Kartar Singh vs Deputy Registrar, Co-operative Societies, Sangrur and others

I.S. Tiwana, J.(Oral)

This order will dispose of Civil Writ Petitions Nos. 2373 and 2342 of 1978 as these arise out of the same dispute which was the subjectmatter of arbitration by Ajmer Singh, Inspector, Cooperative Societies. The following facts furnish the background to the case.

The Ubhawal Cooperative Agricultural Service Society Ltd. purchased shares worth Rs. 10,900/ of the Central Cooperative Bank Ltd. Sangrur on different dates in November and December, 1969. Claim of Kartar Singh (petitioner in C.W.P. No. 2373) is that this amount was spent by him on behalf of the Society after due authorisation in the following manner:

(i) Rs. 8,200/ were paid to the bank on different dates against receipts which he has in his possession; and

(ii) the balance amount of Rs. 2,700/ was paid to the bank through Nahar Singh (petitioner in C.W.P. No. 2342) who at the relevant time was the Cashier of the Cooperative Society.

As against this, the stand of Nahar Singh petitioner is that as a matter of fact the entire amount was paid by him to Kartar Singh for depositing the same with the bank as purchase money of the shares.

It is abundantly clear from the above resume of facts that in either case the money in question whether paid by Kartar Singh or Nahar Singh was paid on behalf of the Ubhawal Cooperative Agricultural Service Society Ltd. and if Kartar Singh has to recover this money, it has to be recovered from that Society. It is the conceded position that this Society was never made a party to the arbitration proceedings which resulted in the award Annexure P. 1 by Ajmer Singh, Inspector, Cooperative Societies. This Society appears to have been joined as a respondent during the revisional proceedings before the Deputy Secretary to the State Government. That, however, does not make any difference so far as the basic flaw in the case is concerned, that is, the Society was never impleaded as a party before the arbitrator.

For the reasons recorded above, both these petitions are allowed and the impugned orders are set aside. Keeping in view the facts and circumstances of the case I direct the Assistant Register, Sangrur, exercising the powers of the Registrar to himself arbitrate in the matter after joining the Co operative Society as a party. The parties through their counsel are directed to appear before the Assistant Registrar on June 11, 1984. No costs.