JAKFED Vs. UNION OF INDIA

JUDGEMENT

(1.) The dispute in this petition relates to recovery of an amount determined on the basis of an award passed by the statutory authority. The contention raised is in respect of the mode and manner in which the award is to be enforced.

(2.) In order to understand the controversy involved, certain facts are required to be noticed.

(3.) Petitioner, a Society registered by the Government of J&K, under the provisions of Societies Registration Act, deals with the supply of fertilizers to its member societies at block level. It became a shareholder of Respondent No. 2, for procurement and supply of fertilizer to different societies in the State of J&K. On account of the supplies made by Respondent No. 2, an amount of Rs. 2.91 crores became due to the Petitioner. Having failed to obtain the said amount from the Petitioner, a dispute was raised by the Respondent No. 2, under Section 74(2)(a) of the Multi State Co-operative Societies Act, 1984 (here-in-after referred to as the Old Act), before the Central Registrar. Respondent No. 2, claimed a total amount of Rs. 7.44 crore, which included interest also. The proceedings culminated into passing of an award dt. 6th of Aug'89, whereby the claimant Respondent No. 2, was to recover an amount of Rs. 2.91 crores from the Petitioner. So far as interest accrued on the said amount is concerned, that was directed to be waived.