Judges : MALIMATH,BHASKARAN NAMBIAR
A & E INSPECTOR - Appellant
Versus
ANTONY VARGHESE - Respondent
Case No : W.A. No. 214 of 1986
Decided On : 07/03/1987
Advocates Appeared :
Government Pleader; For Appellants P.H. Sankaranarayana Iyer; Thampan Thomas; For Respondents
Registrar - Co-operative Societies Act - 70(1) - The court discussed the interpretation of S.70(1)(c) of the Act, which empowers the Registrar to refer the dispute for disposal to an Arbitrator appointed by the Registrar. The court held that the power conferred by S.70(1)(c) of the Act can be exercised by the Registrar, Additional Registrar, Joint Registrars, Deputy Registrars, and Assistant Registrars. The court also referred to a similar provision in the Bihar And Orissa Co-operative Societies Act and the decision of the Supreme Court in Jugal Kishore v. Sitamarhi Central Co-operative Bank to support its interpretation.
Fact of the Case:
Respondent No.1, a member of a co-operative society, obtained a loan from the society and later disputed the proceedings for recovery of the loan. The learned single judge allowed the Original Petition and declared the award made by the 3rd appellant as without jurisdiction and non-est.
Finding of the Court:
The court found that the power conferred by S.70(1)(c) of the Act can be exercised by the Registrar, Additional Registrar, Joint Registrars, Deputy Registrars, and Assistant Registrars, and the subsequent award made in pursuance of the direction issued by the learned single judge was regarded as void. The court held that the award made by the 3rd appellant had become final and conclusive, as it was not challenged by the first respondent.
Issues: The main issue was the interpretation of S.70(1)(c) of the Act and whether the Assistant Registrar had the authority to refer the dispute for disposal to an Arbitrator appointed by the Registrar.
Ratio Decidendi: The court held that the power conferred by S.70(1)(c) of the Act can be exercised by the Registrar, Additional Registrar, Joint Registrars, Deputy Registrars, and Assistant Registrars, and the subsequent award made in pursuance of the direction issued by the learned single judge was regarded as void.
Final Decision: The appeal was allowed, the judgment of the learned single judge was set aside, and the Original Petition was dismissed with costs.
1. This appeal is by the original respondents 1, 2 and 4, against the judgment of the learned single judge in OP No. 76 of 1984. Respondent No.1 is a member of Respondent No.2 society, registered under the Kerala Co-operative Societies Act, 1969, (hereinafter referred to as the Act.) Respondent No.1 had obtained a loan from the society by mortgaging his immovable properties. On the ground that the loan was not discharged, the Society raised a dispute and referred the same before the 2nd appellant, the Assistant Registrar of Co-operative Societies, Nedumkandam. The Assistant Registrar to whom the dispute was referred, transferred it for disposal to the 3rd appellant, the Inspector of Co-operative Societies, Udumbanchola Unit A, under S.70(1)(c) of the Act, which empowers the Registrar to refer the dispute for disposal to an Arbitrator appointed by the Registrar. The Arbitrator after due notice to the parties made an award on 16-3-1982. Respondent No.1 did not challenge the same before the appellate authority and allowed the award to become final. It was when the award was put in execution and revenue recovery proceedings were set in motion for that purpose, that he invoked the jurisdiction of this Court under Art.226 of the Constitution and filed OP. No 76 of 1984. Though he has challenged the proceedings and the notices of demand and the revenue recovery proceedings, he has not challenged the award in pursuance of which action was taken to execute. He has also not produced the award made by the Arbitrator. He has taken the stand that the Arbitrator had no jurisdiction and that therefore the award made by an authority which has no jurisdiction is void and therefore not executable.
2. The learned single judge has by his judgment dated 17-12-1985 allowed the Original Petition (since reported in 1986 KLT 274) and declared that the award made by the 3rd appellant is without jurisdiction and hence non-est. He further declared that the proceedings initiated for recovery of the amounts under the said award are equally unenforceable and quashed Exts.Pl, P7 and P8. There is a further direction that the Assistant Registrar of Co-operative Societies shall take up the case on its file and dispose of the same after affording the parties an opportunity of being heard and in accordance with law expeditiously. It is the said judgment that is challenged by the appellants in this appeal.
3. It is however necessary to notice one more fact, namely, that with a view to avoid further complications S.70 has since been amended by Act 29 of 1986 by adding the following proviso to S.70(1):
"Provided that a transfer under clause (b) or a reference under clause (c) shall not be made to a person equal or superior to him In rank."
In pursuance of the direction of the learned single judge, the Assistant Registrar of Co-operative Societies, Nedur kandam, the 2nd appellant, has made a fresh award on 11-11-1986.
4. S.70(1) of the Act, which is relevant for the purpose of disposal of this case may be extracted: 70. Decision and award on disputes:
(1) The Registrar may, on receipt of the reference of a dispute under S.69,
a) elect to decide the dispute himself; or
b) transfer it for disposal to any person who has been invested by the Government with powers in that behalf; or
c) refer it for disposal to an Arbitrator appointed by the Registrar."
5. The learned single judge has taken the view that the power of referring a dispute for disposal to an Arbitrator could be exercised only by the Registrar appointed under sub-s. (1) of S.3 of the Act. Sub-s. (2) of S.3 empowers the State Government to confer by general or special order on any person all or any of the powers of the Registrar under the Act. The expression 'Registrar' has been defined in S.2(p) to mean "the Registrar of Co-operative Societies appointed under sub-s. (1) of S.3 and includes any person on whom all or any of the powers of the Registrar under this Act are conferred." It is in exercise of the
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