Case Note & Summary
The petitioner, Major Allan Victor de Souza, filed a writ petition before the Bombay High Court at Goa challenging two orders: (1) a judgment and order dated 24.06.2004 passed by the Assistant Registrar of Co-operative Societies (Respondent No.1) directing recovery of an amount due to the Mapusa Urban Co-operative Bank of Goa Limited (Respondent No.3), and (2) a subsequent order dated 02.12.2004 passed by the Recovery/Sale Officer (Respondent No.2) attaching part of the petitioner's salary for recovery of the said amount. The petitioner contended that the Assistant Registrar had no jurisdiction to pass the award because he was not duly notified as an arbitrator under Section 84 of the Multi-State Co-operative Societies Act, 2002. The petitioner argued that the Act requires the Central Registrar to appoint a person by notification to perform the functions of an arbitrator, and no such notification was produced by the respondents. Therefore, the entire proceedings before the Assistant Registrar were without jurisdiction and null and void. The respondents, represented by counsel Shri J.P. Mulgaonkar, did not produce any notification to show that the Assistant Registrar was appointed as an arbitrator. The court, after hearing both sides, agreed with the petitioner's submission. It held that the Assistant Registrar acted without jurisdiction in passing the award dated 24.06.2004, as he was not notified as an arbitrator under the Act. Consequently, the award was void ab initio. The subsequent recovery order dated 02.12.2004, being based on a void award, was also without jurisdiction and liable to be quashed. The court allowed the writ petition, quashed both impugned orders, and directed that the respondents were at liberty to initiate fresh proceedings in accordance with law.
Headnote
A) Co-operative Law - Jurisdiction of Registrar - Appointment as Arbitrator - Sections 84, 85, 99 Multi-State Co-operative Societies Act, 2002 - The Assistant Registrar passed an award and ordered salary attachment for recovery of dues to a co-operative bank. The petitioner challenged the orders on the ground that the Registrar was not notified as an arbitrator under Section 84 of the Act. The court held that the Registrar must be appointed by notification to act as arbitrator; without such notification, the proceedings are without jurisdiction and void. The impugned orders were quashed and set aside. (Paras 2-5) B) Co-operative Law - Recovery of Dues - Salary Attachment - Section 85 Multi-State Co-operative Societies Act, 2002 - The court held that the recovery order dated 02.12.2004 for attachment of salary was also without jurisdiction as it was based on a void award. Consequently, the recovery order was also quashed. (Para 5)
Issue of Consideration
Whether the Assistant Registrar of Co-operative Societies had jurisdiction to pass an award and subsequent recovery order without being duly notified as an arbitrator under the Multi-State Co-operative Societies Act, 2002.
Final Decision
The writ petition is allowed. The impugned judgment dated 24.06.2004 and order dated 02.12.2004 are quashed and set aside. The respondents are at liberty to initiate fresh proceedings in accordance with law.
Law Points
- Jurisdiction of Registrar
- Appointment as Arbitrator
- Multi-State Co-operative Societies Act
- 2002
- Section 84
- Section 85
- Section 99
- Natural Justice
- Recovery of Dues
- Salary Attachment
