Order.-The petitioners are the legal representatives of one deceased Ramalingam who was the president of the Kolathur Blacksmithy and Carpentry Workers’ Industrial Co-operative Society Limited, Kolathur, Mettur Taluk, Salem District till 31st August, 1969 when he was removed from that office. From the audit report for the period from 1st April, 1966 to 31st March, 1969 it was found that there has been a deficit in the stocks of various articles to the extent of about Rs. 5,946-19. The society filed an arbitration case for the recovery of the said amount of Rs. 5,946-19 being the value of the stock found short, under section 73 (1) (c) of the Tamil Nadu Co-operative Societies Act, 1961 (hereinafter called the Act). While the said arbitration case was pending, the said Ramalingam died on 8th November, 1970. Taking note of his death, the arbitrator dismissed the claim of the society on 12th November, 1970 on the ground that the claim has abated and that it is for the society to file a fresh claim against the legal representatives.

2. The society took the matter in appeal to the Co-operative Tribunal (the Principal District Judge, Salem), and the Tribunal by its Order, dated 12th February, 1975 held that the arbitrator was in error in dismissing the arbitration case with a direction to file a fresh claim on the same cause of action as against the legal representatives and that the proper thing would have been to permit the society to bring the legal representatives on record in the arbitration case which was pending on the date of the death of the said Ramalingam. In this view, the Tribunal directed the arbitrator to take the arbitration case on file and to proceed with the same after bringing the legal representatives on record. The society, however, did not take advantage of the Tribunal’s decision and take steps to bring the legal representatives on record. The result was the arbitration case came to be dismissed by the arbitrator for non-prosecution.

3. Subsequently the society filed a fresh arbitration claim against the petitioners the legal representatives of the said Ramalingam. On 16th August, 1972 for recovery of the said sum of Rs. 5,946-19. The petitioners defended the said arbitration case inter alia on the ground that the fresh arbitration claim was barred by limitation, in that it has been filed beyond the three-year period prescribed under rule 56 of the Tamil Nadu Co-operative Societies Rules, 1963 (hereinafter called the Rules). The arbitrator, however, by his order, dated 24th April, 1973 overruled the petitioner’s contention based on limitation and proceeded to pass a decree against the petitioners after holding them liable on merits.

4. Aggrieved against the said order, dated 24th April, 1973 of the arbitrator, the petitioners filed an appeal before the Co-operative Tribunal again reiterating their contention among others that the reference to the arbitrator as against them under section 73 is beyond time and there fare the arbitration claim should have been dismissed in limine. The Tribunal took the view that as the fresh claim against the petitioners on 16th August, 1972 was filed within three years from the date of the audit report from which the deficiency in stocks was found it was in time and that in any event the arbitration case could be validly entertained under section 25 (1) (b) of the Act which preserved the liability of a deceased member for the debts of the society for the period of 2 years from his death. As the death of the president was on 8th November, 1970 and the fresh arbitration claim has been filed on 16th August, 1972 i.e., within a period of two years from the date of the death of the president, the Tribunal took the view that the arbitration case which has been filed within two years from the date of the death of the president should be held to be within the time. The Tribunal also disposed of the appeal on merits ; and ultimately held the petitioners liable for the sum claimed by the soc

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