BASNAYAKE, CJ, PULLE, J, WEERASOORIYA, J
BANDAHAMY – Appellant
Versus
SENANAYAKE – Respondent
S. C. 206-D. C. Kurunegala 549 / Spl.
1960 Present
: Basnayake, C.J., Pulle, J., Weerasooriya, J.,
K. D. de Silva, J., Sansoni, J., H. N. G. Fernando, J., and Sinnetamby, J.
BANDAHAMY, Appellant, and SENANAYAKE,
Respondent
S. C. 206-D. C. Kurunegala 549 / Spl.
Co-operative society-Appointment of liquidator-Dispute between liquidator and a
past officer of the society-Right of liquidator to refer the dispute for
compulsory arbitration-Award of arbitrator-Jurisdiction of erecting Court to
test its validity-Procedure Jar enforcement of award--Requirement of notice to
respondent-Co-operative Societies Ordinance (Cap. 107) (as amended by 8. 9 of
Act No. 21 of 19'1.9), 88.2,36,39,40 (1) (d), 41 (h), 45 (1), 45 (2), 45 (4), 45
(5)Cooperative Societies (Special Provisions) Act .10. 17 of 1952,8. 2
-Co-operative Societies Rules of 1.950, Rule8 38 (1), 38 (13).
Judicial precedent-Binding effect thereof-Scope of rule of stare decisis
?Collective Court "-Courts Ordinance (Cap. 6), ss. 38, 48, 51.
The appellant was the treasurer of a co-operative society and the respondent was
appointed under section 39 of the Co-operative Societies Ordinance to be the
liquidator of the society. On 19th March 1949 a dispute arose between the
appellant and the respondent as to whether the appellant owed the society a sum
of Rs. 560/74 in respect of" leakages in textiles n. On 21st May 1052 the
dispute was referred by the liquidator to the Registrar of Co-operative
Societies for decision. Thereafter, an Assistant Registrar of Co-operative
Societies who was empowered to exercise the functions of the Registrar referred
the dispute for disposal, as arbitrator, to an inspector of the Co-operative
Department. The arbitrator made his award ordering the appellant to pay the sum
of Rs. 560/74 with interest. An appeal to the Registrar against the award was
dismiss6'i. As the appellant failed to pay the amount of the award, the
respondent made application under Rule 38 (13) of the Co-operative Societies
Rules of 1950 to the District Court of Kurunegala for the enforcement of the
award.
Held, (i) by PULLE, WEERASOORlYA, K. D. DE SILVA, SANSONI, H. N. G.
FERNANDO, and SINNETAMBY, J. J. (BASNAYAKE, C.J., dissenting), that,
under section 4f) (1) (d) of the Co-operative Societies Ordinance, as amended by
section 9 of Act No. 21 of 1949. the, liquidator was entitled to refer the
dispute for compulsory arbitration under section 45. !n view of section 2 (1) of
the Co-operative Societies (Special Provisions) Ac No. 17 of 1952. the
provisions of section 45 of the Co-operative Societies Ordinance were applicable
to every such dispute notwithstanding that it had arisen prior to 24th May 1949,
which was the date on which the amending Act No. 21 of 1949 came into operation.
The fact that the liquidator referred the dispute to the Registrar II for
decision" could not vitiate the award of the arbitrator,
(ii) by BASNAYAKE, C.J., WEERASOORIYA, J., SANSONI, J., and H. N. G.
FERNANDO, J. (PULLE, J., K. D. DE SILVA ,J., and SINNETAMBY, J.,
dissenting), that it is necessary' that when. the powers of a Court are invoked
for the enforcement of an award as a decree of such Court (in terms of Rule 38
of Rule 38 (13) of the rules made under section 46 of the Co-operative Societies
Ordinance), the party against whom the award is sought to be enforced should be
noticed and given an opportunity of showing the existence of defects, even
though the award does not bear any fatal flaws on its face.
Jayasinghe v. Boragodawatte
Co-operative Stores Society (56 N. I.. R. 462" approved.
(iii) by BASNAYAKE, C.J., WEERASOORIYA, J., SANSONI., H. N. G. FERNANDO J.,
and SINNETAMBY, J. (PULLE, J., and K. D. DE SILVA, J.,
dissenting), that it is open to the party against whom the award is sought to be
enforced to question the validity of the award, even it the award is ex facie
regular.
(iv, by BASNAYAKE, C.J., PULLE, J., WEERASOORIYA, J., SA
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