This agricultural cooperative can not borrow funds necessary for its business purposes from others other than the military agricultural cooperative, and such borrowing is null and void in relation to this agricultural cooperative.

This agricultural cooperative can not borrow funds necessary for its business purposes from others other than the military agricultural cooperative, and such borrowing is null and void in relation to this agricultural cooperative.

Article 58 of the Agricultural Cooperatives Act

Plaintiff

Silsan Agricultural Cooperatives

Seoul High Court Decision 70Na161 delivered on February 3, 1971

The appeal is dismissed.

The costs of appeal shall be borne by the plaintiff.

We examine the grounds of appeal by the Plaintiff’s attorney.

According to the legislative intent of Article 58 (2) of the Agricultural Cooperatives Act (Article 111 (1) 4 of the Military Cooperatives Act, Article 153 (1) 5 (f) of the National Agricultural Cooperatives Federation of cooperatives), this agricultural cooperative shall be deemed to have been unable to borrow money from any other person than the military agricultural cooperative even though it is necessary to achieve its business purpose. Accordingly, as recognized by its original judgment, the court below rejected the appeal by the non-party, who was the head of the Ori-ri Agricultural Cooperative merged with the defendant cooperative, issued to the plaintiff for the purpose of securing the payment of the amount borrowed from the plaintiff as the warehouse construction fund of the defendant cooperative prior to the merger, and issued to the plaintiff for the purpose of securing the payment of the amount borrowed from the plaintiff. The above borrowing act which caused the issuance of the bill was invalidated in relation to the defendant cooperative. Accordingly, the theory of lawsuit is justified, and it is so decided as per Disposition by the assent of all participating Justices.

Judge Do-dong (Presiding Judge) of the Supreme Court