The main legal point established in the judgment is that disputes purely among the members of a co-operative society, if touching the business of that society, can be referred to arbitration under S.56 of the Travancore Co-operative Societies Act, even if the society itself is not a party to the dispute.

1. The only question for decision in this second appeal is whether an award passed under S.56 of the Travancore Co-operative Societies Act, V of 1112 is valid or not. When the award in question was sought to be executed by the appellant in whose favour it has been passed, the respondent, who was defendant 2 in the arbitration proceedings, objected to the execution on the ground that it was passed without jurisdiction and was therefore invalid. The execution court over-ruled this objection, but the Temporary Additional District Judge of Quilon, to whom the matter was taken up in appeal by the respondent, upheld the objection and dismissed the appellant's application for execution. The appellant has, therefore, preferred this second appeal.

2. The appellant and the respondent, who were members of the Paravur Co-operative Urban Bank Ltd., No. 1647, were sureties for a loan taken from the said bank by another member thereof, who was defendant 1 in the arbitration proceedings. On account of the failure of the primary debtor to repay the loan the appellant was compelled to pay the amount due to the Co-operative Bank and after thus discharging the debt he filed a suit before the Registrar of Co-operative Societies, Trivandrum, for reimbursement of the amount paid by him from defendants 1 and 2. Acting under S.56(2)(c) of the Travancore Co-operative Societies Act, 1112, the Registrar referred the matter for disposal to an arbitrator; and the arbitrator, to whom the matter was referred, has passed the award which the appellant is seeking to execute. The respondent's objection to the execution of the award was that, as the dispute referred to the arbitrator was one relating solely to the liability inter se of the sureties and of the sureties and the primary debtor, and as it did not affect at all the rights and liabilities of the Co-operative Society, the Registrar was incompetent to refer the dispute for arbitration under S.56 of the Travancore Co-operative Societies Act and that, therefore, the award was made without jurisdiction and is invalid. The learned Temporary Additional District Judge accepted this contention saying:

"Admittedly the present dispute is between the plaintiff and defendants. That is a suit filed by the plaintiff against defendant for contribution. It is purely a matter concerning the plaintiff and defendants only. The society is not in any way affected by it. Hence I would come to the conclusion that the Registrar has no jurisdiction to pass the award, that the award is therefore void and is not executable by the civil court".

3. The relevant portion of S.56 of the Travancore Co-operative Societies Act, 1112, reads as follows:-"56. (1) If any dispute touching the business of a registered society (other than a dispute regarding

disciplinary action taken by the society) or its Committee against a paid servant of the society arises

(a) among members, past members, and persons claiming through members, past members and deceased members, or

(b) between a member, past member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or servant past or present of the society, or

(c) between the society or its committee and any officer, agent or servant past or present of the society, or

(d) between the society and any other registered society, such dispute shall be referred to the Registrar for decision.

Explanation: A claim by a registered society for any debt or demand due to it from a member, past member or the nominee, heir or legal representative of a deceased member, whether such debt or demand be admitted or not, is a dispute touching the business of the society within the meaning of this sub

section.

(2) The Registrar may, on receipt of such reference,

(a) decide the dispute himself, or

(b) transfer it for disposal to any person who has been invested by Our Government with powers in that behalf; or

(c) subject to such rules as may be prescribed, refer