IN THE HIGH COURT OF DELHI

O.M.P. No. 554/2006

Judgment reserved on: December 20,

Date of decision: January 23,

DR. KUMARADAS

.... Petitioner

through: Mr. Rajeev Nayyar, Sr. Adv. with Mr. Sagar

Pathak,

Advocate

VERSUS

THE INDIAN MEDICAL PRACTITIONERS'

CO-OP. PHARMACY & STORES LTD. & ORS.

....Respondents

through: Mr. S. Nandkumar, Mr. S. Muthukrishnan,

Mr. G. Anandaselvan & Mr. Sathis Kumar,

Advs.

CORAM:

HON'BLE MS. JUSTICE GITA MITTAL

1. Whether reporters of local papers may be

allowed to see the Judgment?

Yes

2. To be referred to the Reporter or not? Yes

3. Whether the judgment should be reported in the

Digest?

Yes

GITA MITTAL, J

1.

By this petition under Section 9 of the Arbitration &

Conciliation Act, 1996, the petitioner has invoked the jurisdiction

of this court contending that he has raised an arbitration dispute

before the Central Registrar appointed under the provisions of the

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Multi State Co-operative Societies Act, 1984 before the Central

Registrar at New Delhi under Section 84 of the Act. It is pointed

out that by virtue of Section 84 sub-section 5 of the statute, the

provisions of the Arbitration & Conciliation Act, 1996 are

applicable to the arbitration proceedings under the Multi State

Co-operative Societies Act, 1984 and consequently this court has

jurisdiction under Section 9 to grant the relief prayed for.

2.

The undisputed factual matrix to the extent necessary

for adjudication in the present case are noticed hereafter. The

Indian Medical Practitioners' Co-op. Pharmacy and Stores Ltd. is a

co-operative society registered under the Multi State Co-operative

Societies Act, 1984 which is engaged in the business of

manufacture of medicines in all the three systems of Indian

medicines namely, Sidha, Ayurvedha and Unani. The society is

stated to have been established in the year 1944 and its members

are doctors in the three systems of the Indian medicine numbering

over fourteen and thousand at present.

3.

As per the scheme of the Multi State Co-operative

Societies Act, 1984, it provides for a Board to administer and

manage the affairs of the society. The members of the board are

elected by the general body of the society. The election of the

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members of the Board is governed by Section 35 of the statute

while Section 37 provides the restriction on holding of office for

more than two tenures by the office bearers of the Board.

So far as removal of elected members of the board are

concerned, the same is permitted under Section 47 of the statute.

It provides the only circumstances in which the elected members

of the board can be removed from the board and the manner in

which such removal can take place.

4.

These provisions which have been placed before this

court by either side would require to be considered in extenso and

reads thus:-

“S. 35. Election of members of board:-

(1)

The superintendence, direction and

control of the preparation of the electoral rolls

for, and the conduct of, elections of the

members of the board of such multi-State co-

operative societies or class of multi-State co-

operative societies as the Central Government

may, by general or special order, notify, shall be

vested in such returning officers as may be

appointed by the Central Registrar in this

behalf.

(2)

The vote at such elections shall be by

secret ballot.

(3)

The term of office of the elected

members of the board shall be such, not

exceeding three years from the date of election,

as may be specified in the bye-laws of a multi-

State co-operative society:

Provided that the elected members

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shall continue to hold office till