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Summary: P L J 1983 Karachi 292 Present: G. M. Kourejo and Amal Mian, JJ. Muhammad Mehdi - Petitioner versus Government of Sindh and 4 Others (Respondents) Constitutional Petition No. D-1015 of 1980, decided on 14-01-1982 ----- Co-operative Societies Act (VII of 1925), Section 54-A—Award—Modifications of Held: The Registrar is competent to correct or modify awards in the following matters: (a) When part of the award deals with a matter not referred to arbitration, and the same can be separated without affecting the decision on the matter referred. (b) Where the award is imperfect in form or contains obvious errors that may be corrected without affecting the decision. (c) Where the award contains clerical errors or errors arising from accidental slips or omissions. ----- Further Held: The Registrar is also competent to set aside an award and refer the dispute back to arbitration (only) under certain specified conditions. None of such conditions existed in the present case for the Registrar to have modified the award. Therefore, the order of the Registrar was deemed illegal and without lawful authority. [Page 294] Reference: P L J 1975 Karachi 31. ------Background: The case involves a dispute concerning the cancellation of two plot allotments by a cooperative housing society. The petitioner, a member of the society, was initially allotted two plots, which were later canceled by the society without serving a show-cause notice or providing a hearing. The petitioner challenged the cancellation through arbitration under the Co-operative Societies Act, 1925, and received a favorable majority award. However, appeals were filed against this award, and subsequent proceedings led to modifications and the partial setting aside of the award by the Registrar. -----Issues: 1- Whether the Registrar was competent to modify the arbitration award under Section 54-A of the Co-operative Societies Act. ------2- Whether the cancellation of the plot allotments without a hearing violated the principles of natural justice. ------3- Whether the appeal under Section 56 could be converted into an application under Section 54-A of the Co-operative Societies Act. ------4- Whether the impugned orders by the Registrar and subsequent authorities were lawful. -----Holding/Reasoning/Outcome: --Registrar’s Competency under Section 54-A: The court held that the Registrar was not competent to modify the award under Section 54-A because none of the specific conditions that permit modifications existed in this case. The Registrar could only correct or modify awards if the modifications were due to non-referred matters, imperfect form, clerical errors, or accidental slips. Since these conditions were absent, the Registrar's action was deemed illegal and without lawful authority. --Violation of Natural Justice: The court acknowledged that the petitioner was not given an opportunity to be heard before the cancellation of the plots, thus violating the principles of natural justice. This lack of due process was a critical flaw in the society’s decision-making. --Conversion of Appeal under Section 56 to Application under Section 54-A: The court found that the appeal could not be converted into an application under Section 54-A as these provisions serve different purposes. The Registrar’s conversion of the appeal was unauthorized. --Legality of Impugned Orders: The court declared the orders dated 30-07-1978 and 01-06-1980 as illegal and without lawful authority, given the incorrect application of procedural provisions and the violation of natural justice. The court allowed the petition, restoring the original award and directing that any further proceedings must provide reasonable notice and a fair hearing to all affected parties. -----Citations/Precedents: PLJ 1975 Karachi 31: This precedent supported the finality of majority awards and emphasized the limitations on appeals under Section 56 of the Co-operative Societies Act. Co-operative Societies Act (VII of 1925), Section 54-A: Specifies the conditions under which the Registrar may correct or modify arbitration awards. Co-operative Societies Act (VII of 1925), Sections 56 and 64-A: Address the appeal and revision procedures concerning arbitration awards.