Andhra Pradesh High Court
V.V.S. RAO, J.
Ganta Jermaiah - Appellants
Versus
Paul Himamsu – Respondents
Arbitration Application No.26 of 2007
Decided on: 23-01-2008
(B) Arbitration and Conciliation Act 1996-Section 11(6) (c) A.P. Societies Registration Act 2001, Section- District Court is not competent to appoint an arbitrator to resolve disputes relating to affairs of society-District Judge cannot suo motu or on request refer matter to an arbitrator for dispute resolution-Section 23 of Societies Act enables member to proceed with dispute under provisions of Arbitration Act, but confers no powers on District Court to refer matter to arbitration. An application has to be moved before Chief Justice or Judge nominated by him for appointment of arbitrator under Section 11(6).
2006(1) ALD10 (SC): (2005) 8 SCC 618 -Relied.
(B) Arbitration and Conciliation Act 1996- Section 11(6) (c)- Filing of application for of appointment of arbitrator without even approaching opposite parties. For non-compliance with pre-arbitral procedure, the application cannot be accepted. This settled principle. Section 11 of Arbitration Act contemplates the applicant to issue notice of arbitration requesting for arbitration and in the event of there being no response from the other side, he can himself appoint an arbitrator and inform the other side. Even there if there is no response, an application can be moved before this court under Section 11(6) (c) of Arbitration Act. [Para 13]
(2005)8 SCC 618 -Referred
2. M/s. G. R. K. Ratnam Memorial Educational Society is registered under the Societies Registration Act, 1860 (1860 Societies Act, for brevity). The applicant and respondents 2, 5, 6, 7 and 8 are founder members of the said society and they established educational institutions in Telugu and English Mediums mainly for the welfare of minorities and weaker sections, which is the main objective of the society. An executive committee (EC) comprising M/s. Rudrapati Samuel John as President; V. Sahu as Vice President; fifth respondent as Secretary-cum- Correspondent; R. Vijayamani as Joint Secretary; second respondent as Treasurer and respondents 6, 7 and 8 as members was constituted. By 2001, statedly significant progress was made in work of society. The applicant alleges that election was held on 04.05.2001 and first respondent was elected as President and respondents 4 and 5 were allegedly elected as Vice President and Secretary-cum-Correspondent respectively. Mr. Vijayamani was chosen as Joint Secretary and second respondent as treasurer and Respondents 6, 7 and 8 were re-elected as members of executive committee.
3. The applicant is closely related to respondents. Respondents 5, 6 and 8 are his sons and respondents 2 and 4 are daughters. First respondent is son in law and third respondent is grand daughter. He alleges that the respondents submitted copies of forged resolutions to the effect that in EC meeting held on 29.06.2003 resignation of applicant herein was accepted. This was done to take over the control of society. Thus, a dispute arose between applicant and respondents with regard to meeting on 29.06.2003.
4. In the background as above, the applicant filed A.O.P.No.426 of 2003 on the file of the Court of the District Judge, Vizianagaram. The application was filed under Section 9(d) & (c) of the Arbitration Act for grant of ad interim injunction restraining respondents 1, 2 and 3 herein from functioning or claiming to be the Secretary-cum-correspondent, President and Treasurer respectively of ninth respondent society. By an order, dated 28.08.2003, in I.A.No.1845 of 2003, the learned District Judge granted injunction as prayed by applicant herein, till November, 2003. The applicant then filed A.O.P.No.669 of 2003 purportedly under Section 11 of the Arbitration Act read with Rule 8 of A.P. Arbitration Rules, 2000 for appointment of arbitrator for adjudication of disputes regarding validity of resolution, dated 29.06.2003.The maintainability and pecuniary jurisdiction were also the points urged in opposing the application. Be that as it is, by order, dated 19.01.2004, learned District Judge appointed Sri J. Janaki Rama Rao, Advocate, Vizianagaram as arbitrator for adjudication of disputes between applicant and respondents. In the meanwhile, respondents 1 to 3 filed A.O.P.No.668 of 2003 for appointment of Receiver to take care of the affairs of ninth respondent, pending arbitration. The arbitrator Sri Janaki Rama Rao himself was appointed as Receiver to manage the affairs of the society. Against this order, two civil miscellaneous appeals being C.M.A.Nos.564 and 565 of 2004 were filed in this Court. This Court disposed of the matters observing that learned District Judge should appoint a separate arbitrator whereupon former passed orders on 26.02.2005 appointing Sri D.B.V. Shastry as Receiver.
5. The arbitrator appointed by the District Court filed memo on 02.08.2004 expressing his inability to continue as arbitrator. Therefore, by order, dated 17.01.2005, learned District Judge discharged the arbitrator and appointed Sri Suryanarayana, Retired District Judge, Visakhapatnam as arbitrator. He also could not proceed with the matter. On his request, learned Distri
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