I have two tables Customers and Country and use ( Entity Framework with vs 2012 )
You are trying to access an association property Country after the data context has been disposed. Entity Framework, by default, loads association properties lazily. In other words, it makes another trip to the database when you try to access the association property for the first time. To make this trip to the database, Entity Framework must use a data context. In your case, it would be trying to use the data context created by jQGridDemoEntities db = new jQGridDemoEntities() which has unfortunately been disposed at this point in your code. The data context has been disposed because you've exited the using block.
You have three options to get around this problem:
Access the association property when the data context is still alive. More concretely, move your code where you access the association property into your using block
Eagerly load the association property as explained in the first link I specified
customers = db.Customers.Include(c => c.Country).ToList()
Explicitly select what you want to return from the database while the data context is still alive. And use that information to construct the json object your return.
customers = db.Customers.Select(c => new
{
c.Id,
c.FirstName,
c.LastName,
c.Address,
c.Email,
c.Phone,
CountryName = c.Country.Name,
c.Note
};