DISTRICT CO-OPERATIVE BANK LTD Vs. RAHAT HUSAIN

JUDGEMENT

(1.) This is an appeal by the respondent from an order of a learned single Judge dated 12-11-1954, partially allowing a Writ Petition.

(2.) The petition arose out of a dispute between two societies registered under the Co-operative Societies Act, 1912, namely The District Co-operative Bank Ltd., (hereinafter referred to as 'the Bank') and the Postal Union Co-operative Society Ltd., (hereinafter referred to as 'the Postal Union'). The Postal Union was in the practice of making loans to its members, and to enable it to do so it obtained advances from time to time from the Bank. A dispute arose between the Bank and the Postal Union as to the amount due by the latter to the former, and this dispute was referred to the Registrar, Co-operative Societies, who appointed an arbitrator. We do not know the terms of reference, but it is conceded that the dispute was one which fell within Clause (iv) of Rule 115 of the Rules made under the Act, that is a dispute "between two or more registered societies". The arbitrator, however, issued notice not only to the Postal Union but to the members of that Society who were alleged to be persons to whom it had made loans which had not been repaid.

(3.) On 24-2-1952, the arbitrator pronounced his award, the award being in two parts, namely a judgment followed by a decision which reads as follows: