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1990 Supreme(Bom) 265

IN THE HIGH COURT OF BOMBAY
M.L. Pendse, J.
Maharashtra Co-operative Courts’ Bar Association others..... Petitioners.
Versus
State of Maharashtra others .... Respondents.
Writ Petition No. 1825 of 1983, decided on 24-7-1990.
Advocates appeared :
J.P. Deodhar, for the petitioners.
P.K. Thakore with B.P. Patil, for the respondents Nos. 1 and 2.

Headnote:ARBITRATION ACT, 1940.

       Section 2 (b).

       See Maharashtra Co-operative Societies Act, 1961, Section 96.

       Article 234.

       See Maharashtra Co-operative Societies Rules, 1961, Rule 77-A (i).

       Section 96-Arbitration Act, 1940, Section 2 (b) - Scope of co-operative Courts Awards Distinction between awards declared by co-operative Courts and awards under Arbitration Act -Co-operative Courts are Courts of Law Judicial work of such Courts cannot be interfered by executive actions.

       Merely because the decision recorded by the Co-operative Court is termed as an Award that would not take away the finality attached to the decision and the right to execute such decision. The expression "Award" under Co-operative Act should not be confused with the expression "Award" used under the Indian Arbitration Act. It hardly requires to be stated that the awards passed by the arbitrator under the Arbitration Act cannot be enforced unless made a rule of law by order of Civil Courts while the awards declared by the Judges of the Co-operative Courts can be executed without reference to any Civil Court.

       It is not the nomenclature of the authority which is relevant to determine whether such authority is a Court or the Tribunal but it is the power exercised by that authority under the Statue which makes it judicial one. Under the provisions of the Co-operative Societies Act, it is beyond doubt that the powers conferred upon the Co-operative Court are judicial in nature and the decisions recorded by the Judges of the Co-operative Courts have a binding effect upon the parties. The Co-operative Court is conferred with jurisdiction to finally adjudicate all disputes which are initially entertained by the Civil Court.

       Rule 77-A(1).

       See Maharashtra Co-operative Societies Act, 1961, Section 2 (10-ab) and 91-A.

JUDGMENT - M.L. PENDSE, J.:---The independence of judiciary is doubtless a basic structure of the Constitution and the concept that the executive should have no control to regulate the working of Courts is a doctrine accepted for over century in all the civilised countries. Indeed, independence of the Judiciary is a basic foundation of establishment of rule of law and the Constitution makers were fully conscious of the same. Though the framers of the Constitution did not completely insulate the judicial system from executive control, the principle that the executive shall not control the working of the Courts is accepted all along. Indeed, the Constitutional Agency has shielded the Courts in our country with many built in safeguards and expects the Courts to discharge the duties solely guided by the doctrine of conscience and principles of Constitution. The Courts are expected to function with neutrality and impartiality while adjudicating disputes between a citizen and citizen and a citizen and the State. It is, therefore, natural that the Courts are assigned a status free from capricious or whimsical interference from outside and it is necessary to grant that status to judges manning the Court so as to lift them above the fear of acting against their conscience. The complaint in this petition filed under Article 226 of the Constitution of India by the members of the Maharashtra Co-operative Courts' Bar Association is about the efforts made by the executive to encroach upon the functions of the Co-operative Courts and thereby underminimg the independence of the Judiciary. The principal challenge is to the Government Resolution dated April 30, 1983 by Government of Maharashtra, Agriculture and Co-operation Department, declaring the Commissioner for Co-operation and Registrar, Co-operative Societies, as controlling Officer for administration purposes and for writing confidential reports on the working of Judges of Co-operative Courts.

2. Before setting out the facts which gave rise to the filing of the petition, it is necessary to briefly deal with the legislation relating to Co-operative Societies. Co-operation is a form of organisation, wherein persons voluntarily associate together as human beings an basis of equality and work together for a common end. The essence of Co-operation is the Co-operative spirit

embodied in the motto " Each for all and all for each". Originally the co-operative movement owed its origin to poverty and to the desire for the some way out of all the distress and hardships that poverty entails. The Law Committee appointed under the orders of the Government of India to consider the question of the establishment of Co-operative Societies in India prepared legislation known as "Co-operative Credit Societies Act, 1904". The Co-operative Societies Act of 1912 was the outcome of the experience gained in a decade and the careful and prolonged consideration of the large mess of material Acts, rules and opinions. The Act of 1904 and the Act of 1912 was applicable to various in province the country but the tenancy soon became- apparent in the provinces to have separate Acts to suit the special circumstances. The Province of Bombay took the lead by passing the Bombay Co-operative Societies Act, in 1925. Section 54 of this Act provided that if any dispute arises between members of the Society or between persons connected with Society, it shall be referred to the Registrar for decision by himself or his nominee or if either of the parties so desires, to arbitration of the three arbitrators who shall be the Registrar or his nominee and two persons of whom one shall be nominated by each of the parties concerned. Section 54A which is substituted in the year 1948 provided that in the case of any award made by the arbitrators under section 54, the aggrieved party can approach the Tribunal for setting it aside or for modifying the award. The section was inserted as it was noticed that in several cases, the arbitrato




























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