Alok Singh, J@mdashPresent petition is filed assailing the citation notice, annexure No. 3 to the writ petition. Undisputedly, respondent No. 7 borrower has taken loan of Rs. 10,28,500/- from the respondent No. 6 Almora District Cooperative Bank; according to the bank, borrower has mortgaged his property to secure the borrowed money and petitioner as well as Kundan Singh stood guarantors. Learned counsel for the petitioner submits that as per Section 70 of the Uttaranchal Co-operative Societies Act, 2003, when a demand for payment of amount due is made and is either refused or not complied with whether such claims are admitted or not by the opposite party, should be referred for the arbitration to the Registrar Co-operative Societies and without making reference to the learned Arbitrator as per Section 70 of the Act, Co-operative Bank is not authorised to issue recovery certificate to the revenue authorities to recover the alleged amount due as arrears of land revenue.
2. Section 70 of the Act reads as under:-
"70. Dispute which may be referred to arbitration- (1) Notwithstanding anything contained in any law for the time being I force, if any dispute relating to the constitution, management or the business of a co-operative society other than a dispute regarding disciplinary action taken against a paid servant of a society arises-
(a) among members, past members and person claiming through members, past members and deceased members; or
(b) between a member, past member or any person claiming through a member, past member or deceased member, and the society, its Committee of Management or any officer, agent or employee of the society, including any past officer, agent or employee; or
(c) between the society or its committee and any past committee, any officer, agent or employee or any past officer, past agent or past employee or the nominee, heir or legal representative of any deceased office, deceased agent or deceased employee of the society; or
(d) between a co-operative society and any other co-operative society or societies:
Such dispute shall be referred to the Registrar for action in accordance with the provisions of this Act and the rules and no court shall have jurisdiction to entertain any suit or other proceeding in respect of any such dispute:
Provided that a dispute relating to an election under the provisions of this Act or rules made there under shall not be referred to the Registrar until after the declaration of the result of such election.
(2) For the purpose of sub-section (1), the following shall be deemed to be included in dispute relating to the constitution, management or the business of a co-operative society, namely-
(a) claims for amounts due when a demand for payment is made and is either refused or not complied with whether such claims are admitted or not by the opposite party;
(b) a claim by a surety against the principal debtor where the society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor as a result of the default of the principal debtor or whether such debt or demand is admitted or not;
(c) a claim by a society for any loss caused to it by a member, officer, agent, or employee including past or deceased member, officer, agent, or employee, whether individually or collectively and whether such loss be admitted or not; and
(d) all matters relating to the objects of the society mentioned in the bye-laws as also those relating to the election of office-bearers.
(3) If any question arises whether a dispute referred to the Registrar under this section is a dispute relating to the constitution, management or the business of a co-operative society, the decision thereon of the Registrar shall be final and shall not be called in question in any court."
3. As per Sub-section (2)(a) of the Act, claim for amounts due when a demand for payment is made and is either refused or not complied with by the opposite party, shall be referred for arbitration to the Registrar Cooperative Societies.
4. In the present case, Bank is contemplating to recover the amount as arrears of land revenue from the petitioner saying original borrower has failed to pay the outstanding amount.
5. Mr. C.S. Rawat, learned counsel for the Bank submits that matter shall be referred for arbitration as per Section 70 of the Act and recovery shall be made as per the award, if any. In view of the above, present petition is allowed. Impugned citation stands quashed. However, Bank shall be at liberty to approach the learned Arbitrator under Section 70 of the Act. Amount, if any, paid pursuant to the citation, shall be subject to the final outcome of the award.
