Bar of jurisdiction of Court

Section 57 of the Bihar Co-operative Societies Act, 1935 deals with bar of jurisdiction of Court. - "[(1) Save in so far as expressly provided in this Act., no Civil or Revenue Court shall have any jurisdiction in respect of any matter concerned with the winding up or dissolution of the registered society or suspension of the Managing Committee of a registered society under its act, or of any di

- "[(1) Save in so far as expressly provided in this Act., no Civil or Revenue Court shall have any jurisdiction in respect of any matter concerned with the winding up or dissolution of the registered society or suspension of the Managing Committee of a registered society under its act, or of any dispute required by section 48 to be referred to the Registrar or of any proceedings, under ChapterVII A.] (2) While a society is in liquidation, no suit or other legal proceeding shall be proceeded with or instituted against the liquidator as such or against the society or any member thereof on any matter touching the affairs of the society, except by leave of the Registrar and subject to such terms as he may impose.

(3) No order of the State Government, District Judge, Registrar, a person appointed to assist the Registrar, liquidator, or an arbitrator or arbitrators purporting to be one, which under any provision of this Act is declared to be final shall be liable to be challenged, set aside, modified. revised, or declared void in any Court upon merits or upon any ground whatsoever except want of jurisdiction. Comments & case-law [Where the plaintiff used the Co-operative union of which he was a member to recover arrears of interest on deposit made by him, and the dispute was about rate of interest, it was held, that the suit did not lie in the Civil Court, as the cognizance of the dispute by it was barred by section 57 of this Act, AIR 1937 Pat. 531 : 16 PLT 255: 69 IC 689. Sub-section (3) of this section cannot be interpreted to mean that where an order passed by a liquidator is challenged on the ground that it was passed without jurisdiction, no leave of the Registrar is necessary under sub-section (2), reading sub-sections (2) and (3) together, it is clear that whatever may be the scope of the suit or legal proceeding that may be instituted against a liquidator as such the leave of the Registrar will be necessary. Thus, where a person institutes a suit against a liquidator as such for declaration that an award passed by the liquidator to the effect that the person who was a- surety for one of the members of the society under liquidation was liable for the amount for which he was a surety was ultra vires and ineffective, leave of the 1. Subs. by (Amdt.) Act 5 of 1989. 7o] [ Sec. 57 Registrar under sub-section (2) is necessary and sub-section (3) can be of no avail. AIR 1948 Pat. 337. The exclusion of the jurisdicton of the civil court is not to be readily in ferred but such exclusion must be either explicitly expressed or clearly implied, Section 57 (3) clearly vests jurisdiction in the Civil Court in cases where an award is passed without jurisdiction .(1964) 30 Cut LT 509. · A Civil suit for declaration that the dismissal order of the employee of a Cooperative Society as a result of disciplinary proceedings is invalid, is not barred. U.P Co-operative Cane Union Federation Ltd. vs. Liladhar, AIR 1981 SC 152: 1980 (Supp.) SCC 61o. A suit by an employee of a Co-operative society for declaration that retrenchment of his services is illegal does not relate to "business of Co-operative Society". Bar of jurisdiction of Courts will not apply to such a suit. Allahabad District Co-op. Ltd. vs. Hanuman Dutt Tewari, AIR 1982 SC 120: (1981) 4 SCC 431. Co-operative Societies Act cannot be challenged on the ground that the protection afforded by Article 31 A (1) (c) was not available to co-operative societies. Protection of Article 31 A (1) (c) cannot be said to be not available on the ground that interest of co-operative society may not necessarily be in public interest. Daman Singh vs. State of Punjab, AIR 1985 SC 973. Power to order amalgamation of a co-operative society of which an individual is member, with another society cannot be remotely held to offend the dignity of a human being so as to offend the basic structure of the Construction within the meaning of Article 20. ibid. Once it is found that the award is without jurisdiction, the matter comes under sub-section (3) and under the jurisdiction of the Civil Court to entertain the suit. Subsection (2) has no application to such cases. ibid. The object of enacting section 57 is the matters of detail relating to the affairs of a society should be disposed of the Fegistrar. Liquidator should not be dragged into court to explain the reasons for his decision. AIR 1953 Orissa 300. The payment of debts of a society whether decretal or otherwise, is clearly "a matter touching the affairs of a society" within the meaning of sub-section (2) of this section, and proceedings to realise such debts are barred except by the leave of Registrar. An application to execute a decree for costs against a society can, therefore, lie only with leave of the Registrar under section 57 (2). AIR 1940 Pat. 253: 21 PLT 217: 1940 PWN 155: 6 BR 776. A dispute between the parties as to the manner or enforcement of payment (a certificate having been obtained under the Public Demands Recovery Act for enforcing an award made by Registrar) is a dispute touching the business affairs of a society. AIR 1942 Pat. 148: 22 Pat. LT 947: 8 BR 172: 197 IC 115. The liquidator is empowered under section 43 (3) to take proceedings to execute an award issued by the Registrar against a member of the Co-operative Society in liquidation. If the member is aggrieved by the liquidator's action, he may apply to the Registrar to interfere with the liquidator's act under section 56 or to grant leave for the institution of the suit under section 57 (2) of this Act. A suit by him against liquidator is not maintainable in the absence of Registrar's sanction for its institution. AIR 1941 Pat. 428: 1941 PWN 373: 7 BR 585: 193 IC 142. Pending an appeal from a decree in a suit against a Co-operative Bank, the Secs. 57A-57B ] Bank went into liquidation. The liquidator was made a party respondent on the application of the applicant who also applied to the Registrar for leave to proceed with the appeal under section 57 (2), but received no such leave. It was held that the appeal was not maintainable and was therefore liable to be dismissed. 1944 PWN 172. A wrong decision on a question of limitation may not amount to a defect of jurisdiction under section 57 (3), but an order determining a liability after expiry of the period provided by law, is an order without jurisdiction and therefore can be declared void and ignored. 10 BR 546. Reference to the Registrar is not barred because of the pendency of a civil suit in regard to the same matter or some common matters. Pt. Raghav Jha vs. Registrar, Co-op. Society. 1962 BLJR (Rev.) 62: ILR 41 Pat. 325. Agreement between parties cannot confer jurisdiction where jurisdiction of civil courts is ousted under the Act. Orissa State Co-op. Mty. Federation vs. Association Mktg. Co., AIR 1982 Orissa 1. If the langauge of the statute is clear and unambiguous, it is not open to the Court to put any other interpretation which may violate the phraseology used therein. The width of the expression used in the statute cannot be narrowed down or cut down by courts. Smt. Pratibha Singh vs. State of Bihar, 1988 PLJR 646. Supreme Court will not interfere where refusal of permission by competent Authority to a Co-operative Housing Society to develop its land in accordance with its layout plans is based on relevant and cogent reasons. Kendriya Karamchari Grih Nirman Samiti Ltd. vs. New Okhla Industrial Development Authority, (1988) 1 SCC 63.] diaCodo. 1[CHAPTERVII-A Distraint 57 A. Cases in which application for distraint may be made .- Where any debt or outstanding demand is due to a registered society from any member, past member or estate of deceased member or is due to a registered society which is duly authorised by the Registrar under any of the provisions of sub-section (1) of section 16 of this Act to grant loans to non-members, from any person who is not a member of a registered society or from the estate of such person if he is dead the society may, in addition to any other remedy to which it is entitled by law, present an application to the Registrar requesting him to recover the debt or outstanding demand by distraining, while in the possession of the defaulter.

(1) any crops or other products of the earth standing or ungathered on the holding of the defaulter;

(2) any crops or other products of the earth which have been grown on the holding of the defaulter and have been reaped or gathered and are deposited on the holding or on a threshing floor or place for treading out grain whether in the fields or within a homestead.

Section 57, The Bihar Co-operative Societies Act, 1935 (Act 6 of 1935).