Case Note & Summary
The dispute arose between a cooperative society and the Government Milk Scheme regarding the applicability of the Madhya Pradesh Co-operative Societies Act, 1960 to agreements executed outside Madhya Pradesh. The appellant, Gwalior Dugdha Sangh Sahakari Ltd., entered into agreements for milk supply with the Government Milk Scheme in Nagpur on 17.12.1993 and 8.2.1994. A condition in these agreements mandated arbitration by the Dairy Development Commissioner, which the appellant sought to quash under Section 33 of the Arbitration Act, 1940. The District Judge ruled in favor of the appellant, citing Section 64 of the Act as the basis for setting aside the arbitration clause. However, the High Court reversed this decision, stating that since the agreements were executed outside Madhya Pradesh, Section 64 was inapplicable. The appellant appealed to the Supreme Court, arguing that the High Court's view was erroneous. The Supreme Court found no merit in this contention, emphasizing that the agreements were executed in Maharashtra, thus confirming the High Court's ruling. The appeal was dismissed with no costs, allowing the arbitrator to file the award before the appropriate court.
Headnote
A) Arbitration Law - Applicability of State Laws - Section 64 of the Madhya Pradesh Co-operative Societies Act, 1960 - The court held that since the agreements were executed outside the territorial jurisdiction of Madhya Pradesh, Section 64 of the Act was not applicable, affirming the High Court's decision. The agreements were entered into and executed in Maharashtra, thus the provisions of the Act could not be enforced (Paras 1-6).
Issue of Consideration
Whether Section 64 of the Madhya Pradesh Co-operative Societies Act, 1960 is applicable to agreements executed outside the State of Madhya Pradesh.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's decision that Section 64 of the Madhya Pradesh Co-operative Societies Act was not applicable to agreements executed outside the State.
Law Points
- Arbitration
- Territorial Jurisdiction
- Cooperative Societies Act
- Applicability of State Laws
