Law:

Section:

Co-operative Societies Rules----- --rule 18-"Business of a Co­operative Society"-Conditions for reference of dispute to Registrar -Question whether a person was or was not a member relates to "business" of society-Not cognisable by Civil Court. Rule 18 of the Co-operative Societies Rules bars the juris­diction of the Civil Courts on matters which can be validly referred to arbitration. The rule requires two conditions for a reference. The first is that it should be a dispute between members or past members of the society or the society and a member or a past member, and the second is that the dispute should relate to the business of the society. A who was admittedly a member of the society was expelled from membership on the ground that he had ceased to hold 25 shares of the value of Rs. 100 each as he had sold 12 shares out of the 25 held by him. On A's instance, the Registrar referred the dispute to an arbitrator who decided that A continued to be a member. Thereupon the society filed a civil suit for a declaration that the award was without jurisdiction and so null and void. Held, that the suit was not cognisable by a Civil Court. Nur Husain v. Muhammad Sultan P L D 1956 Lah. 893 ref. Mubarak Din v. Registrar, Co-operative Societies P L D 1957 Lah. 1013 commented. JUDGMENT KAIKAUS, J.-This is an appeal by the Lyallpur Co-operative Society Limited, Lyallpur, against the decree of Chaudhri Muhammad Anwar, Senior Civil Judge, Lyallpur, dismissing the suit of the appellant on the ground that the Civil Court had no jurisdiction to try it. 2. The facts are that the defendant, Chaudhri Ahmad Saeed, who was admittedly a member of the plaintiff Society, was expelled from membership on the 10th of April 1947 on the ground that he had ceased to hold 25 shares of the value of Rs. 100 each as he had sold 12 shares out of the 25 shares held by him. On the 8th of May 1956, Ahmad Saeed defendant-respondent applied to the Registrar, Co-operative Societies, for a reference of the dispute between him and the Society as to whether he had or had not ceased to be a member to an arbitrator. The Registrar appointed Mr. Manzur Husain, Deputy Registrar, as an arbitrator and the…

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