Court dismisses revision petition challenging jurisdiction and applicability of Arbitration Act in award execution
In a significant ruling, the Madras High Court has dismissed a revision petition filed by T.K. Kares, challenging the execution of an arbitration award passed under the amended provisions of the Multi-State Co-operative Societies Act, 2002. The petitioner contested the jurisdiction of the Sales Officer executing the award and argued for the applicability of the Arbitration and Conciliation Act, 1996.
The case arose when the Repatriates Co-operative Finance and Development Bank Limited obtained an award against Kares, which was being executed by a Sales Officer appointed by the Central Registrar. The petitioner argued that the execution was premature and should have been governed by the Arbitration Act, invoking Article 227 of the Constitution of India for relief.
Justice P.B. Balaji, presiding over the case, emphasized that the amendments brought by Act 11 of 2023 to the Multi-State Co-operative Societies Act take precedence over the Arbitration Act, particularly in the execution of awards. The court noted that the award was passed post-amendment, making the revised legal framework applicable. As per the amended Section 94, awards can be executed as decrees of a civil court by the Central Registrar or an authorized person.
The court also addressed the jurisdictional challenge, clarifying that the Sales Officer, appointed by the Central Registrar, was authorized to execute the award irrespective of the judgment-debtor’s location. The Sales Officer's competence was backed by a circular issued under Section 97, empowering designated officers to execute awards across jurisdictions.
Furthermore, the court pointed out the introduction of a review mechanism under Section 98-A, allowing aggrieved parties to seek a review from the Central Registrar within three months, provided certain conditions are met. The court granted Kares the liberty to file such a review, acknowledging his pursuit of legal remedies.
The ruling reaffirms the legal standing of amendments to the Multi-State Co-operative Societies Act and underscores the jurisdictional authority granted to Central Registrar-appointed officers in executing awards.
Bottom line:-
Provisions of the Multi-State Co-operative Societies Act, 2002, as amended by Act 11 of 2023, prevail over the Arbitration and Conciliation Act, 1996, in matters related to execution of awards passed under the Multi-State Co-operative Societies Act.
Statutory provision(s): Multi-State Co-operative Societies Act, 2002 (Sections 84, 94, 98-A, Rule 37), Arbitration and Conciliation Act, 1996 (Sections 2(1)(e), 36), Article 227 of the Constitution of India.
