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2004 DIGILAW 172 (PNJ)

Rajbir Singh v. State Of Haryana

2004-02-16

JAGDISH SINGH KHEHAR

body2004
Judgment J.S.Khehar, J. 1. The Bhiwani District Central Cooperative Bank Limited, Bhiwani, sought the reference of a dispute to an Arbitrator under the provisions of Sections 55/56 of the Punjab Cooperative Societies Act, 1961, wherein respondent No. 4 claimed an outstanding amount payable by the Rawaldhi Lime Stone Production Cooperative Industrial Society Ltd., Rawaldhi, District Bhiwani. The request made by respondent No. 4 was acceded to. The matter was referred for arbitration at the hands of the Assistant Registrar, Cooperative Societies (Industries), Hissar, by the Registrar, Cooperative Societies. The Assistant summoned respondent No. 5 i.e. the Rawaldhi Lime Stone Production Cooperative Industrial Society Ltd., Rawaldhi, District Biwani, for adjudicating the claim for a sum of Rs. 17,500/- (as principal), a sum of Rs. 13743.02 (as interest) and further a sum of Rs. 3124.30 (as costs). During the course of arbitration proceedings, the petitioner had also been summoned. The petitioner, however, continued to represent to the Arbitrator that the dispute had been raised by respondent No. 4 i.e. the Bhiwani District Central Cooperative Bank Ltd., Bhiwani, against respondent No. 5 i.e. the Rawaldhi Lime Stone Production Cooperative Industrial Society Ltd., Rawaldhi, District Bhiwani, and that the petitioner had improperly been summoned during the course of the adjudication of the arbitration proceedings. 2. The Assistant Registrar, Cooperative Societies (Industries), Hissar, announced the award on 13.6.1978, wherein the Arbitrator required the Rawaldhi Lime Stone Production Cooperative Industrial Society Ltd., Rawaldhi, to pay a sum of Rs. 17,500/- (as principal), a sum of Rs. 13743.02 (as interest upto 30.6.1977) and further a sum of Rs. 3124.30 i.e. a total sum of Rs. 34367.32 to respondent No. 5 i.e. Bhiwani District Central Cooperative Bank Ltd., Bhiwani. Respondent No. 4 was further held entitled to interest at the rate of 12% from the date of award till the date of recovery. A perusal of the concluding paragraph of the award of the Arbitrator dated 13.6.1978 reveals that if respondent No. 5 i.e. the Rawaldhi Lime Stone Production Cooperative Industrial Society Ltd., Rawaldhi, District Bhiwani, failed to deposit the whole amount upto 30.11.1978, then respondent No. 4 i.e. the Bhiwani District Cooperative Bank Ltd., Bhiwani, would be entitled to recover the amount through a Civil Court or from the land or the property of the creditor which had been pledged to respondent No. 4. 3. 3. On the receipt of the award under reference, the Rawaldhi Lime Stone Production Cooperative Industrial Society, Ltd., Rawaldhi, District Bhiwani, preferred an appeal before the Joint Secretary (Cooperation), Haryana. The aforesaid appeal was dismissed on 18.8.1981. On the dismissal of the aforesaid appeal, since no further legal proceedings were initiated so as to impugn the award of the Arbitrator dated 13.6.1978, the same assumed finality. Thereafter, the Assistant Registrar, Cooperative Society, Charkhi Dadri, issued a notice under Section 63(c) of the Punjab Cooperative Societies Act, 1961 to the petitioner, requiring him to deposit the principal amount, the interest and the costs through a communication which has been placed on the record of this case as Annexure P-3, failing which it was asserted that recovery would be made from the petitioner as arrears of land revenue. 4. The aforesaid order (Annexure P-3) has been impugned through the instant writ petition. The solitary contention of the learned counsel for the petitioner is that the award rendered by the Arbitrator dated 13.6.1978 could not have been executed as against the petitioner who was merely holding the post of Cashier of the Rawaldhi Lime Stone Production Cooperative Industrial Society Ltd., Rawaldhi, District Bhiwani, and that the same should have been recovered from respondent No. 5. The aforesaid submission of the learned counsel for the petitioner is not controverted by the learned counsel representing respondent No. 4, i.e. the Bhiwani District Central Cooperative Bank Ltd., Bhiwani, who asserts that the notice Annexure P-3 should have been addressed to respondent No. 5 i.e. the Rawaldhi Lime Stone Production Cooperative Industrial Society Ltd., Rawaldhi, District Bhiwani, and not to the petitioner, since respondent No. 5 owed responsibility for the aforesaid payment to respondent No. 4 in terms of the award of the Arbitrator dated 13.6.1978. 5. In view of the fact that there is hardly any conflict between the parties in so far as the legality of the impugned notice Annexure P-3 is concerned, the same is hereby set aside with a direction to respondent No. 3 i.e. Assistant Registrar, Cooperative Societies (Industries), Hissar, and/or the successor of the aforesaid authority, to issue a notice in continuation of the award of the Rawaldhi Lime Stone Production Cooperative Industrial Society Ltd., Rawaldhi, District Bhiwani, so as to obtain payment, if any permissible in accordance with law. 6. 6. In view of the above, the instant writ petition is allowed. The impugned notice Annexure P-3 is set aside with a direction to respondent No. 3 to issue an appropriate notice to respondent No. 5 and to effect recovery, if permissible, in accordance with law.