Leakh Raj vs Co-operative Society

This is an application for issue of a Writ of Certiorari to quash proceedings before the Registrar of Co-operative Societies, functioning as an arbitrator in respect of a claim for money due to the Co-operative Society. Petitioner is surety for debtor.

On a former occasion an award was passed by the Registrar against the debtor and the surety. In execution proceedings on the basis of the award the matter went up to the High Court and the award was quashed as far as the surety was concerned on the ground that the surety was not served with notice of the enquiry before the Arbitrator. The arbitrator has now served notice to the surety to adjusted upon his liability in respect of the same debt. The surety pleads the bar of rest judicator by virtue of the decision of the High Court and states that the arbitrator has no jurisdiction to proceed with the enquiry. We do not agree. The decision of the High Court not being one given on merits does not operate as rest judicator. The arbitrator is entitled to enquire into and adjudicate upon the liability of the surety, in respect of the debt. There is no ground for interference and we reject the petition.