High Court Kerala High Court

K.A.Babu vs Pulloor Service Co.Op.Bank on 11 June, 2009

Kerala High Court
K.A.Babu vs Pulloor Service Co.Op.Bank on 11 June, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 36724 of 2008(V)


1. K.A.BABU, KUNDIL VEEDU,,P.O.PULLOOR,
                      ...  Petitioner

                        Vs



1. PULLOOR SERVICE CO.OP.BANK,
                       ...       Respondent

2. ASSISTANT REGISTRAR OF CO.OP.SOCIETIES

                For Petitioner  :SRI.P.RAMAKRISHNAN

                For Respondent  :SRI.P.V.SURENDRANATH

The Hon'ble MR. Justice ANTONY DOMINIC

 Dated :11/06/2009

 O R D E R
                       ANTONY DOMINIC, J.
                     ================
                 W.P.(C) NO. 36724 OF 2008 (V)
                =====================

             Dated this the 11th day of June, 2009

                          J U D G M E N T

Petitioner claims that he was a salesman appointed under

the 1st respondent Bank. On the ground that there was shortage

of stock of Rs.3,19,204/-, proceedings were initiated against him

and finally, he was terminated from service. That dispute is now

pending before the Co-operative Arbitration Court as ARC

No.195/08.

2. Meanwhile, the Bank instituted ARC No.6926/04 before

the Registrar for realisation of Rs.3,19,204, being the value of the

stock found short and also ARC No.3429/07 to recover

Rs.3,72,724/- allegedly the loan arrears due from the petitioner.

In this writ petition, what the petitioner submits is that since the

subject matter of the aforesaid three proceedings are connected,

it is necessary that all the three proceedings should be

consolidated, tried and disposed of by one authority.

3. Pursuant to the order passed by this Court on

12/12/2008 calling upon the Bank to state its objections if any on

the prayer made, the Bank has filed a counter affidavit. According

WPC 36724/08
:2 :

to the Bank, in so far as ARC No.6926/04 is concerned, the

petitioner in his letter dated 13/8/04 admitted the liability and

sought time for payment. It is stated that liability of the petitioner

is totally independent and separate from the subject matter of

ARC No.195/08 and therefore there is absolutely no reason to

consolidate that proceedings along with the proceedings in ARC

No.195/08 pending before the Co-operative Arbitration Court.

4. In so far as ARC NO.3429/07 is concerned, according to

the Bank, the said proceedings have been initiated for realisation

of the loan dues. However,this case of the Bank is disputed by

the counsel for the petitioner contending that the amount that is

sought to be realised is the amount towards the credit sales

effected by the petitioner.

5. The Bank would also submit that in terms of Section 69

(h) of the Act, monetary disputes are exclusively within the

purview of the Registrar and in so far as non-monetary disputes

are concerned, such disputes are to be tried by the Co-operative

Arbitration Court. It is contended that since the legislature has

conferred such exclusive jurisdiction on the respective authorities,

this Court will not be justified in passing orders contrary to the

WPC 36724/08
:3 :

legislative mandate.

6. I have considered the submissions made by both sides.

7. Section 69(h) of the Kerala Co-operative Societies Act

provides that non-monetary disputes shall be exclusively tried by

Co-operative Arbitration Court while the monetary disputes are to

be tried by the Registrar. This Section also provides that no other

court or authority shall have jurisdiction to entertain such claims.

Therefore, the legislature, having conferred exclusive jurisdiction

on the Court and the Arbitrator as the case may be, this Court will

not be justified in passing orders which will run counter to the

clear legislative mandate. Therefore, the clubbing of the disputes

as sought for by the petitioner will be against the provisions of

Section 69(h) of the Act.

8. Of the three proceedings that are pending, the

petitioner can at best say that the proceedings in ARC

No.6926/04 where the Bank is seeking to realise the value of the

stock found short, is related to the proceedings in ARC No.195/08

pending before the Arbitration Court. In view of the provisions in

Section 69(h) of the Act, it is not possible to club these cases.

However, I also do not think it necessary or proper to direct that

WPC 36724/08
:4 :

proceedings before the Arbitrator should be kept pending until the

proceedings before the Arbitration court is finalised. Even if both

the proceedings are allowed to continue before the respective

Courts, I do not think that can cause any prejudice to the

petitioner for the reason that each of the forums will have to

adjudicate the case before it on the materials that are available

before them. Therefore, there is absolutely no necessity to keep

the arbitration case before the Arbitrator pending until the

Arbitration Court decides ARC No.195/08 as sought for by the

petitioner. However, it is directed that if award favourable to the

Bank is passed in ARC No.6926/04, its implementation shall be

kept in abeyance until the Arbitration Court finalises the

proceedings in ARC No.195/08.

9. As already stated, the proceedings in ARC No.3429/07

is, according to the Bank, for realisation of the loan dues from the

petitioner. Petitioner submits that this amount represents the

advance that the Bank gave for running the store. This certainly is

a matter for the Arbitrator to decide. In any case, the subject

matter of the dispute cannot be related to the subject matter of

ARC No.195/08 and proceedings in one, cannot cause prejudice in

WPC 36724/08
:5 :

the proceedings in the other. Therefore, I do not think it necessary

for passing any order as sought for by the petitioner in so far as

ARC No.3429/07 is concerned.

Writ petition is disposed of as above.

ANTONY DOMINIC, JUDGE
Rp