MUSTAFABAD CANE GROWERS CO-OPERATIVE SOCIETY LTD. Vs. SURAJ BHAN TAYAGI EX-SECRETARY MUSTAFABAD, CANE GROWERS CO-OPERATIVE SOCIETY, MUSTAFABAD
LAWS(P&H)-1971-4-26
HIGH COURT OF PUNJAB AND HARYANA
Decided on April 30,1971

Mustafabad Cane Growers Co -Operative Society Ltd. Appellant
VERSUS
Suraj Bhan Tayagi Ex -Secretary Mustafabad, Cane Growers Co -Operative Society, Mustafabad Respondents

JUDGEMENT

B.R. Tuli, J. - (1.) SURAJ Bhan Tayagi, respondent in this appeal filed a petition under Articles 226 and 227 of the Constitution of India praying for the issuance of a writ of certiorari or any other appropriate writ, order or direction quashing the order of the Joint Secretary to Government, Haryana, Co -operative Department, Chandigarh, dated 18th November, 1968, by which he set aside the orders of the Assistant Registrar, Co -operative Societies, Ambala, and the Cane Commissioner, Haryana, exercising the powers of Registrar, Co -operative Societies.
(2.) SURAJ Bhan claimed that he was the Secretary of the appellant -society and the members of the managing committee obtained from him a letter of resignation from his post as Secretary of the Society on 11th July, 1966, by coercion and unlawful methods. Or 14th December, 1966, he made an application to the Cane Commissioner, Punjab, Chandigarh under section 55 of the Punjab Co -operative Societies Act, 1961 (hereinafter called the Act), for referring the dispute for decision under section 56 of the Act. The dispute was referred to the Assistant Registrar, Co -operative Societies as an arbitrator who gave his award in favour of Suraj Bhan on 9th August, 1968, holding that he did not tender his resignation voluntarily and of his own free will and that he should be paid his emoluments within thirty days of the date of the award. The appellant filed an appeal against the award under section 68 of the Act but the same was dismissed by the Cane Commissioner, exercising the powers of the Registrar of Co -operative Societies, on 8th October, 1968. The appellant then filed a revision before the State Government under section 69 of the Act which was allowed by the Joint Secretary to Government, Haryana, Development Department, on 18th November, 1968. Suraj Bhan thereafter filed the writ petition in this Court challenging the legality and the correctness of the order of the Revising Authority. The writ petition was contested only by the appellant Society and the train contention raised was that the dispute between the Society and Suraj Bhan could not be referred to arbitration under sections 55 and 56 of the Act as this dispute did not relate to the constitution, management or business of the appellant -Society. The learned Single Judge repelled this submission and held that the dispute had been rightly referred for decision to arbitration by the Registrar. The learned Judge also held that the decision of the Registrar was final under section 55(3) of the Act and could not be interfered with in revision under section 69 of the Act. The writ petition was accordingly allowed and the order of the Revising Authority was quashed. Feeling aggrieved, the appellant has filed the present appeal under clause 10 of the Letters Patent.
(3.) THE Learned Counsel for the appellant has relied on the provisions of section 55 of the Act and has strongly urged that the matter of dismissal or removal from service of an employee is not a dispute touching the constitution, management or business of the Co -operative Society and, therefore, is not referable to arbitration by the Registrar. Section 58 of the Act is in these terms: - 55. Disputes which may be referred to arbitration: - (1) Notwithstanding anything contained in any law for the time being in force, if any dispute touching the constitution, management or the business of a cooperative society arises - (a) among members, past members or persons claiming through members, past members and deceased members, or (b) between a member, past member or persons claiming through a members, past member and deceased member and the society, its committee or any officer, agent or employee of the society, or liquidator, past or present or (c) between the society or its committee and any past committee, any officer, agent or employee, or any past officer, past agent or past employee or the nominee, heirs or legal representatives of any deceased officer, deceased agent or deceased employee of the society, or (d) between the society and any other co -operative society, between a Society and liquidator of another society or between the liquidator of one society and the liquidator of another society, such dispute shall be referred to the Registrar for decision and no court shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute. (2) For the purposes of sub -section (1), the following shall be deemed to be disputes touching the constitution, management or the business of a co -operative society, namely - (a) a claim by the society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not; (b) a claim by a surety against the principal debtor where the society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor as a result of the default of the principal debtor, whether such debt or demand is admitted or not; (c) any dispute arising in connection with the election of any officer of the society (3) If any question arises whether a dispute referred to the Registrar under this section is or is not a dispute touching the constitution, management or the business of a co -operative Society, the decision thereon of the Registrar shall be final and shall not be called in question in any court.;


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