This Judgement Ranked 9 in The Hitlist.: National Consumer Disputes Redressal Commission

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This judgement ranked 9 in the hitlist.

A. Abraham v. Managing Dir. of Kooth. Far. Ser. Co-op. Bank (NCDRC)(New Delhi) : Law
Finder Doc Id # 519080
NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

(New Delhi)

Before:- J.M. Malik, Presiding Member and Dr. S.M. Kantikar, Member

Revision Petition No. 4871 of 2012. D/d. 2.9.2013.

Anjana Abraham - Petitioner

Versus

Managing Director of Koothattukulam Farmers Service Co-operative Bank Ltd. -


Respondent

For the Petitioner :- Vinod Joseph PJ, Advocate.

For the Respondent :- Biju P. Raman and Usha Nandini, Advocates.

Consumer Protection Act, 1986 Sections 2(1)(e) and 21 Cooperative Societies


Act, 1969, Section 69 - Consumer dispute - Conflict of member with co-
operative society - Petitioner deposited L 10,000/ with Co-operative society
and entittled to get back L 1,60,000 on maturity, however, same was not paid -
Dismissal of complaint by State Commission - Revision filed - Question arises as
to whether a Member can pick up a conflict with Co-operative Society, under
Consumer Protection Act - Held, no - Moreover, there, alternative remedy
available under section. 69 of the Act - Thus, complaint was rightly dismissed -
Revision petition dismissed.

[Paras 3 and 4]

Cases Referred :

P.P. Kapoor v. Government Servants Co-operative House Building Society Ltd., 1 (1999)
CPJ 81.

Dilip Bapat, v. Panchyati Co-operative Housing Society Limited, 1 (1993) CPJ 68 (NC).

JUDGMENT

J.M. Malik, Presiding Member - The key question which falls for consideration is,
"Whether a Member can pick up a conflict with Co-operative Society, under the
Consumer Protection Act?". The facts of this case are these. Ms. Anjana Abraham, the
petitioner/complainant has filed this case through her Power of Attorney, Mr. Abraham C.
Mathew, who is her father. On 29.5.1989, Mr. Abraham C. Mathew, deposited a sum of L
10,000/- under Mangalya Deposit Scheme with the OP/respondent. As per the Scheme,
the complainant was entitled to get back L 1,60,000/- on the date of maturity, i.e.
29.5.2009. When the complainant requested on 5.6.2009, to pay the said maturity
amount, the respondent refused to pay the same. The OPs have admitted that the said
deposit was made. It is averred that the General Body of the Bank reduced the rate of
interest. The petitioner/complainant invested the same and the OP was ready to pay the
interest, as mentioned in the letter dated 30.6.2003.

2. The District Forum partly allowed the complaint, filed by the complainant. The State
Commission accepted the appeal filed by the opposite party/respondent and dismissed
the complaint.

3. We have heard the arguments. As a matter of fact, the consumer fora have no
jurisdiction to try the disputes arising between Co-operative Societies and its Members.
Section 69 of the Co-operative Societies Act, 1969, runs as follows:

"Chapter IX

Settlement of Disputes

69. Disputes to be decided by Co-operative Arbitration Court and


Registrar. - (1) Notwithstanding anything contained in any law for the first
time being in force, if a dispute arises :
(a) among members, past member or person claiming through members,
past members and deceased members, or
(b) between a member, past member or deceased member and the
society, its committee or any officer, agent or employee of that society, or
(c) between the society or its committee and any past committee, any
officer, agent or employee or any past officer, past agent or past
employee or the nominee, heirs or legal representatives of any deceased
officer, deceased agent or deceased employee of the society, or
(d) between the society and any other society, or
(e) between a society and the members of a society affiliated to it, or
(f) between the society and 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 business transactions or any person claiming through such a
person, or
(g) between the society and a surety of a member, past member,
deceased member or employee or a person, other than a member, who
has been granted a loan by the society, whether such a surety is or is not
a member of the society, or
(h) between the society and a creditor of the society, such dispute shall be
referred to the Co-operative Arbitration Court constituted under Section
70A, in the case of non monetary disputes and to the Registrar, in the
case of monetary disputes and the Arbitration Court, or the Registrar, as
the case may be, shall decide such dispute and no other authority, shall
have jurisdiction to entertain any suitor other proceedings in respect of
such dispute".
4. Similar view was taken in the case reported as P.P. Kapoor v. Government
Servants Co-operative House Building Society Ltd., 1 (1999) CPJ 81, wherein it
was held in Para 7 of its judgment, as under :
"In our view, the dispute sought to be raised was a dispute arising out of
the alleged non-compliance of provisions of the Delhi Co-operative
Societies Act and the Rules framed thereunder, under Section 60 of the
said Act. Section 93(1)(c) of the said Act vests jurisdiction in respect of
the disputes required to be referred to the Registrar under Section 60.
Sub-rule (3) ousts jurisdiction of "any Court, on any ground, whatsoever"
to question any order/decision or award made under the Act. In Dilip
Bapat & Anr., v. Panchyati Co-operative Housing Society Limited, 1
(1993) CPJ 68 (NC), it was observed in Para-11 of the report that
dispute of this nature is not a consumer dispute under the Consumer
Protection Act and the right Forum was to have ones remedy under the
Co-operative Societies Act".
5. Consequently, we dismiss the revision petition, but grant opportunity to the
petitioner/complainant to seek his/her grievance(s) before the appropriate forum, except
the consumer fora, as per law.

Revision dismissed.

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