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Issues: (i) Whether, on expiry of the time limit under Section 96 of the West Bengal Co-operative Societies Act, 1983, the Registrar became functus officio and the arbitration proceedings abated. (ii) Whether the Arbitration Act, 1940 applied so as to confer jurisdiction on the civil court to revoke the arbitrator's appointment and appoint another arbitrator.
Issue (i): Whether, on expiry of the time limit under Section 96 of the West Bengal Co-operative Societies Act, 1983, the Registrar became functus officio and the arbitration proceedings abated.
Analysis: Sections 95 and 96 of the Act, read with Rule 178 of the West Bengal Co-operative Societies Rules, 1987, show that the Registrar may refer the dispute, extend time within the statutory limit, and, where the reference cannot be completed, withdraw the matter and either decide it himself or appoint another arbitrator. The statutory scheme does not leave the dispute without a forum merely because the original arbitrator failed to make an award within one year.
Conclusion: The arbitration proceedings did not abate, and the Registrar was not functus officio.
Issue (ii): Whether the Arbitration Act, 1940 applied so as to confer jurisdiction on the civil court to revoke the arbitrator's appointment and appoint another arbitrator.
Analysis: Section 46 of the Arbitration Act, 1940 applies only where it is not inconsistent with the special enactment or its rules. The West Bengal Co-operative Societies Act, 1983 provides a self-contained mechanism for dispute resolution, including withdrawal of the reference and fresh appointment by the Registrar. In that setting, the exclusionary effect of Section 46 prevented the civil court from invoking Sections 11, 12 or 21 to interfere with the statutory appointment.
Conclusion: The Arbitration Act, 1940 did not apply, and the civil court had no jurisdiction to revoke the statutory arbitrator's appointment or appoint another arbitrator.
Final Conclusion: The statutory dispute-resolution mechanism remained operative under the cooperative societies law, and the matter had to be taken back to the Registrar for appropriate action and expeditious disposal.
Ratio Decidendi: Where a special statute contains a complete and inconsistent arbitration scheme, the general provisions of the Arbitration Act, 1940 do not apply, and the authority designated by the special statute retains power to withdraw the reference and appoint a fresh arbitrator.
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