REGISTRAR, CO-OPERATIVE SOCIETIES, WEST BENGAL versus KRISHNA KUMAR SINGHANIA AND ORS.

Citation: [1995] SUPP. 2 S.C.R. 824 · Decided: 17-08-1995 · Supreme Court of India · Bench: K. RAMASWAMY, B.L. HANSARIA · Disposal: Appeal(s) allowed

Judgment (excerpt)

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REGISTRAR, CO-OPERATIVE SOCIETIES, WEST BENGAL 
v 
KRISHNA KUMAR SINGHANIA AND ORS. 
AUGUST 17, 1995 
[K. RAMASWAMY AND B.L. HANSARIA, JJ.] 
West Bengal Cooperative Societies Act, 1983: Sections 95, 96(5) and 
(6). 
West Bengal Cooperative Societies Rules, 1987 : Rule 178. 
Arbitrato-,.-Appointment by Registrar-Failure to decide reference 
within one year-Effect of-After expiry of period of six months Registrar can 
extend period for further six months-But on failure to decide dispute within 
one year time cannot be extended for further period-In such a case Registrar 
does not become functus officio-Arbitration proceedings does not get abated 
on expiry of one year-Section 46 of the Arbitration Act held inapplicable. 
Arbitration Act, 1940: 
Section 46--Applicability to arbitration under a Special Act-Necessary 
conditions for. 
The first respondent was appointed as a Transport and Handling · 
contractor by the West Bengal State Consumers' Federation. Dispute 
having arisen between the parties the Registrar appointed an Arbitrator 
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under the West Bengal Cooperative Societies Act, 1983 to decide the 
disputes. On Arbitrator's failure to decide the reference within one year, 
as envisaged under section 96 of the Act, the first respondent approached 
the High Court for termination of the arbitration and appointment of 
another arbitrator under the Arbitration Act, 1940. The High Court 
revoked the appointment of the third respondent and appointed another 
G arbitrator. It proceeded on the premises that since section 96 empowers 
the Registrar to extend time only upto one year to enable the arbitrator to 
make the award, and the arbitrator had failed to make the award within 
the extended one year period, the Registrar became functus officio to extend 
further time. Therefore, the arbitrator was left with no power to make the 
H award. 
824 
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REGISTRAR CO-OP. SOCY. v. KK SINGHANIA 
825 
In appeal to this Court it was contended for the appellant that (i) A 
the power of the Registrar under Sections 95 and 96 of the West Bengal 
Cooperative Societies Act read with rule 178 of the West Bengal Coopera-
tive Societies Rules would indicate that on expiry of the period of one year 
prescribed under section 96 the power of Registrar is not exhausted; (ii) 
the provisions of the Arbitration Act would be applicable only when the 
parties have agreed for such a reference; since the agreement does not 
provide for such an option, appointment made under section 46 of the 
Arbitration Act was illegal; and (iii) Section 46 of the Arbitration Act was 
not applicable. 
Allowing the appeal, this Court 
HELD : 1. The scheme of the West Bengal Cooperative Societies Act 
is inconsistent with the provisions of the Arbitration Act. Section 46 of the 
Arbitration Act does not get attracted to the disputes arising u.nder the 
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Act. The Registrar under the Act, therefore, did not become functus officio D 
nor he is denuded of the power to withdraw the dispute from the arbitrator 
and to decide himself or to appoint another arbitrator to decide the 
dispute between the parties. The ·High Court, therefore, was clearly in error 
in revoking the appointment of the third respondent as arbitrator and 
appoint as fresh arbitrator. However, since the third respondent had not 
made the award within one year and since the limitation of one year 
prescribed under section 96 had expired by effiux of time, he ceased to have 
power to proceed with the adjudication of the dispute and to make an 
award. It would be open to first respondent to make an application to the 
Registrar afresh either to decide the dispute himself or to appoint another 
arbitrator. (832-E-H] 
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2. A conjoint reading of sections 95 and 96 of the West Bengal 
Cooperative Societies Act and Rule 178 clearly indicates the gamut of the 
power of the Registrar. As soon as an application for reference is made, the 
Registrar may decide the dispute himself or may appoint an arbitrator or a 
panel of arbitrators to decide the dispute. Under sub-section (5) of section G 
96, the arbitrator so appointed should decide the dispute within six months 
from the date of the receipt of his appointment order from the Registrar. In 
case he cannot make the award within six months, he should submit a 
report to Registrar at least 15 days before its expiry for further extension 
giving reasons for his failure to make the award. Thereon, the Registrar is H 
826 
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