Firstly, Thank you for your earlier replies.
Arbitrator has given an Award in our favour. He has held the original agreement void-ab-initio.
We have appeared Arbitration process on our own due to lack of funds, and also fighting high court case on our own. Till date were able to get the above order in our favor.
Now the Award is challenged in high court again. The argument by claimants is that since general body has approved the redevelopment process and agreement, the committee though illegal or though they may have not executed the Bonds is irrelevant as General body has the supreme power and the committee had signed the agreement in good faith, and all decisions taken in general body are binding on all.
The claimants argument is that society has recieved initial amount of 10% i.e. 12lacs as per agreement and therefore arbitrator has not considered the same, while making his decision therefore saying that arbitration award is bad in law.
The case is admitted though by the Judge. He asked whether the M20 issue was taken up in cooperative court.
We replied that yes, the registrar had himself given show cause notice to the then committee which through its advocate had replied that the committee did not sign the M20 bonds as it was not needed as it was elected in the general body and not by elections.
Dispite telling that the matter was taken up by registrar, and as per section 73, registrar has the full rights to decide on the this matter,
Though its clear that "An act which is illegal ab initio being contrary to the provisions of the co operative socities Act, Rules and Bye Laws of the Socities is not saved under sec 77 of MCS ACT.
Contravention of the bye laws of a society is an illegality. This illegality cannot be cured under sec 77(1), rectification of an illegal act apcannot make it legal.
Despite this the case is admitted in court.
Sir, Please despite above is there a chance thst the judge may over turn arbitrators Order, and if yes, on what basis. What can be the argument against the above case to go against us.