MALLIAN NEAR GILL MANJ CO-OPERATIVE JOINT FARMING SOCIETY LIMITED Vs. GURDASPUR CENTRAL COOPERATIVE BANK LTD

JUDGEMENT

(1.) On September 10, 1977 an arbitration Award was made against the petitioner-cooperative society. In the execution proceedings instituted against the petitioner-cooperative society on a certificate issued by the Registrar, Cooperative Societies, under section 63 of the Punjab Cooperative Societies Act (hereinafter referred to as the Act'), the petitioner raised various objections to the execution of the the award. The executing Court upheld the objection relating to the Award of costs, but dismissed all the other objections raised thereto. It is this order which was sought to be challenged in revision.

(2.) Mr. K.S. Thapar, counsel for the petitioner in the first instance sought to contend that there was no power vested in the Arbitrator to award any future interest on the amount awarded. This contention cannot, however, be sustained in view of the judgment of the Full Bench in State of Punjab v. Ajit Singh and others, 1979 PunLJ 334, where it was held that the Arbitrator in a reference under sections 55 and 56 of the Act had jurisdiction to award future interest on the amount awarded until realisatiion on principles underlying the provisions of Section 34 of the Code of Civil Procedure. Confronted with this authorty, counsel for the petitioner then fell back upon the argument that as the proviso to Section 34 of the Code of Civil Procedure raising the rate of interest payable thereunder beyond 6 per cent came into effect in 1976, no future interest could have been awarded by the Arbitrator at a rate exceeding 6 per cent, as the award was based upon a transaction which had taken place prior thereto. There is no merit in the point raised. Future interest awarded here not being based upon any statutory provisions, there was clearly no bar on the power of the Arbitrator to award interest at the rate awarded merely on the plea that the rate beyond 6 per cent came to be incorporated in section 34 of the Code of Civil Procedure only in 1976 and interest could thus only be granted at this rate with effect from a date subsequent thereto. The transaction in the present case being a commercial one and 12 per cent interest being the common market rate of interest no exception can be taken to the grant of future interest at this rate.

(3.) Violation of the rules of natural justice was next complained of on the plea that no opportunity of hearing had been granted to the petitioner by the Registrar before the issuance of the certificate under section 63 of the Act. This is indeed an untenable contention. There is specific provision in the Act for an appeal and revision against the award of the Arbitrator. Such being the statutory provisions there is clearly no warrant for imputing any violation of the rules of natural justice in the grant of a certificate under section 63 of the Act without an opportunity of hearing being granted to the party against whom the award had been passed.