An award given by an arbitrator in violation of the principles of natural justice is a nullity and cannot be executed as a decree of a Civil Court.

M.R.SHARMA, J.

1. The Gandhar Agricultural Co-operative Service Society, Gandhar (hereinafter referred to as the respondent-Society), filed a petition for execution of the award given by an Arbitrator under the Punjab Co-operative Societies Act, 1961 (hereinafter referred to as the Act), in the Court of the learned Subordinate Judge. 1st Class, Muktsar. The appellant filed objections that the execution of the award was barred by time and the award having been given without notice to him was a nullity and as such incapable of being executed. On April 25, 1972, the learned Subordinate Judge framed the following issues:-

(1) Whether the notice of the proceedings of the arbitration was not served on Ran Singh. If so, its effect. O. P. O.

(2) Whether such an objection is not maintainable in these proceedings? O. P. D. H. On 19.06.1971, the following additional issues were framed;

(3) Whether Sec. 22 of the Co-operative Societies Act is applicable to the execution of the award? O. P. O.

(4) Whether the execution proceedings of the decree-holder is time-barred in view of Sec. 22 of the Co-operative Societies Act ? O. P. O.

(5) Relief.

The learned Executing Court held that notice for the service of Ran Singh appellant had been sent by registered post by the arbitrator and the presumption was that the same had reached the destination and had been delivered to the addressee. On Issue No. 2, it was held that such an objection was entertainable in execution proceeding. Issues Nos. (3) and (4) were found against the appellant and the execution proceedings were ordered to proceed. The appellant filed an appeal before this Court against the order dated 9.03.1972, passed by the learned Sub-ordinate Judge, 1st Class, Muktsar. This appeal came up for hearing before a learned Judge of this Court sitting in Chambers before whom it was argued that the appellant had not been served regarding the arbitration proceedings and that the award given by the arbitrator, being opposed to the principles of natural justice, was a nullity and incapable of being executed. The learned Judge held that the arbitrator had fixed the arbitration proceedings for 9.05.1966, and had sent a notice per registered post about this date to the appellant; subsequently the arbitrator changed the date of hearing from 9.05.1966 to 7.05.1966 and sent another notice in this behalf, but the latter notice was not served on the appellant because he was not available; and in spite of the fact that the appellant had not been served to appear before the arbitrator on 7-5-66 the latter took up the case and passed an award against him burdening him with a liability to pay Rs. 16,262.29 P. On the question whether the award, which had been passed in contravention of the principles of natural justice the learned Judge relied upon Sunder Singh V/s. The Central Cooperative Bank, AIR 1973 Punj 417, decided by a Division Bench, of which he himself was also a member, and held that the award was nor a nullity. Consequently, he dismissed the appeal of the appellant but left the parties to bear their own costs.

2. The Letters Patent Appeal filed by the appellant came up before a Bench consisting of my Lord the Chief Justice and myself on 20.05.1974. It was brought to our notice that there was an apparent conflict between the Division Bench judgment in Sunder Singhs case (supra) and another Division Bench judgment in The Lok Sewak Co-operative Marketing-cum-Processing Society, Faridkot V/s. Janga Singh, 1974 0 PunLJ 5. In order to resolve the conflict between the two Division Bench judgments, the case was admitted for hearing by a Full Bench and it is for this reason that this case has come up for hearing before us.

3. At the very outset, I would like to notice some of the relevant provisions of the Act and the rules framed thereunder Sec. 55 of the Act lays down that notwithstanding anything contained in any lacy for the time being in force, a dispute touching the business of a co-operative