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Gujarat High Court

Ruti Rushi Modi Wd/O Rushi Sherarji Modi vs Surat Peoples Co Op Bank Ltd & 6 on 11 August, 2017

Author: S.G. Shah

Bench: S.G. Shah

                  C/SCA/16247/2014                                             ORDER




                  IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                     SPECIAL CIVIL APPLICATION NO. 16247 of 2014
                                            With
                       SPECIAL CIVIL APPLICATION NO. 495 of 2016
                                            With
                            CIVIL APPLICATION NO. 4242 of 2016
                                              In
                       SPECIAL CIVIL APPLICATION NO. 495 of 2016
                                            With
                      SPECIAL CIVIL APPLICATION NO. 4275 of 2015
                                            With
                            CIVIL APPLICATION NO. 3851 of 2015
                                              In
                      SPECIAL CIVIL APPLICATION NO. 4275 of 2015
                                            With
                            CIVIL APPLICATION NO. 4243 of 2016
                                              In
                      SPECIAL CIVIL APPLICATION NO. 4275 of 2015
                                            With
                     SPECIAL CIVIL APPLICATION NO. 20107 of 2015
                                            With
                            CIVIL APPLICATION NO. 4241 of 2016
                                              In
                     SPECIAL CIVIL APPLICATION NO. 20107 of 2015
                                            With
                     SPECIAL CIVIL APPLICATION NO. 11771 of 2017
         ================================================================
              RUTI RUSHI MODI WD/O RUSHI SHERARJI MODI....Petitioner(s)
                                     Versus
                SURAT PEOPLES CO OP BANK LTD & 6....Respondent(s)
         ================================================================
         Appearance:
         DECEASED LITIGANT, ADVOCATE for the Petitioner(s) No. 1
         MR SP MAJMUDAR, ADVOCATE for the Petitioner(s) No. 1.1
         MR AMIT V THAKKAR, ADVOCATE for the Respondent(s) No. 1
         MR ARPIT A KAPADIA, ADVOCATE for the Respondent(s) No. 4 - 7
         MR IJ DESAI, ADVOCATE for the Respondent(s) No. 1


                                         Page 1 of 71

HC-NIC                                 Page 1 of 71     Created On Sat Aug 12 03:09:31 IST 2017
                  C/SCA/16247/2014                                              ORDER



         RULE NOT RECD BACK for the Respondent(s) No. 3
         RULE SERVED for the Respondent(s) No. 2
         ================================================================

          CORAM: HONOURABLE MR.JUSTICE S.G. SHAH

                                      Date : 11/08/2017


                                    COMMON ORAL ORDER

1. All  these  petitions  are  arising  between  the  same   parties   with   reference   to   same  proceedings   between   the   parties   before   the  Board   of   Nominees   of   Registrar   of  Cooperative   Societies   at   Surat   and   with  reference   to   same   property   and   same  transaction   and,   therefore,   though   issues  raised in different petitions are different,  for   sake   of   convenience,   all   petitions   are  heard   together   and   decided   by   this   common  final order. 

2. The   brief   facts   of   petitions   needs   to   be  summarized   as   under.   For   the   sake   of  convenience,   parties   are   referred   in   short  form   wherein   Surat   Peoples   Cooperative   Bank  Limited is referred hereinafter as `Defendant  Bank;'   being   defendant   before   the   Board   of  nominees   in   Lavad   Suit   No.43   of   2011.  Whereas,   plaintiff  of  such  suit  being  legal  heirs of Shreyarji Barjorji Modi,  initially,  Page 2 of 71 HC-NIC Page 2 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Ruti   Rushi   Modi   being   widow   of   Rushi  Shreyarji   Modi   and   after   her   death,   her  daughter Ruti Rushi Modi and upon her death  pending   litigation   Ruti   Modi   who   will   be  referred   hereinafter   as   `plaintiff   -   Modi'.  Whereas in Special Civil Application No.16247  of 2014 there are additional litigants being  third   parties   and,   therefore,   they   will   be  referred   as   `respective   petitioner'   and  `respondent'   while   discussing   the   facts   and  details   of   that   petition.   However,   since  parties   to   this   petition   has   failed   to  proceed   with   the   hearing   of   such   petition,  though it requires to be dismissed for want  of   prosecution,   in   the   interest   of   justice  and   to   avoid   proceeding   for   restoration  immediately   after   dismissal   for   want   of  prosecution,   such   petition   is   separated   and  be listed on 30.8.2017.  

3. So far as facts are concerned, it seems that  following details are not  disputed: ­   * There   was   decree   in   favour   of  the   defendant   -   Bank   against   the  plaintiff   Modi   as   back   as   on  30.11.1936   for   Rs.22,006/­,  Rs.7,003/­   so   also   one   another  decree   dated   31.12.1938   for  Page 3 of 71 HC-NIC Page 3 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Rs.47,670/­.

* During   recovery   proceedings,  plaintiff   Modi,   instead   of   making  payment   in   cash,   had   forgone   his  rights   over   land   admeasuring   199  Acre   -   01   Gunthas   on   or   before  18.4.1941   against   aggregate   amount  of decrees being Rs.78,251/­.  

* One   document   was   executed   at  the   relevant   time   to   confirm   such  transaction.   At   present,   the  dispute   is   with   reference   to   such  document   which   is   to   the   effect  that   whether   such   documents   is   a  simple sale deed or whether it can  be   considered   as   conditional   sale  which   results   into   mortgaging   the  property   in   question   instead   of  absolute sale by the Plaintiff Modi  in favour of the defendant ­ Bank. 

* The condition in such document  is   to   the   effect   that   plaintiff  Modi   can   get   the   land   back   by  making   the   payment   within  stipulated   time.   Plaintiff   -   Modi  did   not   exercise   such   option   of  Page 4 of 71 HC-NIC Page 4 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER getting the land back by making any  payment   till   30.6.1981   when   he  died. 

* In   the   interregnum,   the  defendant   -   Bank   has   entered   into  sale   transaction   of   land  admeasuring   163   Acre   -   23   Gunthas  to   seven   different   purchasers  between   the   year   1943   and   1963  leaving   only   35   Acre   -   78   Gunthas  land at its disposal. 

* In   2010,   defendant   -   Bank   has  issued notice for sale of remaining  land   under   reference,   details   of  which   is   well   described   in   the  pleading   but   since   there   is   no  dispute with reference to identity  of   land,   its   details   are   not   much  material.

*  The   defendant   Bank   was   in  process   of   completing   the   sale  transaction   with   the   highest  bidder,   however,   before   such  transaction   could   be   completed  plaintiff   -   Modi   has,   through   her  Power   of   Attorney   initiated  Page 5 of 71 HC-NIC Page 5 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER litigations which is subject matter  of present petitions. 

4. It is submitted by the defendant - Bank that  plaintiff   Modi   or   his   successor   had   never  objected to sale of the land by the defendant 

-   Bank   during   their   life   time   because  transaction   by   the   plaintiff   -   Modi   was   an  outright sale and not a mortgage as alleged  in present litigation. 

5. However, before reaching to the discussion of  factual   details   of   present   petitions,   it  cannot be ignored that initially plaintiff ­  Modi has filed one Special Civil Suit No.555  of   2010   before   the   Court   of   Civil   Judge  (Senior   Division)   at   Surat   for   the   similar  reliefs   which   are   prayed   in   present   set   of  litigation in the form of Lavad Suit No.43 of  2011 before the Board of Nominees at Surat.

6. It   is   undisputed   fact   that   in   such   Special  Civil   Suit   No.555   of   2010   before   the   Civil  Court, the defendant - Bank has on 3.1.2011  filed an application at Exh.10 under Oder VII  Rule 11 of the Code of Civil Procedure, 1908  (For   Short   `Code')   praying   to   reject   the  plaint   in   view   of   the   express   averments   in  Page 6 of 71 HC-NIC Page 6 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER the   plaint   and   what   is   submitted   in   such  application. At the cost of making this order  lengthy,   the   relevant   portion   of   such  application needs to be recollected here and,  therefore, reproduced as under: ­ "By   way   of   this   application,   the   defendant   bank herein submits as under: ­

1. The   defendant   herein   is   a   Cooperative   Bank   registered   under   the   Cooperative   Societies   Act,   1961   and   is   engaged   in   the   business   of   banking   including   disbursement   of loans etc. The plaintiff herein has filed   the   above   captioned   Special   Civil   Suit   for   the   various   reliefs   raising   the   dispute   about liability to repay the debt due to the  defendant   bank   which   was   taken   by   deceased   Sheriyarji   Barjorji   Modi.   The   plaintiff   is   the legal heir of the deceased. 

1.1 The   admitted   position   manifested   from the averments in the plaint of the suit   are as under.

(i)    Deceased Sheriyarji Barjorji Modi had   taken Rs.15,000/­ from the defendant Bank on  11.12.1929 by executing a deed. 
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(ii) Defendant   Bank   had   a   decree   in   its   favour from the Board of Nominees Shri N.C.   Dalal dated 12.10.1936 in the Reference Case   No.2   of   1936   under   the   Mumbai   Cooperative   Societies Law.

(iii) The   said   decree   against   deceased   Sheriyarji   Barjorji   Modi   made   the   deceased   liable   to   pay   to   the   defendant   Bank   principal   amount   of   Rs.15,000/­   plus   interest   of   Rs.28,08,­15­5   and   cost   of   Rs.25­8­0 with 6% interest thereon. The said   dues   of   Bank   became   subject   matter   of   Execution in Regular Darkhast No.105 of 1938   before   the   Court   of   Joint   First   Class   Sub   Judge, Surat.

(iv) The   said   dues   to   the   Bank   remained   unpaid   and   as   a   consequence   on   18.4.1941,   for   the   then   due   amount   of   Rs.78,251/­,   Sheriyarji executed a deed to the Bank.

(v) Deceased Sheriyarji was admittedly a  member   of   respondent   cooperative   bank   and  held two shares in the respondent bank. 

2. It   is   submitted   that   the   nature   of  dispute   raised   in   the   suit   is   primarily,   essentially   and   substantively   and   for   all  Page 8 of 71 HC-NIC Page 8 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER practical   and   legal   purposes,   is   a   dispute   raised   in   respect   the   liability   to   pay   the   debt   due   to   the   Bank.   It   is   a   `dispute'   touching   the   business   of   the   defendant   society   and   such   dispute   fall   within   the   purview   of   section   96   of   the   Cooperative   Societies  Act, 1961. This aspect emerges as  an admitted position from the averments and   statements   in   paragraph   3,   paragraph   4,   paragraph   5,   paragraph   8,   paragraph   9,   paragraph 10 and elsewhere in the plaint, as   well   as   from   the   contents   of   the   documents   produced with the plaint.

2.1 Section   96   of   the   Gujarat   Cooperative   Societies   Act,   1961   is   reproduced herein below: ­ PROCEDURE FOR DECIDING DISPUTES: ­

96.   Disputes:   ­  (1)   Notwithstanding   anything   contained   in   any   other   law   for   the   time   being   in   force,   any  dispute   touching   the   constitution,   management   or   business   of   a   society   shall   be   referred   in   the   prescribed   from either by any of the parties to   the dispute, or by a federal society   to   which   the   society   is   affiliated,   or   by   a  creditor   of  the  society,   to   the Registrar, if the parties thereto   are from amongst the following :

(a)   a   society,   its   committee,   any   Page 9 of 71 HC-NIC Page 9 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER past   committee,   any   past   or   present   officer, any past or present any past   or   present   servant   or   nominee,   heir   or   legal   representative   of   any   deceased   officer,   deceased   magnet   or   deceased   servant   of   the   society,   or   the Liquidator of the society;
(b) a member, past member or a person   claiming   through   a   member,   past   member   or   a   deceased   member   of   a  society,   or   a   society   which   is   a  member of the society;
(c) a person, other than a member of   the   society,   who   has   been   granted   a   loan by the society, or with whom the   society has or had transactions under   the provisions of section 46, and any   person claiming through such a person   :
(d) a surety of a member, past member   or   a   deceased   member,   or   a   person   other   than   a   member   with   has   been   granted   a   loan   by   the   society   under   section 46, whether such a surety is   or is not a member of the society :
(e)   any   other   society,   of   the   Liquidator of such a society.
(2) When any question arises whether   for the purposes of sub ­ section (1)   a matter referred to for decision is   a dispute or not, the question shall   be   considered   by   the   Registrate,   whose decision shall be final.

Explanation   I   ­   For   the   purpose   of   this   sub   ­   section,   a   dispute   shall include: ­ Page 10 of 71 HC-NIC Page 10 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER

(i) a claim by a society for any  debt   or   demand   due   to   it   from   a  member,   past   member   or   the   nominee,   heir   or   legal   representative   of   a   deceased member, without such a debt   or demand be admitted or not ;

(ii) a claim by a surety for any  sum   or   demand   due   to   him   from   the   principal   borrower   in   respect   on   a   loan by a society and recovered from   the   surety   owing   to   the   default   of   the   principal   borrower,   whether   such   a sum or demand be admitted or not ;

(iii)   a   claim   by   a   society   for   any   loss   caused   to   it   by   a   member,   past   member,   or   deceased   member,   by   any officer, past officer or deceased   officer,   by   any   agent,   past   agent   deceased   agent,   or   by   any   servant,   past servant or deceased servant, or   by   its   committee,   past   or   present   whether such loss be admitted or not; 

(iv)   a   refusal   or   failure   by   a  member,   a   past   member   or   a   nominee,   heir   or   legal   representative   of   a   deceased   member,   to   deliver   possession   to   a   society   of   land   or   any   other   asset   resumed   by   it   nor   breach   of   conditions   of   the   assignment.

Explanation   II.   ­   For   the   purposes   of   this   section,   the   expression   "agent"   includes   in   the   case   of   a   housing   society,   an   architect,   engineer   or   contractor   engaged by the society."

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3. It   is   submitted   that   in   the   aforesaid   view of the factual position on record, the   present   subject   matter   cannot   be   tried   before   the   civil   court   and   this   Hon'ble   Court does not have jurisdiction to try and   entertain   the   suit.   The   dispute   and   nature   of   dispute,   as   manifested   from   the   express   averments   in   the   plaint,   would   be   governed   by   the   provisions   of   section   96   Gujarat   Cooperative   Societies   Act,   1961   quoted   hereinabove.   It   is   submitted   that   the   dispute   raised   by   the   plaintiff   is   triable   exclusively   by   the   competent   forum   created   by   the   legislature   under   the   Gujarat   Cooperative   Societies   Act,   1961,   to   the   exclusion   of   jurisdiction   of   the   civil   court.   Applicant   further   submits   that   this   position of law is no longer  res integra  by  virtue of various judgments.

4. Applicant   respectfully   submits   that   in  the   above   conspectus   of   the   matter,   plaint   of the Special Civil Suit No.555 of 2010 is  liable   to   be   rejected   under   the   provisions   of Order VII, Rule 11 of the Code of Civil   Procedure,   1908.   The   said   provision   is   reproduced herein below:­  "11. Rejection of plaint.­  Page 12 of 71 HC-NIC Page 12 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER The   plaint   shall   be   rejected   in   the   following cases:-- 

(a)   where   it   does   not   disclose   a  cause of action; 
(b)   where   the   relief   claimed   is   undervalued,   and   the   plaintiff,   on   being   required   by   the   court   to  correct   the   valuation   within   a   time   to be fixed by the court, fails to do   so; 
(c)   where   the   relief   claimed   is   properly   valued,   but   the   plaint   is   written   upon   paper   insufficiently   stamped, and the plaintiff, on being   required   by   the   court   to   supply   the   requisite   stamp   paper   within   a   time   to be fixed by the Court, fails to do   so; 
(d)   where   the   suit   appears   from   the   statement in the plaint to be barred   by any law; 
(e)   where   it   is   not   filed   in  duplicate; 
(f) where the plaintiff fails comply   with the provision of Rule 9.

[Provided  that the time fixed by the   court   for   the   correction   of   the   valuation   or   supplying   of   the   requisite   stamp   papers   shall   not   be   extended   unless   the   court,   for   reasons to be recorded, is satisfied   that   the   plaintiff   was   prevented   by   any   cause   of   an   exceptional   nature   from   correcting   the   valuation   or   supplying the requisite stamp papers,   as   the   case   may   be   within   the   time   Page 13 of 71 HC-NIC Page 13 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER fixed   by   the   court   and   that   refusal   to extend such time would cause grave   injustice to the plaintiff.]"

It   is   clear   from   the   reading   of   the   aforesaid   provision   that   under   sub­clause  
(d)   above,   the   plaint   is   liable   to   be  rejected   where   the   suit   appears   from   the   statement in the plaint to be barred by law.  

It   is   submitted   that   the   reading   of   the  plaint   in   question   as   a   whole,   the   aspects   mentioned in the foregoing paragraphs emerge   from   unequivocal   express   averments   in   the  plaint and, therefore, the suit is evidently   barred   having   regard   to   the   provisions   of   section   96   of   the   Gujarat   Cooperative   Societies   Act,   1961.   The   plaint   is,   therefore,   liable   to   be   rejected.   It   is   submitted   that   trying   and   entertaining   the   present   suit   and   the   kind   and   nature   of  dispute   raised   therein   would   amount   to   usurpation   of   jurisdiction   by   this   Hon'ble   Court,   when   the   jurisdiction   to   try   the   dispute   in   question   rests   with   the   another   competent judicial forum.

5. It is submitted without prejudice to the   above, the prayer in the suit with reference   to   redemption   of   mortgage   transaction   as   alleged by the plaintiff,  is clearly beyond   Page 14 of 71 HC-NIC Page 14 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER limitation in terms of Article 61(1) of the   Limitation   Act,   1908.   The   deed   which   is   sought   to   be   described   as   mortgage   deed   is   dated 18.4.1941. The conditions incorporated   therein contemplated that the money advanced   under   the   deed   was   to   be   repaid   within   period   of   five   years,   and   on   repayment   not   happening   within   the   stipulated   five   years,   as per the conditions  expressly stated, the   transaction   was   to   become   converted   as   an   outright   sale.   For   the   sake   of   argument   without accepting and going with the case of   the   plaintiff   on   demurrer,   that   the   transaction   was   a   mortgage,   the   right   to   redeem arose for the plaintiff at the end of  fifth year from 18.4.1941 and the period of   limitation continued for 30 years thereafter   in view of Article 61 of the Limitation Act.   Obviously,   the   suit   is   instituted   after   expiry   of   35   years   started   from   18.4.1941.   Thus,   on   the   count   of   limitation   also,   the   plaint as put up and case disclosed from the  averments  therein,  is liable to be rejected   under   Order   VII,   Rule   11(d)   of   the   Code   of   Civil Procedure, 1908.

6. In the interest of justice, the present   application may be allowed."   

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7. Such application is supported by an affidavit  by   one   Mr.Harish   Maganlal   Mistri   being  Assistant   General   Manager   and   authorized  person   of   the   defendant   -   Bank   and,  therefore,   now,   defendant   -   Bank   has   no  option   but   to   admit   the   contents   of   such  application   irrespective   of   their   diverse  submissions.

8. Pursuant   to such   application,  it  seems  that  the   plaintiff - Modi has on 10.2.2011 i.e.  immediately   at   the   earliest   after   such  application,   submitted   an   application   at  Exh.21 in the said Special Civil Suit No.555  of   2010   seeking   permission   to   withdraw   the  suit   with   a   permission   to   file   suit   before  the competent Court for same cause of action  and   reliefs.   Surprisingly,   defendant   -   Bank  has   endorsed   on   such   application   that  withdrawal may not be permitted for filing a  fresh   suit   but   unconditional   withdrawal   may  be   permitted   and   prayed   for   cost.   However,  the   Additional   Senior   Civil   Judge,   Civil  Court at Surat had granted permission to file  a   fresh   suit   as   per   Order   XXIII   Rule   1(3)  recording   that   since   plaintiff   wants   to  withdraw   the   suit   for   technical   reasons,  permission needs to be granted.

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9. Therefore,   one   thing   is   clear   and   certain  that   initially   plaintiff   has   filed   a   suit  before Civil Court but he withdrew such suit  mainly on the ground that defendant has taken  a plea in their application at Exh.10 (which  is   reproduced   hereinabove)   that   dispute  raised   by   the   plaintiff   -   Modi   is   triable  exclusively by the Competent Forum granted by  the   legislature   under   Gujarat   Cooperative  Societies   Act,   1961   (For   short   `Act')   and  exclusion   of   jurisdiction   of   Civil   Court.  Defendant   -   Bank   has   in   categorical   terms  disclosed  in  its  application   at Exh.10  that  reading of the plaint in question as a whole,  suit is evidently barred having regard to the  provision   of   Section   96   of   the   Act.  Therefore,   defendant   -   Bank   has   prayed   to  reject   the   plaint   under   the   provisions   of  Order   VII   ­   Rule   11(d)   of   the   Code   which  provides   that   the   plaint   shall   be   rejected  where the suit appears from the statement in  the plaint to be barred by any law.  

10. Therefore, prima facie, it becomes clear that  it  is  a stand  of  the  defendant  -  Bank  that  dispute   raised   by   the     plaintiff   -   Modi  cannot   be   adjudicated   by   the   Civil   Court  being   barred   by   the   provisions   of   the   Act  since   dispute   squarely   falls   within   the  Page 17 of 71 HC-NIC Page 17 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER purview   of   Section   96   of   the   Act   and,  therefore, plaintiff has withdrawn such suit  with   a   clarity   to   file   the   same   before   the  Competent Court. 

11. In   view   of   above   facts   and   circumstances,  plaintiff has preferred the Lavad Case No.43  of   2011   before   the   Board   of   Nominees   at  Surat.   Unfortunately,   when   plaintiff   has  filed the suit on the same day i.e. 10.2.2011  when   suit   from   Civil   Court   was   withdrawn,  defendant   -   Bank   is   finding   fault   with   the  plaintiff when they were vigilant to file it  immediately to avoid any other complications.  However,   no   law   restricts   the   plaintiff   to  file   such   suit   on   the   same   day.   On   the  contrary,  such  prompt  action   is good   rather  than   commenting  on  intention   or attitude   of  the plaintiff, as alleged by the defendant -  Bank.

12. When   Lavad   Case   No.43   of   2011   has   been  proceeded, it seems that defendant - Bank has  started different practices to see that such  suit   may   not   be   proceeded   on   merits   at   any  cost, though they have one more legal defence  in their favour regarding limitation when it  is   their   Case   that   suit   is   filed   after   the  period   of   limitation   because   it   is   filed  Page 18 of 71 HC-NIC Page 18 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER after  the  gap  of  35 years  from  the  date  of  mortgage   which   is   identified   by   them   as   a  sale deed in their favour.   

13. As on date, the following matters are pending  between the parties.

(A) Lavad   Suit   No.43   of   2011   before   the  Board of Nominees at Surat.

(B) Matters Pending in High Court:

         Sr.           Matter No.                             Particular
         No.
          1   Special           Civil Against   order   dated 

Application   16247   of 15.10.2014   of   Co­ 2014 by the plaintiff operative   Tribunal  Modi setting   aside   BON  order   joining  purchaser   -   as  parties. 

2 Special   Civil Against   Exh.143   Inj.  Application   4275   of Order   by   BON   (In  2015   by   defendant Second Round) Bank 3 Special Civil  Against   order   below  Application 20107 of  Exh.167 u/S.98(3) 2015 by defendant  Bank 4 Special   Civil Against   Common   order  Application   495   of below   Exh.184   (For  2016   by   defendant issue of limitation) &  Bank Exh.185   (to   postpone  hearing).

5 Special   Civil Against   order   below  Application   No.11771 Exh.234   u/S.96(2)   of  of   2017   by   defendant Cooperative   Societies  Page 19 of 71 HC-NIC Page 19 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Bank Act.

6 Special   Civil Against   order   below  Application   No.12352 Exh.251   regarding  of   2017   by   defendant cross   examination   of  Bank P/A holder.

(C)   Matters Pending in Co­operative   Tribunal    :

         Sr.           Matter No.                             Particular
         No.

1 Revision   Application Against   order   below  No.100 / 2015 by the Exh.85 dated 27.7.2015  defendant Bank whereby app. To amend. 

Issues   not   fully  entertained. 

2 Revision   Application Against   order   below  98   of   2015   by Exh.68 dated 27.7.2015  defendant Bank whereby amend. Appl of  plaintiff allowed.

3 Revision Application  Against   order   below  99 of 2015 by  Exh.74   dated  defendant Bank 27.7.2015.   plaintiff  application   seeking  discovery / inspection  of documents allowed. 

14. Amongst   all   above   litigations   before  discussing  any  other   issues,   it is  required  to be noted that, at present, by order dated  4.5.2017 in Special Leave to Appeal No.26201  of   2016   arising   out   of   judgment   and   order  dated   4.5.2016   in   Civil   Application   No.4242  of  2016  in  Special  Civil   Application   No.495  of   2016   by   this   High   Court,   the   Hon'ble  Page 20 of 71 HC-NIC Page 20 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Supreme Court has passed following order: ­ "While   keeping   this   Special   Civil   Petitions   pending   we   direct   the   authority,   namely,   the   Board   of  Nominees,   Surat   before   whom   Arbitration   Case   No.43   of   2011   is   pending   to   decide   the   said  arbitration case within a period of 4   months   from   today.   List   the   matters   after 4 months."

15. Therefore,  there   is a  mandate  and  direction  upon   the   Board   of   Nominees   to   decide   the  Arbitration Case No.43 of 2011 on, or before  4.9.2017.   Considering   such   direction,   these  matters   are   taken   up   for   immediate   hearing  irrespective of heavy admission Board and all  the   matters   are   dealt   with   by   this   common  order irrespective of different issues raised  in it because ultimately, the parties, facts  and pleadings are common. 

16. Amongst above referred different litigations,  at   present,   we   are   concerned   with   Special  Civil Applications preferred by the defendant  Bank against different orders below different  applications, whereas, learned advocates for  the respondents in Special Civil Application  No.16247   of 2014   preferred  by  the  plaintiff  Modi,   being   purchaser   of   piece   of   land   of  defendant Bank have failed to cooperate with  Page 21 of 71 HC-NIC Page 21 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER the   early   hearing   of   the   matter,   taking  disadvantage   of   heavy   admission   Board,   by  remaining   absent   at   the   relevant   time   and  seeking   adjournment.   Therefore,   at   present,  such Special Civil Application is kept out of  the scope of the present order.

17. Coming   to   the   merits   of   each   petition,   it  would   be   appropriate   to   take   it   one   after  another. 

Special Civil Application No.4275 of 2015: ­

18. The  defendant  Bank  has  challenged  the  order  dated  27.2.2015  below  Exh.143  in  Lavad  case  No.43 of 2011. Such application at Exh.143 is  preferred  by  the  plaintiff  before  the  Board  of Nominees seeking prohibitory order against  the   defendant   Bank   so   as   to   restrain   them  from   transferring   and   assigning   the   suit  property   or   to   construct   or   to   create   any  lien   on   such   property.   By   order   dated  27.2.2015, the Board of Nominees has allowed  such   interim   relief   in   favour   of   the  plaintiff Modi and, therefore, defendant Bank  has   challenged   such   order   directly   before  this   Court   in   writ   jurisdiction   contending  that   though   similar   relief   prayed   in  application   at   Exh.5   was   refused   in   a  Page 22 of 71 HC-NIC Page 22 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER proceeding   between   the   parties,   wherein,  order   dated   8.8.2011   below   Exh.5   has   been  rejected   by   Gujarat   State   Cooperative  Tribunal   in   Revision   No.134   of   2011   on  18.4.2012   and   such   order   was   confirmed   by  judgment   dated   11.6.2012   in   Special   Civil  Application   No.6144   of   2012   by   this   High  Court and by order dated 7.4.2014 in Special  Leave   Petition   No.1812   of   2013   by   Hon'ble  Supreme   Court   of   India,   now,   Board   of  Nominees should not have granted such interim  relief. 

   

19. However,   the   fact   remains   that   prayer   for  interim   relief   even   if   once   rejected,   on  given   facts   and   circumstances   and,   more  particularly,   because   of   some   further  development   in   factual   or   legal   position  thereafter  any  party   can  certainly  pray  for  similar relief at relevant time but at that  stage, it would be the duty of the concerned  Court / Authority to decide such application  in   accordance   with   law   and   considering   the  result  of  previous  application  for  the  same  relief.   However,   in   such   Special   Civil  Application, the impugned order is stayed by  order   dated   10.3.2015   and   since   it   is  continued   till   date,   there   is   no   prejudice  caused   to   the   defendant   Bank.   However,  Page 23 of 71 HC-NIC Page 23 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER pursuant   to   further   orders,   thereafter,   and  more   particularly,   order   dated   4.5.2017   by  Hon'ble Supreme Court of India to decide the  main   Lavad   case   on   or   before   4.9.2017,   at  this   stage,   I   do   not   see   any   reason   to  discuss the factual or legal merits of this  Special  Civil  Application.  It  is  also  clear  that   after   the   first   order   dated   10.3.2015  issuing notice with interim relief of staying  the impugned order below Exh.143, matter has  not   been   heard   till   date.   In   the   meantime,  one   Civil   Application   No.4243   of   2016   is  preferred by the defendant Bank to stay the  further  proceedings  of  the  Lavad   suit  No.43  of 2011 wherein by order dated 4.5.2016, the  coordinate Bench has considered the facts and  circumstances   of   the   case   and   passed  following   order,   when   probably   Bank   has  started to dispose of the remaining part of  the land by auction proceedings. 

"In the meanwhile, all parties are   directed to maintain the status quo   regarding   the   auction   and   proceeding of Lavad suit."

20. Thereby,   virtually   relief   in   Civil  Application regarding staying the Lavad suit  was   granted.   It   is   this   order   which   is  challenged   before   the   Hon'ble   Supreme   Court  Page 24 of 71 HC-NIC Page 24 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER in Special Leave to Appeal No.26201 of 2016  wherein   on   4.5.2017,   Hon'ble   Supreme   Court  has   passed   the   order   which   is   referred  hereinabove   to   expedite   the   hearing   of   the  suit. However, when Hon'ble Supreme Court has  not stayed the order dated 4.5.2016 which is  quoted   hereinabove   and   which   is   having   two  different   directions;   (1)   against   the  plaintiff   Modi   so   far   stay   of   further  proceedings   and   (2)   against   the   defendant  Bank   so   far   stay   against   auction   and   when  Hon'ble   Supreme   Court   has   directed   for   the  early disposal of the suit, it appears that  the direction regarding maintenance of status  quo   regarding   the   auction   would   remain   in  force till disposal of the main petition. 

21. As   aforesaid,   when   such   Special   Civil  Application   is   yet   not   admitted,   at   this  stage,   considering   the   order   of   Hon'ble  Supreme   Court   dated   4.5.2017,   I   am   of   the  opinion   that   no   purpose   would   be   served   by  admitting this matter or disposing it at this  stage   when   main   suit   is   directed   to   be  decided   on   or   before   4.9.2017.   Therefore,  Special   Civil   Application   No.4275   of   2015  shall   be   listed   separately   hereinafter   with  Special   Civil   Application   No.16247   of   2014  for necessary orders at the relevant time. It  Page 25 of 71 HC-NIC Page 25 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER may so happen that after the decision in the  suit   both   these   Special   Civil   Applications  may   become   infructuous   but   that   would   not  require any decision or determination at this  stage for the simple reason that pursuant to  what   is   discussed   hereinabove   when   original  suit   is   to   be   decided   in   stipulated   time  period and when there are some directions by  Hon'ble Supreme Court limited to observation  regarding disposal of the suit only, there is  no   reason   to   interfere   in   the   interim  decision on any such subject, considering the  fact that issue is subjudice with Hon'ble the  Supreme   Court   of   India   in   Special   Leave   to  Appeal No.26201 of 2016. 

Special Civil Application No.20107 of 2015: 

22. The   defendant   -   Bank   has   preferred   this  petition   challenging   the   order   dated  23.11.2015 below Exh.167 in Lavad suit No.43  of 2011. Here again, the application by the  Bank   at   Exh.167   has   been   rejected   by   the  Board of Nominees which is preferred by the  defendant Bank to stay the proceedings of the  Lavad suit No.43 of 2011 with a direction to  the plaintiff Modi to get the issue resolved  from   the   Civil   Court   pertaining   to   the  interpretation   of   document   in   question   that  Page 26 of 71 HC-NIC Page 26 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER whether it is a mortgage deed or a sale deed  pursuant   to   provisions   of   Section   98(3)   of  the Cooperatives Societies Act, 1961. For the  purpose,   reference   to   such   provision   is  material which reads as under: ­ "98. Settlement of Disputes: ­  (1)  If   the   Registrar   is   satisfied   that any matter, referred to him is a   dispute,   within   the   meaning   of   section   96   the   Registrar   shall,   subject   to   the   rules,   decide   the   dispute   himself,   or   refer   it   for   disposal to a nominee, or a board of   nominee, appointed by the Registrar :

Provided  that   no   person   who   is   connected with a dispute or with the   society   at   any   or   has   previously   inspected the society or audited its   accounts   shall   be   appointed   as   a   nominee or as member of the board of   nominees to settle the dispute.
(2)  Where   any   dispute   is  referred under sub ­ section (1) for   decision to the Registrar's   nominee   or   board   of   nominees,   the   Registrar   may   at   any   time,   for   reasons   to   be  recorded   in   writing   withdraw   such   dispute from his nominee, or board of   nominees, and may decide the dispute   himself,   or   refer   it   again   for  decision   to   any   other   nominee,   or   board of nominees, appointed by him. 
               (3)      Notwithstanding   anything  
               contained   in   section   96,   the  


                                Page 27 of 71

HC-NIC                        Page 27 of 71     Created On Sat Aug 12 03:09:31 IST 2017
            C/SCA/16247/2014                                            ORDER



Registrar   may,   if   he   thinks   fit,   suspend proceedings in regard to any   dispute,   if   the   question   at   issue   between   a   society   and   a   claimant   or   between   different   claimants,   is   one   involving complicated question of law   of   or   fact,   until   the   question   has   been   tried   by   a   regular   suit   instituted   by   one   of   the   parties   or   by   the   society.  If   any   such  suit   is   not instituted within two months from   the   Registrar's   order   suspending   proceedings, the Registrar shall take   action as is provided in Sub­Section   (1)."

The   bare   reading   of   the   provision   makes   it  clear that it is not mandatory for the Board  of   Nominees   before   whom   proceedings   under  Section 96 i.e. Lavad suit is initiated, to  suspend   proceedings   even   if   the   issue   is  involving   complicated   question   of   law   or  fact. At this stage, it would be appropriate  to recollect the discussion in previous part  of   this   judgment   wherein   it   is   made   clear  that in­fact it was the case of the defendant  Bank only before the Civil Court in Special  Civil   Suit   No.555   of   2010   that   Civil   Court  has   no   jurisdiction   to   decide   such   issue  which is purely within the purview of the Act  and,   thereby   it   is   to   be   handled   by   the  competent   authorities   of   the   Act   i.e.  Registrar   or   Board   of   Nominees   to   it.  Therefore,   though   it   is   submitted   that  Page 28 of 71 HC-NIC Page 28 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER principle of estopple would not apply to the  defendant   Bank,   the   fact   remains   that  defendant Bank has tried to change its stand  whereby   before   the   Civil   Court,   they   have  contended   that   Civil   Court   has   no  jurisdiction   but  the  Board  of  Nominees  only  has jurisdiction and now before the Board of  Nominees,   they   come   up   with   a   case   that   so  far   as   interpretation   of   document   is  concerned, the issue needs to be referred to  the Civil Court and till then Lavad suit is  to   be   stayed.   Therefore,   irrespective   of  technical issue regarding maintainability of  writ   petition  directly  against  the  order   of  Board of Nominees without preferring Revision  before   the   Tribunal,   if   we   peruse   the  impugned order dated 23.11.2015 by the Board  of Nominees, it transpires that the Board of  Nominee has while discussing such application  to stay the suit before it has taken care of  all relevant facts and circumstances so also  decision of different Courts cited before it  for coming to the conclusion that the dispute  raised   by   the   plaintiff   Modi   is   certainly  required   to   be   dealt   with   and   that   it   can  certainly   be   decided   in   view   of   its  jurisdiction under Section 96 of the Act. The  provision of Section 96 is already reproduced  hereinabove   which   makes   it   clear   that   the  Page 29 of 71 HC-NIC Page 29 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Board   of   Nominees   has   to   decide   dispute  between   Society   and   its   members   with  reference to debt or demand. It is undisputed  fact that dispute between parties at present  is  certainly   with  reference  to  the  activity  in   recovering   the   amount   of   debt   by   the  defendant   Bank.   It   is   also   undisputed   fact  that   the   dispute   is   also   touching   the  management of business of the defendant Bank,  a Cooperative Society and, therefore, it was  referred   to   the   Board   of   Nominees   only  because   of   such   stand   was   taken   by   the  defendant   Bank.   Otherwise   plaintiff   had  already   preferred   a   suit   before   the   Civil  Court. 

23. Therefore,   irrespective   of   all   other  technicalities, legal or otherwise, the fact  remains that no­one should be refused by the  statute so as to deny to resolve his dispute.  For   the   purpose,   technicalities   should   not  come   in   way   of   doing   justice.  It   cannot   be  ignored that ultimately all the rules of the  procedure   are   the   handmaid   of   justice.   The  language   employed   by   the   draftsman   of  procedural  law  may  be  liberal  or  stringent,  but   the   fact   remains   that   the   object   of  prescribing procedure is to advance the cause  of   justice.   In   an   adversarial   system,   no  Page 30 of 71 HC-NIC Page 30 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER party   should   ordinarily   be   denied   the  opportunity   of   participating   in   the   process  of justice dispensation. Unless compelled by  express and specific language of the statute,  the provisions of CPC or any other procedural  enactment   ought   not   to   be   construed   in   a  manner  which   would  leave   the  court  helpless  to meet extraordinary situations in the ends  of   justice   (AIR   2008   SC   (Supp)   767   between  Sambhaji  and  Ors.  Vs.  Gangabai  &   Ors.).   The  procedural  law  is  always   subservient   to and  is   in   aid   to   justice.   Any   interpretation  which  eludes   or frustrates  the  recipient   of  justice   is   not   to   be   followed   (AIR   1998  SC  1827(1) between Shreenath and Anr. Vs. Rajesh  and   Ors.).   Laws   of   procedure   are   meant   to  regulate   effectively,   assist   and   aid   the  object of doing substantial and real justice  and not to foreclose even an adjudication on  merits of substantial rights of citizen under  personal,property   and   other   laws.   Procedure  has   always   been   viewed   as   the   handmaid   of  justice and not meant to hamper the cause of  justice   or   sanctify   miscarriage   of   justice  (2003)3   SCC   272   Sardar   Amarjit   Singh   Kalra  (Dead) Vs.Smt.Pramod Gupta (Dead))the  said  judgment   is   recently   reconfirmed   in   Civil  Appeal   no.6567   of   2015   (Arising   out   of  SLP  Page 31 of 71 HC-NIC Page 31 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER (C) no.22468 of 2013 between Banwari Lal (D)  by Lrs. & Anr. Vs. Balbir Singh. 

24. In   view   of   what   is   stated   hereinabove   and,  more particularly, when Hon'ble Supreme Court  has   directed   to   decide   the   suit   before  4.9.2017 and as disclosed at bar that during  such   exercise,   practically   now   evidence   of  both the sides is over before the trial Court  and matter is lastly listed on 3.8.2017 for  submitting   argument   of   both   the   sides   and,  thereafter, Board of Nominees would be in a  position to decide the suit finally which is  to   be   done   on   or   before   4.9.2017   at   this  stage, I do not see any reason to interfere  with in the impugned order and to disturb the  disposal of the suit as per direction of the  Hon'ble  Supreme  Court.  There   is one  another  reason that when suit is at the verge of the  disposal,  it  is settled  legal  position  that  issue, if any, raised but decided against any  party at interim stage can be raised again in  appellate   jurisdiction   while   challenging  against   the   final   judgment,   if   the   final  judgment is against the same party. Thereby,  in simple words, when it is clear and certain  that   if   at   all   suit   is   decreed   against   the  defendant Bank and if at all defendant Bank  has  to  challenge   such  decree,  the  defendant  Page 32 of 71 HC-NIC Page 32 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Bank is certainly entitled to raise the same  issue in appeal also and, therefore, at this  stage, there is no reason to interfere with  any impugned order. At the most, there may be  an observation that since this Court has not  decided the issue finally both on merits and  law   point   but   decided   it   in   favour   of   the  plaintiff   Modi;   considering   the   factual  details and circumstances emerging on record  at   this   stage,   at   the   most,   defendant   Bank  may be permitted to raise the similar issue  in appeal against final judgment if at all it  is   to   be   filed   by   the   defendant   Bank.  Therefore,   I   do   not   find   any   substance   to  entertain   or   to   allow   this   Special   Civil  Application   and   hence   it   requires   to   be  dismissed and accordingly dismissed. Pursuant  to   disposal   of   main   petition,   now,   Civil  Application  No.4241  of  2016  seeking  stay   of  further   proceedings   of   Lavad   Suit   No.43   of  2011   does   not   survive   and   hence   the   same  stands disposed of accordingly.  

   

Special Civil Application No.495 of 2016:

25. The petitioner herein is again defendant Bank  which   has   challenged   order   by   the  Board   of  Nominees below application at Exh.184 and 185  dated   7.1.2016.   Both   such   applications   are  Page 33 of 71 HC-NIC Page 33 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER preferred   by   the   defendant   Bank   before   the  Board of Nominees. By application at Exh.184,  the defendant Bank has prayed to decide the  issue   No.9   regarding   limitation   as   a  preliminary   issue   whereas   by   an   application  at Exh.185, the defendant has prayed to stay  the  suit   till  preliminary  issue  is  decided. 

However,   by   impugned   judgment   the   Board   of  Nominees   has   while   rejecting   both   the  applications held that when there is no stay  granted   by   any   superior   Court   it   has   no  reason   to   stay   the   proceedings   of   the   suit  and that since, suit is pending for more than  4 years and when it is at the verge of final  decision,   at   such   stage,   suit   cannot   be  stayed as prayed for by the defendant only on  the   ground   of   deciding   any   issue   as   a  preliminary   issue.   Whereas,   so   far   as  deciding   the   issue   of   limitation   as   a  preliminary issue is concerned, the Board of  Nominees   has   observed   that   instead   of   now  deciding   only  the  issue  of  limitation  which  is   otherwise   also   not   dealing   with   the   law  point alone, but also requires consideration  of factual details and evidence, it would be  inappropriate   to   decide   only   such   issue  initially   as   a   preliminary   issue   but   to  decide the entire suit together so as to put  an end to such old litigation. 

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HC-NIC Page 34 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER

26. Prima     facie,   on   face   of   the   facts   and  circumstances and available record, I do not  find   any   irregularity   or   illegality   or  arbitrariness   in   such   order.   It   cannot   be  ignored that we have to deal with the powers  vested by Article 226 of the Constitution and  this is not a statutory appeal or revision.  We have to verify irregularity and illegality  that   may   have   resulted   because   of  arbitrariness   or   discrimination   only.  Thereby,   the   fact   remains   that   so   far   as  procedural   part   of   such   lower   Courts   is  concerned,   if   it   is   not   resulting   into  arbitrariness,   discrimination   and,   thereby,  irregularity or illegality then only because  second   view   is   possible,   decision   of   lower  Court   cannot   be   modified   in   such   Writ  petitions. It is quite clear and obvious that  such   interlocutory   order   does   not   prejudice  the   present   petitioner   being   the   defendant  Bank in any manner whatsoever.   Thereby, if  entire   suit   is   decided   on   its   own   merits,  then, issue of limitation would certainly be  decided by the Board of Nominees because it  is   certainly   one   of   the   issues   which   are  already   framed   and   such   issue   would   be  decided   in   course   of   final   adjudication   by  the Board of Nominees. It is also undisputed  Page 35 of 71 HC-NIC Page 35 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER fact   that   irrespective   of   challenging   the  impugned   order   by   present   litigation,   if  defendant   Bank   has   to   challenge   the   final  judgment   by   the   Board   of   Nominees,   then,  certainly,   it   is   an   error   and   concerned  parties are entitled to raise all the issues  including   challenging   the   decision   on   the  issue   regarding   limitation   in   such   final  appeal.   Therefore,   all   such   interlocutory  applications and challenge of impugned order  below   such   application   is   nothing   but   an  attitude and attempt by the defendant Bank to  drag the matter unnecessarily for a long time  and,   thereby   to   make   the   cause   of   justice  frustrated or to frustrate the result of the  litigation if at all it is in favour of the  plaintiff Modi who is seeking justice. In any  case,   irrespective   of   technicalities,   every  litigant is entitled to a judicial order for  the   dispute   raised   by   him   irrespective   of  decision which may be against him.

27. Though facts and circumstances and law point  is  confirming  above  discussion,  let  us  deal  with   relevant   submissions   on   the   subject  which is raised in this petition.

28. It   is   contended   by   the   learned   counsel   for  the  defendant  Bank  that  when   property  under  Page 36 of 71 HC-NIC Page 36 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER consideration was mutated pursuant to decree  of the year 1936 in favour of the defendant  Bank   against   the   predecessor   of   plaintiff  Modi,   somewhere   in   the   year   1941,   by  executing a sale deed on 18.4.1941, the suit  filed   on   10.2.2011   is   certainly   beyond   the  period of limitation. Though, it can be said  that   the   suit   is   filed   after   70   years   from  the date of sale deed, the core issue is with  reference  to  the  interpretation  of  the  deed  dated   14.2.1941   that   whether   it   is   a   sale  deed for absolute transfer of the property in  question   or   a   conditional   sale   deed   which  results   into   effect   of   mortgaging   the  property with some conditions. In that case,  a   suit   to   redeem   the   mortgage   can   be   filed  after 12 years or after 30 years based upon  the   averments   in   the   deed   for   the   purpose.  Though, I do not want to enter into factual  details   and   discussion   thereof   so   as   to  ascertain   or   decide   that   whether   suit   is  within   limitation   or   not,   so   as   to   avoid  prejudice   to   either   side   in   final   trial  before   the   Board   of   Nominees,   it   is   quite  clear   and   certain   that   the   period   of  limitation of 12 or 30 years as per Article  63 of Limitation Act, 1963 is to be counted  not  from   the  date  of  the  deed  but  from  the  date   when   money   secured   by   the   mortgagee  Page 37 of 71 HC-NIC Page 37 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER becomes   due   or   when   the   mortgagee   becomes  entitled   to   possess   as   the   case   may   be  considering   the   factual   details   of   the  transaction   between   the   parties.   Therefore,  only   because   suit   is   filed   after   70   years  from   the   date   of   deed   which   is   under  scrutiny, prima facie, it cannot be said that  the suit is barred by law of limitation. As  discussed above, for considering the issue of  limitation   factual   details   needs   to   be  ascertained. If it is so, the issue regarding  limitation   cannot   be   determined   as   a  preliminary issue, when mixed question of law  and facts are involved in deciding any such  issue.   When   application   for   deciding   the  issue of limitation as preliminary issue and  thereby to reject the suit as provided under  Order   VII   Rule   11   of   the   Code,   then,   it  cannot be ignored that under Order VII Rule  11, the plaint can be rejected only when (a)  it   does   not   disclose   a   cause   of   action   (b)  the relief claimed is invalid (c) sufficient  stamp is not paid and (d) from the statement  in the plaint, suit is barred by any law and  so   far   as   remaining   two   grounds   are  concerned,  it  is  purely  procedural  i.e.  (1)  non supplying of plaint in duplicate and (2)  non  supplying  of  requisite  number  of  copies  as   per   total   number   of   respondents. 

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HC-NIC Page 38 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Therefore,   though   one   of   the   ground   for  rejection of the plaint provides that if suit  is   barred   by   any   law,   then,   it   may   be  rejected. It cannot be said that only because  of   such   ground   or   any   such   provision   when  defendant Bank has took plea or defence about  limitation,   the   suit   is   barred   by   law   of  limitation   and,   therefore,   required   to   be  rejected.  Litigant  who  is  taking   shelter   of  such   provision   has   to   prove   it   by   proper  evidence   before   the   Court   that   how   suit   is  barred by particular law. Taking the plea is  not enough for decision. 

29. As   discussed   hereinabove,   so   far   as  limitation to file such suit is concerned, it  is   certainly   a   mixed   question   of   fact   and  law,   inasmuch   as,   as   discussed   hereinabove,  period   of   limitation   would   not   start   from  fixed date but it would start from some date  which is to be considered from the averments  in the document executed between the parties  for  the  transaction  under  reference.   In the  present   case,   when   such   document   itself   is  under scrutiny that whether it is a sale deed  or  result  into  mortgaging  the  property  then  unless   that   issue   is   decided   and   thereby  unless   the   date   is   ascertained   that   from  which   date,   limitation   is   to   be   counted,  Page 39 of 71 HC-NIC Page 39 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER there   is   no   question   of   deciding   issue   of  limitation   as   a   preliminary   issue   without  permitting   the   plaintiff   to   adduce   evidence  to   prove   his   case   even   on   the   issue   of  limitation. Therefore, there is no substance  in   the   petition   so   as   to   quash   the  interlocutory  order  and  to  direct  the  Board  of Nominees to decide the issue of limitation  as   preliminary   issue   or   to   stay   the  proceeding of the suit till then. 

30. Though provision of the Code is to be applied  so far as if it is possible in the proceeding  before   the   Board   of   Nominees,   the   fact  remains   that   the   issue   are   always   of   two  kinds; (1) issues of fact and (2) issues of  law and notwithstanding that the case may be  disposed   of   on   a   preliminary   issue   as  provided   in   Rule   2   of   Order   XIV,   the   Court  shall, subject to the provisions of Sub Rule  2   pronounce   the   judgment   on   all   issues.  Therefore, though sub Rule (2) of said Rule  provides   that   the   Court   may   postpone   the  settlement   of   other   issues   until   the   issue  relates to the jurisdiction of the Court or  barred   by   law   in   filing   such   suit   is  determined,   and   may   deal   with   the   suit   in  accordance with decision on such preliminary  issue  and,  thereby,  permitting  the  Court   to  Page 40 of 71 HC-NIC Page 40 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER dispose of the suit on an issue of law only,  the fact remains that when the issue is with  regard to facts then irrespective of deciding  preliminary   issue   alone,   the   Court   shall  pronounce the judgment on all issues. It is  undisputed   fact   that   issue   regarding  limitation is not expressly disclosed either  in Order VII, Rule 11 or Order XIV, Rule 2 of  the   Code   and,   therefore,   when   issue   of  limitation   is   involving   issues   on   facts   as  well as law, such issue cannot be taken as a  preliminary issue to dispose of the suit and  even   if   it   is   so   disposed,   the   Court   shall  pronounce   the   judgment   on   all   issues.  Therefore,   when   there   is   no   dispute   that  issue   of   limitation   has   already   been  incorporated in the issues framed and then to  be   determined   by   the   Court,   then,   Court   is  certainly going to decide such issue in its  final judgment and, therefore, when remedy is  available to the defendant Bank to challenge  such issue in final judgment, I do not find  any reason to interfere with in the impugned  order.

31. In   view   of   above   facts   and   circumstances,  though,   there   may   be   further   discussion   on  the  issue  based  upon   rival  submissions,  the  above position makes it clear that there is  Page 41 of 71 HC-NIC Page 41 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER no substance in the petition and, therefore,  petition   deserves   to   be   dismissed   and   is  hereby dismissed which results into dismissal  of   Civil   Application   No.4242   of   2016   also  wherein similar interim relief is prayed for  to stay the further proceedings of Lavad Suit  No.43 of 2011.

Special Civil Application No.11771 of 2017:

32. This   is   also   a   petition   by   defendant   Bank  challenging   an   order   dated   17.6.2017   below  Exh.234 by the Board of Nominees at Surat in  same Lavad Suit No.43 of 2011, now, raising  one another legal issue under the provisions  of   the   Act.   This   application   is   preferred  under   Sub   Section   (2)   of   Section   96   of   the  Act  for  considering  a  question  for  decision  that whether for the purpose of Sub Section  (1)   of   Section   96   of   the   Act,   the   matter  referred   to   the   Board   of   Nominees   for  decision is a dispute or not. The application  runs into as many as 15 pages with a prayer  that the suit be dismissed declaring that for  the purpose of Sub Section (1) of Section 96  of the Act, no dispute is arising between the  parties  within  the  meaning  of  Section  96(1)

(b) of the Act and, therefore, plaintiff is  not entitled to any relief in such suit and  Page 42 of 71 HC-NIC Page 42 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER to   award   heavy   cost   for   filing   false,  frivolous and vexatious case.    

33. At   the   outset,   once   again   it   is   to   be  recollected   here   that   in­fact   the   plaintiff  Modi   has   initially   preferred   Civil   suit  before   the   Civil   Court   wherein   it   was   the  stand by the defendant Bank that the dispute  raised   by   the   plaintiff   Modi   in   such   Civil  suit   is   a   dispute   within   the   meaning   of  Section 96 of the Act, and, therefore, only  competent   authority   under   the   Act   has  jurisdiction to resolve such dispute and not  the Civil Court. In fact, when defendant Bank  has   filed   a   separate   application   for  rejection of the plaint by the Civil Court on  such plea and ground, the plaintiff Modi has  preferred   present   suit   by   withdrawing   that  suit.

34. Though it is submitted that such activity is  preplanned   and   needs   to   be   looked   into  seriously because the suit was filed on the  very same day i.e. 10.2.2011 when Civil suit  was  withdrawn  and  wherein  Board  of  Nominees  has granted ex parte injunction. It is also  submitted that the filing of the 2nd  suit is  not in accordance with law or as permitted by  the   Civil   Court   because   the   permission   to  Page 43 of 71 HC-NIC Page 43 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER file a fresh suit if any granted by the Civil  Court, it is only for filing suit before the  Civil   Court   and   not   before   any   other  authority. For the purpose, reference is made  to   the   provision   of   Order   XXIII,   Rule   1   of  the   Code   submitting   that   though   Court   can  grant the permission to withdraw the suit or  part of the claim with liberty to institute a  fresh suit in respect of the subject matter  of  such  suit   or such   part  of  the  claim,  it  does   not   apply   for   filing   of   a   suit   before  the Board of Nominees but such permission is  only regarding filing of the suit before the  same Court. The bare reading of the provision  of Order XXIII, Rule 1 does not make any such  sense so as to restrict the litigant to file  appropriate   proceedings   before   appropriate  forum   in   appropriate   manner   when   previous  suit   is   allowed   to   be   withdrawn   with   a  liberty to file a fresh suit. Irrespective of  such   observation,   it   is   also   clear   that   in  that case, withdrawal of suit from the Civil  Court   would   certainly   not   result   into  resjudicata  in filing  fresh   suit  before   the  Board of Nominees.

35. Whereas,   so far  as  consideration   of dispute  between   the   parties   is   concerned   to  scrutinize  that  whether  it  falls   within  the  Page 44 of 71 HC-NIC Page 44 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER purview of Section 96 of the Act or not, the  same   set   of   discussion   makes   it   clear   that  in­fact   it   was   a   plea   and   defence   by   the  defendant  Bank  before  the  Civil  Court  which  obliged   the   plaintiff   Modi   to   file   present  suit   before   the   Board   of   Nominees   and,  therefore, though I do not want to enter into  further   scrutiny   and   discussion   on   the  principle of estopple that whether it applies  to   the   defendant   Bank,   considering   the  meaning   of   word   `estopple'   I   have   no  hesitation to say that the plea and defence  by the defendant Bank before the Civil Court  that the dispute raised by the plaintiff Modi  before   the   Civil   Court   is   pertaining   to   a  dispute within the meaning of Section 96 of  the   Act   and,   therefore,   Civil   Court   has   no  jurisdiction   to   entertain   such   suit   would  certainly debarred the defendant Bank to take  such   plea   in   the   present   suit   which   would  otherwise   result   into   refusing   to   entertain  the   grievance   of   the   plaintiff   Modi.   It   is  settled   legal   position   that   every   litigant  should have right to resolve his dispute or  problem   through   proper   adjudication   of   it  irrespective of result of such dispute which  may be either in favour of such litigant or  not.

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HC-NIC Page 45 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER

36. If   we   consider   the   minute   details   to   some  extent, though it is avoided to be discussed  herein,   so   as   to   avoid   prejudice   to   either  side in a pending trial before the Board of  Nominees, for the same issues, at­least it is  necessary to record here that the transaction  between  the  plaintiff  and  the  defendant  was  with   reference   to   the   business   of   the  defendant Bank, inasmuch as, the property in  question was dealt with in repayment of debt  to   the   Bank   which   is   the   basic   business   of  the defendant Bank and, therefore, reading of  Section 96 makes it clear that it certainly  requires   to   be   adjudicated   by   the   Board   of  Nominees.   However,   such   observation   is   only  prima   facie   and   to   decide   the   present  petition   only   when   such   issue   is   already  raised   as   a   regular   issue   in   the   issues  framed   by   the   Board   of   Nominees   in   the  pending   Lavad   Suit   No.43   of   2011   and,  therefore,  that  Court  is  free  and  empowered  to decide such issue, therefore irrespective  of   all   above   observation   but   purely   in  accordance   with   law   and   facts   and   not   by  influencing itself by any pending proceeding  or   observation   herein.   If   we   peruse   the  impugned judgment, it is clear that the Board  of Nominees has taken care of all the facts  and   circumstances   before   rejecting  Page 46 of 71 HC-NIC Page 46 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER application by a reasoned order in 27 pages.  The Board of Nominees has also considered the  citations   referred   by   the   parties   and   as  already discussed with reference to previous  petition that this is petition under Article  226   and   not   a   statutory   appeal   or   revision  and,   therefore,   though   there   is   extra  ordinary jurisdiction vested in the Court, it  is clear and certain that this Court is not  required   to   entertain   all   such   petitions  which can be avoided and when impugned order  can   be   assailed   in   final   appeal   also.  Therefore, this petition is also lacks merits  even   for   further   consideration   and   hence  summarily dismissed. 

37. Learned   counsel   for   the   defendant   Bank   has  with chronology of events submitted that the  Court shall also examine the attitude by the  plaintiff Modi in filing two different suits  in short span but through two different Power  of   Attorney   Holders.   It   is   submitted   that  Civil   Suit   No.555   of   2010   was   preferred  through one Power of Attorney Holder namely;  Mr.Katpitia which was withdrawn on 10.2.2011  and on the very same day, Lavad Suit No.43 of  2011   is   preferred   through   another   Power   of  Attorney   Holder   namely;   Pankaj   Vanravan  Nathvani.   However,   only   because   original  Page 47 of 71 HC-NIC Page 47 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER plaintiff  has  changed  his  Power  of  Attorney  Holder   for   filing   another   suit,   the   legal  right cannot be jeopardized or blamed so as  to   decide   against   them   that   they   have   no  right   to   agitate   and   to   get   justice   in  accordance with law.

38. It   is   also   submitted   that   interim   relief  against  defendant  Bank  granted  by  the  Board  of  Nominees  was  negativated  by  the  Tribunal  and   such   rejection   of   interim   relief   was  confirmed by the High Court in Special Civil  Application   No.6144   of   2012   but   again   2nd  application   was   filed   for   similar   relief  which   is   not   permissible   and   therein   High  Court has directed to maintain status quo by  both   the   sides   which   speaks   for   itself.  However,   when   such   orders   were   dragged   to  Hon'ble Supreme Court of India and ultimately  in   such   proceedings   when   Hon'ble   Supreme  Court   of   India   has   not   interfered   with   the  order of status quo but directed the Board of  Nominees   to   decide   the   suit   within   four  months,   it   would   be   out   of   space   or  unnecessary to deal with such issue at this  stage   in   the   present   petitions   wherein  practically such interim relief is not under  challenge and when other interlocutory orders  are   under   challenge.   It   cannot   be   ignored  Page 48 of 71 HC-NIC Page 48 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER that different interlocutory applications by  the   defendant   Bank   for   avoiding   the  adjudication   of   the   suit   and   though   it   is  legal   right   to   challenge   any   interlocutory  orders before the higher authority when such  orders can be challenged in final appeal also  and,   more   particularly,   when   defendant   Bank  is seeking to scrutinize the attitude of the  plaintiff     Modi   in   filing   such   suit   after  long time gap and through different Power of  Attorney holder, then, attitude of defendant  Bank   is   also   required   to   be   scrutinized.  However,   at   this   stage,   when   I   am   dealing  with   all   other   points   based   upon   facts   so  also   applicable   law,   it   is   made   clear   that  determination   of   dismissing   of   these  petitions   is   not   based   only   upon   such  attitude   of   the   defendant   Bank   to   take  diverse   and   contradictory   stand   and   to  dragged   the   proceedings   in   High   Court   from  every  interlocutory  orders  to  see  that  suit  does   not   proceed   either   before   the   Civil  Court   or   before   the   Board   of   Nominees,   for  which   defendant   Bank   has   ample   financial  support at the cost of its members. 

39. Learned  advocate   for  the  defendant  Bank  has  also submitted that by its judgment and order  dated 11.6.2012 in Special Civil Application  Page 49 of 71 HC-NIC Page 49 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER No.6145  of  2012,   such  petition  is  preferred  by the plaintiff Modi against the order dated  18.4.2012  by  the  Tribunal  in  Revision  No.98  of   2011   whereby   the   Tribunal   has   set   aside  the order dated 4.7.2011 passed by the Board  of Nominees below Exh.19 in Arbitration Suit  No.43 of 2011 preferred by the defendant Bank  for   dismissal   of   the   suit   under   Order   VII,  Rule 11(d) of the Code contending that it is  time   barred,   the   Coordinate   Bench   of   this  High Court has observed that when issues are  cast,   it   would   be   open   for   the   concerned  party   i.e.   defendant   Bank   to   submit   an  application   to   Board   of   Nominees   requesting  to decide issue of limitation as preliminary  issue   and,   therefore,   defendant   Bank   has  preferred such application and it requires to  be decided as preliminary issue. However, it  is   quite   clear   that   only   because   some  observation   by   High   Court   in   previous  litigation regarding possibility of filing an  application   to   decide   any   issue   as   a  preliminary issue does not mean that as and  when such application is preferred, it is to  be allowed without considering relevant facts  and  circumstances  and  law  applicable   at the  relevant   time.   For   the   discussions   made   in  this   judgment,   when   it   is   clear   that   such  application cannot be decided as preliminary  Page 50 of 71 HC-NIC Page 50 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER issue,   only   because   of   some   observation   by  the   coordinate   Bench   in   some   orders,   such  application cannot be entertained as such.

40. It   is   also   submitted   by   the   defendant   Bank  that   from   sale   deed   dated   18.4.1941   till  predecessor of plaintiff expired i.e. in the  year 1996, none of them had ever challenged  the sale deed or the possession by the Bank  and  it  was  only  in  the  year  2011   when  Bank  has  pursuant   to Public  Notice  tried  auction  of   piece   of   land,   two   different   Power   of  Attorney   Holders   had   mushroomed   to   disturb  the   right   of   the   defendant   Bank   based   upon  Power of Attorney deed executed on the same  date i.e. 24.1.2011 and, therefore, it is to  be   looked   into   in   proper   perspective   and  strictly   against   the   plaintiff.   However,   so  far as limitation is concerned, since it is  one of the major issue under adjudication by  the Board of Nominees, wherein, decision can  be taken relying upon both; facts and law, it  would   not   be   appropriate   for   this   Court  either   to   discuss   factual   details   on   such  issue or to decide the issue of limitation at  this   stage   and,   therefore,   I   leave   it   for  appropriate decision to be taken by the Board  of   Nominees   based   upon   the   facts,  circumstances, evidence and applicable law on  Page 51 of 71 HC-NIC Page 51 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER the subject. 

41. So   far   as   assigning   power   to   two   different  persons   on   the   same   day   and   filing   two  different   suits   by   different   Power   of  Attorney Holders are concerned, I do not find  any   substance   in   any   such   averments   or  submissions by the defendant Bank against the  plaintiff   Modi   for   the   simple   reason   that  there is no bar or ban in assigning powers to  more than one person at a time. It is quite  clear and obvious that assigning of powers is  only subject to a condition that the act or  omission done by the Power of Attorney Holder  shall   be   considered   as   an   act   done   by   the  person who has assigned such powers. In any  case, one may assign his powers to different  persons   either   for   same   activity   or   for  different   activities   and   only   because   of  assigning of powers on same day, it cannot be  said   that   there   is   any   illegality   and,  thereby,   adverse   inference   cannot   be   drawn  against such person.

42. So   far   as   facts,   details   and   issue   with  reference   to   joining   purchaser   as   well   as  proposed   purchaser   of   piece   of   land   of  defendant   Bank   is   concerned,   though   it   is  incorporated in chronology of list, when I am  Page 52 of 71 HC-NIC Page 52 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER not dealing with such issue which is subject  matter of Special Civil Application No.16247  of 2014, neither reference nor discussion or  even   determination  on  such  fact  is  relevant  at present. 

43. It is also irrelevant at this stage pursuant  to the direction of Hon'ble Supreme Court of  India to decide the suit within four months  when   plaintiff   Modi   has   prayed   for  prohibitory order against transfer of land in  question by Public Notice issued in the year  2015 and proceeding thereafter till date. It  is also contended by the defendant Bank that  pursuant to pending Revision Petitions before  the   Tribunal,   details   of   which   is   listed  hereinabove, the hearing of suit requires to  be   stayed.   However,   for   such   relief,  defendant   Bank   has   to   initiate   appropriate  proceedings before the Hon'ble Supreme Court  of India, when Hon'ble Supreme Court of India  has already directed to expedite the hearing  of   the   suit   and,   therefore,   such   ground   is  now   not   available   to   the   defendant   Bank   at  least   before   this   Court.   For   the   same  reasons, it cannot be said, as argued by the  petitioner   that   the   Board   of   Nominees   is  proceeding in Lavad suit in hot haste inspite  of   pendency   of   several   petitions.   On   the  Page 53 of 71 HC-NIC Page 53 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER contrary,   it   is   evident   that   when   Bank   has  moved  the  Civil  Application  for  staying  the  further   proceedings   of   the   Lavad   suit   and  when   Coordinate   Bench   of   this   Court   has  stayed the proceeding of the suit, in fact,  when   such   order   was   challenged,   before   the  Hon'ble   Supreme   Court   of   India,   Hon'ble  Supreme Court of India has, on the contrary,  directed the                 Board of Nominees  to  expedite   the   suit   and   to   decide   it   within  four   months  and  thereby  rejected   the  prayer  of   staying   the   suit   by   the   defendant   Bank  and, therefore, such prayer cannot be granted  in   any   manner   whatsoever   in   any   of   such  petitions   for   any   reason   whatsoever   by   any  Court   subordinate   to   the   Hon'ble   Supreme  Court of India. 

44. It is undisputed fact that plaintiff Modi has  preferred the suit for redemption of mortgage  and, therefore, unless such issue is decided  by judicial pronouncement, it cannot be said  that the suit is not maintainable in absence  of   specific   bar   against   such   suit   in   any  enactment. It is also clear and certain that  limitation for such suit is not prescribed as  fixed   period   but   it   would   vary   as   per  prescribed   period   of   limitation   based   upon  and agreement between the parties at the time  Page 54 of 71 HC-NIC Page 54 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER of   mortgage   and,   therefore   issue   of  limitation   in   such   suit   is   obviously   a  combined   issue   of   facts   and   law   and,  therefore,   it   cannot   be   decided   in   summary  manner.   As   already   discussed   hereinabove  though   issue   of   limitation   needs   not   to   be  dealt with or decided by this Court, the fact  remains   that   it   is   to   be   considered   with  reference to the terms and conditions of deed  in question and bare reading of some part of  the deed which is reproduced in the suit and  in   proceedings   gives   an   impression   that  probably   there   is   contradiction   in   the  averments in the deed and, therefore, proper  interpretation of such deed is necessary and  in   view   of   such   factual   position   also   suit  cannot   be   stayed   but   requires   final  adjudication   so as  to  avoid  multiplicity   of  litigation.   It   cannot   be   ignored   that   in  judgment and order dated 22.8.2012 in Letters  Patent Appeal No.872 of 2012, Division Bench  of this High Court has observed as under: ­ "9. In   our   view,   when   it   is   undisputed   position   that   the   sale   deed   has   been  executed   and   the   property   has   been  transferred,   nothing   is   required   to   be  done   further   except   observing   that   the  legality and validity of the sale if any  is   brought   under   challenge   before   the  learned Nominee in the pending suit, the  learned Nominee should be at the liberty  to examine the said aspects and should be  Page 55 of 71 HC-NIC Page 55 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER in a position to pass appropriate orders  at   the   time   of   final   disposal   of   the  suit.   Hence,   it   is   observed   that   the  appellant­orig. Plaintiff shall be at the  liberty   to   raise   the   contention   on   the  aforesaid   aspect,   and   if   such   challenge   is raised before the learned Nominee, the  learned   Nominee  shall  be  at  the  liberty  examine and decide the same in accordance  with   law   together   with   disposal   of   the  suit." 

45. Thereby,   it   is   necessary   for   the   Board   of  Nominees   to decide  the  suit  finally  whereas  so   far   as   other   observations   regarding  raising   of   issue   before   the   the   Board   of  Nominees is concerned, though every litigant  has   a   right   to   raise   any   issue,   the   fact  remains that such issue is to be decided in  accordance with law, facts and circumstances  on given date but cannot be decided in favour  of   particular   litigant   only   because   of   any  such   observation   permitting   the   litigant   to  raise such issue.

46. It   is   also   necessary   to   recollect   the  following passage from the judgment and order  dated 11.6.2012 in Special Civil Application  No.6145 of 2016 against which Letters Patent  Appeal   No.872   of   2012   was   preferred   but   it  was disposed of in terms of observations and  directions in its order dated 22.8.2012.

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HC-NIC Page 56 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER "16. It is true that in light of the   pleadings one of the important issues   which would arise for decision by the   Board   of   Nominees   will   be   about   limitation. 

16.1. However, it would be one of the   diverse issues and that therefore the   Board   of   Nominees   will   have   to   proceed   to   cast   all   issues   which  arise from the pleadings filed by the   parties   and   the   issues   so   cast   may   include the issue about limitation. 

16.2.   The   Board   of   Nominees   may,  thereafter,   proceed,   in   accordance   with law, to decide any issue (out of   the   total   issues   cast   in   the   proceedings) as preliminary issue and   for   such   purpose   any   of   the   parties   to   the   proceedings   may   make   appropriate application. 

16.3. Ordinarily if the issue is pure   question   of   law   and   if   it   is   such   which   can   be   decided   without   recording   evidence   then   it   may   be   decided as preliminary issue. 

17. From the foregoing discussion and   from the facts of the case the issue   about   limitation   seems   to   be   connected   with   the   issue   related   to   the   nature   of   document   (i.e.   as   to   whether it is a sale deed or deed of   mortgage)   and   to   decide   the   former,   latter   also   will   have   to   be   simultaneously considered. 

18. When the pleadings are filed the   obligation   is   on   the   Court   to   frame   issues and to decide the said issues.   If   any   or   more   issues   are   pure  Page 57 of 71 HC-NIC Page 57 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER questions   of   law   and   is/are   such  which   can   be   decided   without   recording   evidence   then   Court   may  consider   the   request   to   decide   such   issue/s   as   preliminary   issue/s,   whereas the issues, which may require   evidence should, ordinarily, be tried   together so that the parties may not   have to lead evidence in two stages­ phases.

18.1.   In   view   of   the   foregoing   discussion   the   order   of   the   learned   Tribunal   remitting   the   case   to   the   Board   of   Nominees   is   not   disturbed,   however,   the   direction   to   the   Board   of   Nominees   to   decide   the   issue   of   limitation   as   preliminary   issue   is  set   aside   and   modified   with   clarification   that   the   Board   of  Nominee shall proceed, expeditiously,   to   cast   all   issues   in   light   of   the  pleadings   available   on   record   which   may   include   the   issue   about   limitation   (depending   on   the  pleadings filed by the parties). When   the issues are cast it would be open   to   the   concerned   party   to   submit   an   application   to   the   Board   of   Nominee   requesting   the   Board   of   Nominee   to   decide   the   issue   of   limitation   as   preliminary   issue.   If   such   application   is   filed   by   the   respondent   then   such   application   shall be expeditiously decided by the   Board   of   Nominees   on   its   own   merits   and in accordance with law. The Board   of   Nominee   shall   take   appropriate   independent   decision   in   accordance   with law and in light of the facts of   the case and the pleadings submitted   by   the   parties   and   applicable   provisions   and   settled   legal   Page 58 of 71 HC-NIC Page 58 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER position,   however   without   being   influenced by the order passed by the   learned   Tribunal.   The   Board   of   Nominee shall endeavor to decide the  suit   as   expeditiously   possible   and  preferably   within   three   months.   The   Board   of   Nominee   shall   also   proceed   to cast the issues expeditiously and  the said process will not be deferred   beyond   7   days   from   service   of  certified copy of this order." 

47. The above observation shows that in­fact the  learned   Single   Judge   has,   as   back   as   on  11.6.2012 observed that the Board of Nominees  shall   endeavor   to   decide   the   suit   as  expeditiously   as   possible   and   preferably  within three months. Therefore, if defendant  Bank had cooperated for expeditious disposal  of   the   suit   at   the   relevant   time,   then,  probably, there would be an end of different  proceedings   rather   than   multiplicity   of  litigation   at   interim   stage   against   several  different interlocutory orders.

48. It   is   also   evident   from   the   record   that   in  Lavad suit No.43 of 2011 as many as 13 issues  were already framed at Exh.76, as back as on  27.7.2012. The list of issues at Annexure `S'  shows that there is specific issue regarding  limitation   as   issue   No.9   that   whether  defendant proves that the suit is barred by  Page 59 of 71 HC-NIC Page 59 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER law   of   limitation   ?   There   is   also   specific  issue   with   reference   to   the   provision   of  Sections 9697 and 99 so also 167 of the Act  that   whether   plaintiff   proves   that   dispute  raised in the plaint is within the purview of  the   Act   and   that   whether   defendant   proves  that   plaintiff   suit   is   barred   by   the  provision of the Act. There is also specific  issue that whether defendant proves that the  deed   dated   18.4.1941   is   sale   deed   only,   in  addition to other relevant issues based upon  the pleadings by both the parties. Therefore,  when   relevant  issues   are  already   framed  and  when   Board   of   Nominees   otherwise   going   to  decide   such   issues   in   accordance   with   law,  there   is   no   reason   to   interfere   with   any  proceedings of the Court which is directed to  decide the suit within four months by Hon'ble  Supreme Court of India.

49. So   far   as   litigations   pending   before   the  Tribunal is concerned, the discussion herein  makes it clear that only because of pendency  of   such   litigation,   proceedings   of   suit  cannot   be   stayed   by   this   Court.   Learned  advocate   for   the   defendant   Bank   has   also  referred paragraph 2 on page No.51 which is  part   of   impugned   order   on   page   No.49  submitting  that  there  is  observation   by the  Page 60 of 71 HC-NIC Page 60 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Board of Nominees which prejudices the right  of the defendant Bank in final determination  of the suit. It is also submitted that such  finding  was  not  necessitated   and  beyond  the  scope   of   ambit   of   application   at   Exh.184  which is decided by such impugned order dated  7.1.2016   against   the   defendant   Bank.   It   is  also   submitted  that  in  same  paragraph  there  is   contradictory   findings   that   without  referring to the evidence, the tenure of the  deed   cannot   be   decided   and,   therefore,   the  issue   of   limitation   cannot   be   decided   as   a  preliminary   issue.   The   reading   of   entire  order, however, makes it clear that in fact  there is no contradictory findings but in any  case which is an observation by the Court at  interlocutory   stage   to   decide   an  interlocutory   order   and,   therefore,   at   the  most, it can be observed while disposing such  petitions, the Board of Nominees shall decide  the suit in accordance with law without being  influenced   by   any   such   observation   in   any  such interlocutory order.

50. Though defendant Bank has raised the issue of  authority   of   Power   of   Attorney   Holder,   the  fact remains that on one hand, such issue is  also required to be dealt with while deciding  the   suit   finally   i.e.   after   evidence   is  Page 61 of 71 HC-NIC Page 61 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER recorded and factually when document of Power  of  Attorney  Holder  deed  is  already  produced  on record, there is no reason to object the  judicial proceeding on such ground. 

51. It is submitted by the plaintiff Modi that in  fact,   there   is   no   provision   to   dismiss   the  suit   under   the   Act   as   against   the   issue  raised by the defendant Bank that pursuant to  provision of Section 96 of the Act, the Board  of   Nominees   even   if   having   powers   of  Registrar pursuant to government notification  dated 21.7.2010 to exercise the powers under  Sections 96979899100 and 101 so also  under   Sections   41   to   43,   initially,   either  Registrar   or   the   Board   of   Nominees,   as  authorized by the notification has to arrive  at   a   conclusion   that   there   is   a   dispute   in  existence   between   the   parties   under   Section  96 of the Act and then and then, he can refer  such issue to the Board of Nominees. 

52. It is also submitted that though there is a  practice to accept the plaint as a suit and  to   proceed   further   without   deciding   the  preliminary   issue   that   whether   dispute   is  falling within the provision of Section 96 of  the   Act   or   not;   the   Board   of   Nominees   had,  may   be   because   of   practice,   accepted   the  Page 62 of 71 HC-NIC Page 62 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER plaint   and   admitted   the   suit   even   without  offering   an opportunity  to  the  defendant   to  explain that there is no dispute within the  Section   96   of   the   Act.   However,   though   law  point can be raised at any point of time, the  fact remains that such issue is raised first  time by the defendant Bank and that too after  taking   a   plea   before   the   Civil   Court,   that  the dispute is within the purview of the Act  and,   therefore,   Civil   Court   has   no  jurisdiction. Therefore, as already discussed  hereinabove,   the   stand   of   the   defendant   is  not correct and in any case, dispute raised  by   the   litigant   needs   to   be   adjudicated   in  accordance   with   law   instead   of   tossing   it  taking shelter of technicalities.

53. In support of its submission, defendant Bank  is relying upon the decision between Popatlal  Ravchand   Bhau   v.   Dasha   Porwad   Jain  Cooperative   Housing   Society   Limited   reported  in   1970   GLR   147.   No   doubt   that   at   the  relevant   time,  the  learned  Single  Judge  has  observed that if the Registrar under the Act  proceed   to   adjudicate   upon   the   dispute  himself,   then,   it   is   applicable   upon   him  first to hear the parties as to existence of  dispute   and   then   after   having   done   so,   he  Page 63 of 71 HC-NIC Page 63 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER must   record   first   the   finding   that   he   is  satisfied   that   the   dispute   exists   and   then  again   proceed   to   call   upon   the   parties   to  appear   before   him   and   adjudicate   upon   the  dispute   on   its   own   merits.   However,   such  sentence is to be read properly because it is  starting   with   the   word   "assuming"   that   and  conclusion thereafter reads thus; Section 96  read with Section 98 does not admit of such a  construction. If the Registrar, on receipt of  a   reference   which   is   to   be   made   in   the  prescribed format in respect of a dispute of  a   party   contemplated   by   Section   96   is  satisfied   on   the   matters   placed   before   him  that   a   dispute   as   envisaged   by   Section   96  exists, it is not further necessary for him  to   inquire   into   the   existence   of   this  dispute.   The   reading   of   entire   judgment  certainly confirms that it is nowhere held by  the   Court   that   it   is   obligatory   for   the  Registrar   to   call   upon   the   parties   and   to  decide at first instance that whether dispute  exists   under   Section   96   or   not.   What   is  stated by the Court is quite simple that once  Registrar refers the dispute to the Tribunal  such   order   is   not   subject   to   challenge  because it is not a quasi judicial order but  only   administrative   in   nature.   By   practice,  when powers of Registrar are nominated to the  Page 64 of 71 HC-NIC Page 64 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Board   of   Nominees   also,   just   to   avoid   such  administrative   order,   it   becomes   clear   that  once   suit   is   filed   before   the   Board   of  Nominees   of   Registrar   and,   thereafter,   if  notice   is   issued   by   the   Board   of   Nominees,  then,   there   would   be   presumption   that   the  Board of Nominees has taken a decision that  dispute under Section 96 is in existence.

  

54. Defendant   Bank   is   also   relying   upon   the  decision of   Hon'ble Supreme Court of India  in the case of Gujarat State Cooperative Land  Development Bank Ltd. v. P.R. Mankad reported  in   1979(3)   SCC   Page   123  and   referred  paragraphs   21   and   22   of   such   judgment.   The  perusal   of   these   two   paragraphs   makes   it  clear   that,   though   the   question   regarding  existence  of  dispute   under  Section  96  shall  be considered by the Registrar, his decision  shall be final and, therefore, though it is  incumbent   on   Registrar   to   decide   as   a  preliminary issue that whether the dispute is  of a kind under sub section (1) of Section 96  falling within his jurisdiction and though if  preliminary   issue   is   found   in   negative,   he  will   have   no   further   jurisdiction   to   deal  with   the   matter;   as   discussed   hereinabove,  when   powers   of   Registrar   of   Cooperative  Page 65 of 71 HC-NIC Page 65 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Societies   is   also   vested   in   the   Board   of  Nominees   and   when   Board   of   Nominees   has  issued   notice   to   the   defendant   Bank   then  there is prima facie consideration that Board  of Nominees has considered the dispute under  Section  96.  Therefore,  only  because  of  such  judgment,   in   the   present   case,   when   matter  has  been   dragged   upto  Hon'ble  Supreme  Court  of India on different counts when such plea  was  never  raised,  the  decision  in  paragraph  12   of   the   same   judgment   would   also   equally  applicable wherein the Hon'ble Supreme Court  of India has confirmed that new plea cannot  be   raised   to   be   permitted   at   such   belated  stage.   Surprisingly,   the   situation   in   such  reported   case   and   in   the   present   case   are  almost similar, inasmuch as, while rejecting  the   new   plea,   the   Hon'ble   Supreme   Court   of  India has also observed that such plea is in  direct contradiction to the position taken by  the   appellant   in   its   Writ   petition   and   the  affidavit  in  supported  thereof  filed   in the  High   Court.   In   the   present   case   also,   the  defendant   Bank   has   taken   a   contradictory  stand   both;   before   the   Civil   Court   so   also  before   the   Board   of   Nominees   regarding  existence   of   dispute   under   Section   96   and,  therefore,   now   they   are   certainly   debarred  from   taking   such   plea   at   this   stage. 

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HC-NIC Page 66 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Similarly, Hon'ble Supreme Court of India has  also   considered   the   same   issue   which   is  relied   upon   by   this   Court   that   this   is   not  purely a legal plea but mixed plea of law and  fact which cannot be determined on the basis  of   material   only   on   record   but   it   requires  adjudication   whereby   both   the   parties   would  have   ample   opportunity   to   prove   their   own  case and to disprove the case of other side.  Therefore, this judgment would not be helpful  to the defendant Bank to get any benefit in  its favour. 

55. The   issue   regarding   whether   the   dispute   is  with reference to the banking business or a  sale transaction cannot be determined at this  stage  but  it  would  certainly   require   proper  adjudication.

56. There is no substance in the submission that  plaintiff   Modi   is   neither   the   Board   of   the  Society nor a person claiming through Member  and   when   predecessor   of   plaintiff   has   not  raised any dispute and suit is filed through  Power   of   Attorney   Holder,   suit   is   not  maintainable   because   it   goes   without   saying  that right over the property can be succeeded  by   the   legal   heirs   and,   therefore,   legal  heirs   are   entitled   to   raise   all   the   issues  Page 67 of 71 HC-NIC Page 67 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER which can be raised by their predecessor and  so   far   as   Cooperative   Societies,   if  predecessor  is  Member  of  the  Society,  legal  heirs   would   automatically   becomes   Member   of  the said Society. 

57. The   plaintiff   Modi   is   relying   upon   the  decision   in   the   case   of  Dipakbhai  Prahaladbhai   Patel   v.   Rameshbhai  Tribhovanbhai   reported   in   2016(2)   GLH   421,  wherein, it is held by the coordinate Bench  of this Court that all the provisions of the  Code   do   not   apply   to   the   Lavad   suit   filed  before   the   Board   of   Nominees   for   dispute  covered   u/S.96   of   the   Act   -   there   is   no  provision   for   rejection   of   the   suit   on   the  ground of either limitation or non­disclosure  of the cause of action, since the provision  of Order XIV has no application to the suit  filed before the the Board of Nominees under  the   provisions   of   the   Act,   even   such  opportunity   of   raising   the   issue   of  limitation or issue of bar of suit created by  any law is not available so as to decide such  issues   first   in   the   Lavad   suit   filed   under  the   Act,   scheme   of   S.   98   and   99,   which  provide   for   settlement   of   dispute   and  procedure for settlement of dispute read with  Page 68 of 71 HC-NIC Page 68 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Rule   41 to  44  of  the  Rules,  do  not  provide  for rejection of the suit and procedure for  deciding   the   suit   is   differently   provided,  suit once filed is to be decided by Board of  Nominee by recording evidence, decision is to  be  given   in accordance  with  justice,   equity  and good conscience, Board of Nominee has not  committed any error in rejecting application  preferred by petitioners. 

58. Plaintiff   Modi   is   also   relying   upon   the  decision   of   the   Hon'ble   Supreme   Court   of  India   in   the   case   of  Tata Iron &  Steel  Co.  Ltd.   v.   Union   of   India   reported   in   2001(2)  SCC   41,   more   particularly   paragraph   Nos.20,  21,   and   22   of   the   judgment   regarding  regarding estopple by conduct. 

59. In   view   of   above   facts   and   circumstances,  Special   Civil   Application   No.4275   of   2015  shall   be   listed   separately   hereinafter   with  Special   Civil   Application   No.16247   of   2014  for necessary orders. 

60. However,   Special   Civil   Application   No.20107  of 2015 is dismissed and, thereby, connected  Civil   Application   No.4241   of   2016   do   not  survive and hence the same stands dismissed. 

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HC-NIC Page 69 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER Special  Civil  Application  No.495   of 2016   is  dismissed   and,   thereby,   connected   Civil  Application   No.4242   of   2016   do   not   survive  and   hence,   the   same   stands   dismissed.  Similarly, Special Civil Application No.11771  of 2017 is also dismissed. 

61. So far as Special Civil Application No.12352  of 2017 is concerned since it is not listed  on Board when above petitions were heard, it  is also to be listed on 30.8.2017 with other  two petitions, as disclosed in paragraph no.2  hereinabove.

62. It   cannot   be   ignored   that   as   per   list   of  pending   litigations   when   it   is   already  disclosed  that  such  petition   is against  the  order   below   Exh.251   regarding   cross  examination   of   Power   of   Attorney   Holder   of  the plaintiff Modi so as to defer it for some  time, now, when other petitions are disposed  of   by   this   common   order   and   dismissed,  practically,   this   Special   Civil   Application  does   not   survive,   more   particularly,   for  factual reason also and in­fact in absence of  Interim   Relief   in   favour   of   defendant   Bank  when   defendant  Bank  has  also   cross  examined  the   witnesses   of   the   plaintiff   Modi   before  the lower Court.

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HC-NIC Page 70 of 71 Created On Sat Aug 12 03:09:31 IST 2017 C/SCA/16247/2014 ORDER

63. However, it is made clear that the Board of  Nominee has to decide the Lavad Suit No.43 of  2011   and   issues   raised   therein   purely   in  accordance   with   evidence   and   law   applicable  to   the   facts   and   circumstances   of   the   case  and, thereby, without being influenced by any  observations   either   in   any   Interim   and  Interlocutory  Order  in  this  order  which  are  purely   for   limited   purpose   to   decide   such  interlocutory order and present petitions. 

(S.G. SHAH, J.) * Kotecha Page 71 of 71 HC-NIC Page 71 of 71 Created On Sat Aug 12 03:09:31 IST 2017