Case Note & Summary
The case involved an appeal against a judgment by the High Court of Punjab & Haryana regarding the appointment of an arbitrator under the Punjab Cooperative Societies Act, 1961. The appellant, who was the petitioner in the High Court, challenged the appointment of the arbitrator on the grounds that the dispute was between an employee of one cooperative society and another cooperative society, which he argued was not covered under Section 55(1)(b) of the Act. The High Court had dismissed the writ petitions, following a precedent set in Mam Raj v. State of Haryana & Ors. The Supreme Court analyzed the applicability of the arbitration provisions, noting that the appellant was a member of the Shahbad Society, which was the other party in the dispute. The court found that the dispute pertained to the management and business of the Shahbad Society, thus falling within the scope of Section 55 of the Act. The court criticized the appellant for not disclosing his membership in the Shahbad Society in his special leave petition, which misrepresented the facts of the case. The court concluded that the dispute was valid for arbitration and dismissed the appeals with costs.
Headnote
A) Cooperative Societies Law - Arbitration Clause Applicability - Dispute between employee and society - Punjab Cooperative Societies Act, 1961, Section 55 - The court held that the dispute between the appellant, an employee of one society, and another society was subject to arbitration as the appellant was also a member of the latter society, thus falling within the purview of the Act. The court emphasized the importance of fair representation in presenting facts to the court (Paras 1-2).
Issue of Consideration
Whether the dispute between an employee of one cooperative society and another cooperative society could be referred to arbitration under the Punjab Cooperative Societies Act, 1961.
Final Decision
The Supreme Court dismissed the appeals with costs, affirming that the dispute fell within the purview of Section 55 of the Punjab Cooperative Societies Act, 1961.
Law Points
- Arbitration under Cooperative Societies Act
- Membership implications
- Dispute management
- Fair representation in court
