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1980 Supreme(Cal) 230

HIGH COURT OF CALCUTTA
Anil Kumar Sen & B. C Chakrabarti, JJ.
Nirmal Kumar Banerjee
v.
Ordnance Factories Directorate Co-operative Credit Society Ltd.
Civil Order No. 1240 of 1980
Decided On: June 18, 1980

Advocates Appeared:
M. N. Ghosh. K.D. Mukherjee for the petitioner;
Anupam Kumar chatterjee, Anil Mukherjee for Registrar of Co-operative Society;
Rathindra Kr. Bhattacharyya for the State.

The appointment of an arbitrator by designation, rather than by name, is valid in law under Section 87(1)(c) of the West Bengal Co-operative Societies Act, 1973, and the successor in office of such an arbitrator has the jurisdiction to make an award without a fresh appointment under Rule 134(C) of the West Bengal Co-operative Societies Rules, 1977.

Headnote:

ARBITRATION - WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 1973 - SECTION 87(1)(C) - APPOINTMENT OF ARBITRATOR - DESIGNATION OR NAME - SECTION 16, BENGAL GENERAL CLAUSES ACT - INTERPRETATION - JURISDICTION OF SUCCESSOR IN OFFICE - RULE 134(C), WEST BENGAL CO-OPERATIVE SOCIETIES RULES, 1977 - APPLICABILITY.

Fact of the Case:

The petitioner, a member of the Ordnance Factories Directorate Co-operative Credit Society Limited, challenged an order of the executing court overruling his objection to the execution of an award made by an arbitrator appointed under Section 87(1)(c) of the West Bengal Co-operative Societies Act, 1973. The petitioner contended that the successor in office of the originally appointed arbitrator lacked jurisdiction to make the award as there was no fresh appointment made in his favor under Rule 134(C) of the West Bengal Co-operative Societies Rules, 1977.

Finding of the Court:

The court held that the appointment of the arbitrator by designation, rather than by name, was valid in law and that the successor in office derived his power to discharge his function as an arbitrator by virtue of the initial appointment by virtue of office. The court relied on Section 16 of the Bengal General Clauses Act, which authorizes such an appointment in the alternative.

Issues: 1. Whether the appointment of an arbitrator by designation, rather than by name, is valid in law under Section 87(1)(c) of the West Bengal Co-operative Societies Act, 1973? 2. Whether the successor in office of an arbitrator appointed by designation has the jurisdiction to make an award without a fresh appointment under Rule 134(C) of the West Bengal Co-operative Societies Rules, 1977?

Ratio Decidendi: 1. Section 16 of the Bengal General Clauses Act authorizes the appointment of an arbitrator either by name or by virtue of office. 2. The appointment of an arbitrator by designation, rather than by name, is a valid appointment in law. 3. The successor in office of an arbitrator appointed by designation derives his power to discharge his function as an arbitrator by virtue of the initial appointment by virtue of office. 4. Rule 134(C) of the West Bengal Co-operative Societies Rules, 1977 applies only when a Government officer is appointed as arbitrator by name, not when appointed by virtue of his office.

Final Decision: The court dismissed the petitioner's revisional application, upholding the decision of the executing court and finding that the award under execution was not without jurisdiction.

JUDGMENT

Anil K. Sen, J. This is a revisional application at the instance of the judgment debtor directed against an order dated February 18, 1980 passed by the learned Judge, third Bench, City Civil Court, Calcutta in Money Execution Case No. 44 of 1978. By the order impugned in the present revisional application, the learned Judge has overruled an objection raised by the petitioner to the execution by the opposite party, Ordnance Factories Directorate Co-operative Credit Society Limited. Challenging the said order, it has been contended before us that the learned Judge in the executing court should have upheld the objection of the petitioner and should have held that the arbitrator who ultimately made the award had not the jurisdiction to do so.

2. It would be necessary to refer to the facts in order to understand the real nature of the objection and decide the issue. Such facts are not disputed and may be set out briefly as follows. The opposite party Society raised a dispute claiming recovery of a sum of Rs. 11.900/- with interest against the petitioner, a member of the Society and another such member. Such a dispute coming under the purview of S. 86 of the West Bengal Co-operative Societies Act, the Assistant Registrar of Co Operative Societies, being vested with the necessary powers appointed the Inspector of Co-Operative Societies, Arbitration No. 1, Calcutta to be the Arbitrator to arbitrate over the said dispute. Such appointment was obviously made under S. 81(1)(c) of the Act. At the material time of such appointment Sri B. Das was the Inspector of Co-operative Societies, Arbitration No. 1 and he started the arbitration proceeding and carried it on for some time. He was however later transferred and Sri A.C. Banerjee who replaced him as the Inspector of Co-operations, Arbitration No.1 ultimately made the award which being put into execution the present objection has been raised. The objection raised before the executing court is that since. Since Sri B. Das was transferred, his successor Sri A. C. Banerjee could not have automatically assume jurisdiction to proceed with the reference in the absence of a fresh appointment it in his favour in terms of Rule 134(C) of the Rules framed under the Act. This objection has been overruled by the executing court on the view that since Sri B. Das was not personally appointed the arbitrator, there was no necessity of transferring the case or make any fresh appoinment for the purpose Inspector of Co-Operative Societies, Arbitration No.1 having been appointed the arbitrator, Sri A. C. Banerji as the successor to the office could very well continue the arbitration proceeding and make the award as holder of the post of such an Inspector.

3. In challenging the order of the executing court, Mr. Ghosh appearing in support of this revisional application has contended that in law no appointment could be made by designation, so that Sri B. Das the then Inspector of Cooperative Societies Arbitration No. 1 was really appointed the arbitrator and when he was transferred it was necessary for the Assistant Registrar of Co-operative Societies to follow the provisions of Rule 134 of the Rules and make anew appointment. That not having been made, the award as made by Sri A. C. Banerjee is totally without jurisdiction and such as objection can very well be raised at the execution stage. Mr. Chatterjee appearing on behalf of the opposite party has contested the points raised by Mr. Ghosh. According to him appointment as made by the designation, quite in accordance with law and such being the appointment, Sri A. C. Banerji as a successor in office was quite competent to make the award without any fresh appointment in his favour. Reliance is placed by him on S. 16 of the Bengal General Causes Act.

4. Considering the rival contenti0ns raised before us, we arc of the view that there is ample substance in the stand taken by Mr. Chatterjee. Section 87(1) (c) of the West Bengal Co-operative Societies Act empow






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