G. KRISHNAMURTHY Vs. JOINT REGISTRAR OF CO.

JUDGEMENT

(1.) Petitioner is challenging the order dated 17-12-2016 passed by the Joint Registrar of Co-operative Societies, Bengaluru Region, Bengaluru, whereby the interlocutory application filed by petitioner under sub-section (3) of Section 71 of the Karnataka Co-operative Societies Act, 1959 (for short 'the Act') has been rejected.

(2.) Facts leading to this writ petition, stated in nutshell are, a dispute under Section 70(2)(e) of the Act has been raised by respondent No. 2-Mico Associates Housing Co-operative Society Limited, Wilson Garden, Bengaluru against petitioner seeking for passing an award directing petitioner herein to pay a sum of Rs. 17,57,87,000/- along with interest at 18% per annum and also damages alleging that having received a sum of Rs. 31,75,00,000/- in order to secure lands from the land owners for the purpose of 2nd respondent-Society petitioner failed to discharge his obligations and that out of the said amount, petitioner had made payment to the land owners only to an extent of Rs. 12,19,13,000/-. The society has contended that even after expiry of three years from the date of execution of the agreement, petitioner had failed to secure the land for the purpose of the society as agreed, let alone forming layout with all facilities. Respondent No. 2-Society claimed that for the deficiency caused in the assets of the Co-operative Society, dispute could be raised and the same could be referred as per Section 70 to the Registrar for decision. Accordingly, the said dispute was referred to the Joint Registrar of Co-operative Societies, Bengaluru Region and was numbered as JRB/MD/356/2016-17.

(3.) In the said dispute, petitioner filed an application under Section 71(3) of the Act on 29-11-2016 urging that the arbitrator had no jurisdiction to entertain the matter as the subject matter could have been agitated before the Civil Court. This was resisted by 2nd respondent-Society.