SRI DEBI DAT JOSHI Vs. BARROW CO-OPERATIVE DEVELOPMENT UNION AND ORS
LAWS(ALL)-1956-9-20
HIGH COURT OF ALLAHABAD
Decided on September 10,1956

Sri Debi Dat Joshi Appellant
VERSUS
Barrow Co-Operative Development Union And Ors Respondents

JUDGEMENT

- (1.) This is an application Under Article 226 of the Constitution on behalf of Sri Debi Datt Joshi praying that the order of Sri Shyam Datt Pant, Deputy Registrar, Co-operative Societies, dated 13-8-1955, of Sri Norman Pant, Asstt. Registrar, dated 30-3-1955, and the award of Sri Bhupal Singh Tilara, sole arbitrator, dated 25-12-1951, so far as the applicant is concerned be quashed and in the meantime the execution of the award be stayed.
(2.) The facts which have given rise to this petition briefly are: that the Barrow Cooperative Development Union, Someshwar, which is opposite party No. 1 to this petition, appointed one Kunwar Singh Rana, who had been impleaded as opposite party No. 5 to this petition, as their salesman by a resolution of the Committee He was a member of the society from May 1946 to 1-6-1947. The audit disclosed that a sum of Rs. 2154/12 was not accounted for by Kunwar Singh Rana out of the sale proceeds received by him during the time he was in service. A demand was then made by the Union from Kunwar Singh Rana with regard to this sum and by two resolutions dated 6-1-1948 and 25-2-1948 the dispute between Kunwar Singh Rana and the Union with regard to this amount was referred to the arbitrator Under Rule 115 made by the State Government in the exercise of its power Under Section 43 of the Co-operative Societies Act. There was a resolution of the Committee dated 28-5-1946 by which the salesman was required to give security. The Petitioner was the secretary of the Union from May 1946 to 15-4-1948 on which date he handed over charge and he ceased to hold the office of the secretary of the Union. The dispute between Kunwar Singh kana and the Society with regard to the amount of Rs. 2154-12-0 which was referred to the arbitrator was disposed of by Sri Bhupal Singh Tilara, who was appointed the sole arbitrator, by his award dated 25-12-1951. In the present writ petition Sri Bhupal Singh Tilara is also impleaded as opposite party No. 2. The arbitrator when dealing with the dispute, which has given rise to arbitration, in para 1 of the award has stated that Kunwar Singh Rana as a salesman and as a member of the Union was responsible for Rs. 2154/12 and that the present applicant as well as the secretary failed to take security from him. He was thus negligent in his duty and therefore as a surety he is liable to pay the amount in the event of the amount not having been realised from Kunwar Singh Rana. The arbitrator after consideration of the matter gave an award to the extent of Rs. 2154/12 against Kunwar Singh Rana and also directed that in the event the amount not having been realised from him it should be realised from the present applicant. An appeal was filed by Kunwar Singh Rana before the Asstt. Registrar as provided under the rules. The Assst. Registrar called the present applicant as a witness before him and he came to the conclusion that the responsibility of Kunwar Singh Rana was only to the extent of Rs. 1,300 and odd. He therefore allowed the appeal modifying the award to the extent that he reduced the amount as against Kunwar Singh Rana from Rs. 2,100 and odd to Rs. 1,300 and odd. He also came to the conclusion that the present applicant was responsible for Rs. 804/3/- and gave an award as against the present applicant to the extent of Rs. 804/-/3. A revision was filed against this order which was rejected by the Deputy Registrar who exercised the powers of the Registrar under the Rules.
(3.) The present petition has been filed by the applicant. Notices were issued to the opposite parties and a counter-affidavit has been filed. In the counter affidavit it is stated that by resolution of 14-6-1948 the dispute between the present applicant and the society was also referred to an arbitrator. The stand taken by the opposite parties is therefore that there was a resolution for a reference to the arbitrator the dispute between the society and Kunwar Singh Rana and also between the present Applicant and the society and consequently the award given by the arbitrator and by the Asstt. Registrar is perfectly valid.;


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