SHAMSHER SINGH AND OTHERS Vs. STATE OF HARYANA

JUDGEMENT

(1.) The petitioner was acting as a Manager of the Panjokhra Credit and Service Society, Panjokhra, from September, 1976 onwards. Earlier he was acting as a Secretary of the Society. One Suraj Bhan was appointed by the Society as a Salesman. It is said that he committed some acts of embezzlement and when called upon to show cause he admitted his liability and prayed that he be given time to make good the loss of the Society. The case against him was referred by the Registrar to an Arbitrator for decision. In the meantime, the Society made an application before the Arbitrator that the petitioner should also be impleaded as a party to the dispute. The Arbitrator allowed this application and impleaded the petitioner as a party to its dispute and found him liable along with Suraj Bhan. The order passed by the Arbitrator is dated April 8, 1980. (Annexure P-9). This order is being challenged in the instant petition.

(2.) Under section 56 of the Punjab Co-operative Societies Act, 1961 (hereafter referred to as 'the Act') an Arbitrator assumes jurisdiction to decide a dispute between a society and its constituent or a servant on the basis of a reference made by the Registrar. In the absence of a reference, he has no jurisdiction to implead any party to the arbitration proceedings. Prima facie, therefore, the procedure adopted by the Arbitrator was illegal.

(3.) On behalf of the respondent, it has been argued that the Arbitrator in this case was Deputy Registrar, Co-operative Societies, who could exercise the powers of a Registrar for making a reference either to an Arbitrator or to himself. It was also submitted that the Co-operative Society passed a resolution on the basis of which an application was made to the Arbitrator for impleading the petitioner.