Andhra Pradesh High Court
Judges : A.LAKSHMANA RAO, K.MADHAVA REDDY
Chittoor Co-operative Town Bank Ltd. - Appellant
Versus
T.Krishnaiah Chetty - Respondent
Decided On : 01-20-83
CO-OPERATIVE SOCIETIES - DISCIPLINARY PROCEEDINGS - SUSPENSION - ENQUIRY - CLAIM PETITION - CIVIL SUIT - STAY OF PROCEEDINGS - ARBITRATION - AWARD - STAY OF AWARD - JURISDICTION OF CIVIL COURT - JURISDICTION OF ARBITRATOR - CONCURRENT JURISDICTION - CONFLICT OF FINDINGS - AVOIDANCE.
Fact of the Case:
The petitioner, an employee of the respondent bank, was suspended from service pending an enquiry into the theft of jewels from the bank premises. He filed a suit in the civil court challenging the suspension and obtained an interim injunction reinstating him in service. The bank filed a claim petition before the Deputy Registrar of Co-operative Societies, who was appointed as an arbitrator, seeking to recover the loss caused by the theft from the petitioner. The petitioner filed a written statement denying liability and seeking release of the attachment of his properties. He also filed a writ petition in the High Court seeking a writ of prohibition against the Deputy Registrar from proceeding with the enquiry pending the disposal of the civil suit.
Finding of the Court:
The High Court held that the civil court was the better judge of the issue of negligence and that parallel enquiry into the same issue by two different authorities was inappropriate and likely to cause prejudice to the petitioner. It also held that there was a likelihood of inconsistent findings being arrived at in regard to the same incident, which constituted the cause of action for the claim petition as well as the order of suspension pending enquiry. Therefore, the High Court directed that the Deputy Registrar-cum-Arbitrator shall not prepare the award and pronounce it until the final disposal of the civil suit and shall proceed to make the award after the final disposal of the suit and after taking into consideration the findings and decision given by the civil court.
Issues: 1. Whether the civil court or the arbitrator has jurisdiction to determine the issue of negligence of the petitioner. 2. Whether parallel enquiry into the same issue by two different authorities is appropriate. 3. Whether there is a likelihood of inconsistent findings being arrived at in regard to the same incident.
Ratio Decidendi: 1. The civil court is the better judge of the issue of negligence. 2. Parallel enquiry into the same issue by two different authorities is inappropriate and likely to cause prejudice to the petitioner. 3. There is a likelihood of inconsistent findings being arrived at in regard to the same incident.
Final Decision: The High Court dismissed the writ petition filed by the bank and allowed the cross-objections filed by the petitioner to the extent that the Deputy Registrar-cum-Arbitrator was directed not to prepare and pronounce the award until the final disposal of the civil suit.
( 1 ) W. A. No. 967/82 is filed on 8-11-1982 by the chittoor co-operative Town Bank Ltd. Against the Judgment of our learned brother Raghuvir, J. Dated 9-9-1982 in W. P. No. 6164/82 directing the deputy Registrar. Who is appointed as Arbitrator to adjudicate the liability of the Ist respondent therein and to pass an award to proceed with the enquiry, prepare an award but not pronounce it till the disposal of the civil suit O. s. No. 1011/81 on the file of the First Additional District Munsif. Chittor.
( 2 ) THE writ petition was disposed of at the admission stage after hearing the learned Government pleader but not the bank. The writ petitioner, at whose instance the above direction was issued, has also filed "cross writ appeal on 30-11-1982 which was numbered as W. A. No. 1093/82.
( 3 ) THE few facts necessary to appreciate the contentions raised in these matters may be briefly noticed. It would be convenient to refer to the parties as they are arrayed in the writ petition. The writ petitioner entered the service of the chittoor co-operative Town Bank Ltd. Ist respondent in the writ petition in the year 1942 and has been working as Jewel apprasiser from 1974 on 3-3-1980 at 0-9-45 Hrs. When he was valuing jewels, in the discharge of his duties as appraiser within the Bank premises in the presence of one of the customers, who had offered his jewels for pledge, a miscreant entered the premises and snatched away five bags containing jewels from the iron safe. When an alarm was raised by the petitioner and others the gates of the bank were closed but the miscreants managed to escape Immediately without losing any time. A written report was given to the secretary of the Ist respondent Bank and on the same day the assistant secretary who was in charge as secretary sent a complaint to the 1 Town police station, Chittoor giving the details of the theft. On the same day the Ist respondent bank issued a memo to the writ petitioner calling upon him to submit a detailed explanation as to circumstances in which the theft had occurred. The writ petitioner gave a detailed explanation on 19-3-1980 setting forth all the circumstances. No further action was taken against the writ petitioner for almost one year and nine months. On 22-12-1981 a memo placing the petitioner under suspension pending enquiry into the matter was issued tot he petitioner. Thereupon the writ petitioner filed a suit O. S. 1011/79 in the Court of the first Additional District Munsif chittor for a declaration that the proceeding of the Ist respondent dated 22-12-1981 suspending him from service were illegal and null and void. He also sought an interim mandatory injunction sought an interim mandatory injunction directing the Ist respondent to reinstate him in service in I. A. No. 2074/81. The learned First additional District Munsif granted an interim mandatory injunction prayed for on 28-12-1981 and the writ petitioner was reinstated in service. That order was made absolute on 21-1-1982 after hearing the Ist respondent Bank Aggrieved by that order. The Bank filed two civil Miscellaneous appeals. C. M. A. Nos. 23 and 24 of 1982 in the Court of the District Judge chittor, which are pending disposal. While so on 8-3-1982 the Bank issued a notice to show cause why disciplinary action should not be taken against him for the theft which had occurred on account of his negligence and why the loss occasioned to it should not be recovered form him. The writ petitioner submitted his explanation on 12-3-1982 denying the proceeding that the theft was not the result of any negligence on his part. However the bank filed a claim petition 21/81-82 and the same was referred to the deputy Registrar of co-operative societies, 2nd respondent herein who was appointed as an Arbitrator. In that petition the Bank laid a claim for the recovery of a sum of Rs. 26, 834. 00 from the writ petitioner simultaneously it also filed E. P. 1/82 under Sec. 73 of the A. P. Co-operati
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