Tara Chand vs Zamindar Cooperative Marketing-cum-processing Society Ltd. and Others

V.R. Krishna Iyer, J.—This appeal by spatial leave raises a question of law as to whether u/s 55 of the Punjab Co-operative Societies Act, 1961, there is jurisdiction for the Arbitrator to decide a dispute touching the business of the Central Society (respondent No. 1) had aim and a member of the Primary Society (respondent No. 2). The appellant is only a member of respondent No. 2. The scheme is like this. The membership of an apex society consists of central societies. Each central society has members consisting of primary societies. The present appellant is not a Primary Society but only a member of a Primary Society. It is for from clear as to whether a mere member of a Primary Society will come within the scop; of Section 55 of the Act. The reason, is that the appellant is not a member of the Central Society but merely a member of a Primary Society, which is a member of the Central Society. Having regard to the fact that the central societies' resources should not be lost in mere litigation, we suggested to the parties to settle the matter and Counsel have persuaded both sides to agree, to what we think is a fair resolution of the conflict i.e. that appellant will pay a sum of Rs. 2,750/-to the first respondent (Central Society) in two installments. He will pay on or before 31st May, 1980 a sum of Rs. 1,700/- and a sum of Rs. 1,050/- on or before 31st January, 1981. In case of default of the first installment, the entire sum will be due and recoverable with interest at 12 per cent and so also in case of default of the second installment.

If these two sums (together totalling Rs. 2,750/- are paid on time there will be a complete discharge of his liabilities (both civil and Criminal), but the Central Society (respondent No. 1) will be free to pursue its remedies by way of execution of the Award already obtained or otherwise against the primary society respondent No. 2). With these directions we dispose of the appeal.