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2025 Supreme(Online)(HP) 6457
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Ajay Mohan Goel, J
The Baghat Urban Co-operative Bank H Ltd. – Appellant
Versus
M/S Him Mushroom Village Rabon – Respondent
CMPMO No.547 of 2022
For the Appellants/Petitioners: Ms. Minakshi Sharma
For the Respondents: Mr. Kulwant Singh Katoch, Mr. Harsh Wardhan
The jurisdiction over disputes concerning awards under the H.P. Co-operative Societies Act lies with the designated appellate authority, not the Civil Court, thus asserting the appellate nature of awards.
Headnote:(A) H.P. Co-operative Societies Act, 1968 - Sections 72, 73, and 93(h) - Jurisdiction of Civil Court - The petition challenges the jurisdiction of the Civil Court over a suit filed contesting an award of the Arbitrator, affirming that such matters fall under the purview of statutory provisions of the Co-operative Societies Act. (Paras 3, 4, 5, and 7)
(B) Arbitration - Appealability of Awards - The court observed that the findings of the lower court contradict the provisions of the H.P. Co-operative Societies Act, and a declaration challenging awards must be filed in the proper forum. (Paras 5, 6)
Facts of the case:
The petitioner was aggrieved by a civil suit challenging an award from the Arbitrator, which was deemed appealable under the Co-operative Societies Act.
Findings of Court:
The civil suit was ruled not maintainable as the jurisdiction falls outside Civil Court authority, thereby quashing the lower court's order.
Issues: The court addressed the nature of jurisdiction regarding disputes over Cooperative Society Awards.
Ratio Decidendi: Respondent’s challenge to the award was held to be misfiled, necessitating recourse through the Appeal process as prescribed in the H.P. Co-operative Societies Act.
Result: Petition allowed; the lower court's order quashed.
| Table of Content |
|---|
| 1. jurisdictional challenge over an arbitrator's award under the cooperative societies act. (Para 2) |
| 2. rejecting the lower court's jurisdiction claim regarding arbitrator's awards. (Para 4 , 5) |
| 3. significance of special statutes in jurisdiction determination. (Para 6) |
| 4. ruling against maintainability of suit and emphasizing appropriate forum. (Para 7) |
| 5. final decision regarding respondent's appeal filing rights. (Para 8 , 9 , 10) |
Ajay Mohan Goel, Judge (Oral)
By way of this petition, the petitioner has, inter alia, prayed for the following relief:-
H “It is, therefore, respectfully prayed that in view of the facts and circumstances, instant petition may be allowed and the impugned order dated 29-06-2022 passed by the Id Civil Judge Solan in Civil Suit No 5/1 of 2014 titled M/S Him Mushroom Vs The and others whereby preliminary issue w.r.t. jurisdiction of suit is decided in fvaour of the plaintiff may be quashed and set aside and the preliminary issue be decided in favour of the applicant/ defendant/present petitioner, resultantly the
suit of the plaintiff/present Respondent No 1 may be dismissed with cost, in the interest of justice.”
2. Brief facts necessary for the adjudication of this petition are that feeling aggrieved by an Award passed by the Court of learned Arbitrator, Cooperative Societies, Solan, District, Solan, H.P., under Section 72 of the H.P. Co-operative Societies Act, 1968 , respondent No.1 filed a civil suit for declaration as well as permanent prohibitory injunrction, copy whereof is appended with this petition as Annexure P-1. An objection was taken by the petitioner herein with regard to the maintainability of the civil suit on the ground Cthat in the light of the statutory provisions of the H.P. Co-operative Societies Act, 1968 , as the order passed by learned Arbitrator under the said Act was appealable, the civil suit was not mgaintainable.
i3. In terms of order dated 29.06.2022, learned Court below rejected the said preliminary objection of the petitioner and has returned the findings that the Civil Court has the jurisdiction to entertain and try the suit as the plaintiff was seeking a decree for declaration that the Award was null and void. The relevant portion of the order passed by learned Court below is quoted hereinbelow:-
“8 It is the admitted case of the parties that award dated 17.5.2010 was passed when the dispute arose between the parties to the suit The plaintiff has challenged the said award before this! court on the ground that defendant manipulated the facts before the .Arbitrator who passed the award dated 17.5.2010 and the award is being challenged on the ground of fraud On the other hand, defendants have taken the plea that this suit is barred under Section 92 oof the HP State Cooperative Society Act as no dispute under Section 72 of the HP State Cooperative Societies Act can be passed by a civil court or revenuer court, it has to be referred to the Registrar onlyu.
9. No doubt the provisions of Section 72 of the HP State Cooperative Society Act provides that any dispute beCtween the members of the society or the society and the society itself shall be referred to the Registrar But in the case in hand the plaintiff is seeking the declaration challenging the award dated 17.5.2010 in which it was g held that the recovery which is being effected from the plaintiff is correct and he is liable to pay amount to the H society along with interest. The plaintiff is challenging the award dated 17.5.2010 and all other reliefs which the plaintiff is praying in the relief clause of the plaint, flows through the said relief of declaration It is settled law that a decree for declaration challenging any order can be passed only by a civil court and not by any Registrar. The plaintiff has challenged the award dated 17.5.2010 though which the other reliefs are towing and as per plaintiff on the basis of arbitrary A
