Case Law Details
Appolo Handloom Manufacturing Co-Op. Society Ltd Vs All India Handloom Fabrics Society And Ors (Delhi High Court)
In the case of Appolo Handloom Manufacturing Co-Op. Society Ltd Vs All India Handloom Fabrics Society And Ors, the Delhi High Court addressed a petition filed by Appolo Handloom Manufacturing Co-op. Society Limited (the Petitioner) seeking the appointment of an arbitrator by the Central Registrar of Co-operative Societies, Ministry of Cooperation. The petitioner, a member of All India Handloom Fabric Society (Respondent No. 1), alleged various disputes concerning the functioning of Respondent No. 1, including unpaid monetary dues and irregularities in the election of office bearers.
The petitioner invoked the arbitration clause under Section 84 of the Multi State Cooperative Societies Act, 2002 and requested the appointment of an arbitrator. Despite the request, no arbitrator was appointed by the Central Registrar, prompting the petitioner to approach the Delhi High Court under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking the appointment of an arbitrator.
In response to the petition, Respondent No. 1 argued that there was no clarity on the disputes to be referred to arbitration and that the petitioner had not issued a notice under Section 21 of the Arbitration and Conciliation Act, 1996. Respondent Nos. 2 to 4 contended that challenges to the election of office bearers must be raised within 30 days, and the petition’s maintainability was questioned citing Section 84(5) of the Act. Respondent No. 6, the Central Registrar, assured the court of expeditiously appointing an arbitrator.
The Court, after considering the arguments, observed that while Section 84 of the Act mandates the appointment of an arbitrator by the Central Registrar, failure to do so does not render the petitioner remedy-less. It cited Section 11(6) of the Arbitration Act, empowering the High Court to secure the appointment of an arbitrator if a party fails to act as required.
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