(1.) Shri Ajab Singh Inspector, respondent No. 5, was appointed as Administrator of the Chhajli Co-operative Agricultural Service Society Ltd. (hereinafter called the Society). He raised a dispute against the petitioner and reported the matter to the Authorised Registrar, who in turn appointed the said Ajaib Singh as the Arbitrator. The Arbitrator gave the award, a copy of which is Annexure P. 1. This award is in printed form and the points in controversy have not been discussed therein by a speaking order. In Mathra Dass V/s. The State of Punjab and others, 1975 PunLJ 42, B.R. Tuli, J., had an occasion to consider this matter and observed as under :-
(2.) I am in respectful agreement with the view expressed by the learned Judge. I, therefore, allow this petition, quash the award Annexure P. 1 and remand the case to the Arbitrator for a fresh decision in accordance with law.
(3.) Since Shri Ajaib Singh, Inspector was acting as Administrator of the Society, which is a party to the dispute, it looks proper that this controversy should be settled by another Arbitrator appointed by the Authorised Registrar. It is a settled principle of law that a party who has some interest in the matter should not be a judge in its own cause. Even though Ajaib Singh Arbitrator is not personally interested as a creditor, yet as the Administrator of the Society, he is interested in its welfare. Furthermore, justice should not only be done but should also appear to have been done. When the determination of a dispute between a co-operative society and a constituent is entrusted to the Administrator of the Society, even if the latter may decide it in accordance with law, the other party may have a lurking feeling in its mind that decision has been given against it because of the interest of the Arbitrator. In these circumstances, the Authorised Registrar is directed to appoint another Arbitrator.