THE HONBLE Ms. JUSTICE G. ROHINI
V. Shravan Kumar
Vs
Lt. Col. S.B. Sharma and 3 others.
Writ Petition No.3081 of 2008
Decided on : 27-10-2010
b) A.P. CO-OPERATIVE SOCIETIES ACT, 1964, Section 61:- Some of the disputes like the disciplinary action taken against the paid employees of a cooperative society had been expressly excluded from the jurisdiction of the Registrar to hear the matters. (Para 6)
This writ petition is filed seeking a Certiorari to call for the records
relating to the order dated 26.11.2007 in CTA.No.161 of 2004 on the file of the A.P. Co-operative Tribunal, Hyderabad and to quash the same being arbitrary and illegal.
2. The facts, in brief, are as under:
The 1st respondent herein is a member of the Army Co-operative Housing Society Limited (hereinafter referred to as 'the 2nd respondent society'). The 1st respondent, who was allotted Flat No.73 in Sector-A, AWHO Colony, Secunderabad, by the 2nd respondent society, entered into an Agreement dated 12.10.1997 to sell the said flat to the petitioner. The petitioner claims that substantial amounts were paid to the 1st respondent towards sale consideration. However as the 1st respondent did not come forward to complete the sale transaction, the petitioner raised a dispute before the 4th respondent – The Arbitrator/Divisional Co-operative Officer. By Award dated 19.5.2004 the 4th respondent directed the petitioner to pay the balance sale consideration of Rs.6,50,000/- together with interest at 8% within 15 days and thereupon the 1st respondent shall transfer Flat No.73 in favour of the petitioner by executing a sale deed. Aggrieved by the direction in the Award for payment of interest at 8%, the petitioner filed CTA.No.161 of 2004 before the A.P. Co-operative Tribunal. The Tribunal by order dated 26.11.2007 set aside the award dated 19.5.2004 in toto holding that the Arbitrator had no jurisdiction to entertain a dispute relating to specific performance of contract in respect of an immovable property. The said order is under challenge in this writ petition.
3. It is contended by the learned counsel for the petitioner that the relief sought by the petitioner before the Arbitrator for a direction to the 1st respondent to execute Registered Sale Deed, was part and parcel of the affairs of the 2nd respondent society and therefore the arbitration proceedings were maintainable. It is further contended that having found that the Arbitrator failed to follow the procedure contemplated under Section 62 (4) of the A.P. Co-operative Societies Act, 1964 and Rule 49 (4) of the Rules made thereunder and having recorded the findings in favour of the petitioner, the Tribunal committed a grave error in setting aside the award in toto on an erroneous assumption that the arbitrator had no jurisdiction.
4. On a careful consideration of the facts and circumstances of the case, I do not find substance in any of the contentions raised by the petitioner. Section 61 of the A.P. Co-operative Societies Act, 1964 which provides for reference of disputes to the Registrar reads as under:
"61. Disputes which may be referred to the Registrar:-
(1) Notwithstanding anything in any law for the time being in force, if any dispute touching the constitution, management or the business of a society, other than a dispute regarding disciplinary action taken by the society or its committee against a paid employee of the society, arises-
(a) among members, past members and persons claiming through members, past members and deceased members; or
(b) between a member, past member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society; or
(c) between the society or its committee, and any past committee, any officer, agent or employee, or any past officer, past agent, or past employee or the nominee, heir or legal representative of any deceased officer, deceased agent or deceased employee of the society; or
(d) between the society and any other society, such dispute shall be referred to the Registrar for decision.
Explanation:- For the purposes of this sub-section a dispute shall include-
(i) a claim by a society for any debt or other amount due to it from a member, past member, the nominee, heir or legal representative of a deceased member, whether such debt or other amount be admitted or not;
(ii) a claim by suret
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