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Head Note

Civil Law  - Co-operative Societies

Gujarat Co-operative Societies Act, 1961 - Section 167 - Notice of institution - Requirement of - Appeal is preferred by a Company which has been refused permission to continue the suit filed by it before the City Civil Court, Ahmedabad by the Registrar of Co-operative Societies on the ground that the suit is not tenable because notice of its institution - The controversy is: whether the Registrar, while considering whether leave should be granted can hold that the suit itself is not tenable for want of notice. Initially the Registrar passed a non-speaking order dated 6-6-2024 refusing permission to continue the suit. On 28-11-2005, however, the Registrar passed a speaking order refusing permission to continue the suit - Held the order of the Registrar dated 28-11-2023 refusing leave to the appellant on the ground that the notice under Section 167 has not been issued therefore the suit is not tenable, is liable to be set aside - Not possible to agree with the view of the Division Bench that the Registrar must be allowed to consider whether notice has been given or not and, therefore, whether the suit is maintainable or not because if such power is not conceded to the Registrar, it would result in the civil court taking cognizance of a matter which it would have no power to take cognizance of - It is not the business of the Registrar to consider the merits and in particular the tenability of a pending suit and hold it to be untenable and thereupon refuse leave to continue the suit. The Civil Court is perfectly competent to decide whether the suit before it is tenable or not.

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