Disputes arising from leases between lessors and lessees do not fall under Section 72 of the Co-operative Societies Act for arbitration.

JUDGMENT :

AJAY MOHAN GOEL, J.

By way of this petition, the petitioner has, inter alia, prayed for the following relief:-

“It is, therefore, prayed that this petition may kindly be allowed and impugned Order Annexure P-5 passed by the Ld. Arbitrator Deputy Registrar, Cooperative Societies (Central Division) Mandi District Mandi, Himachal Pradesh and Order Annexure P-6 by the Ld. Jt. Registrar, Cooperative Societies may kindly be ordered to be quashed and set aside and petition Annexure P-3 filed by the respondent may kindly order dismissed in the interest of justice and fair play.”

2.  Brief facts necessary for the adjudication of the present petition are that as per the respondent, a Lease Agreement was entered into between the respondent and the petitioner to lease out the property at Kallari on National Highway to the petitioner-Bank.
This was on account of the District Manager of the Bank in the month of June, 2016, contacting the respondent and showing his willingness to take on lease the premises in issue for opening/shifting the branch of the Bank in the premises in issue. As per the respondent, after consulting her family members the proposal was agreed to. The respondent acted thereupon and spent about Rs.4,00,000/-to make the premises ready for the occupation of the Bank. A Lease Agreement was also entered into. Monthly rent of Rs.10,000/- was fixed w.e.f. 12.07.2017, i.e. the date of the Agreement. In terms of the Lease Agreement, the lease was for a period was 15 years and the rent was to be enhanced in terms of the contents of the agreement. As per the respondent, after the execution of the Lease Deed, the Bank Authorities remained silent till January, 2019, when she received a notice regarding the termination of the lease. Feeling aggrieved, she filed a petition under Section 72 of the Co-operative Societies Act, which was allowed vide Annexure P-5, by the Deputy Registrar, Co-operative Society, Central Division. Feeling aggrieved by this Award, an appeal was preferred by the Bank, which was dismissed on 25.08.2021. Thereafter, a revision was preferred, which was dismissed as not maintainable on 25.08.2022 and thereafter, this petition has been filed.

3.  Learned Counsel for the petitioner-Bank argued that the impugned orders are not sustainable in the eyes of law, for the reason that the petition filed by the respondent under Section 72 of the Co-operative Societies Act was not maintainable. He submitted that the dispute between the petitioner and the respondent was not one envisaged under Section 72 of the Co-operative Societies Act and on this count, the impugned orders were liable to be set aside.

4.  On the other hand, learned Counsel for the respondent argued that there was no infirmity in the orders passed under Section 72 of the Co-operative Societies Act or in appeal. He further argued that the proceedings filed under Section 72 of the Co- operative Societies Act were maintainable and therefore, as there was not merit in the petition, the same be dismissed.

5.  I have heard learned Counsel for the parties and have also gone through the impugned orders as well as documents appended with the petition.

6.  Before referring to the documents appended with the petition, I will refer to the provisions under Section 72 of the Co- operative Societies Act. Section 72 is a part of Chapter-IX of the H.P. Co-operative Societies Act, 1968, which Chapter deals with settlement of disputes.

7.  Section 72 of the Co-operative Societies Act refers to the disputes which may be referred to Arbitration. Relevant partition whereof is quoted hereinbelow:-

“ 72. Disputes which may be referred to arbitration.-

(1)  Notwithstanding anything contained in any law for the time being in force, if any dispute touching the constitution, management, or the business of a  co-operative 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