WEERASOORIYA, S. P. J.—Rasiah v. Chellathurai
1962Present: Weerasooriya, S.P.J., and Herat, J.S. RASIAH, Appellant, and K. J. CHELLATHURAI, Respondent
C. 363—D. C. Batticaloa 807jSpl.
Co-operative society—Cancellation of its registration—Reference of a dispute thereafterto arbitration—-Liquidator not a party—Effect of award—Co-operative SocietiesOrdinance (Cap. 124), ss. 46, 47, 48 (I) (d), 53.
It is not open to a person appointed as liquidator of a co-operative society,after the cancellation of its registration, to make an application to Court thatan award of an arbitrator under the provisions of the Co-operative SocietiesOrdinance be made a decree of court and enforced as such, if the award wasmade in respect of a dispute which was referred for arbitration after theregistration of the society had been cancelled and the reference was not madeby the liqu idator himself as plaintiff.
PPEAL from an order of the District Court Batticaloa.
C. Ranganathan, for the Defendant-Appellant.
No appearance for the Respondent.
July 23. 1962. Weerasooriya, S.P.J.—
This is an appeal from an order of the District Judge, Batticaloa,that an award against the appellant under the provisions of the Co-operativeSocieties Ordinance (Cap. 124) he made a decree of court and enforcedas such. The award is dated the 25th of May, 1954, and sets out thedispute as one between “ the Kommathurai Co-operative Stores Society(Liquidation), plaintiff, and Sinnathamby Rasiah of Kommathurai,Chengalady, defendant ”, and relating to the question whether thedefendant owed the plaintiff the sum of Rs. 1,712.39. It directedSinnathamby Rasiah to pay to the Society the sum of Rs. 1,712.39with interest.
Lore.nsz v. Abdul Coder
It would, appear that the registration of the Kommathurai Co-operativeStores Society had been cancelled by the Registrar under the provisionsof the Co-operative Societies Ordinance nearly six years prior to the23rd February 1953, which is the date on which this dispute was referredfor arbitration. Section 46 of the Ordinance provides that where theregistration of a society is cancelled the society shall cease to exist as acorporate body from the date on which the order takes effect, whileSection 47 provides for the Registrar appointing a liquidator of a societythe registration of which is cancelled, and for the vesting of all propertyof the society in the liquidator as from that date. The present applicationthat the award be made a decree of court and enforced as such appearsto have been made by the liquidator of the society appointed undersection 47.
It is not clear when the claim of the society against the appellant firstarose. Assuming, however, that it did arise prior to the order cancellingthe registration, the rights of the society in respect of the claim wouldhave vested in the liquidator, and any dispute that arose subsequentlyin regard to that claim would have been one between the liquidatorand the appellant, and not between the society (which was then notin existence) and the appellant. Section 48 (1) (d) enables a liquidatorto refer for arbitration under section 53 any dispute of any descriptionmentioned in that section (references therein to the society being construedas references to the liquidator). It was open, therefore, to the liquidatorto have referred this dispute for arbitration as a dispute arising betweenhimself and the appellant.
We set aside the order appealed from and dismiss the application withcosts in both Courts. The dismissal of this application is without pre-judice to the right, if any, on the part of the liquidator to make a freshreference for arbitration in terms of section 48 (1) (d) of the Ordinance.
Herat, J.—I agree.
Order set aside.
S. RASIAH, Appellant, and K. J. CHELLATHURAI, Respondent