LexMOOL CHAND SHARMA versus STATE OF UTTAR PRADESH
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Abdul Kadir Sliamswidfo Bohm V. M adhat. Prabhakar Oak lVancl.Oo J. &pttmbtr 20. 718 SUPREME COURT REPORTS [1962) referred to arbitration. It seems to us that every allegation tending suggest or imply moral dishonesty or moral misconduct in tho matter of keeping ac- counts would not amount to Ruch serious allet'ation of fraud as would impel a court to refuse to order the arbitration agreement to be filed and refuse to make a reforence. Looking to the allegations which have made in this case we aro of opinion that there are no such serious allegations of fraud in this case P.S would ho sufficient for the court to say that thcro is sufficient causo for not referring tho dispute to arbitration. This contention of the appellant must also therefore fail. The appeal therefore fails and is here by dis- m isscd with cost a. Appeal dismissed. :IIOOL CHAND SHARMA ti. STATE OF UTTAR PRADESH (B. P. SINHA, C.J., P. B. GAJENDRAOADKAR and RAGHUBAR DAYAJ,, JJ.) Municipal Board-.Mnnber-lncurring of di~qualificaliot> lf an<l when btcomea inr.ornpeltnt to •xercise Id.• right-U.P. Municipalitie.• Act, 1916 (U.P. II of 1916;, 88.13 D(8), 87A, sub-•.2. The appellant was the Pre•ident of a Municipal Commi- ttee. A \\.'ritten notice of the intt'ntion to move a motion of no .. , · confidence in the President signed by nine memhcrs of the Board \vas delivered to the District ~fagistrate under s. 87-A .ub-s. (2) of the U.P. Municipalities Act, 1916. The District Magistrate duly convened a meeting of the Board, .but b~~ore the date of the meeting the appellant moved a writ pelltton in the High Court and questioned the validity of the notice. The writ petition \vas dismissed in limine inter alia as being premature. The Meeting of the Board was held on the due date and all the members present, voted for the motion of no . ...- confidence and the Munsif of the area who had presided de· clared the motion to have been carried. The appellant by hi• .econd writ petition be(orc the High Court desired that the 3 ~.C.R. SUPREME COURT REPORTS 719 proceeding of the meeting be quashed and the resolution ex- preSB!ng no confidence in the appellant be not given effect to by the State and the District Magistrate, for the reason that two of the members of the Board who had signed the notice and subsequently taken part in the proceedings of the meeting and voted, had incurred disqualification under s. 13-D (g) of the U.P. Municipalities Act, 1916, inasmuch as they were in arrears in the payment of municipal tax and other dues to which s. 166 of the Act applied. Held, that an order, dismissing a writ petition in limin• not on merits but for the reason that it was premature. could not operate as res judicata in subsequent proceedings. Held, further, that a member of the Municipal Board does not automatically come under suspension, or lose his rights to take part in the proceeding of the Bo<Lrd, or perform the duties of a member or cease to be a member of the Board merely on his incurring any of the disqualification mentioned in s. 13-D of the U.P. Municipalities Act, 1916. A member of the Municipal Board, merely, by incurring the disqualifica- tion under cl. (g) of s. 13-D of the U.P. Municipalities Act, I 916, was not incompetent to exercise his rights ::ts a member of the Board. Elution Oommi88ion, India v. Saka V•nkata Subba Rao, (1953] S.C.R. 1144, referred to. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 401 of 1961. Appeal by special leave from the judgment and order dated May 24, 1961, of the Allahabad High Court in Civil Misc. Writ No. 846 of 1961. M. 0. Sttalvad Attorney-General for India and J. P. Goyril, for the appellant. 0. B. Agarwala and 0. P. Lal, for respondents Nos. I and 2. 0. K. Daphtary, Solicitor-General of India, R. K. Garg, S. 0. Agarwala, D. P. Singh and M. K. Rama- murthi, for respondents Nos. 3 to 13. 1961. September 20. The Judgment of the Court was delivered by 1861 M ool Chand Sh4rma v. State of Uttar Pratksh RAGHUBAR DAYAL, J.-This appeal, by speci'l.l Raghu/)ar Day•I ]. leave, is directed against the judgment of the High Court of Allahabad dismissing a writ petition filed 1961 M ool ClraAd Sharm• v. Slate of f.,'ttar p,.,J,,h 720 SUPREMl!! COURT REPORTS (1962] by the appellant praying for the iRsne of a writ in the nature of mandamus directing the State of Uttar Pradesh and the District Magistrate, Meerut, not to give cff'ec
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