CHANDULAL MOHANLAL VYAS Vs. RAHURI SAHAKARI KARKHANA LTD

JUDGEMENT

(1.) This Writ Petition under Article 227 of the Constitution of India Challenges the validity of the award of the Co-operative Court dated 24th February, 1974 made under the Maharahtra Co-operative Societies Act, 1960 (hereinafter called the said Act) and later confirmed in appeal by the Maharashtra State Co-operative Appellate Court by its order dated 28th June 1982.

(2.) The facts which may be stated at the outset are as under : There were certain transactions between the petitioner, which is a partnership concern, and the respondent, Rahuri Sahakari Sakhar Karkhana Ltd., Ahmednagar. We are not much concerned with the nature of the dispute. After the dispute was filed by the respondents on 21st October 1974 before the Registrar under Section 91 of the said Act on 26th October 1974 the Registrar acting under Section 95 of the said Act, had passed order of attachment before judgment in respect of the Petitioner's properties. On 17th December, 1974, 11th January, 1975 and 28th January 1975, the application was adjourned on the grounds that the second defendant to the dispute i. e. the second petitioner herein was ill. Till 19th February, 1975 no progress was made in the hearing of the dispute. However, in the meantime the Co-operative Court came into existence and the Registrar transferred the matter to the Co-operative Court Ahmednagar. Fresh notices thereafter were issued which were received by the petitioner/defendants in December 1975. On 9th January 1976, the petitioners being absent at the hearing, the matter was adjourned to 24th February 1976. Even on that date the petitioners having remained absent, ex parte award was made. On 6th August 1976, the Society obtained a certificate of non-payment from the Registrar under Section 98 of the said Act and accordingly under Section 98 of the said Act the award made by the Co-operative Court was deemed to be a decree of the Civil Court.

(3.) Some time in August 1978 before even the certificate was granted the petitioner had filed an appeal to the Co-operative Appellate Court being Appeal No. 426 of 1976. Initially, in the said appeal the Petitioner did not apply for any stay. The appeal was admitted. In the meantime, there being no stay, some time in 1976 respondent filed execution application being Application No. 2 of 1977 for the execution of the said award as a decree of the Civil Court and by the end of 1977 execution of the decree commenced. On l6th December 1978 when the decree was partly executed, the petitioners made an application for stay of further execution. No interim stay was granted on the application, but the application was fixed for hearing on 17th April 1979. On 13th June 1979 after the hearing of the application the Court granted stay of the execution of the decree on the petitioners depositing in court a sum of Rs 20,000 /- which the petitioners did. On 28th June 1982, the appeal was heard on merits. The main contention of the petitioner in appeal was as regards the passing of an ex parte award. However, it appears from the judgment of the Appellate Court that if the Court were not to set aside the ex parte award, then the petitioners would submit to the claim and they be granted 12 yearly instalments. The Petitioners had also raised an objection as to the Court granting interest at 15% p. a. from the date of award, till payment i. e. in excess of 6% p. a. which was according to the Petitioners against the provisions of Section 34 of the Code of Civil Procedure. The Appellate Court had held that since in the agreement the petitioners had agreed to abide by the decision of the authorities and respondents had to pay interest at the rate at which the monies were lent or advanced by the Nationalised Bank, the Court had rightly awarded interest at 15% p. a. It was this order of the Appellate Court which was mainly sought to be challenged in this Writ Petition.