Civil Court Jurisdiction Barred by UP Co-operative Societies Act, 1965; Appellant's Appeal Dismissed
In a significant ruling, the Allahabad High Court dismissed the appeal filed by Vijendra Singh Alias Bijendra Singh challenging the trial court's rejection of his suit seeking redemption of a mortgaged property. The appellate judgment, delivered by Justice Anish Kumar Gupta, firmly upheld the trial court's decision under Order VII Rule 11 of the Civil Procedure Code, 1908, which rejected the plaint as barred by Section 111(d) of the UP Co-operative Societies Act, 1965.
The case revolved around a property mortgaged by Chandrapal Singh, the predecessor-in-interest of the appellant, to Noida Commercial Cooperative Bank Ltd. The mortgage was established in favor of the bank by depositing original title deeds. Subsequently, an award under the UP Co-operative Societies Act, 1965 was passed after the borrower defaulted on the loan repayment. The award authorized the sale of the mortgaged property through public auction, which was executed, and the sale deed was registered in favor of the second respondent.
Vijendra Singh, claiming rights through the original mortgagor, sought redemption of the property and challenged the legality of the auction sale and the sale deed executed in favor of the respondent. However, the trial court found that granting such relief would require interference with the award passed under the UP Co-operative Societies Act, which is expressly barred by Section 111(d) of the Act. Consequently, the trial court rejected the suit, leading to the present appeal.
During the hearing, the appellant's counsel argued that the trial court's decision was unsustainable in law, as it considered materials beyond the plaint in deciding the application under Order VII Rule 11 CPC. Citing precedents from the Supreme Court, the counsel contended that only the averments in the plaint should be considered.
The respondents countered this, emphasizing the statutory bar on civil court jurisdiction in matters related to awards under the Co-operative Societies Act. They argued that the right to redemption does not survive once the sale deed is executed, and any interference would violate the statutory provisions.
Justice Gupta, in his judgment, affirmed that the relief sought by the appellant could not be granted without interfering with the award, a course barred by Section 111(d). He noted that the trial court's decision was based solely on the plaint's averments, dismissing the appeal at the admission stage under Order 41, Rule 11 CPC.
This ruling underscores the strict limitations imposed by the UP Co-operative Societies Act on civil court jurisdiction concerning awards and orders made under the Act, reinforcing the legal framework governing cooperative societies in Uttar Pradesh.
Bottom line:-
A suit for redemption of mortgaged property is barred under Section 111(d) of the UP Co-operative Societies Act, 1965, if the relief sought requires interference with an award passed under the Act.
Statutory provision(s): Civil Procedure Code, 1908 - Order VII Rule 11, UP Co-operative Societies Act, 1965 - Section 111(d)
