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THE KALYAN PEOPLE'S CO-OPERATIVE BANK versus DULHANBIBI, AQUAL AMINSAHEB PATIL

Citation: [1963] 2 S.C.R. 348 · Decided: 23-04-1962 · Supreme Court of India · Bench: J.L. KAPUR · Disposal: Case Partly allowed

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Judgment (excerpt)

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348 · SUPREME COURT R_~PORT~ [1963] 
THE KALYAN PEOPLE'S CO·OPERATIVE BANK 
v. 
DULHANBIBI, AQUAL AMINSAHEB· PATIL 
(J. L. Kutra, K. C. DAS GuPrA and 
. 
RAGHUBAR DA~AL; JJ.) 
Co-operative Society-Arbitration:_Tribunal, if and whe1' 
can act. on· evidence taken befOTe previous Tribunal-Party con-
aenting to· such\evidence-if can object later-Bombay Co-oper. 
ative Societies Act, 1925 (Bo~. VII of 1925), s. 54. 
· 
'~, 
) 
The dispute between the appellant a co-operative bank -J-
. and A who had taken loan and his surety was referred to 
. arbitration under s. 51 of the Bombay Co-operative Societies 
Act. The Board of Arbitrators consisted of three members; 
after -the Board has recorded some evidence, the nominee of 
the borrower retired. Thereafter, the Board was reconstituted. 
:_This Board also recordCd some evidence ;·but after some time, 
the newly appointed nominee of the borrower retired. There 
was a fresh constitution of the Board with the· other two . 
· 
members as before and a new member as th< nominee of the r 
borrower. Further evidence was recorded by the Board thus 
constituted and finally the Board gave its award in the matter. 
Dissatisfied With this award A filed revision applications be~ . 
fore the Bombay Co-operative Tribunal.' Apart from certain 
objections on merit a preliminary objection was taken· as · 
regards ·the legality of the award on the ground that the Board 
as· last constituted had acted on evidence not recorded before 
it. The Tribunal accepted this preliminary ·objection and set 
aside the award and remanded the cases to the Assistant 
Registrar. Shortly after this A died but his heirs and legal · 1 
representatives moved the Bombay High Court under Art. 227 
of the Constitution against the Tribunal's decision. It set -/" 
aside the orders pa>sed by the Tribunal and restored· the 
award made by the Board of Arbitrttors. The Bank came up 
in appeal by special leave to the Supreme. 
Held, that. when the parties expre!Sly or impliedly agree 
that some evidence not taken before the Tribunal should be 
~ 
treated as evidence and taken into consideration, it will not be 
wrong. or illegal for the Tribunal to act on such evidence not 
taken before it, the question of· mode of proof is a question. 
of procedure and is capable of being waived and therefore 
evidence taken in a previous judicial proc~Cding of a· civil 
nature can te Ir•C• •<'mi!sible in a •ubs<<jUtnt proceeding 
hr ·coment of farti~. 
· 
· · 
2 S.C.R. 
SUPREME COURT REPORTS 
While what is not relevent under the Evidence Act 
cannot in proceedings to· which Evidence Act applies, be 
made relevant by consent of parties, relevant evldence can 
be brought on the record for consideration of the Court or 
the Tribtinal without following .the regular mode, if parties 
agree. 
When a party does not only raise no objection before 
a Court or Tribunal to proceed un the evidence already re-
corded before the previous Court or Tribunal and impliedly 
invites the Court . or Tribunal to act on such evidence pre-
viously recorded, he cannot be allowed later on to object to 
the Court or Tribunal having considered such evidence. 
The High court having come to the conclusion that 
the Tribunal was wrong in allowing the preliminary objec-
tien raised before . it; the High Court was not entitled to 
ignore the fact that before the Tribunal other questions had 
been raised which had not been considered by it. The pro-
per order to pass in such · a case ordinarily would be to set 
aside the order of the Tribunal and direct it to decide 'the 
applications for revision on their merits. 
CIVIL APPELLATE JURIBDIOTION: Civil Appeal 
Nos. 555 & 556 of 1960. 
Appeals by special leave from the judgment 
arid order dated July 17, 1956, of the Bombay 
Hillh Court in Special Civil Applications Nos. 580 
and 581 of 1956. 
A. V. Viswanatha Sastri, B. R. Nayak and 
N aunit Lal, for appellants. 
Abdurrahman 
Adam Omer, S. N. Andley, 
Rameshwar Nath and P. L. Vohra, for the respon-
dents No. l and 3 to 6. 
1962. April 23,-The Judgment of the Court 
was delivered by 
DAS GUPTA, ·J.-Disputes having arisen bet-
ween the appellant, a Co-operative Bank and one 
Amin Saheb Patil, who had taken loans from the 
-+ 
Bank and Kutubuddin Mohamad Ajim Kazi, who 
h11d stood E1uety in respect of tlie lollJJB they w,ere 
'• • 
11111 
TIM Eal1a PU1J11'1 
Co-opmditt, llw 
v. 
. 
Du!hanblbi Aqual 
dminsalub P•til

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