G.M. FISHERIES. LTD. Versus GOVERNMENT OF SINDH

AJMAL MIAN, C J .--This Petition is directed against Award dated 14-1-1979 passed by respondent No.5 and the appellate and revisional orders dated 5-3-1980 and 25-10-1980 passed by respondent No.2 and respondent No-1 respectively.

2. The brief facts leading to the filing of the above petition are that respondents 6 to 13 initiated arbitration proceedings, against petitioner No.1, namely Messers. G. M. Fisheries Ltd. in respect of their alleged dues under the Cooperative Societies Act, 1925. Respondent No.2 nominated respondent No. for proceeding with the reference. It appears that after the service of the above respondents 6 to 13's application for their claim, petitioner No.1 filed objection: in which it was inter alia averred that since they were not members of the Fishermen Cooperative Society, the arbitration could not have been invoked against them. It seems that thereupon the above private respondents filed an application on 5-8-1978 for impleading the Directors of the Company, namely Messrs Muhammad Bashir Muhammad Yousef, Mohammad Saeed and Mohammad Younis. According to the Award, the above application was granted on 5-8-1978 but according to the diary sheet this is not so, as the dairy date 9-10-1978 indicates that one Mohammad Ghazanfer Ali, Assistant Marketing Officer of the Cooperative Societies appeared before respondent No. 5 and disclosed the names of the 'Directors of petitioner No.1 namely Mohammad Yousuf, Mohammad Bashir, Mohammad Saeed, Mohammad Younis and Mohammad Ashraf. However, it appears that at no point of time the above Directors were served with the notices by respondent No.5 on the ground that they were impleaded as parties to the arbitration proceedings in addition of substitution of petitioner No.1. Before respondent No.5 the petitioner did not participate in the proceedings. However, above impugned Award was given b5 respondent No. 5 on 14-1-1979. Against the above award petitioner No.1 filed appeal which was dismissed by an order dated 5-3-1980, against which a revision was filed which was also dismissed on 25-10-1980 as stated hereinabove by respondent No.1. The petitioners being aggrieved by the above Award and the orders have filed the above petition.

3. We have heard Mr. S. I. H. Zaidi for the petitioners, Mr. Abdul Hafeez Lakho, learned Advocate General for official respondents and Mr. Mustafa Lakhani for private respondents. We have noticed that petitioners 2 to 5 were not served with the notices of the proceedings after they were impleaded by respondent No.5. In our view, if they were to be sued in their individual capacities as the members of the Fishermen Cooperative Societies, they were entitled to have individual notices of the claim of the private respondents. Mr. Mustafa Lakhani has submitted that petitioner No.1 was represented by one Mr. Qamar Sajid and, therefore, it should be deemed that the above petitioners 2 to 5 were served.

There is nothing on record to indicate that the above person had the authority to represent the above petitioners 2 to 5 on their behalf or to waive the notices of the proceedings. In this view of the matter, the impugned Award and the two orders cannot to sustained. .

4. We, therefore, allow the above petition and declare the impugned Award dated 14-1-1979 and the two orders dated 5-3-1980 and 25-10-1980 as being without lawful authority and of no legal effect. However, the case is remanded to respondent No.2 with the direction to nominate a fresh nominee for referring the alleged dispute between the Directors of Messrs G. M. Fisheries Limited and the private respondents/claimants.

However, there will be no order as to costs.

M.A.K/G-126/K

Case remanded.