- (1.) Shorn detailed circumstances giving arise to the filing of this petition a seeking direction of initiation of contempt proceedings against the respondents is as under :-
(2.) The petitioner it a co-operative society registered under the provisions of the Punjab Co-operative Societies Act, 1961 (hereinafter referred to as 'the Act'). The Society advanced a "loan of Rs. 36000/- to Pal Singh, a member of the Society, which amount was given to him on different dates, i.e., Rs. 10, 500/- on 24.11.1978, Rs. 14,000/- on 3.1.1979 and Rs. 10500/- on 3.3.1979. As per terms and conditions of the promotes duly executed by Pal Singh, he undertook to re-pay the amount alongwith interest at the rate of 11% per annum as per instalments. One of the terms, to which reference would have to be made in the subsequent paragraphs reads as term No. 4 is as under: ... I undertake to :- xxx xxx xxx (4) If the society feels that it would suffer loss because of my financial condition, then the society can demand the entire amount of remaining amount of loan without any notice for which I will have no objection to pay the same.... It is the case of the petitioner that Pal Singh did not make payment of these instalments of loan regularly. Consequently, the society passed a resolution for recovery of the entire balance amount from Pal Singh along with interest and costs.
(3.) This matter was referred to the Assistant Registrar Cooperative Societies, who passed an award in favour of the society directing Pal Singh to pay a sum of Rs. 30,899/- along with interest of 12% till recovery.;