MALKIAT SINGH Vs. KOTLA CO
LAWS(P&H)-1993-8-185
HIGH COURT OF PUNJAB AND HARYANA
Decided on August 02,1993

MALKIAT SINGH Appellant
VERSUS
Kotla Co Respondents

JUDGEMENT

A.P. Chowdhri, H.S. Brar, J. - (1.) Brief facts giving rise to this writ petition are that the petitioner was working in the Kotla Cooperative Agricultural Service Society Limited, Kotla Tehsil Sirhind, District Patiala, as a salesman in the year 1979. On December 12, 1978, he obtained 40 bags of D.A.P. Khad from Cooperative Marketing Society, Bassi Pathana. In the stock register, however, only 30 bags of D.P.A. Khad were entered. There was an annual audit carried out for the period July 1, 1978 to June 30, 1979 and at the time of audit the aforesaid transaction came to the notice of the Auditor and the petitioner was asked about it. The petitioner explained that even though the Salesman of that other Society had prepared a bill for 40 bags of D.A.P. Khad, only 30 bags were, in fact, issued, as only that quantity was available in stock at that time. In support of his explanation he produced before the Auditor gate-pass of the said Marketing Society, Bassi Pathana. The Auditor made a note in the stock register to the following effect:- "According to bill Khad dated 12.12.78 it is for 40 bags but according to Gate pass bags of Khad are 30, 10 bags of Khad remain outstanding against Gurmukh Singh, Salesman, C.M.S. Bassi Pathana." Copy of the relevant page is Annexure P-1. In the Audit Report Annexure P-2, in paragraph 61, the following entry was made:- "There is balance against the Ex-Cashier S/R was given in 79/80 and according to bill Khad dated 12.12.78 the Khad bags are 40, but according to Gate pass these are 30 bags of Khad. 10 bags of Khad remains outstanding against Gurmukh Singh, Salesman C.M.S. Bassi Pathana."
(2.) The petitioner left service of the Society in the last week of July 1980. Reference was made to the Arbitrator in the year 1988. The Inspector, Cooperative Societies, vide award Annexure P-3 dated November 30, 1988, held that the petitioner was liable to pay Rs. 1527.50 as principal and Rs. 1532.50 as interest, besides expenses and future interest at the rate of 111/2 per cent till the date of realisation. The petitioner's appeal was dismissed by the Assistant Registrar, Cooperative Societies, vide Annexure P-5 and revision was dismissed by the Commissioner (Appeals) by order Annexure P-7 dated September 8, 1992. The petitioner has assailed these orders through this writ petition.
(3.) The contention of Mr. H.S. Diwana, learned counsel for the petitioner, is that the present case clearly fell within the purview of Section 54 of the Punjab Cooperative Societies Act, 1961 (hereinafter referred to as 'the Act') and the Arbitrator and the higher authorities had fallen into a serious error of law in proceeding on the assumption that the dispute fell under Section 55 of the said Act. He further contended that according to the proviso to sub-section (1) of Section 54 of the Act, no enquiry can be held after the expiry of six years from the date of any act or omission referred to in the said sub-section. There is, however, no period of limitation as far as Section 55 is concerned. In order to appreciate the respective submissions, it will be convenient to read Sections 54 and 55 of the Act in juxtaposition as under:- "54. SURCHARGE - (1) If in the course of an audit, inquiry, inspection or the winding up of a cooperative society it is found that any person, who is or was entrusted with the organisation or management of such society or who is or has at any time been on Officer or an employee of the society, has made any payment contrary to this Act, the rules of the bye-laws of has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fraudulently, the retained any money or other property belonging to such society, the Registrar may of his own motion or on the application of the committee, liquidator or any creditor, enquire himself or direct any person authorised by him, by an order in writing in this behalf, to enquire into the conduct of such person. Provided that no such inquiry shall be held after the expiry of six years from the date of any act or omission referred to in this sub-section. (2) Where an inquiry is made under sub-section (1) the Registrar may, after giving the person concerned on opportunity of being heard, made an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to pay contribution and cost or compensation to such extent as the Registrar may consider just an equitable. 55. DISPUTES WHICH MAY BE REFERRED TO ARBITRATION. - (1) Notwithstanding any thing contained in any law for the time being in force, if any, dispute touching the constitution, management or the business of a cooperative society arises - (a) among members, past members and persons claiming through members, past members and deceased members; or (b) between a member, past member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society or liquidator, past or present; or (c) between the society or its committee and past committee, any officer, agent or employee, or any past officer, past agent or past employee or the nominee, heirs or legal representatives of any deceased officer, deceased agent, or deceased employee of the society; or (d) between the society and any other cooperative society, between a society and liquidator of another society or between the liquidator of one society and the liquidator of another society; Such disputes shall be referred to the Registrar for decision and no Court shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute. (2) For the purpose of sub-section (1) the following be deemed to be disputes touching the conditions, management or the business of cooperative society, namely - (a) a claim by the society for any debt or deemed due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not; (b) a claim by a society against the principal debtor where the society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor as a result of the default of the principal debtor, whether such debt or demand is admitted or not; (c) any dispute arising in connection with the election of any officer of the society. (3) If any question arises whether a dispute referred to the Registrar under this Section is or is not a dispute touching the constitution, management or the business of a cooperative society, the decision thereon of the Registrar shall be final and shall not be called in question in any Court.;


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