oajcuttq. H
1962
T1i1 Sug"uli Sug'"
JJ'o1ks (Prival1}-l1d. ·.
••
Tiu Asstt. R1gistf'tar
Co-optrative 5o.;ittits.
Sinh• C.J.
1962
Tilt Sug1uli Suga'
Works ".Privak; l.1d.
v.
Tltt A uJI. Btgistrar.
f~llt" SuriltuJ.
Si1ha C.J.
806 SUPREME COURT REPORTS [1962] SUPP.
carries on the business of manufacturing sugar in
its factory at Sugauli in the district of ChampExcerpt shown. Read the full judgment & AI analysis in Lexace.