SURAJ DEVI Vs. DEPUTY REGISTRAR CO OP SOC

JUDGEMENT

(1.) We find from the impugned order (Annexure G) of the Board of Revenue that the petitioner has been guilty of not exercising due control over the funds of the Co-operative Society. It has been found that the sale proceeds were deposited with the petitioner. The defence has been that the said sale proceeds were not deposited in the Society. Therefore, the petitioner was not guilty. In the alternative, it has been submitted that if the petitioner is held guilty, he cannot be held guilty of "gross negligence" for which alone an action under Section 63 of the M. P. Co-operative Societies Act is contemplated. Learned counsel, for this proposition, relied upon a decision of this Court, in Nanhelal v. Assistant Registrar, Co-operative Societies, Narsingpur and others, [AIR 1970 MP 39].

(2.) We have earlier stated that the petitioner has been found guilty on facts of negligence inasmuch as he has not kept proper supervision whereby the Society has been put to pecuniary loss. In our opinion, it is not a mere negligence but gross negligence on the part of the petitioner causing pecuniary loss to the Society. The decision in Nanhelal's case (supra) is on authority for the proposition that it is only when the person is found guilty of grossly negligence, the liability under Section 63 (1) arises and not merely due to ordinary negligence. In the present case, the petitioner has been found guilty of not carrying out his duties and thereby has caused pecuniary loss to the Society. In our opinion, the petitioner has been found grossly negligent and, therefore, has rightly been surcharged. The impugned order of the Board of Revenue calls for no interference.

(3.) The petition is, accordingly, dismissed. There shall be no order as to costs. Security amount be refunded to the petitioner. Petition dismissed.