Case Note & Summary
The petitioners, Rohan M. Kapoor and others, challenged an order dated 10.01.2011 passed by an arbitrator appointed by the Central Registrar under Section 84 of the Multi-State Co-operative Societies Act, 2002. The order conditionally attached a flat originally owned by Mahendra Kapoor, providing that the attachment would stand automatically vacated if the petitioners deposited Rs.1,50,00,000 with the first respondent bank within eight weeks. The petitioners are legal heirs or successors of Mahendra Kapoor, who had availed loans from the bank. The bank initiated arbitration proceedings for recovery of dues. The arbitrator passed the conditional attachment order to secure the amount. The petitioners contended that the arbitrator had no power to pass a conditional attachment order and that the order was arbitrary. The court analyzed Section 84 of the Act, which empowers the arbitrator to pass interim orders including attachment before judgment. The court held that the power to attach includes the power to impose conditions for vacation of attachment. The court found no jurisdictional error or perversity in the arbitrator's order. The writ petition was dismissed, and the petitioners were directed to comply with the conditional attachment order.
Headnote
A) Arbitration - Conditional Attachment - Section 84 Multi-State Co-operative Societies Act, 2002 - Arbitrator's Power - The arbitrator appointed under Section 84 of the Multi-State Co-operative Societies Act, 2002 has the power to pass a conditional order of attachment, including a condition that the attachment shall stand vacated if the petitioners deposit a specified amount with the bank. The court held that the power to attach includes the power to impose conditions for vacation of attachment. (Paras 1-10) B) Writ Jurisdiction - Interference with Arbitral Orders - Section 84 Multi-State Co-operative Societies Act, 2002 - Limited Scope - The High Court in writ jurisdiction under Article 226 of the Constitution of India can interfere with an arbitrator's order only if there is a jurisdictional error or the order is perverse. The court found no such error in the impugned order. (Paras 1-10)
Issue of Consideration
Whether the arbitrator under Section 84 of the Multi-State Co-operative Societies Act, 2002 has the power to pass a conditional order of attachment, and whether the impugned order attaching the flat was valid.
Final Decision
The writ petition was dismissed. The court upheld the arbitrator's order dated 10.01.2011 conditionally attaching the flat, with the condition that the attachment would stand vacated if the petitioners deposited Rs.1,50,00,000 with the bank within eight weeks.
Law Points
- Arbitrator's power under Section 84 of Multi-State Co-operative Societies Act
- 2002 includes power to pass conditional attachment orders
- Attachment order can be made conditional upon deposit of amount
- Writ petition against arbitrator's order is maintainable but limited to jurisdictional errors
