Smt. Poonam Rawat & Ors v. Rakesh Kumar Pachori & Ors

NAVIN CHAWLA, J AUGUST 31, 2018 RN

O.M.P. Nos.18 & 19/2018 Page 1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + O.M.P. 18/2018 & IA 11097/2018 + O.M.P. 19/2018 & IA 11099/2018 Reserved on: 21st August, 2018 Date of decision:31st August, 2018 SMT. POONAM RAWAT & ORS. ..... Petitioners Through: Mr.V.P.Singh, Sr. Adv. with Mr.Apurva Upmanyu, Mr.Ekansh Bansal, Advs. versus YOGENDRA SARASWAT & ORS. ..... Respondents RAKESH KUMAR PACHORI & ORS. ..... Respondents Through: Mr.Sudhir Nandrajog, Sr. Adv. with Mr.Avi Singh, Mr.Shashank Dixit,Mr.Katyayini & Ms.Purnima Malik, Advs. CORAM: HON'BLE MR. JUSTICE NAVIN CHAWLA 1. These petitions have been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') challenging the Arbitral Awards dated 31.05.2018 and 30.05.2018 passed by the Sole Arbitrator in Arbitration case No.01/2017 (Mr.Yogendra Saraswat & Anr. v. Kendriya Bhandar & Ors.) and Arbitration case No.02/2017 (Mr.Rakesh Kumar Pachori v. Union of India & Ors.) respectively. As identical issues arise for consideration in the present petitions, the same are being disposed of by this common order. The facts herein are taken from OMP 18/2018. O.M.P. Nos.18 & 19/2018 Page 2 2. The Sole Arbitrator, by the Impugned Awards has inter alia held that the erstwhile Board of Directors of Kendriya Bhandar that is, the petitioners herein, failed to conduct elections in accordance with the Bye- Laws of the Central Government Employees Consumer Co-operative Society Ltd. (Kendriya Bhandar)(hereinafter referred to as the 'Bye- Laws') and The Multi-State Co-operative Societies Act, 2002 (hereinafter referred to as the MSCS Act) and incurred disqualification under Bye- Law No.23(ii). The Arbitrator has further declared the election of the petitioners herein as Delegates/Directors/Chairperson of the Kendriya Bhandar held between 23.08.2017 to 23.10.2017 as null and void. 3. The petitioners and respondent nos.1 and 2 are the members of the Kendriya Bhandar, which is registered under the MSCS Act. It is not disputed between the parties that the election of the General Body of the Kendriya Bhandar was last held on 9th May, 2012; election of the Board of Directors was held on 21st July, 2012 and the election of the Chairman was held on 27th July, 2012. As per the Bye-Laws 14(vi) and 19(iii) of the Kendriya Bhandar, the period/term of members of General Body and Board of Directors is five years. 4. Bye-Law 14(ii) of the Kendriya Bhandar provides that the Board of Directors shall meet at least 120 days in advance before the date of expiry of its term to appoint a Returning Officer and decide the time, date and place for conducting the election of Delegates. Bye-Laws 14(ii) is reproduced hereinunder: "14. GENERAL BODY AND ELECTION OF DELEGATES. O.M.P. Nos.18 & 19/2018 Page 3 xxxxxx (ii) To conduct the election of the General Body, Board shall meet at least 120 days in advance before the date of expiry of its term and by resolution appoint a Returning Officer and decide the time, date and place for conducting the election of delegates. The Returning Officer so appointed shall neither be a member of the Board nor an employee of the Society." 5. Bye-Law 19(i) further provides that the Board of Directors shall meet at least 60 clear days in advance of the date of expiration of its term and appoint a Returning Officer and determine the date, time and place for convening a General Body Meeting for the conduct of election of its successor Board. Bye-Law 19(i) is reproduced hereinbelow: "19. ELECTION OF BOARD OF DIRECTORS AND ITS CHAIRMAN (i) The Board of Directors in Office shall meet atleast 60 clear days in advance of the date of expiration of its term and by resolution appoint a Returning Officer and determine date, time and place for convening a General Body Meeting for the conduct of election of its successor Board as per provision of the Acts and Rules made thereunder." 6. A reading of the above provisions would show that it is the responsibility of