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Regular Second Appeal No. 637 of 1978, decided on 9th December, 1981. Co-operative Societies Act (VII of 1925)- S. 70 read with Civil Procedure Code (V of 1908), O. VII, r. 11(d)­Suit against society-Bar against institution of suit without notice ­Held, applicable to both members and non-members--Suit against society by a non-member without serving prescribed notice-Held, barred by S. 70 of Act. Kh. Muhammad Tufail for Appellant . JUDGMENT The appellant, Sunshine Biscuit Limited, is a Private Limited Company with Sh. Rohail Asghar as its Managing Director/Chief Executive. The appellant took industrial loan from respondent No. 2, National Industrial Co-operative Bank Ltd. Dispute regarding the re-payment of that loan arose between the appellant and respondent No. 2 which was referred to the arbitration of respondent No. 1, Muhammad Hasan Lodhi. That reference was challenged by the appellant by means of a declaratory suit. Conceding that respondent No. 2 was a society registered under the Co-operative Societies Act, 1925, hereinafter referred to as the said Act, it was alleged by the appellant that the appellant was not a member of the society and, there­fore, the dispute could not be referred to arbitration. Plaint in that suit was, however, rejected by a Civil Judge, under clause (d) of rule 11 of Order VII of the Code of Civil Procedure. His reasoning was .that no notice under section 70 of the said Act was given before the filing of the suit and, therefore, the suit was not competent. First appeal preferred by the appellant was also dismissed by an Additional District Judge. The appellant has; there­fore, come up in second appeal to…

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