VIRUPAKSHAPPA NAGARAJAPPA JAGALI Vs. TALUKA AGRICULTURAL PRODUCE CO OP SOC LTD

JUDGEMENT

(1.) The appellants were the plaintiffs in Original Suit No. 69/1976 on the file of the Civil Judge at Raichur. That was a suit filed by the appellants, who constitute a partnership firm, for recovery of a sum of Rs. 28,805 40 with interest from the date of suit and for costs etc. from the defendant, which is a Co-operative Marketing Society, in respect of certain goods alleged to have been supplied to the defendant. The suit was being contested by the Society. The suit was filed on 18-10-76. Subsequently, it transpired that the Registrar of Co-operative Societies, Gulbarga Division, ordered the winding up of the Society by his order dated 17-6-1977. Thereupon, the defendant filed an application LA. No II before the Civil Judge contending that as an order for winding up has been made and a Liquidator appointed, the Court lost jurisdiction to try the suit and the suit should be dismissed. This application I.A. No. II was resisted bv the plaintiffs. It was contended that the Court had not los jurisdiction and the suit could not be dismissed However, the learned Civil Judge was of the opinion that by virtue of the provisi ns of S. 111 (2) of the Karnataka Co-operative Societies Act. 1959, he could not proceed with the suit and, therefore, the suit was liable to be dismissed and dismissed the suit by the order dated 20-4-1978. It is against this decree dismissing the suit that this appeal is filed

(2.) It is contended by Shri S. G Sundara Swamy, the learned Advocate for the appellants, that the view taken by the learned Civil Judge is erroneous and is not warranted by the provisions of S. 118(2) of the Karnataka Co-operative Societies Act, 1959

(3.) This contention is sound and must be upheld. The said section reads .