KASHMIRI LAL Vs. COMMISSIONER APPEALS JALANDHAR

JUDGEMENT

(1.) Challenge in this writ petition is to orders, Annexures P-1, P-2 & P-3, passed by the Arbitrator, appellate and revisional authorities respectively fixing liability on the Petitioner to pay the amount due to the Society having been held liable for the same as he stood surety for the good conduct of Shri Dharam Chand, Salesman.

(2.) Brief factual background of the case is that Diwankhera Co-operative Agriculture Service Society Ltd., Diwankhera (hereinafter referred to as "Diwankhera Society"), appointed Dharam Chand (Respondent No. 4 herein) as a Salesman by a resolution dated 19th August, 1966. He was authorised to obtain fertilizer from Abohar Co-operative Marketing Society Ltd. Abohar (hereinafter referred to as "Abohar Society"). A sub-depot of Abohar Society was established at Diwankhera. The Petitioner Kashmiri Lal stood surety for Dharam Chand, salesman appointed by the Society to the tune of Rs. 40,000/-. It was found later that stock of fertilizer, value of which would come to Rs. 48,783.49 p., remained unaccounted. Abohar Society raised a dispute in this regard with Diwankhera Society. It impleaded Kashmiri Lal (Petitioner herein), Diwankhera Society, Dharam Chand and two other persons as Respondents in the said dispute. The matter was thereafter referred to the Arbitrator for deciding the dispute. The Arbitrator passed the award on 21st April, 1977 in the first instance. However, the award was set aside by the Deputy Registrar, Co-operative Societies (Respondent No. 7 herein) vide his order dated 29th August, 1980 and the matter was remanded back to the Arbitrator for decision afresh. The arbitration came up before Assistant Registrar, Co-operative Societies, Fazilka (Respondent No. 8 herein), who heard the parties all over again on 6th August, 1985. He delivered an award, Annexure P-l holding the Petitioner liable to pay the amount in question. The Petitioner preferred an appeal before the appellate authority i.e. Deputy Registrar, Co-operative Societies. He raised a contention inter alia that the Arbitrator, who had decided the case, was an ex-officio member of the Abohar Society in whose favour decision had been given. After considering the matter, the appellate authority came to the conclusion that the Petitioner as well as Respondent No. 4 (Dharam Chand) were equally liable for the amount due to the Abohar Society. No interest was, however, awarded. Both Kashmiri Lal (Petitioner) and Dharam Chand (Respondent No. 4) challenged the appellate order before the revisional authority i.e. Commissioner (Appeals), Jalandhar (Respondent No. 1). A separate revision was preferred by Abohar Society making out a case only for interest on the amount due. The revisional authority, vide its order dated 6-4-1989, held the Petitioner liable for the entire principal amount and awarded compound interest @ 6% per annum.

(3.) Learned Counsel for the Petitioner has argued that the entire proceedings are vitiated in view of the fact that Assistant Registrar, who acted as the Arbitrator and took the decision, was an ex-officio member of the Abohar Society and thus, interested in the case. According to him, for the same reason the appellate and revisional orders cannot be allowed to stand. He submits that this plea was raised before the appellate authority but was brushed aside by it. According to him, thereafter, this ground was taken in the grounds of revision before the revisional authority but the same was not adverted to in the impugned order, Annexure P-3. He, thus, submits that the impugned orders deserve to be set-aside. Reliance has been placed on judgments Baldev Singh v. The State of Punjab, 1975 PunLJ 507 and Dharampal v. The State of Haryana, 1983 PunLJ 304, in support of the contention that an Arbitrator, who is an ex-officio member of the Board, was not competent to decide the dispute as he would act as a Judge in his own cause. He, thus, submits that matter needs to be re-considered by an independent and impartial Arbitrator afresh and thus, the case be remitted back for this purpose.