Central Register of Cooperative Societies can be Directed by High Court on Appointment of Arbitrator u/s 84 of Multi state Cooperative Society Act: Delhi HC [Read Order]
The Court allowed the application and directed respondent No. 6, the Central Registrar, to appoint an arbitrator within three weeks.
Delhi High Court – Central Register of Cooperative Societies – Tax update – Tax news – Taxscan
Delhi High Court – Central Register of Cooperative Societies – Tax update – Tax news – Taxscan
The Single bench of Delhi High Court has held that a petition under Section 11(6) of the Arbitration and Conciliation (A&C) Act can be entertained by the High Court to direct the 'Central Registrar' of Co-operative Societies to appoint an arbitrator under Section 84 of Multi State Cooperative Societies Act, 2002 after it fails to act on the request of the party.
The Petitioner, Apollo Handloom Manufacturing Co-op. Society Limited, a member of All India Handloom Fabric Society for over 30 years, filed a petition seeking the appointment of an arbitrator by the Central Registrar of Co-operative Societies, Ministry of Cooperation.
The Petitioner raised disputes regarding monetary dues, the unlawful election of office bearers, and other issues within Respondent No. 1, invoking the Arbitration Clause under Section 84 of the Multi State Cooperative Societies Act, 2002. The Petitioner filed a request for an arbitrator's appointment on 26.05.2023, with the Central Registrar, however, it failed to appoint the arbitrator as required under Section 84 of the Act of 2002. Aggrieved thereby, the petitioner filed an application under Section 11(6) of the A&C Act seeking appointment of the Arbitrator.
The respondent objected to the maintainability of the petition on the following grounds that petitioner has failed to provide details of the dispute between the parties. It was argued that no notice under Section 21 of the A&C Act has been issued before filing the application.
The Court observed that the appointment of an arbitrator under Section 84(4) of the Act is the responsibility of the Central Registrar of Co-operative Societies. However, in case the Central Registrar fails to appoint an arbitrator, the Court cannot be deemed powerless to refer the matter to the Central Registrar for appointment of an arbitrator.
It was observed that Section 11(6) empowers the High Court to secure the appointment of an arbitrator when a person or institution, in this case, the Central Registrar, fails to act as required under the procedure specified in the Act.
Justice Prathiba M. Singh ruled that as per Section 84(4), the arbitrator is to be appointed by the 'Central Registrar' only, however, once it fails to act on the request of the party, the aggrieved party can approach the High Court for directions to him.
The Court allowed the application and directed respondent No. 6, the Central Registrar, to appoint an arbitrator within three weeks.
To Read the full text of the Order CLICK HERE
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