1980 INSC 0111
                                                      Tara Chand

                                                           Vs

               Zamindar Cooperative Marketing-Cum-Processing Society Ltd. and Others

                                           Civil Appeal No. 411 of 1980

                         (O. Chinnappa Reddy, V. R. Krishna Iyer, A. D. Koshal JJ)

                                                      13.03.1980

                                                     JUDGMENT

KRISHNA IYER, J. ­

1. This appeal by special leave raises a question of law as to whether under Section 55 of Punjab
Cooperative Societies Act, 1961, there is jurisdiction for the Arbitrator to decide a dispute touching
business of the Central Society (respondent 1) and a member of the Primary Society (respondent 2).
The appellant is only a member of respondent 2. These scheme is like this. The membership of an
apex society consists of central societies. Each central society has members consisting of primary
societies. The present appellant is not a Primary Society but only a member of a Primary Society. It
is far from clear as to whether a mere member of a Primary Society will come within the scope of
Section 55 of the Act. The reason is that the appellant is not a member of the Central Society but
merely a member of a Primary Society, which is a member of the Central Society. Having regard to
the fact that the central societies' resources should not be lost in mere litigation, we suggested to the
parties to settle the matter and counsel have persuaded both sides to agree, to what we think is a fair
resolution of the conflict i.e. that appellant will pay a sum of Rs. 2750 to the first respondent
(Central Society) in two instalments. He will pay on or before May 31, 1980 a sum of Rs. 1700 and
a sum of Rs. 1050 on or before January 31, 1981. In case of default of the first instalment, the entire
sum will be due and recoverable with interest at 12 per cent. and so also in case of default of the
second instalment.

2. If these two sums (together totalling Rs. 2750) are paid on time there will be a complete
discharge of his liabilities (both civil and criminal), but the Central Society (respondent 1) will be
free to pursue its remedies by way of execution of the Award already obtained or otherwise against
the Primary Society (respondent 2). With these directions we dispose of the appeal.

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