Case: Panchshila Industrial Co-Opera-Tive Societies(Multi Unit) Vs. Gurgaon Central Co-Operative Bankltd. Gurgaon

The relevant facts are these. The respondent Bank approached the Registrar of Co-operative Societies, Haryana, for resolving a dispute between the Bank and one of its members, appellant before us. The Registrar, by his order dated February 17, 1968, in exercise of the powers vested in him under S. 56 of the Punjab Co-operative. Societies Act, 1961, referred the dispute to the Deputy Registrar, Co-operative Societies, Rohtak for decision. The arbitrator gave the award on October 7, 1969, directing that the appellant do pay to the respondent in all Rupees 16,05,658.20 together with interest at the rate of six and a half per cent per annum until the realisation of the principal amount, viz. Rs. 11,52,535.00.

Reasoning:
4. There is no doubt that the dispute between the respondent Bank and the appellant fell within S.55 and was properly referred to arbitration under that section. It is, however, contended that the appellant was registered in December 1955 under the Punjab Co-operative Societies Act, 1955, and by virtue ofthe States Reorganisation Act, 1956, and S. 5A of the Multi-Unit Co-operative Societies Act, 1942, the appellant has ceased to be governed by the provisions of the Punjab Co-operative Societies Act because it has become a multi-unit co-operative society. There is no doubt that by virtue ofthe States Reorganisation Act, 1956, and S. 5A of the Multi Unit Co-operative Societies Act, 1942, We appellant has become a multi-unit co-operative society and the Multi Unit Co-operative Societies Act applies to it. But that Act is for the incorporation, regulation and winding up of co-operative societies with objects not confined to one State, and it has no impact on S. 55 ofthe Punjab Co-operative Societies Act, 1961 inasmuch as the appellant remains a member of the co-operative Societies namely, the respondent Bank. There is nothing in the provisions of the Multi-Unit Co-operative Societies Act to indicate that a multi-unit co-operative society cannot be a member of a co-operative society governed by the Punjab Act of 1961. If the appellant continues to be a member, then the terms of S. 55 apply and a dispute can be referred to arbitration under that section. An appeal against that award lies under S. 68 of the Punjab Act of 1961 to the Government if the decision or order was made by the Registrar, and to the Registrar if the decision or order was made by any other person. It is quite clear therefore that the Central Registrar had no jurisdiction to hear theis no statutory provision enabling the Central Registrar to do so. At any rate, if an appeal is filed before the appropriate authority underthe Punjab Co-operative Societies Act, 1961, that authority will no doubt take into consideration the provisions of S. 14 ofthe Limitation Act, 1963, read with S. 29 (2) and decide whether the appeal should be entertained or no