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2017 Supreme(SC) 1665

SUPREME COURT OF INDIA
Jagdish Singh Khehar, CJI., D.Y. Chandrachud, Sanjay Kishan Kaul, JJ.
Haryana State Cooperative Labour And Construction Federation Ltd. - Appellant
Vs.
Unique Cooperative Labour And Construction Cooperative Society Ltd. - Respondent
Civil Appeal No. 5332 of 2017 (Special Leave Petition (Civil)No. 12338 ... CC No. 6737 of 2017)
Decided On : 07-04-2017

Advocates Appeared:
For the Petitioners:Karan Bhardwaj, V.P. Goel, Chander Shekhar Ashri, Advocates

IMPORTANT POINT
An appeal after continuing with wrong fora despite being reminded to approach correct fora deserves to be dismissed with exemplary cost.

Headnote:Arbitration and Conciliation Act, 1996 - Section 34 - Appellant assailing arbitral award before Registrar, Cooperative Societies which as dismissed as being not maintainable - The revision petition before Principal Secretary was also dismissed with liberty to approach the civil court - Writ petition, LPA and Review in the High Court also dismissed - Ultimately Federation approaching District court u/s 34 after 5 years and 8 months - Limitation period u/s 34 is three months extendable by 30 days - No provision to condone any period beyond the above - Continuing with wrong fora despite being reminded to approach correct fora - Incomprehensible - Appeal deserves to be dismissed with exemplary cost. (Para 14, 15)

       AIR 1958 SC 767; SLP (C) nos. 25331-33 of 2015 - Relied upon

       (2010) 4 CCC 374 P&H - Referred

       Facts of the case:

       The Construction Society raised a dispute against the Federation in connection with the contractual agreement dated 20.7.1981. Based on the dispute raised by the Construction Society, the Registrar, Cooperative Societies, Haryana, appointed Shri P.S. Rawat, Superintending Engineer (Retd.), Haryana State Agricultural Marketing Board, Haryana, as Arbitrator for the adjudication of the claim. Arbitration proceedings which commenced on 2.11.2007, culminated in an award dated 20.2.2008.

       The above award dated 20.2.2008 was assailed by the Haryana Federation, before the Registrar, Cooperative Societies, Haryana, by way of an appeal which was held to be not maintainable. The Registrar opined that the provisions of the Arbitration and Conciliation Act, 1996, were available to the Haryana Federation, and accordingly granted liberty to it, to approach a Civil Court under the appropriate provisions, in consonance with law. The Haryana Federation filed a revision petition before the Principal Secretary, Department of Cooperation, Government of Haryana, which was dismissed on 3.8.2011bdecuse the appeal was not maintainable. The Federation then assailed both these orders, by filing writ petition which was dismissed by the High Court on 3.12.2012. This order was assailed by the Federation by preferring Letters Patent Appeal which also was dismissed on 15.5.2013. The review application was also dismissed on 24.1.2014.

       The Federation eventually filed objections under Section 34 of the Arbitration Act.

       The Additional District Judge, Panchkula, dismissed the objections filed by the Haryana Federation being time barred.

       The FAO was also dismissed on 30.9.2016.

       Finding of the Court:

       Appeal deserves to be dismissed with exemplary cost.

       Result:

       Appeal dismissed with cost of Rs.5,00,000 only.

       

ORDER :

Jagdish Singh Khehar, CJI.

Civil Appeal No.5332 of 2017 (Special Leave Petition (Civil)No.12338... CC No. 6737 of 2017)

Delay of 61 days in filing SLP (C)12338.... CC no. 6737 of 2017 is condoned.

2. Leave granted.

3. The appellant - Haryana State Cooperative Labour and Construction Federation Ltd. (hereinafter referred to as, the Haryana Federation), was engaged in the execution of Government works. In turn, the Haryana Federation got the Government works, assigned to it, executed from different labour cooperative societies, by effecting individual contractual agreements, with the societies.

4. In 1981, the Haryana Federation was assigned the work of construction of low income group houses (numbering 58, 76 and 82), in Sector 15, Panchkula, Haryana, by the Haryana Housing Board. The Haryana Federation, entered into three separate construction contracts, for the execution of the above works, with respondent no. 1 - Unique Cooperative Labour and Construction Cooperative Society Ltd. (hereinafter referred to as, the Construction Society), on 20.7.1981.

5. By a different contractual agreement dated 2.11.1981, the Haryana Federation also allotted construction work of a sports complex located at Murthal, Haryana, to the Construction Society. This work had been allotted to the Haryana Federation, by the Haryana State Industrial Development Corporation.

6. The Haryana Federation referred three disputes against the work awarding agency - the Haryana Housing Board, to the Registrar, Cooperative Societies, Haryana. The above three disputes, pertained to the construction of 58, 76 and 82 low income group houses, in Sector 15, Panchkula, Haryana. Shri M.L. Dhami, Superintending Engineer (Retd.), PWD (B&R), was appointed as the sole Arbitrator. The Arbitrator having adjudicated upon all the three disputes, passed three different awards, on 28.12.1987. By the aforesaid awards, the Arbitrator held the Haryana Federation, entitled to amounts of Rs. 95,328/-, Rs. 1,05,240/- and Rs. 1,11,750/-, payable by the Haryana Housing Board. It is not a matter of dispute, that the Haryana Housing Board honoured the awarded amounts, and released the entire payment in consonance with the awards, to the Haryana Federation, on 18.9.1989. It is also not a matter of dispute, that the payment received by the Haryana Federation, was transmitted by it, to the Construction Society.

7. The Construction Society raised a separate dispute, in connection with the contractual agreement dated 20.7.1981. Based on the dispute raised by the Construction Society, the Registrar, Cooperative Societies, Haryana, appointed Shri P.S. Rawat, Superintending Engineer (Retd.), Haryana State Agricultural Marketing Board, Haryana, as Arbitrator for the adjudication of the claim. Arbitration proceedings which commenced on 2.11.2007, culminated in an award dated 20.2.2008.

8. The above award dated 20.2.2008 was assailed by the Haryana Federation, before the Registrar, Cooperative Societies, Haryana, by way of an appeal under Section 114 of the Haryana Cooperative Societies Act. The Registrar, Cooperative Societies, Haryana, dismissed the appeal on 15.4.2010 by holding that the same was not maintainable. The Registrar, Cooperative Societies, Haryana, while recording his conclusions opined, that the provisions of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as, the Arbitration Act), were available to the Haryana Federation, and accordingly granted liberty to it, to approach a Civil Court under the appropriate provisions, in consonance with law. Unmindful of the determination rendered by the Registrar, Cooperative Societies, Haryana, as also, in complete disregard of the liberty granted to it, to assail the award dated 20.2.2008, in consonance with the provisions of the Arbitration Act, the Haryana Federation filed a revision petition before the Principal Secretary, Department of Cooperation, Government of Haryana, under Section 115 of the Haryana Cooperative Societies














































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