PANCHSHILA INDUSTRIAL CO-OPERATIVE SOCIETIES (MULTI UNIT) versus GURGAON CENTRAL CO-OPERATIVE BANK LTD. GURGAON

Citation: [1972] 1 S.C.R. 44 · Decided: 06-08-1971 · Supreme Court of India · Bench: S.M. SIKRI · Disposal: Dismissed

Judgment (excerpt)

44 
PANCHSHILA INDUSTRIAL CO-OPERA-
TIVE SOCIETIES 
(MULTI UNIT) 
v. 
GURGAON CENTRAL CO-OPERATIVE BANK 
LTD. 
GURGAON 
August 6, 1971. 
[S.M. SIKRI, C.J., A. N. RAY AND D. G. PALEKAR, JJ.J 
Punjab Co-operative Societies Act, 1961, s. 55-Mu/ti Unit Co-ope-
rative Societies Act, 1942--Latter Act has no impact on s. 55 of the former 
Act-Central Registrar not appellate authority against award in respect 
of disputes between co-operative society governed by Punjab Act of 1961 
and its member. 
The respondent bank is a co-operative society governed by the Pun-
jab Co-operative Societies Act, 1961. A dispute between the· bank 
and the appellant, one of its members, was referred by the Registrar 
of Co-operative Societies, in exercise of the powers vested in him by 
s. 55 of the Act, to the Deputy Registrar, Co-operative Societies for 
arbitration. The appellant filed an appeal against the award before 
the Central Registrar of Co-operative Societies. The Central Registrar 
dismissed the appeal holding that he was not the appropriate appellate 
authority, under the Act. 
In appeal to this Court the appellant con-
tended that it was registered in 1955 under the Punjab Co-operative 
Societies Act 1955 and by virtue of the States Reorganisation Act. 1956 
and s. 5(A) of the Multi-Unit Co-operative Societies Act, 1942, it had 
ceased to be 
governed by the provisions of the Punjao Co-operative 
Societies Act, because, it had become a multi-unit co-operative Society. 
Dismissing the appeal, 
HELD : 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. The multi unit co-operative societies Act is for the incor-
poration. regulation and winding up of co-operative societies with objects 
not confined to one State and it has no impact on s. 55 of the Punjab 
Co-operative Societies Act, 1961, in as much as the appellant re-
mains a member of the Co-operative Society, namely, the respondent 
bank. 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 is made by any other person. 
Therefore the Central Registrar had no jurisdiction to hear the appeal. 
[46H] 
CIVIL APPELLATE JURISDICTION: 
Civil Appeal No. 
2293 of 1970. 
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PANCHSHILA SOCIETIES V, CO-OPERATIVE BANK (Sikri, C.J,) 45 
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Appeal by special leave from the order dated May 4, 
1970 of the Central Registrar of Co-operative Societies, 
New Delhi in Appeal No. CR/l/70. 
Harbans Singh, for the appellant. 
Remeshwar Dial and A.D. Mathur, for the respon-
dent. 
The Judgment of the Court was delivered by 
Sikri, C. J~-This appeal by special leave is against the 
order of the Central Registrar of Cooperative Societies 
New Delhi dismissing the appeal filed by Panchshila 
Industrial Cooperative Society (Multi Unit) appellant 
before us 
against the award passed by the Arbitrator 
(Deputy Registrar of Cooperative Soeieties Rohtak) dated 
October 7, 1969, in respect of the dispute between the 
Gurgaon Central Cooperative Bank Ltd., 
Gurgaon 
respondent before us, and the appellant. 
The Central 
Registrar held that he was not the appropriate appellate 
authority against the award in question. 
The only question which arises before us is whether 
the Central Registrar was the appropriate authority on 
the facts of this case. The relevant facts are these. . The 
respondent Bank approached the Registrar of Cooperative 
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 exer-
cise of the powers vested in him under s. 56 of the Punjab 
Co-operative Societies Act, 1961, 
referred the dispute 
to the Deputy Registrar Cooperative Societies Rohtak 
for decision. The arbitrator gave the award on October 7, 
1969, directing that the appellant do pay to the respondent 
in all Rs. 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. 
The appellant as mentioned above filed an appeal 
against this award before

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