AMAR KUMAR Vs. STATE OF PUNJAB

JUDGEMENT

(1.) This appeal under clause X of the Letters Patent is directed against the decision of a learned Single Judge of this Court and the only point that has been debated before us relates to the grant of future interest.

(2.) Messrs Suraj Ram and Sons (hereinafter referred to as the firm) consisted of two partners, Prehlad Kumar and Amar Kumar, entered into an agreement with Kot Kapura Cooperative Marketing Society, Kot Kapura (hereinafter referred to as the Society) for making purchases from the said Society. It was also agreed that if there was any dispute it was to be referred to an arbitrator to be appointed by the Registrar, Co-operative Societies. Later on, disputes arose between the firm and the Society and they were referred to the Registrar, Cooperative Societies. The Registrar entrusted the dispute to an arbitrator under section 56 of the Co-operative Societies Act (hereinafter referred to as the Act). The arbitrator gave his award on July 15, 1966. An appeal was taken against his award, but was dismissed as barred by time. A revision against the award also failed. The firm then preferred a petition under Articles 226 and 227 of the Constitution of India in this Court. In this petition two submissions were made :-

(3.) The contention of the learned counsel for the appellant is that there is no provision in the Act or in the rules framed under section 85 of the Act wherein a power has been given to an arbitrator to award future interest. With regard to the grant of interest, the matter was in dispute as would be clear from Annexure 'A' to the petition. Therefore, the dispute as to grant of interest was subject-matter of adjudication like the principal amount. The question of future interest was not the subject-matter of reference. It is not necessary for us to advert at this stage to the question whether the dispute as to future interest can be made a subject-matter of dispute before the arbitrator. So far as the Punjab Cooperative Societies Rules (hereinafter referred to as the Rules) are concerned, they provide for the award of costs. Rule 56 of the Rules is in the following terms :-