AMARJIT SINGH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) This order will dispose of a bunch of 48 writ petitions bearing Nos. 2007 of 1982, 868 of 1983 to 896 of 1983 and 918 of 1983 to 935 of 1983 as common questions of fact and law are involved in all these cases. The bets have however been extracted from Civil Writ Petition No. 2007 of 1982.

(2.) Petitioner-Amarjit Singh has called in question orders Annexures P2, P3 and P4 passed by the Arbitrator on 5.5.1975 by the Deputy Registrar Cooperative Societies, Jalandhar exercising the powers of Registrar on 10.8.1981 and Deputy Secretary to Government Punjab exercising the powers of Government under Punjab Cooperative Societies Act, 1961 dated 31.3.1982. In arbitration proceedings that culminated in the award Annexure P2 by which petitioner was saddled with the responsibility of paying Rs. 5,000/- as principal interest of Rs. 1,281.60 Ps. upto 31.12.1974 and costs of Rs. 100/- by 31.5.1975 to the Hamira Cooperative Agricultural Service Society Limited, Hamira. In appeal carried against the aforesaid orders by the petitioner the Deputy Registrar Co-operative Societies modified the award by fixing the responsibility of the petitioner to the extent of Rs. 2,500/- and interest upto 31.12.1974 at the rate of 6% per annum and Rs. 100/- as costs. Wassan Singh Cashier was ordered to pay Rs. 800/- as principal alongwith interest at the rate of 6% per annum and Rs. 25/- as costs. Shri Kartar Singh, Committee Member was held responsible for paying Rs. 800/- with 6% per annum interest and Rs. 25/- as costs whereas Ram Nath, Secretary was asked to pay Rs. 900/- with 6% per annum interest and Rs. 25/- as costs. In a revision carried by the petitioner against the aforesaid orders, as also by Wassan Singh Cashier and kartar Singh Committee Member the order passed by the Arbitrator was restored in toto. It is against these orders that the petitioner has come up in this writ petition under Articles 226/227 of the Constitution of India.

(3.) The facts as stated in the petition reveal that respondent No. 3 is a society duly registered under the provisions of the Punjab Cooperative Societies Act, 1961 (hereinafter to be referred as the Act). Vide resolution dated 20.9.1974 the Managing Committee of the Society sought to refer a dispute for the recovery of Rs. 7,223.85 Ps. out so which Rs. 5,000/- were as Principal Rs. 1,281.60 Ps. were in rest upto 31.12.1974 and Rs. 942.25 Ps. as costs against one Puran Singh son of Dewan Singh and his sureties. The case of the petitioner as projected in the pleadings is that originally the names of members of Ex-Managing Committee and Ex-Secretary of the Society Ram Nath were not added as party in the solution dated 20.9.1974 but at a later stage when the society realised that it has no case against loanee i.e. Puran Singh, the names of the members of the Ex-Managing Committee and Ex-Secretary Shri Ram Nath were added in the same very resolution. In the resolution aforesaid, further no one was authorised to file the reference before the Assistant Registrar, Cooperative Societies, Kapurthala and therefore, it is stated that the said resolution was passed in complete violation of Rule 80 of the Punjab Cooperative Societies Rule (hereinafter to be referred as the Rules). The rules aforesaid, mandates holding of meeting and circulation of agenda as also permission of Registrar, Cooperative Societies for holding the meeting if it is to be on shorter date notice then the one stipulated under Rule 18. It is pleaded that vide the same resolution it was resolved to make references against 50 other loanee-members who were not returning their loans and that in none of the matters, any one was authorised to make the reference (the other writ petitions pertain to loanees out of 50 mentioned aforesaid). It is further pleaded that it is bye-law 38 of the registered by-laws of the society that deals with the powers and duties of the Managing Committee and sub bye- law 38 (xviii) provides for making of references and it has to be through any member or officer or employee of the society or any other person specially authorised to institute, conduct, defend, compromise, refer to the arbitration or abandon legal proceedings by or against the society or committee or officer of employees concerning the affairs of the society. It is stated that the Model By-laws framed by the Registrar and adopted by the Cooperative Agriculture Service Societies throughout the State of Punjab under Section 10-A of the Act also contain the by law referred to above. It is, thus, pleaded that as per By-law 38(xix) for filing a reference a person has necessarily to be authorised and in spite of the fact that no body was authorised by the Managing Committee of the society to make the reference, Shri Wassan Singh, Committee member submitted the application for referring the case to arbitration in the case of Puran Singh.