P. Narsimha Rao vs State Of Telangana

Heard Mr. C. Damodar Reddy, learned Senior Counsel on behalf of petitioners and learned Government Pleader for Cooperation on behalf of Respondents 1 to 3 and Sri M. Venkat Divakar for Respondent No. 4.

This Writ Petition is filed seeking following relief:

"... to issue Writ of Order or direction more particularly one in the nature of writ of Mandamus declaring the inaction of the respondent No. 2 to 4 herein in implementing the Arbitral Awards dated 08.05.2020 in Arbitration case No. 20/2018 to 26/2018 and 34/2018 passed by the Arbitrator and Assistant Registrar, Office of the District Co-operative officer, Ranga Reddy District, Nampally, Hyderabad U/Sec. 62 of the Telangana State Co-operative Societies Act and thereby failing to rectify the register of members of the respondent No. 4 society by including the names of the petitioners and for providing admissions / G-numbers and consequently not allotting the plots to the petitioners as bad, arbitrary, illegal and unconstitutional and Consequently direct the respondents to take immediate steps for rectification of register of members and to allotG-numbers/ Admission Number, issuance of ID Cards and Allotment of plots to the petitioners by implementing the Awards dated: 08.05.2020 in ARC Nos. 20/2018 to 26/2018 and 34/2018 passed by the Arbitrator...."

It is the case of petitioners that they had filed an Application under Section 61 of the Telangana Co-operative Societies Act, 1964 (for short, ‘the Act’) before the 3rd respondent vide ARC Nos. 20 to 26 and 34 of 2018 who, in turn, issued orders in October, 2018 appointing one Sri. P. Narsimha Reddy, Assistant Registrar, Ibrahimpatnam, Ranga Reddy District as Arbitrator. The Arbitrator passed awards under Section 62 of the Act on 08.05.2020 holding that petitioners are eligible for allotment of G-Number / Admission number and directed the respondent Society to allot G-number/ Admission number and issue necessary identity card and further directed the respondent society to allot plot to petitioners in the respondent society's land on par with other old members.

It is the case of petitioners that even after issuance of Awards in their favour and even after several representations submitted to Respondent Nos. 2 to 4, they failed to implement the Awards. Hence, the present Writ Petition is filed seeking directions to Respondents 2 to 4 for implementation of Arbitral Awards.

The 4th respondent filed counter stating that, the Respondent No. 4 was appointed as Official Person-in-charge (PIC) subject to control of the 2ndRespondent herein and to take steps to conduct elections to the Respondent No. 4 society herein. Since her powers are very limited and subject to control of the 2nd Respondent, as such giving admission number and allotment of plots is not within her purview.

Learned Senior Counsel for petitioners argued that the Person - in- charge committee was appointed Under Section 32 (7) (a)(i) of the Act which gives all the powers of Managing Committee of the Society to the Person-in-charge and further argued that as per the bye-law No. 28(20) of the 4th respondent society, the Society provides power to act upon the decisions or orders issued under Sections 62 and 71 of the Act, as such, the bye laws of the 4th respondent Society is very clear that they can implement the Awards dated 08.05.2020 passed under Section 62 of the Act. Learned Senior Counsel further argued that it is an established position of law that persons appointed to manage the affairs of committee under Section 32 (7) (a) shall come within the definition of a "Committee" by whatever name they may be called and a Committee means the governing body of a Society by whatever name called, to which the management of the affairs of the Society is entrusted. He had placed reliance on the judgement in Writ Petition No. 749 of 1981 before the High Court of Andhra Pradesh (Government of Andhra Pradesh and Ors. Vs. K.Sethuramman and Ors.).

Learned counsel for the 4th respondent argued that petitioners have an alternative remedy under Section 70A of the Act, as such they can pursue the same. Learned Senior Counsel countered the same by arguing that the Arbitral Award was passed in 2020 and the 4th respondent had not preferred an Appeal till date, as such has accepted the decision of the Arbitrator. The 4th respondent having accepted the same, is judicially obligated to implement the Award. Even bye-law No. 28 (20) mandates the Society to implement the Award passed under Section 62 of the Act. Further, petitioners filed several representations to Respondents 2 to 4 for implementation of Arbitral Awards and due to inaction of respondents, petitioners have every right to approach this Court for implementation of the Awards.

In view of the above, this Court is of the considered opinion that petitioners having given the Arbitral Award in their favour, the 4th respondent Society having not preferred an Appeal, shall implement the same. The argument raised that the Person-in-charge stating that powers are very limited under Section 32 (7) (a) and subject to control of the 2nd respondent, as such giving admission number and allotment of plots is not within her purview is not tenable. Having read Section 32 (7) (a), the Court is of the considered opinion that powers of the person-in-charge are the same as that of Managing Committee. Further, implementation of Arbitral Award either by person – in charge or elected Managing Committee is mandatory as per the provisions of law and Society is bound to implement the same.

Accordingly, the Writ Petition is disposed of directing Respondents 2 to 4 to implement the Arbitral Awards dated 08.05.2020 in Arbitration Case Nos. 20/2018 to 26/2018 and 34/2018 passed by the Arbitrator and Assistant Registrar, Office of the District Co-operative Officer, Ranga Reddy District, Nampally, Hyderabad under Section 62 of the Act within a period on 4 (four) weeks from the date of receipt of a copy of this order. No costs.

Pending miscellaneous petitions, if any, stand closed.

Consequently, the miscellaneous Applications, if any shall stand closed.