Case Note & Summary
The petitioners, Mr. Niwas Dattatraya Lad and others, filed two writ petitions under Articles 226 and 227 of the Constitution of India challenging an order dated 07 July 2011 passed by the Central Registrar, Co-operative Societies. The impugned order appointed an arbitrator to settle disputes between the petitioners and the respondents, Punjab and Maharashtra Co-operative Bank Ltd. and others. The petitioners argued that the appointment was not in accordance with the Multi-State Co-operative Societies Act, 2002 (MSCS Act) and the Multi-State Co-operative Societies Rules, 2002 (MSCS Rules). The court examined Section 84 of the MSCS Act, which deals with reference of disputes, and Rule 30 of the MSCS Rules, which empowers the Central Registrar to appoint arbitrators. The court also referred to the Supreme Court decision in Greater Bombay Coop. Bank Ltd. v. United Yarn Tex (P) Ltd. [(2007) 6 SCC 236], which held that disputes touching the constitution, management or business of a multi-State cooperative society are to be referred to arbitration under Section 84. The court noted that Section 84(4) provides that disputes referred under sub-section (1) shall be settled by an arbitrator appointed by the Central Registrar, and Section 84(5) states that the provisions of the Arbitration and Conciliation Act, 1996 apply to such arbitrations. Rule 30(1) reiterates that the Central Registrar may appoint and fix the fee of arbitrators subject to the Arbitration and Conciliation Act, 1996. The court found that the impugned order was valid and within the powers of the Central Registrar. Consequently, the court dismissed both writ petitions, upholding the appointment of the arbitrator.
Headnote
A) Co-operative Law - Reference of Disputes - Section 84 Multi-State Co-operative Societies Act, 2002 - Appointment of Arbitrator - The petitioners challenged the order dated 07 July 2011 passed by the Central Registrar appointing an arbitrator to settle disputes between the parties. The court held that the Central Registrar has the power to appoint an arbitrator under Section 84(4) read with Rule 30 of the MSCS Rules, 2002, and the Arbitration and Conciliation Act, 1996 applies to such arbitrations. The petition was dismissed. (Paras 2-4)
Issue of Consideration
Whether the Central Registrar has the power to appoint an arbitrator under Section 84 of the Multi-State Co-operative Societies Act, 2002 read with Rule 30 of the Multi-State Co-operative Societies Rules, 2002, and whether the impugned order dated 07 July 2011 is valid.
Final Decision
The court dismissed both writ petitions, upholding the order dated 07 July 2011 passed by the Central Registrar appointing an arbitrator.
Law Points
- Section 84 of Multi-State Co-operative Societies Act
- 2002
- Rule 30 of Multi-State Co-operative Societies Rules
- Arbitration and Conciliation Act
- 1996
- Reference of disputes
- Appointment of arbitrator by Central Registrar
Case Details
2014 LawText (BOM) (02) 76
Writ Petition No.404 of 2012 and Writ Petition No.413 of 2012
Anoop V. Mohta, A.A. Sayed
Mr. Abhijeet A. Desai for the Petitioners, Mr. B.H. Prasad Sharma for Respondent no.1, Ms M.S. Bane for Respondent no.2, Mr. D.A. Dube for Respondent no.3
Mr. Niwas Dattatraya Lad & Ors.
Punjab and Maharashtra Co-operative Bank Ltd. & Ors.
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Nature of Litigation
Writ petitions under Articles 226 and 227 of the Constitution of India challenging an order of the Central Registrar appointing an arbitrator.
Remedy Sought
Petitioners sought to quash and set aside the order dated 07 July 2011 passed by the Central Registrar appointing an arbitrator.
Filing Reason
The petitioners challenged the validity of the appointment of an arbitrator by the Central Registrar under the Multi-State Co-operative Societies Act, 2002.
Previous Decisions
The Central Registrar passed an order on 07 July 2011 appointing an arbitrator to settle disputes between the parties.
Issues
Whether the Central Registrar has the power to appoint an arbitrator under Section 84 of the Multi-State Co-operative Societies Act, 2002 read with Rule 30 of the Multi-State Co-operative Societies Rules, 2002.
Whether the impugned order dated 07 July 2011 is valid and in accordance with law.
Submissions/Arguments
The petitioners submitted that the appointment of the arbitrator by the Central Registrar was not in accordance with the MSCS Act and Rules.
The respondents argued that the Central Registrar has the power to appoint an arbitrator under Section 84(4) read with Rule 30 of the MSCS Rules, 2002.
Ratio Decidendi
The Central Registrar has the power to appoint an arbitrator under Section 84(4) of the Multi-State Co-operative Societies Act, 2002 read with Rule 30 of the Multi-State Co-operative Societies Rules, 2002, and the provisions of the Arbitration and Conciliation Act, 1996 apply to such arbitrations.
Judgment Excerpts
The submission is revolving around section 84 of the Multi-State Co-operative Societies Act, 2002 and rule 30 of the Multi-State Co-operative Societies Rules, 2002.
The Apex Court in Greater Bombay Coop. Bank Ltd. v United Yarn Tex (P) Ltd. [(2007) 6 SCC 236] has expressed as under: 'Settlement of disputes touching the constitution, management or business of a multi-State cooperative society are to be referred to an arbitration under Section 84 of Chapter IX of the Act.'
Procedural History
The petitioners filed two writ petitions in the High Court of Judicature at Bombay challenging an order dated 07 July 2011 passed by the Central Registrar, Co-operative Societies, appointing an arbitrator. The court heard the matter and delivered judgment on 11 February 2014.
Acts & Sections
- Multi-State Co-operative Societies Act, 2002: 84
- Multi-State Co-operative Societies Rules, 2002: 30
- Arbitration and Conciliation Act, 1996:
- Constitution of India: 226, 227
