MUTHUAMMAL Vs. SECY KOLATHUR BLACKSMITHY AND CARPENTRY WORKERS

JUDGEMENT

(1.) THE petitioners are the legal representatives of one deceased the Kolathur blacksmithy and Carpentry Workers' Industrial Co-operative Society Limited, kolathur, Mettur Taluk, Salem District till 31-8-1969 when he was removed from that Office From the audit report for the period from 1-4-1966 to 31-31969 it was found that there has been a deficit in the stocks of various articles to the extent of about Rs. 5,946-19. The Society filed an arbitration case for the recovery of the said amount of Rupees 5,946-19 being the value of the stock found short, under Section 73 (1) (c) of the Tamil Nadu Co-operative Societies act. 1961 (hereinafter called the Act ). While the said arbitration case was pending, the said Ramalingam died on 8-11-1970. Taking note of his death, the arbitrator dismissed the claim of the Society on 12-11-1970 on the ground that the claim has obtained and that it is for the Society to file a fresh claim against the legal representatives.

(2.) THE Society took the matter in appeal to the Co-operative Tribunal (the principal District Judge, Salem) and the Tribunal by its Order dated 12-2-1975 held that the arbiter was in error in dismissing the arbitration case with a direction to file a fresh claim on the same cause of action as against the legal representatives and that the proper thing would have been to permit the society to bring the legal representatives on record in the arbitration case which was pending on the date of the death of the said Ramalingam. In this view, the Tribunal directed the arbitrator to take the arbitrate on case on file and to proceed with the same after bringing the legal representatives on record. The Society, however, did not take advantage of the Tribunal's decision and take steps to bring in legal representatives on record. The result was the arbitration case came to be dismissed by the arbitrator for non-prosecution.

(3.) SUBSEQUENTLY the Society filed a fresh arbitration claim against the petitioners the legal representatives of the said Ramalingam, on 16-8-1972 for recovery of the said sum of Rs. 5,946-19. The petitioners defended the said arbitration case inter alias on the ground that the fresh arbitration claim was barred by limitation, in that it has been filed beyond the three years period prescribed under Rule 56 of the Tamil Nadu Co-operative Societies Rules, 1963 (hereinafter called the Rules ). The arbitrator however by his order dated 14-41973 overruled the petitioner's contention based on limitation and proceed to pass a decree against the petitioners after holding them liable on merits.