The statutory bar contained in Section 82 of the Punjab Cooperative Societies Act, 1961, on challenging an Award made by an arbitrator appointed under Section 56, leads to the conclusion that no civil suit to challenge the Award would be maintainable with the only remedy being that of an appeal in terms of Section 68 of the said Act.

AMOL RATTAN SINGH, J.

CR-4047-2017

The petitioner society has challenged the order of the learned Civil Judge (Jr.Div.), Rajpura, January 06, 2017, by which the application filed by the petitioner-defendant in the suit filed by the respondent-plaintiff, under Order 7 Rule 11 CPC read with Sections 79 and 82 of the Punjab Cooperative Societies Act, 1961, has been “disposed of” though actually rejected on the ground that even the issue of jurisdiction cannot be decided by that Court without evidence being led in that regard.

2. Mr. Prashar, learned counsel for the petitioner points to Sections 82 and 68 of the aforesaid Act which reads as under:-

“82. Bar of jurisdiction of courts :-

(1) Save as provided in this Act, no civil or revenue court shall have any jurisdiction in respect of -

(a) the registration of a co-operative society or its byelaws or of an amendment of a bye-law;

(b) the removal of a committee;

(bb) any matter relating to service conditions of employees of co-operative societies;

(c) any dispute required under section 55 to be referred to the Registrar; and

(d) any matter concerning the winding up and the dissolution of a co-operative society.

(2) While a co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against, the liquidator as such or against the society or any member thereof, except by leave of the Registrar and subject to such terms as he may impose.

(3) Save as provided in this Act, no order, decision or award made under this Act, shall be questioned in any court on any ground whatsoever.”

XXX XXX XXX

“68. Appeals.

(1) An appeal shall lie under this section against-

(a) to (g) XXX XXX XXX

(h) any decision or award made under section 56;

(i) to (l) XXX XXX XXX

(2) An appeal against any decision or order under subsection (1) shall be made within sixty days from the date of decision or order,

(a) if the decision or order was made by the Assistant Registrar to the Deputy Registrar;

(b) if the decision or order was made by the Deputy Registrar to the Registrar or such Additional Registrar or Joint Registrar as may be authorised by the Registrar in this behalf;

(c) if the decision or order was made by the Joint Registrar or Additional Registrar, to the Registrar;

(d) if the decision or order was made by the Registrar, to the Government; and

(e) if the decision or order was made by any other person, to the Registrar or such Additional Registrar or Joint Registrar or Deputy Registrar or Assistant Registrar as may be authorized by the Registrar in this behalf.”

He next points to Section 79 which reads as follows:-

“79. Notice necessary in suits.

No suit shall be instituted against a co-operative society or any of its officers in respect of any act touching the business of the society until the expiration of three months next after notice in writing has been delivered to the Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint, shall contain a statement that such notice has been so delivered or left.”

The contention is obviously therefore that before institution of any suit on the question touching business of a co-operative society, a notice is first statutorily required to be issued to the Registrar, Co-operative Societies to enable him to determine as to whether the matter can be resovled/adjudicated upon without resorting to the remedy of a civil suit.

That apart, there being an express bar on the jurisdiction of a civil Court on a challenge to an Award made by an arbitrator appointed under Section 56 of the said Act, he submits that jurisdiction of the civil Court is wholly ousted, with the remedy of appeal lying with any person aggrieved of the Award, as per Section 68 aforesaid.

In the civil suit the respondent-plaintiff has challenged the Award of the arbitrator appointed under Section 56, the said Award being