PAHAR UJALABA CO-OPERATIVE BANK Vs. ADU BHUIA

JUDGEMENT

(1.) THIS is a reference by the Munsiff 3 Court, Narayangunj, Dacca, under Rule 1, C. 46, Civil P.C. Applications were made to his Court for the execution of certain awards of the Inspector of Co-operative Credit Societies appointed arbitrator by the Registrar of the Societies under Rule 22 framed under. Section 43, Act 2 of 1912 by the Bengal Government. The problem as it presented itself to the learned Munsiff was whether by the order passed under Section 43(2)(1) the jurisdiction of the civil Court was ousted and a special Court of final jurisdiction created for the trial of domestic disputes of the Societies or whether it was intended by the legislature that the award of the arbitrator should have the same effect as the award of an arbitrator appointed by the parties and that before any execution be possible the award should be filed in Court under the provisions of Sch. 2, Civil P.C. ( Secs.20 and 21) and a decree obtained from the civil Court. Section 43(2)(1) of the Act states that the Local Government may make rules providing that disputes between members of the society may be referred by the Registrar to arbitration and providing for the enforcement of the awards of the arbitrators. Rule 22(6) provides that an award of the arbitrator if not appealed against within one month, shall (as between the parties to the dispute) not be called in question in any civil or Revenue Court and shall in all respects be final and conclusive. Rule 22(7) adds that such awards shall, on application to any civil Court having local jurisdiction, be enforceable in the same manner as a decree of such Court. Para. 5, Section 43 of the Act provides that all Rules made under the section shall on publication in the local official gazette have effect as if enacted in the Act.

(2.) IT is clear that by these provisions the jurisdiction of the civil Court is not ousted. In joining the society its members agree to abide by its rules, thus they contract that their disputes shall be decided as directed by the Act, and under these provisions of the Act the arbitrator's awards are enforced by the civil Court. Such awards are quite different from ordinary arbitration awards and there is no reason to suppose that it was intended that Sch. 2, Civil P.C., should apply to them, and there is no question of this Rule being ultra vires of the Rule making power of the Local Government for it is a rule which the Local Government is authorized to make under the provisions of the Act. Another question that has been referred to us is as to whether these awards should be stamped or not. The Munsiff seems to be of opinion that they should be stamped and in this connexion he has referred to note (3) added to the Government Notification in the General Circular Orders of the Registrar of Co-operative Societies, Bengal(1913-1930). (Published in 1931, p. 17). This note evidently refers to awards of arbitrators which have to be filed in Court before any decree can be passed on them. An award given by the Inspector of Cooperative Societies appointed as arbitrator by the Registrar of Co-operative Societies under Rule 22 of the Rules is not such an award. IT has the force of a decree and before it can be enforced as a decree it is not necessary to file it in Court as in the case of awards by arbitrators appointed by the contract of parties. In view of the observations recorded above the first point raised by the Munsiff should be answered in the affirmative and as the award need not be stamped, the second point would not arise at all.