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2025 DAILYLAW 54643 (KAR)

MYSURU DISTRICT CENTRAL CO OPERATIVE WHOLESALE STORES LIMITED v. M/S NIMISHAMBA ENTERPRISES

CRP/73/2021 · 2025-11-04

V Srishananda

Original Suitbody2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE V SRISHANANDA CIVIL REVISION PETITION NO. 73 OF 2021 (IO) BETWEEN: MYSURU DISTRICT CENTRAL CO-OPERATIVE WHOLESALE STORES LIMITED, JANATHA BAZAR BUILDING, ASHOOKA ROAD, LASHKAR MOHALLA, MYSURU - 570 001 REPRESENTED BY ITS MANAGING DIRECTOR. …PETITIONER (BY SRI. SANDESH T.B, ADVOCATE) AND: M/S. NIMISHAMBA ENTERPRISES BY ITS PARTNER 1. SMT.SEETHA LAKSHMANA 2. SMT.USHA BOTH ARE RESIDING AT URS ROAD, 3RD CROSS, DEVARAJA MOHALLA MYSURU - 570 001. …RESPONDENTS (R1 AND R2 ARE SERVED AND UNREPRESENTED) Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 THIS CRP IS FILED UNDER SECTION 115 OF CPC, AGAINST THE ORDER DATED 08.12.2020 PASSED ON I.A.NO.4 IN O.S.NO.985/2019 ON THE FILE OF THE VII ADDITIONAL I CIVIL JUDGE AND JMFC, MYSURU, REJECTING I.A.NO.4 FILED UNDER ORDER 7 RULE 11(d) OF THE CPC FOR REJECTION OF PLAINT. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE V SRISHANANDA ORAL ORDER Heard Sri.Sandesh T. B., learned counsel for the revision petitioner. 2. Defendant is the revision petitioner challenging the order passed on the file of VII Additional First Civil Judge and JMFC, Mysuru in O.S.No.985/2019 dated 08.12.2020 whereby application filed under Order VII Rule 11(d) of CPC vide I.A.No.4 came to be rejected. 3. Facts in the nutshell which are utmost necessary for disposal of the revision petition are as under: - 3 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 3.1. Plaintiff filed a suit in O.S.No.985/2019 with the following prayer: “Wherefore, the plaintiff prays that the Hon’ble Court be pleased to pass a judgment and decree in favour of the plaintiff and as against the defendant for the relief of permanent injunction restraining the defendant, their agents, subordinates, power of attorney holders, servants or any person/s acting on their behalf from interfering with the plaintiff’s peaceful possession and enjoyment over the suit schedule property in any manner whatsoever unless and until she is evicted from the due process of law and not otherwise and to grant court costs and such other relief/s as the Hon’ble Court deems fit to grant in circumstances of the case, in the interest of justice and equity.” 3.2. Plaintiff contended that he being in lawful possession in respect of the shop premises bearing No.6 and 7 situated in the ground floor, southern block of Bidadi, Mysuru palace, Mysuru, claimed the relief of permanent injunction on the ground that he has taken the - 4 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 said shop on the lease basis from Mysuru palace Board, Mysuru. 3.3. He is running business pertaining to KSIC Products and tramcar for the age old people and also foreigners who visit the palace and monthly rent is Rs.31,000/-. 3.4. When there was interference with regard to the peaceful possession and enjoyment of the suit property, suit for permanent injunction came to be filed. 4. Defendant entered appearance and contended that suit is not maintainable in view of Section 70 and 120(5) of the Karnataka Co-operative Societies Act. 5. He also filed an application in that regard. Said application on contest, came to be rejected. 6. Validity of the same is called in question in this revision petition on following grounds: - 5 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 The learned VII Additional First Civil Judge has committed an error of law in passing the impugned order by holding that there is no reason to keep the case pending anymore and where the statutory provision under Section 125 of KCS Act not complied and trail court has given reason that court has dispensed the prior notice is perverse and unsustainable. That the under section 70 and 118 of Karnataka Co-operative Societies Act, Civil Court has bared to institute the suit, that the jurisdiction of suit as to be instituted before the Registrar of Co- operative society however without considering the facts and circumstances dismiss the IA No.4 is on sustainable and against the law. That the petitioner society has taken a suit schedule property on lease from Mysuru Palace Board, then the petitioner society have leased out the schedule property infavor of the respondent for the purpose of running the business pertaining to KSIC products and tramcar for the age old people. That the respondent is a member of petitioner society and the society registered under the Co-operative Society Act, if any dispute arising among the members or past members section 70 of Co-operative Society Act is the - 6 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 proper forum to institute the case. As per section 70 and 118 of KCS Act is an under: Section 70: Disputes which may be referred to Registrar for decision.-(1) Notwithstanding anything contained in any law for the time being in force, if any dispute touching the constitute, management, or the business of a co-operative society arises, a. Among members, past members and persons claiming through members, past members and deceased members, or b. Between a member, past members or persons claiming through a member, past member, or deceased and the society, its [board] or any officer, agent or employee of the society, or c. Between the society or its (board) and any past [board], any officer, agent or employee, or any past officer, past agent or past employee or of the society, or the nominee, heirs, or legal representatives of any deceased officer, deceased agent or deceased employee, or d. Between the society and any other co- operative society, [or credit agency] - 7 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 Such dispute shall be referred to the registrar for decision and [no Civil or Labor or Revenue Court or Industrial Tribunal) shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute. (2) xxxxxxxxx (3) if any question arises whether a dispute referred to the Registrar under the section is a dispute touching the constitution, management or the business of a co-operative society, the decision thereon of the Registrar shall be final and shall not be called to question in any Court. Section 118. Bar of Jurisdiction of Courts. (1) Save as provided in this Act, No [Civil, Labor or Revenue Court Industrial Tribunal) shall have any jurisdiction in respect of,- a. The registration of the Co-operative society or by-laws or of an amendment of by-law; b. The removal of a member of a member or the removal and disqualification of a director of the removal of a board; c. Any surcharge application required under section 69 or any dispute required under section 70 to be referred to the registrar or - 8 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 any recovery of moneys under section 100 or the execution of any award or order referred to the registrar for execution under section 101. d. Any matter concerning the winding up and the dissolution of a co-operative society. (2) While Co-operative Society is being wound up, no suit or other legal proceedings relating relative to the business of such society shall be proceeded with, or instituted against, the liquidator as such or against the society or any member thereof, except by leave of the registrar and subject to such terms as he may impose. (3) Save as provided in this Act, no order, decision or award made under this Act shall be questioned in any Court on any ground whatsoever. However the act barred the civil court Jurisdiction all these contention raised before the civil court and without appreciate the fact and circumstances dismissed the IA No.4 order passed by the lower court perverse and unsustainable. That the respondent is a member of the petitioner society, the respondent filed suit for permanent - 9 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 injunction against the petitioner society, per contra there is a bar filing the suit against the society under section 125 of KCS Act and the Act clearly stated that no suit shell be instituted against a Co-operative Society or any of its officers in respect of any Act touching the constitution management or the business of the society notice is necessary under section 125 of Co-operative Societies Act. herein the respondent has no notice taken under section 125 of KCS Act has filed the suit for permanent injunction against the petitioner all these circumstances petitioner has filed IA No.4 under Order 7 Rule 11(d) of CPC, all the facts and circumstances without keep in mind the learned VII ADDL FIST CIVIL JUDGE AND JMFC Mysuru has rejected the IA No.4 is against the law and arbitrary. Illegally with material irregularity in passing the impugned order, which cannot be sustained in law.” 7. Learned counsel for the revision petitioner reiterating the grounds urged in the revision petition vehemently contended that the Court below has not properly appreciated the scope of the suit and the bar - 10 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 found in Section 118 of the Karnataka Co-operative Societies Act. 8. He would further contend that Section 70 of the Karnataka Co-operative Societies Act makes it incumbent on the plaintiff to approach the Registrar of Karnataka Co- operative Societies Act for any dispute between the plaintiff and defendant and the Civil Court entertaining the suit has thus resulted in grave injustice. 9. Respondent is served with the notice and unrepresented. 10. Having heard the arguments of learned counsel for the revision petitioner, this Court perused the material on record meticulously. 11. On such perusal of the material on record, it is just and necessary for this Court to cull out Section 118 of the Karnataka Co-operative Societies Act which reads as under: - 11 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 “118. Bar of jurisdiction of courts.- (1) Save as provided in this Act, no 1 [civil, labour or revenue court or Industrial Tribunal] 1 shall have any jurisdiction in respect of,— (a) the registration of a co-operative society or bye-laws or of an amendment of a bye-law; (b) the removal of a member or the removal and disqualification of a director or the removal of a board; (c) any surcharge application required under section 69 or any dispute required under section 70 to be referred to the Registrar or the recovery of moneys under section 100 or the execution of any award or order referred to the Registrar for execution under section 101] (d) any matter concerning the winding up and the dissolution of a cooperative society. (2) While a co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with, or instituted against, the Liquidator as such or against the society or any member thereof, except by leave of the Registrar and subject to such terms as he may impose. - 12 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 (3) Save as provided in this Act, no order, decision or award made under this Act shall be questioned in any court on any ground whatsoever.” 12. As could be seen from the above provision, only specified suits are barred before the Civil Court as is enumerated in Section 118 of the Karnataka Co-operative Societies Act. 13. In the case on hand, there is no inter se dispute nor the dispute with regard to the membership or otherwise of the member of the co-operative society and the society. 14. All that the plaintiff is seeking is to protect his possession in respect of the suit property for which he holds the leasehold rights. 15. Hence, the grounds urged in the revision petition suffers for want of merits. 16. Accordingly, following: - 13 - HC-KAR NC: 2025:KHC:44760 CRP No. 73 of 2021 ORDER Revision petition is dismissed. Sd/- (V SRISHANANDA) JUDGE KAV List No.: 1 Sl No.: 40/CT: BHK