Cochin Shipyard Staff Co-Operative House Construction Society Ltd. vs K.P. Varghese and The Arbitrator/Assistant Registrar (General), Kanayannur, Office of The Assistant Registrar (General), Kanayannur, Ernakulam, Kochi-682031

C.N. Ramachandran Nair, J.—When the Writ Appeal came up for admission, we felt that our decision in the Writ Appeal will render the writ petitions pending before the learned Single Judge infructuous and so much so we called both the writ petitions also for hearing along with the Writ Appeal. We have heard counsel appearing for both sides.

The dispute is between the Cochin Shipyard Staff Co-operative Housing Construction Society and their contractor engaged by them for purchase and development of an area for house construction for members of the society. The society, it is stated, has advanced to the contractor an amount of Rupees eight crores and odd. While the case of the society is that the contractor has not utilized the funds for the purposes for which it was given, the case of the contractor is to the contrary. Dispute is now before the Joint Registrar, who is the arbitrator constituted u/s 69 of the Kerala Co-operative Societies Act.

There is no controversy about the maintainability of the arbitration case. However, the controversy is only whether the rejection of a Commission Application submitted by the contractor is right or not. The Joint Registrar dismissed the Commission Application by stating that the matter is already pending for two years and the effort of the contractor is only to delay further proceedings in the arbitration case. We do not know how a matter like this is kept pending even for two years, because the land is required for the society for construction of the houses to the members of the society. So much so, there is an urgency in the matter and the society is accountable to the members on the application of money belonging to the members. Since the question is basically on the development work and the valuation thereof, we feel, what is required is technical assistance and not appointment of Commission, whether a Co-operative Inspector or some such unqualified hands. We, accordingly, dispose of the Writ Appeal and the Writ Petitions by directing the Joint Registrar himself to conduct an inspection of the site, take stock of all the details and also use the technical assistance to be rendered by both sides by engaging qualified Engineers. We direct both sides to provide technical assistance to the Joint Registrar to personally collect the information and data by personal visit. The Joint Registrar is directed to take up the arbitration case on priority basis and dispose of the same within two months from the date of receipt of a copy of this judgment. The parties will not take adjournments and furnish all the details and submit their arguments to the Joint Registrar so as to complete the proceedings within two months. It is made clear that the inspection necessarily has to be with reference to the claims and counter claims and it is open to the parties to point out any particular matter that the Joint Registrar to take note of during inspection which is relevant for deciding the matter. The above direction will not bar the parties to engage a suitable and impartial third party and go for a settlement by negotiation which should be acceptable to the members of the society, whose money the society is playing with.

The Writ Appeal and the Writ Petitions are disposed of as indicated above.