HARYANA STATE CO-OPERATIVE LABOUR & CONSTRUCTION FEDERATION LTD. Vs. FINANCIAL COMMISSIONER & PRINCIPAL SECRETARY AND OTHERS

JUDGEMENT

(1.) The present appeal is directed against the order dated 03.12.2012 passed in CWP No. 20055 of 2011 wherein, the Learned Single Judge has declined to interfere in the award passed by respondent No. 4 and given liberty to the petitioner to have its remedy as provided under the Arbitration Act, 1940 (in short, the "Act"). The impugned judgment has also upheld the orders of respondents No. 1 & 2 declining to interfere in the award dated 20.02.2008 (Annexure P-9) which was the subject matter of challenge in the writ petition. The Learned Single Judge came to the conclusion that the judgments relied upon by the petitioners were distinguishable and not applicable to the facts since there was specific agreement between the parties and it was agreed to be governed by the provisions of the Act. The appeal before the Registrar under the Haryana Co-operative Societies Act, 1984 (for brevity, the "Societies Act") was not maintainable.

(2.) Counsel for the appellant-Federation has very vehemently argued that inter se the parties, on earlier occasions, the matter had been adjudicated upon by the authorities under the Societies Act against the award and therefore, subsequently declining to interfere in the award on the ground that the provisions of the Act would apply since there was agreement executed between the parties was contrary to the earlier view taken by the said authorities. Reference was accordingly made to the orders dated 15.04.1997 wherein the earlier award of the Arbitrator was upheld under the Societies Act.

(3.) A perusal of the writ petition filed by the appellant would go on to show that it was allotted the work of construction of 58, 76 and 82 LIG houses in Sector 15, Panchkula in the year 1981 vide three separate construction contract agreements dated 11.07.1981. The appellant had further allotted these works to respondent No. 3, Unique Cooperative Labour & Construction Society Ltd. and agreements were entered into on 20.07.1981. As per clause 20 of the agreement, it was provided that any dispute or difference arising between the Federation and the Society would be referred to the arbitration of the Registrar, Cooperative Societies, Haryana as the sole arbitrator and the provisions of the Indian Arbitration Act, 1940 would apply and the decision of the arbitrator would be final and binding upon the parties. Vide letter dated 08.10.2007, application of respondent No. 3 for appointment of arbitrator was allowed by the Registrar, Cooperative Societies, Haryana-respondent No. 2 and respondent No. 4, Sh. P.S. Rawat was appointed as the Arbitrator. The Arbitrator, vide his award dated 20.02.2008, awarded various sums under different headings and further provided that the payment of the award be made within 90 days from the date of passing of the award. Thereafter, interest as per Section 31(7)(b) of the Arbitration & Conciliation Act, 1996 would be payable from the date of award till the date of actual payment. The said award was challenged by filing the appeal under Section 114 of the Societies Act. Respondent No. 2 came to the conclusion that the appeal was not maintainable since the award could only be challenged before the Civil Court under the appropriate provisions of law and dismissed the same on that ground on 15.04.2010. The Financial Commissioner also dismissed the revision petition on the ground that the award had been passed by the Arbitrator under the Act.