HAFIZ MOHAMMAD ISHAQ RASOOL BUX Vs. K.N. MATHUR AND OTHERS

JUDGEMENT

(1.) The principal question raised in this petition under Art. 226 of the Constitution is whether the Registrar, Co-operative Societies, while seized of an appeal against the award of an arbitrator, has the authority to pass an interim order in the nature of stay or injunction during the pendency of the appeal before him.

(2.) It appears that the Board of Directors of the Etawah District Weavers Central Cooperative Store Ltd., a society registered under the U. P. Co-operative Societies Act, was dissolved on 6th Oct., 1965. Fresh elections to the Board of Directors were held on 23rd Oct., 1965, wherein the respondents second set were elected as Directors. On 9th Nov., 1965, at a meeting of the Board of Directors, certain other persons were co-opted as Directors and a Managing Director was elected. Sheo Dayal, respondent No. 16, filed an application u/r. 115 of the Co-operative Societies Rules, challenging the validity of the order of the dissolution of the previous Board of Directors and also the fresh elections held on 23rd Oct., 1965, and the co-option of the Directors and the election of the Managing Director on 9th Nov., 1965. In due course, the Registrar referred the petition to the arbitration of one S. K. Rai as the sole arbitrator. The arbitrator gave his award on 30th Sept., 1967. He held that the dissolution of the Board of Directors on 6th Oct., 1965, was illegal and consequently fresh election and co-option of the Directors and election of the Managing Director were all invalid. He further held that the pre-existing Board of Directors was entitled to function till elections were held afresh in accordance with law.

(3.) The respondents second set thereupon instituted an appeal against the award of the arbitrator before the Registrar under R. 133 of the Co-operative Societies Rules, 1936. Along with the appeal, an application praying for the suspension of the operation of the award of the arbitrator was also filed. On 21st Nov., 1967, the Deputy Registrar passed the impugned order directing that the award given by the sole arbitrator shall not be enforced till the appeal was finally decided. The learned Counsel have informed me that the appeal is still pending.