M.K.Mukherjee, J - (1.) These two appeals preferred under Clause 15 of the Letters Patent have been heard together and this judgment will dispose of both-as they stem from inter-related facts. The facts are as follows:
(2.) Golepark Co-operative Housing Society Ltd. (hereinafter referred to as the 'Society'), a Society registered under the West Bengal Co-operative Societies Act. 1973 ('Act' for short) and the appellant in both the appeals entered into an agreement with M/s. Biscon and Company ('firm' for short), a registered partnership firm, on October 6, 1980 to the effect that the firm would develop the land of the housing project of the Society and build houses thereon for and on behalf of the Society for a total consideration of Rs. 6,62, 85,000 within a period of three years from the date of taking over possession of the land, subject to the terms and conditions mentioned in the agreement. The agreement provided, inter alia, that the Society would pay an advance of Rupees one crore and ten lakhs to the firm within a week from the date of the work order or soon thereafter, but before-actual commencement of the work. In terms of the agreements, the Society paid to the firm Rs. 4 lakhs on November 10, 1980, Rs. 6 lakhs on December 17, 1980, Rs. 10 lakhs on January I, 1981 and further Rs. 10 lakhs on March 24, 1981 against the agreed amount of advance. In the meantime, the Registrar of Co-operative Societies, West Bengal had received complaints alleging mismanagement of the affairs of the Society and on receipt thereof, the Deputy Registrar of Co-operative Societies, Calcutta Metropolitan Area Housing (CMAH) authorised Shri P. Sengupta, Cooperative Development Officer to enquire into the matter. Pursuant thereto, Shri Sengupta conducted an inspection under Section 82 of the Act and submitted a detailed report to the Deputy Registrar on January 3, 1981 wherein he pointed out various gross irregularities allegedly committed by the Society. According to him the agreement dated October 6, 1980 was void as none of the numbers of the Managing Committee of the Society except one was competent to exercise his membership in accordance with law.
(3.) On receipt of the report, the Deputy Registrar issued a notice under Section 26(1) of the Act to the Society on January 9, 1981, calling upon it to show cause why its managing committee should not be dissolved and an administrator or a Board of administrators should not be appointed in its place. Simultaneously, under Section 26(2) of the Act he deputed Shri Sanjit Basu, Deputy Registrar of Co-operative Societies (Head Quarters) to manage the affairs of the Society. After taking over charge, Shri Basu filed a dispute case under Section 86 of the Act before the learned Arbitrator of the Calcutta Metropolitan Area Housing Cell on January 15, 1981 (Dispute Case No. 37/CMAH of 1980-81). In that case, Sri Basu filed an application under Section 87(3) of the Act and prayed for an order of attachment of the current accounts standing in the name of the firm in the Lake Gardens Branches of Syndicate Bank and other banks alleging, inter alia, that as the firms had manipulated to receive a sum of Rs. 20 lakhs or more from the funds of the Society collusively, it was apprehended that the said sum might be taken away or used by the firm, in which case the recovery of the sum might not only be delayed but also defeated. On that application, the Arbitrator passed an order to the effect that the current accounts standing in the name of the firm at the Lake Gardens branches of Syndicate Bank and State Bank of India would remain attached to the extent of Rs. 20 lakhs and the respective banks might allow the firm or authorised representative to operate those accounts leaving the amount of 20 lakhs attached. Direction was also issued by the Arbitrator to serve summons on the defendants along with the copy of the plaint of the dispute case and the application under Section 87(3) of the Act.;