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of <h1>Supreme Court Limits Registrar's Jurisdiction in Co-op Disputes</h1> <h3>SUGAULI SUGAR WORKS PVT. LTD. Versus ASSISTANT REGISTRAR COOPERATIVE SOCIETIES MOTIHARI</h3> SUGAULI SUGAR WORKS PVT. LTD. Versus ASSISTANT REGISTRAR COOPERATIVE SOCIETIES MOTIHARI - 1962 AIR 1367, 1962 (3) Suppl. SCR 804 Issues Involved:1. Jurisdiction of the Assistant Registrar, Co-operative Societies to entertain the reference.2. Interpretation of Section 48 of the Bihar and Orissa Co-operative Societies Act.3. Applicability of amendments to the Act concerning disputes involving non-members.Detailed Analysis:1. Jurisdiction of the Assistant Registrar, Co-operative Societies to entertain the reference:The primary issue is whether the Assistant Registrar, Co-operative Societies, had jurisdiction to hear and determine the dispute referred to him by the second respondent, which is a Union of Co-operative Societies. The appellant, a private limited company, challenged this jurisdiction on the grounds that the dispute did not fall within the ambit of the Bihar and Orissa Co-operative Societies Act (B. & O. Act VI of 1935).2. Interpretation of Section 48 of the Bihar and Orissa Co-operative Societies Act:The Court examined the legislative history and the provisions of the Act, particularly Section 48, which mandates that any dispute touching the business of a registered society must be referred to the Registrar. The Act is primarily limited to disputes among members, past members, persons claiming through members, and sureties of members. The Court noted that the Act was amended by the Bihar Co-operative Societies (Amendment) Act, 1944, and later re-enacted as Act XVI of 1948, which introduced significant changes, including the addition of non-members in certain contexts.3. Applicability of amendments to the Act concerning disputes involving non-members:The amendments allowed for disputes involving non-members only under specific conditions, such as those involving financing banks making advances to non-members. The Court found that the dispute in question, involving a claim for commission and interest for the supply of sugarcane, did not fall within these specific conditions. The appellant, being a non-member and not an agriculturist to whom advances were made, could not be subjected to the jurisdiction of the Registrar under Section 48.Conclusion:The Supreme Court concluded that the Assistant Registrar, Co-operative Societies, did not have jurisdiction to entertain the dispute between the appellant and the second respondent. The Court emphasized that the amendments to the Act did not expand the Registrar's jurisdiction to include all types of disputes involving non-members. The appeal was allowed with costs, and the Registrar was directed not to entertain or adjudicate upon the dispute, leaving the parties to seek remedies in ordinary courts.Appeal Allowed.
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