Khanna, J. - (1.) This is an appeal by special leave against the judgment of Kerala High Court affirming on appeal, the order of the Lower Court whereby the appellant Bank's application for execution of an award made under the Bombay Co-operative Societies Act. 1925 (hereinafter referred to as the Bombay Act) was dismissed.
(2.) The appellant is a Co-operative Society registered in Bombay under the Bombay Act. The Head Office of the appellant is in Bombay and it has a branch in Mangalore. As the objects of the appellant were not confined to one State, it was governed by Multi-Unit Co-operative Societies Act of 1942 (hereinafter referred to as the Central Act). The appellant made a claim under Section 54 of the Bombay Act in respect of a transaction which took place in Mangalore against the respondent who is a resident of Kasaragod, and was a Member of the appellant society. Both Mangalore and Kasaragod were at the relevant time in Madras Presidency The Deputy Registrar of Co-operative Societies, Bombay gave an award regarding that claim. The award was sought to be executed as a decree in the Court of Subordinate Judge, Kasaragod. An objection to the execution of the decree was raised by the respondent on the ground that the Deputy Registrar of Co-operative Societies, Bombay had no jurisdiction to pass the award and the same could not be executed as a degree in the Courts in Kerala. This objection was upheld by the Subordinate Judge and he dismissed the execution application. On appeal the decision of the learned Subordinate Judge was affirmed by the High Court. It was not disputed before the High Court that the appellant was governed by the provisions of the Central Act. The contention raised on behalf of the appellant was that the passing of an award came within the expression 'control' occurring in sub-section (1) of Section 2 of the Central Act. This contention did not find favour with the High Court and in the result, the appeal was dismissed.
(3.) We have heard Mr. Naik on behalf of the appellant. No one has appeared on behalf of the respondent. Before dealing with the argument advance on behalf of the appellant, it would be apposite to reproduce Section 2 of the Central Act. The same reads as under:- "2. (1) A Co-operative Society to which this Act applies which has been registered in any State under the law relating to Co-operative Societies in force in that State shall be deemed in any other State to which its objects extend to be duly registered in that other State under the law therein force relating to Co-operative Societies, but shall, save as provided in sub-sections (2) and (3), be subject for all the purposes of registration control and dissolution to the law relating to Cooperative Societies in force for the time being in the State in which it is actually registered. (2) Where any such Co-operative Society has established before the commencement of this Act or establishes after commencement of this Act a branch or place of business in a State other than in which it is actually registered, it shall, within six months from the commencement of this Act or the date of establishment of the branch or place of business, as the case may be, furnish to the Registrar of Co-operative Societies of the State in which such branch or place of business is situated a copy of its registered by-laws, and shall at any time it is required to do so by the said Registrar submit any returns and supply any information which the said Registrar might require to be submitted or supplied to him by a Co-operative Society actually registered in that State. (3) The Registrar of Co-operative Societies of the State in which a branch or place of business such as is referred to in sub-section (2) is situated may exercise in respect of that branch or place of business any powers of audit and of inspection which he might exercise in respect of a Co-operative Society actually registered in the State." According to sub-section (3) of section 1, the Central Act "applies to all Co-operative societies with objects not confined to one State incorporated before the commencement of this Act under the Co-operative Societies Act, 1912 or under any Act relating to Co. operative Societies in force in any State, and to all Co-operative Societies with objects not confined to one State to be incorporated after the commencement of this Act.";