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2006 DIGILAW 116 (CAL)

KSHETRIYA SHREE GANDHI ASHRAM v. STATE OF WEST BENGAL

2006-02-24

JYOTIRMAY BHATTACHARYA

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Jyotirmay Bhattacharya ( 1 ) WHETHER any sum payable to a Co-operative Society in accordance with an award passed under Section 96 of the West Bengal Co-operative Societies act, 1983 can be recovered by the Certificate Officer as a public demand under the Bengal Public Demand Recovery Act, 1913 upon requisition by the cooperative society? ( 2 ) THE said question has cropped up in the following background :-The respondent No. 4, a Co-operative Society, supplied 200 pieces silk sarees worth Rs. 93, 280/- to the petitioner herein by two packages through the indian Airlines from Calcutta to Lucknow by air consignment note being A. P. No. 6883767 on 21 st July 1993. ( 3 ) THE petitioner did not pay the value of the said articles to the respondent No. 4 on the ground that the said consignment was not delivered to the petitioner. ( 4 ) IN such a situation a dispute case under Section 95 of the West bengal Co-operative Societies Act was filed by the respondent No. 4 against the petitioner herein. An award was passed by the Director, Handlooms and textile, West Bengal and Additional Registrar of Co-operative (ex officio) on 23rd November, 1998 in the said proceeding being dispute Case No. 3 of 1997-98. ( 5 ) AN appeal was filed against the said award by the petitioner herein before the West Bengal Co-operative Tribunal under Section 136 of the West bengal Co-operative Societies Act, 1983 after the expiry of the period of limitation. The said appeal was ultimately dismissed for default on 20th September 2000. ( 6 ) SUBSEQUENTLY, in 2004 a notice together with a copy of certificate filed in the office of the Certificate Officer, Domkal, Murshidabad under Bengal public Demand Recovery Act, 1913 was served upon the petitioner whereby the petitioner was called upon to pay a sum of Rs. 4, 26, 667/ -. ( 7 ) ON receipt of the said notice, the petitioner filed a petition under section 9 of the Bengal Public Demand Recovery Act, 1913 denying its liability to pay the said awarded amount. 4, 26, 667/ -. ( 7 ) ON receipt of the said notice, the petitioner filed a petition under section 9 of the Bengal Public Demand Recovery Act, 1913 denying its liability to pay the said awarded amount. The executability of the said award under the bengal Public Demand Recovery Act was also challenged on the ground that execution of the award through certificate proceeding cannot be maintained as the mode of such execution is contrary to the mode of execution of the award as prescribed in Rule 179 of the West Bengal Co-operative Societies Rules 1987. ( 8 ) PENDING consideration of such an objection by the Certificate Officer, the petitioner has filed this writ petition challenging the jurisdiction of the certificate Officer to initiate such a certificate proceeding for realisation of awarded amount on the requisition of the respondent No. 4. ( 9 ) MR. Bhattacharya, learned Counsel, appearing for the petitioner, submitted that when a specific mode for execution of the award of the arbitrator or of the registrar has been prescribed under Rule 179 of the West Bengal Co-operative Society Rules 1987, no other mode other than the mode as prescribed under the said Rule can be adopted for execution of the award passed in a dispute case under Section 95 of the West Bengal Co-operative Societies Act 1983. Mr. Bhattacharya further submitted that this Rule having been framed by the State Government and the same having been ratified by the State legislature subsequently under Section 147 of the West Bengal Co-operative Societies act, has equal force as that of the provision contained in the statute and as such the mode of recovery of the awarded sum under Section 132 of the said act cannot override the provision as contained in Rule 179 of the said Rules. ( 10 ) MR. Bhattacharya further submitted that "public demand" has been defined in Section 3 (6) of the Bengal Public Demand Recovery Act, 1913. According to the said Section "public demand" means any arrear or money mentioned or referred to in Schedule-1 and includes any interest which may, by law, be chargeable thereon upto the date on which a certificate is signed under part-II of the said Act. According to Mr. According to the said Section "public demand" means any arrear or money mentioned or referred to in Schedule-1 and includes any interest which may, by law, be chargeable thereon upto the date on which a certificate is signed under part-II of the said Act. According to Mr. Bhattacharya only those arrear or money which are mentioned or referred to in Schedule-l of the said Act, can be recovered through the certificate proceeding under the said Act. ( 11 ) MR. Bhattacharya submitted that money which is recoverable under the said award passed under Section 96 of the West Bengal Co-operative societies Act, does not fall under any of the items as contained in Schedule-l of the said Act. By referring to Item Nos. 12a and 12b under the said Schedule, mr. Bhattacharya submitted that even the awarded money does not fall under any of the said items as the awarded money which was sought to be recovered was neither the sum which was to be recovered as per the order of the liquidator appointed under sub-section (1) of Section 42 of the said Act as a contribution to the asset of the society or the cost of liquidation nor can it be equated with the sum due to a land mortgage Bank registered under the Co-operative Societies act, 1912 nor can it be equated with the sum due to an assignee of such Bank in respect of any principal sum or interest thereon under a mortgage made to the Bank. ( 12 ) THUS, Mr. Bhattacharya submitted that since the awarded money is not a "public demand" within the meaning of the Bengal Public Demand Recovery act, 1913, the certificate officer exceeded his jurisdiction by issuing the impugned notice for recovery of the amount as mentioned in the said certificate. ( 13 ) ACCORDINGLY, Mr. Bhattacharya prayed for quashing of the said certificate. ( 14 ) MR. Bhattacharya also made an alternative prayer by contending that in the event the aforesaid submission of Mr. Bhattacharya is not accepted by this Court, then the Certificate Officer should be directed to consider the petitioner's application under Section 9 of the Bengal Public Demand Recovery act, being annexure 'p-12' to this writ petition before taking further steps for recovery of the amount as mentioned in the said certificate. ( 15 ) MR. Dutta, learned Advocate for the respondent No. 4. ( 15 ) MR. Dutta, learned Advocate for the respondent No. 4. refuted the said submission of Mr. Bhattacharya by submitting that a specific mode for recovery of any sum payable to. the State Government or to the Co-operative society in accordance with an order, decision or award under the said Act, has been prescribed under Section 132 of the said Act. Mr. Dutta submitted that the mode as prescribed under Section 132 of the said Act is not in conflict with the mode of realisation as prescribed in Rule 179 of the West Bengal Co-operative society Rules. ( 16 ) MR. Dutta pointed out that under Section 132 an additional mode has been prescribed for early realisation of certain sum which are payable to the Government or to the co-operative society and to no other category of holder of an award. Thus, when a particular mode as prescribed in Section 132 of the said Act has been adopted in the instant case for recovery of the awarded amount together with the interest thereon payable to a Co-operative Society being the respondent No. 4 herein, the petitioner cannot challenge the jurisdiction of the Certificate Officer for issuing notice under Bengal Public Demand Recovery act particularly when the awarded sum is a "public demand" within the meaning of Item-4 in Schedule-I of the Public Demand Recovery Act, ( 17 ) UNDER such circumstances, Mr. Dutta submitted that no interference is necessary with the impugned action on the part of the Certificate Officer. ( 18 ) HEARD the learned Advocates of the parties. Considered the materials on record. ( 19 ) RULE 179 of the West Bengal Co-operative Societies Rule, 1987 prescribes the mode of execution of the award of the Arbitrator or of the Registrar. It is provided in the said Rules that in any dispute, the award of the Arbitrator or of the Registrar shall, upon application, be enforceable by any Civil Court having local jurisdiction in the same manner as a decree of such Court as if it were a decree of the Court. It is provided in the said Rules that in any dispute, the award of the Arbitrator or of the Registrar shall, upon application, be enforceable by any Civil Court having local jurisdiction in the same manner as a decree of such Court as if it were a decree of the Court. ( 20 ) THE said provision makes it clear that when the award holder wants to execute the said award through the Civil Court, the holder of the award is required to file an application for execution of the award before the Civil Court having local jurisdiction in the same manner as a decree of such Court. It necessarily follows that all the provisions relating to execution of decree and/or order as contained in the Civil Procedure Code will apply in case of execution of award through Civil Court. ( 21 ) SECTION 132 of the said Act prescribes that any sum payable to the state Government or to the West Bengal Co-operative Societies in accordance with any Order, decision or award under the said Act, is recoverable in the manner as provided in the second schedule to the said Act or as the decree of a Court under the Civil Procedure Code. ( 22 ) SERIAL Nos. 3 and 4 under second Schedule are relevant for the present purpose. Serial Nos. 3 and 4 of the said Schedule are as follows :-Serial No. Nature of sum due method of Recovery 3 sums payable by an order under Section 94 by the Certificate Officer as a public demand upon requisition by the cooperative Society or the Registrar or by any Civil Court having jurisdiction, in the same manner as a decree or such Court upon application by the cooperative Society. 4 sums payable by an award under Section 96 ditto ( 23 ) THUS, it appears from the second Schedule as mentioned above that sums payable to the Co-operative Society by an award under Section 96 of the said Act is recoverable by the Certificate Officer as public demand upon requisition by the Co-operative Society or the Registrar or by any Civil Court having jurisdiction, in the same manner as a decree of such Court upon application by the Co-operative Society. ( 24 ) THIS mode can only be availed of by the State Government or the co-operative Society for recovery of any sum payable to them. ( 24 ) THIS mode can only be availed of by the State Government or the co-operative Society for recovery of any sum payable to them. This mode cannot be availed of by any other holder of the award, ( 25 ) UNDISPUTEDLY the respondent No. 4 is a Co-operative Society registered under West Bengal Co-operative Societies Act, 1983. It is also an admitted position that certain amount is payable by the petitioner to the respondent No. 4 herein under the award. Thus, the conditions for recovery of such awarded amount by the respondent No. 4 under Section 132 of the said act, are satisfied in the instant case. Item No. 4 under second Schedule of the said. Act prescribes the mode for recovery of such awarded sum as "public demand" by the Certificate Officer. ( 26 ) LET me now consider as to whether such awarded sum can be regarded as "public demand" within the meaning of the Bengal Public Demands recovery Act, 1913. Item No. 4 under Schedule-l of the said Act which is relevant for the present purpose, is set out hereunder:-"item No. 4: any money which is declared by any enactment for the time being in force- (i) To be a demand or a public demand, or (ii) To be recoverable as arrears of demand or public demand or as a demand or public demand, or (iii) To be recoverable under the Bengal Land Revenue Sales Act, 1968 (Ben. Act 7 of 1868 ). " ( 27 ) SECOND Schedule under the West Bengal Co-operative Societies act prescribes the mode of recovery of the sum payable under an award under section 96 by the Certificate Officer as "public demand". Since the West Bengal co-operative Societies Act prescribes a mode for recovery of said awarded sum as "public demand", such awarded money will be regarded as "public demand" within the meaning of Section 2 (6) of the Bengal Public Demand recovery Act, 1913 as it satisfies the condition of Item No. 4 (ii) of the schedule-1 of the "public demand" under the said Act. ( 28 ) SECTION 132 was engrafted in the Statute itself. The said provision deals with the mode of recovery of certain specified sum payable only to the government and the Co-operative Society. ( 28 ) SECTION 132 was engrafted in the Statute itself. The said provision deals with the mode of recovery of certain specified sum payable only to the government and the Co-operative Society. Recovery' of the awarded money by the other types of holder of the award was not prescribed in the Act itself. As such, the State Government in exercise of its power under Section 147 of the said Act framed Rule 179 for execution of other types of award, the mode of execution of which was not prescribed in the statute. Rule making power can be exercised by the State for carrying out the purpose of the Act. Where the act itself provides the mode for execution of certain types of award, the Rule making power cannot be exercised to nullify and/or supplement the statutory provision of the Act. Rule making power can be exercised by the State to formulate a scheme for workability of the statutory provision where the mode of implementation of the statutory provision is absent in the statute itself. ( 29 ) THAT apart, I do not find any apparent inconsistency and/or conflict between the provisions as contained in Section 132 of the said Act and the provision contained in Rule 179 of the Rules framed thereunder. Rule 179 prescribes the mode of execution of the award in general. Section 132 prescribes an additional mode for realisation of certain specified sum payable to the State government and the Co-operative Society and to no other holder of the award. Even Section 132 of the said Act also prescribes the mode for recovery of the awarded sum through execution by the Civil Court having jurisdiction which is consistent with the mode as prescribed under Rule 179. Thus, there is no conflict between the said two provisions, both of which have statutory force having their distinctly different field of operation. Only an additional mode has been prescribed under Section 132 which can be availed of by the Government and the Co-operative Society only. Since there is no conflict between the said two provisions, I need not examine as to which provision will prevail over the other. ( 30 ) WHEN two modes are available for recovery of the awarded money by the respondent No. 4 herein, the said respondent can avail of any one of the said modes. Since there is no conflict between the said two provisions, I need not examine as to which provision will prevail over the other. ( 30 ) WHEN two modes are available for recovery of the awarded money by the respondent No. 4 herein, the said respondent can avail of any one of the said modes. Here in the instant case, the respondent No. 4 adopted the mode as prescribed in Section 132 of the said Act. ( 31 ) I do not find any illegality in adopting the said mode of recovery as prescribed under Section 132 of the said Act by the respondent No. 4 herein as the conditions for availing of the said mode as prescribed in the said provisions read with the second schedule under the said Act under Item No. 4 therein, are satisfied in the instant case. ( 32 ) BE it mentioned here that even the vires of the provision contained in Section 132 of the said Act has not been challenged in the instant case. As such, this Court is not required to go into the further details with regard to the vires of the Section 132 of the said Act. Suffice it say that since there is no conflict between the said two provisions, the respondent No. 4 cannot be denied of the benefit of availing of the mode of recovery through certificate proceeding which is available to the said respondent under the said Act and the Rules framed thereunder. ( 33 ) UNDER such circumstances, I do not find any substance in the first submission of Mr. Bhattacharya ( 34 ) WITH regard to the second submission of Mr. Bhattacharya, this court, however, finds some substance as the Certificate Officer cannot be allowed to recover the amount as mentioned in the certificate without disposing of the petitioner's application under Section 9 of the Bengal Public Demands recovery Act. Bhattacharya ( 34 ) WITH regard to the second submission of Mr. Bhattacharya, this court, however, finds some substance as the Certificate Officer cannot be allowed to recover the amount as mentioned in the certificate without disposing of the petitioner's application under Section 9 of the Bengal Public Demands recovery Act. ( 35 ) ACCORDINGLY, the Certificate Officer being the respondent No. 6 herein, is directed to consider the petitioner's objection contained in annexure 'p-12' to this writ petition in the light of the provision as contained in Section 10 of the Bengal Public Demand Recovery Act, 1913 and dispose of the same by passing a reasoned order after giving an opportunity of hearing to the petitioner as well as the respondent No. 4 herein positively within a period of two weeks from the date of communication of this order. It is made clear that the decision in this regard should be taken by the Certificate Officer prior to taking any further step for recovery of the sum as mentioned in the said certificate. The writ petition, thus, stands allowed in part. The question referred to above is answered in the affirmative. There will be, however, no order as to costs.