Important Point – Election to a post is a matter of Statute.

Vibhu Bakhru, J. - The petitioner has filed the present petition under Section 9 of the Arbitration and Conciliation Act, 1996 (hereafter 'the Act'), inter alia, praying as under:-

"a. Stay the email notice dated 07.02.2017 [sic] addressed by the Chief Executive of the NAFCUB, Respondent No.1 herein to the Petitioner until the commencement of arbitral proceedings;

b. Restrain the Respondent Nos 1 & 2 from conducting the No Confidence Motion proposed for 27.02.2017 until the commencement of arbitral proceedings;"

2. The petitioner was elected as the President of the National Federation of Urban Co-operative Bank and Credit Societies Ltd. (hereafter 'NFSL') and has filed the present petition, inter alia, for restraining the respondents from moving a no confidence motion to remove the petitioner from the post of President of NFSL.

3. NFSL is an apex body of Urban Cooperative Banks and Credit Societies Ltd. in the country and is registered under the Multi-State Co-operative Societies Act, 2002 (MSCS Act). The petitioner is a Director of the Cosmos Co-operative Bank Ltd. and in that capacity was elected as the President of NFSL on 06.02.2014. He was removed from the post of President by a no confidence motion allegedly moved on 25.02.2016 in the 147th meeting of the Board of Directors of NFSL. The said meeting as well as the subsequent meeting formed the subject matter of disputes between the parties which were referred to the sole arbitrator, appointed by the Central Registrar of Co-operative Societies.

4. The sole arbitrator delivered an award on 29.09.2016 accepting the petitioner's challenge to the 147th meeting and 148th meeting held on 20.03.2016. The execution petition for enforcement of the said award was filed by the petitioner and is pending before this Court. Notice in the said petition (Ex. P. 5/2017) was issued on 07.02.2017. In the meanwhile, the Chief Executive Officer of NFSL (respondent no.1) issued an email dated 08.02.2017 circulating a notice along with an agenda note for holding the 151st board meeting on 27.02.2017. The main item of the said meeting was to table and discuss the motion of no confidence against the petitioner as the President of NFSL. In other words, the said meeting was to be convened to consider the removal of the petitioner as the President of NFSL. The petitioner caused a legal notice to be sent pursuant to the aforesaid email inter alia claiming that there was no provision for removal of the President of NFSL prior to completion of his tenure.

5. This is also the principal ground urged on behalf of the petitioner for interim reliefs claimed in the present petition.

6. The present petition was listed for the first time on 23.02.2017. On that date, the notice was issued and accepted by the learned counsel for the respondents, who sought time to file a reply. This request was acceded to. Although this court did not interdict the conduct of the meeting scheduled to be held on 27.02.2017, it was expressly directed that any business conducted at the meeting scheduled on 27.02.2017 would be subject to further orders that may be passed in this petition.

7. The only question that this court has been called upon to address at this stage is whether the Board of Directors of NFSL would have the power to remove the petitioner as the President of NFSL prior to completion of his tenure. This would also be the principal dispute before the arbitral tribunal and thus, it was pointed out to the counsel that any view expressed by this court on the controversy in question could also be construed as determinative of the principal dispute. Notwithstanding the aforesaid, the learned counsel invited this court to rule on the issue involved.

8. Admittedly, there is no statutory provision either in the Byelaws of NFSL (hereafter 'the Byelaws') or in the MSCS Act which provides for removal of the President. The tenure of the President is coterminous with the tenure of the Board of Directors. It is, thus, the case of