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Gujarat High Court

Pal Cospo (India) Pvt Ltd & 4 vs Kankriya Maninagar Nagrik Sahkari Bank ... on 9 January, 2014

Author: Vijay Manohar Sahai

Bench: Vijay Manohar Sahai, K.J.Thaker

          C/LPA/1306/2013                                   JUDGMENT




           IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                LETTERS PATENT APPEAL NO. 1306 of 2013

             In SPECIAL CIVIL APPLICATION NO. 9072 of 2013

                                    With
                     CIVIL APPLICATION NO. 11724 of 2013
                                     In
                 LETTERS PATENT APPEAL NO. 1306 of 2013


FOR APPROVAL AND SIGNATURE:



HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI


and
HONOURABLE MR.JUSTICE K.J.THAKER

================================================================

1     Whether Reporters of Local Papers may be allowed to see
      the judgment ?

2     To be referred to the Reporter or not ?

3     Whether their Lordships wish to see the fair copy of the
      judgment ?

4     Whether this case involves a substantial question of law as
      to the interpretation of the Constitution of India, 1950 or any
      order made thereunder ?

5     Whether it is to be circulated to the civil judge ?

================================================================
             PAL COSPO (INDIA) PVT LTD & 4....Appellant(s)
                               Versus
    KANKRIYA MANINAGAR NAGRIK SAHKARI BANK LTD....Respondent(s)
================================================================
Appearance:



                                  Page 1 of 4
           C/LPA/1306/2013                                          JUDGMENT



MR KIRTIDEV R DAVE, ADVOCATE for the Appellant(s) No. 1 - 5.3
MR AJ SHASTRI, ADVOCATE for the Respondent(s) No. 1
================================================================

          CORAM: HONOURABLE MR.JUSTICE VIJAY MANOHAR
                 SAHAI
                 and
                 HONOURABLE MR.JUSTICE K.J.THAKER

                                 Date : 09/01/2014


                                ORAL JUDGMENT

(PER : HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI)

1. Heard Mr.H.S. Munshaw, learned advocate assisted by Mr.Kirtidev  Dave learned advocate for the appellants and Mr.A.J. Shastri, learned  advocate for the respondent. 

2.1 The brief facts of the case are that the respondent had filed  Summary Lavad Suit No.262 of 2002 against the appellants before the  Registrar's Board of Nominees, Ahmedabad for recovery of Rs.16,33,626­ 00   under   Sec.97   and   99(4)   of   the   Gujarat   Cooperative   Societies   Act,  1963 [henceforth "the Act"]. In this suit the appellants applied for leave  to   defend.   The   leave   was   granted   with   condition   to   deposit   of   8%  amount by each of the applicant. The said order was challenged by the  appellants   before  the   Gujarat  State   Cooperative   Tribunal,  Ahmedabad  [henceforth   "the   Tribunal"]   by   filing   Revision   Application   No.663   of  2002.   The   Ld.   Tribunal   had   granted   stay   of   the   entire   order   and  proceedings initially. After hearing all the stay was confirmed and it was  stayed for appellant No.1­2. As the revision was pending the appellants  could not submit their defense before the Nominee. In absence of the  defense and during the penency of the  above revision  the Lavad Suit  came to be decreed.

Page 2 of 4
            C/LPA/1306/2013                                            JUDGMENT




2.2         The appellants challenged the same by filing Appeal No.1357 

of 2003 before the Ld. Tribunal. The Ld. Tribunal dismissed the appeal  by judgment and order Dt.21­03­2013. These orders are under challenge  in the petition before the Ld. Single Judge which have been dealt with  and dismissed. 

2.3 The main dispute is that during the pendancy of the revision  application  the  appellants could not produce  the  evidence. Therefore,  the decision of the Ld. Nominees and Ld. Tribunal are against the rule of  natural justice.  The  order  for deposit would amount to revival  of  the  order of the Ld. Nominee at the initial stage. This would mean that the  petition  is decided against the petitioner before its hearing. The issue  whether   the   unconditional   leave   is   required   to   be   granted   or   not   is  decided against the petitioners.

2.4 It is submitted that the issue of conditional deposit was subject  matter of revision. The same is questioned in the main SCA. Considering  this aspect the order of deposit of Rs.10,00,000­00 directed by Ld. Single  Judge, is unreasonable, unjust and   very harsh. This would amount to  denial   of   the  right  for   petition.  Therefore   the   same  is   required   to   be  quashed and set aside.

2.5 The petitioners are not only challenging the issue of decree but  also   raises   the   question   of   unjust   favour   to   the   respondent   by   the  Statutory Authority. The decision of the Authorities are in violation of  statutory provision and that has denied the proper chance of defense,  which is statutory right. Therefore, the present appeal is required to be  allowed.

3. The   order   dated   01.09.2003   passed   in   Summary   Lavad   Suit  No.262   of   2002   by   the   Board   of   Nominees   as   well   as   order   dated  21.03.2013   passed   in   Appeal   No.1357   of   2003   by   the   Gujarat   State  Page 3 of 4 C/LPA/1306/2013 JUDGMENT Cooperative Tribunal were challenged by the appellants by filing Special  Civil  Application  No.9072  of 2013 under Articles 226 and 227 of the  Constitution of India. Against the order 01.09.2003 passed in Lavad Suit  No.262 of 2002, writ would lie under Article 227 of the Constitution of  India.    Learned counsel for the  appellants has urged that  writ  Court,  while deciding the writ petition, has not mentioned as to whether writ  petition   was  decided   under  Article   226  or   227  of   the   Constitution   of  India.   Merely   because   Article   is   not   mentioned   by   the   learned  Single  Judge that by itself cannot be said that the writ petition  was decided  under Article 227 of the Constitution  of India  and that cannot confer  jurisdiction   on   this   Court   to   hear   this   Letters   Patent   Appeal,   more  particularly, in view of the fact that in the suit matter, writ petition is  filed under Article 227 of the Constitution of India. 

4. In view of legal position in the case of  the Gujarat State Road  Transport  Corporation  vs. Firoze  M.  Mogal  in   Letters   Patent   Appeal  No.596   of   2008   decided   on  26.12.2013,   this  Letters  Patent  Appeal   is  dismissed as not maintainable. 

5.   In   view   final   disposal   of   this   Letters   Patent   Appeal,   Civil  Application No.11724 of 2013 does not survive and stands disposed of  accordingly.

(V.M.SAHAI, J.) (K.J.THAKER, J) chandresh Page 4 of 4