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1996 Supreme(Ker) 29

Judges : K.T.THOMAS,T.V.RAMAKRISHNAN
Thankam R.Pillai - Appellant
Versus
Arbitrator - Respondent
Case No : W.A. No. 1428 of 1995
Decided On : 01/18/1996
Advocates Appeared :
M.R. Rajendran Nair & P.V. Asha For Appellant Govt. Pleader (Jose K. Kochupappu) & T.K.M. Unnithan For Respondent

The legal representatives have the right to continue the proceedings before the Arbitrator even in the absence of an enabling provision in the statute under which the Arbitrator functions.

Headnote:

Arbitrator - Co-operative Societies Act - Sec. 69(i)(b), Sec. 23, C. P. C. - The court discussed the power of an Arbitrator under the Co-operative Societies Act to implead the legal representatives of a deceased petitioner in a pending proceeding. The court overruled the decision in Bhaskaran Nair v. Co-operative Tribunal, Trivandrum (1976 K.L.T. 18) and held that the legal representatives have the right to continue the proceedings before the Arbitrator even in the absence of an enabling provision in the statute under which the Arbitrator functions.

Fact of the Case:

The appellant's husband applied for a plot of land under the '30 acres Housing Scheme' of the second respondent society in 1978. After a series of cancellations and appeals, the appellant's husband expired, and the appellant and her son filed a petition for impleading them as the legal representatives of the deceased and to permit them to continue the pending proceedings.

Finding of the Court:

The court found that the legal representatives have the right to continue the proceedings before the Arbitrator even in the absence of an enabling provision in the statute under which the Arbitrator functions.

Issues: The main issue was whether an Arbitrator under the Co-operative Societies Act has the power to implead the legal representatives of a deceased petitioner in a pending proceeding.

Ratio Decidendi: The court overruled the decision in Bhaskaran Nair v. Co-operative Tribunal, Trivandrum (1976 K.L.T. 18) and held that the legal representatives have the right to continue the proceedings before the Arbitrator even in the absence of an enabling provision in the statute under which the Arbitrator functions.

Final Decision: The court allowed the appeal, set aside the previous award, and directed the Arbitrator to implead the legal representatives of the deceased petitioner in the arbitration proceedings and to dispose of the case in accordance with the law after giving the parties an opportunity to substantiate their respective contentions.

Judgment :-

Ramakrishnan, J.

Whether an Arbitrator functioning under me Co-operative Societies Act (for short 'the Act') has power to implead the legal representatives of a deceased petitioner in a proceeding pending before him, is the important question raised for consideration in this appeal. While arguing for the position that the Arbitrator has such power, Smt. P. V. Asha, learned counsel for the appellant has submitted that the decision of learned single judge of mis Court reported in 1976 K.L.T. 18 (Bhaskaran Nair v. Co-operative Tribunal, Trivandrum) wherein it has been held that there is no such power for the Arbitrator, requires reconsideration.

2. The question has arisen on the following facts and circumstances: Appellant's husband applied for a plot of land under the "30 acres Housing Scheme" of the second respondent society in 1978. A plot of 10 cents was allotted to him on remittance of an amount of Rs. 50,000/- as land value. Thereafter, the Society has cancelled the allotment. The cancellation was challenged before this court and the same was set aside and the matter was remitted for fresh decision by the Society. The Society again cancelled the order of allotment. The fresh order passed was challenged in A. R. C. 51187. The Arbitrator ultimately upheld the cancellation and found that the plaintiff is entitled to get only a refund of the amount deposited by him. The award so passed was challenged in A. P. No.109 of 1991 before the Co-operative Tribunal. As per Ext. P2 order, the Tribunal has set aside the award and remanded the matter to the Arbitrator for fresh disposal in accordance with law. While so, the appellant's husband expired on 11.8.1992. On the death of the original petitioner, the appellant and her son has filed petition for impleading them as the legal representatives of the deceased and to permit them to continue the pending proceedings. They have also filed a fresh petition before the Arbitrator as A. R. C. No. 20 of 1993 for the reliefs similar to that claimed in A. R. C. 57 of 1987. The Arbitrator has rejected the impleading petition as per Ext. PI order holding that in the absence of specific provision enabling him to implead the legal representatives he has no jurisdiction to allow the application following the decision of this court in Bhaskaran Nair's case (1976 K.L.T. 18) without prejudice to the right of the appellant to raise a fresh dispute and to proceed with the same or to file an appeal against the order and get appropriate relief from the Appellate Authority. The Arbitrator has also referred to the judgment in W. A. 312/76 filed against the judgment in Bhaskaran Nair's case which appeal was dismissed on facts, without going into the correctness of the legal questions decided by the learned Single Judge. In the Original Petition, the petitioners have prayed for quashing Ext. PI award and directing the first respondent to allow the application for impleadment filed by the appellant and to dispose of A. R. C. 57 of 1987 in accordance with law. The learned Single Judge dismissed the O.P. taking the view that since the petitioners have moved the Arbitrator by filing another arbitration case under Sec. 69(i)(b) of the Act, there is no justification to interfere with the matter in these proceedings under Article 226 of the Constitution of India. The learned judge further 'observed that the question whether the decision reported in 1976 K. L. T.18 (Bhaskaran Nair's case) requires reconsideration will be considered in appropriate cases.

3. From Ext. PI order, it is clear beyond any doubt that the Arbitrator has rejected the impleading application solely for the reason mat there is no specific provision enabling him to implead the legal representatives and that he has no inherent power to implead the legal representatives since the Arbitrator exercising power under the Act is not a civil court. This is precisely the reason on the basis of which Bhaskaran Nair's case was decided. It is relevant t



























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