FAO(OS) 57 of 2020 Page 1 of 20

$~

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

Reserved on:- 27.01.2021

Date of Decision:- 02.03.2021.

+

FAO(OS) 57/2020 & CM No.27957/2020

NARENDER SINGH

..... Appellant

Through

Mr. Ramit Malhotra, Adv.

versus

V.V. PANKAJAKSHAN & ORS.

..... Respondent

Through

Mr. Ankur Arora with Ms. Srishti

Sharma, Advs for R-1.

Mr. Manoj Kumar Gupta, Adv for R-2.

CORAM:

HON'BLE MR. JUSTICE VIPIN SANGHI

HON'BLE MS. JUSTICE REKHA PALLI

REKHA PALLI, J

JUDGMENT

1.

The present appeal under Section 37 of the Arbitration and

Conciliation Act, 1996 (hereinafter referred to as „the Arbitration Act‟)

assails the order dated 31.07.2020 passed by the learned Single Judge

rejecting the appellant‟s challenge under Section 34 of the Arbitration Act to

the arbitral award dated 06.02.2020. Under the said award, the appellant‟s

election to the Board of Directors of respondent no.2/society was set aside.

2.

The appellant is a member of the Sonepat District Cooperative Labour

& Construction Federation (hereinafter referred to as the „Sonepat Society‟)

whereas the respondent No. 2/National Labour Cooperative Federation of

India Limited (NLCFIL) is a multi-State cooperative society governed by

the provisions of the Multi-State Cooperative Society Act, 2002 (hereinafter

2021:DHC:788-DB

FAO(OS) 57 of 2020 Page 2 of 20

referred to as the „MSCS Act‟). The Sonepat Society is a member of the

NLCFIL.

3.

On 29.05.2019, the respondent no. 3, who was appointed as the

Returning Officer by the NLCFIL for conducting elections to its board of

directors, issued a notice under Section 19 of the MSCS Act notifying the

election program for conducting the said elections. The notice also directed

eligible cooperative/multi-state cooperative societies, who were a part of the

NLCFIL, to send in the names of the delegates whom they had nominated to

represent them in the election, which was slated to be held on 12.07.2019.

Subsequently, on 21.06.2019, NLCFIL released another list bearing the

names of all its members under the Forest Labour Constituency and the

Labour Contract/Constructions Constituency. The respondent no.1, who is

the Chairperson of a cooperative society named Shree Sai Labour Contract

Cooperative Society Limited - which is also a member of NLCFIL, raised

various objections on 05.07.2019 and 11.07.2019 to the: (i) inclusion of

certain societies in the member list of Forest Labour Constituency, and; (ii)

the nomination of certain candidates/societies, including the appellant, for

the election on the ground of ineligibility by virtue of Section 43(1)(m) and

(n) of the MSCS Act. Although the objections of the respondent no.1 were

received by the Ministry of Agriculture, Department of Agriculture &

Cooperative Societies on 12.07.2019, i.e., the date on which the election was

scheduled to be held, in which the appellant was duly elected, these

objections were disposed of by the respondent no.2 Returning Officer on

12.07.2019 itself. As a result, the election was permitted to carry on as per

the program.

2021:DHC:788-DB

FAO(OS) 57 of 2020 Page 3 of 20

4.

On 18.07.2019, in the light of its objections being dismissed, the

respondent no.1 moved NLCFIL seeking inter alia a copy of the resolution

passed by the Sonepat Society condoning the absence of the appellant in the

Annual General Body meeting of NLCFIL held during the years 2015-2016,

2016-2017 and 2017-2018, in response whereto NLCFIL categorically

stated that no such resolution had ever been passed. In the meanwhile,

considering that the clock was running out on the period of limitation to

challenge the election, the respondent no.1 invoked arbitration on

05.08.2019 before the Central Registrar of Cooperative Societies