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1982 Supreme(Del) 85

High Court Of Delhi
REFUGIS CO OPERATIVE HOUSING SOCIETY LIMITED - Appellant
Versus
HARBAN SINGH BHASIN. - Respondent
L.P.A. 98 of 1977
Decided On : 03/26/1982

Headnote:Bombay Cooperative Society Act - Sections 54, 54A, 57 — When a dispute is determined solely either by the Registrar or his nominee, they render a decision. The Registrar or his nominees do not undertake any arbitration proceedings. They discharge the statutory duty and perform the function of deciding the referred dispute. Their decision is not a contractual arbitration and they are not arbitrators by agreement.

( 1 ) FOR a case to be covered under section 54 of the Act, three conditions precedent must be fulfilled before any of the parties could invoke the jurisdiction of the Registrar and call upon him to entertain a complaint. The first condition is that there must be a dispute. Secondly, the dispute must be touching the constitution or business of a society. The term is wide enough and would include the dispute affecting the business of the society or relating to the business of the society. The third condition is that it must arise between members or past members of the society or persons claiming through a member or past member or between members or past members or persons so claiming and any officer, agent or servant of the society past or present or between the society or its committee, and any officer, agent, member or servant of the society past or present. The language of the section indicates that the complaint has to be made by one of the parties to the dispute to the Registrar and has to be referred to the Registrar. Once the complaint is admitted by the Registrar, the dispute can be settled by any of the four forums contemplated by Section 54. The Registrar may keep the matter for decision by himself. The Registrar may in the alternative appoint a nominee for his decision. The jurisdiction of the Registrar is by investment of the statute. The jurisdiction of the nominee arises out of the permissive appointment by the Registrar. The reference of the dispute to the registrar for a decision by himself or by his nominee is a statutory duty and there can be thus no refusal to discharge that function. The power to decide the referred dispute is granted by the statute to the Registrar as also to his nominee. xx xx xx xx xx

( 2 ). The Registrar or his nominee when acting alone has to decide the referred dispute and may be performing the functions substantially of an arbitrator to whom a dispute has been referred for adjudication, but they do not make any award. They both render a decision, whereas the Committee of three arbitrators has to make an award. This is clear from the intrinsic evidence contained in the various provisions of the Act. Section 54a says that in case of any award made by the arbitrators under Section 54, the Tribunal I may, on the application of any of the parties to the award or otherwise for reasons to be recorded in writing, modify the award or set it aside or order that the dispute shall be referred back to the arbitrators in the manner provided under the said section. The proviso, however, provides that no such order can be made after the issue of a certificate under section 59 for the execution of the award and except on any of the specified grounds, namely (i) an objection to the legality of the award is apparent on the face of it, or (ii) the award has been vitiated in consequence of corruption or misconduct on the part of any of the arbitrators, or (iii) the award is in any way perverse. The Tribunal is also empowered to direct that all or any of the arbitrators who made the award shall not act again as arbitrators for deciding the dispute. Sub-section (3) says that when the dispute is referred back to arbitration, the arbitrators have to make a fresh award within such time as may be fixed by the Tribunal and if the arbitrators fail to make a fresh award within the time so fixed, then the Registrar or his nominee has to decide the dispute. Power is again given to the Tribunal to modify the award made under sub-section (3) or pass such order thereon as it deems fit. On the contrary, Section 56 of the Act provides for an appeal against the decision of the Registrar or his nominee whether made under Section 54 or under sub-section (3) of Section 54a. Section 57 further provides that the award of the arbitrators or a decision by the Registrar or his nominee under Section 54 or 54a shall not be liable to be called in question in any civil or revenue court. This section again maintains the distinction bet



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