- (1.) THIS Second Appeal involves a short but interesting question viz. , whether the plaintiff, who was admittedly an agent of the respondents-defendants, a society, and whose agency had been terminated, could maintain a suit for recovery of the deposit amount of Rs. 2,000/-, which had been deposited at the time of award of agency in favour of plaintiff and can be recovered with interest on the termination of the agency and on the assumption that the termination was bad in law, notwithstanding the provisions of Section 70 of the Karnataka Co-operative societies Act, 1959 (for short, the Act ).
(2.) THE trial Court as well as the first appellate Court having nonsuited the plaintiff only on the ground that sueh a suit was not tenable in the light of the provisions of Section 70 of the Act, to get over such judgments and to get a decree for this amount, the present second appeal. At the time of admission the following substantial question of law had formulated as arising for determination in this second appeal: 1) Whether the suit filed by the appellant is barred under section 70 of the Karnataka Co-operative Societies Act?
(3.) THE material facts leading to this second appeal are not in dispute viz. , that the plaintiff had been appointed an agent of the defendants-milk federation, a co-operative society, to market/supply its products of milk under Nandini brand to consumers on commission basis. It appears the defendants terminated the agency being of the view that the plaintiff had violated the terms of the agency, as according to the defendant-society, the plaintiff was found to be marketing milk ether than Nandini brand also. Though the justification for termination of the agency on this ground has been found against the defendant-society, the Courts below, nevertheless, dismissed the suit only on the premise that a civil suit of the nature as filed by the plaintiff was not maintainable, particularly due to the bar provided under Section 70 of the Act. Section 70 of the Act reads as under: 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 constitution, 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 member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society, or (c) between the society or its committee and any past committee, any officer, agent or employee, or any past officer, past agent or past employee or the nominee, heirs, or legal representatives of any deceased officer, deceased agent, or deceased employee of the society, or (d) between the society and any other co-operative society or a credit agency such dispute shall be referred to the Registrar for decision, and no Court or labour or revenue Court or industrial Tribunal shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute. (2) For the purpose of sub-section (1), the following shall be deemed to be disputes touching the constitution, management or the business of a co-operative society, namely- (a) a claim by the society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not; (b) a claim by a society against the principle debtor where the society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor, as a result of the default of the principal debtor whether such debt or demand is admitted or not; (c) any dispute arising in connection with the election of a president, Vice-President, Chairman, Vice-Chairman, secretary, Treasurer or Member of Committee of the Society; (d) any dispute between a co-operative society and its employees or past employees or heirs or legal representatives of a deceased employee, including a dispute regarding the terms of employment, working conditions and disciplinary action taken by a cooperative society notwithstanding anything contrary contained in the Industrial Disputes Act, 1947 (Central Act 14 of 1947); (e) a claim by a co-operative society for any deficiency caused in the assets of the co-operative society by member, past member, deceased member or deceased officer, past agent or deceased agent or by any servant, past servant or decease servant or by its committee, past or present whether such loss be admitted or not. (3) If any question arises whether a dispute referred to the registrar under this 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 in question in any Court. ;