- (1.) Challenge in the present writ petition is to the order dated 8.2.1991 (Annexure P/10) passed by the Assistant Registrar as an Arbitrator whereby a sum of Rs. 1,36,802/- was found to be payable by the petitioner and he was also liable to be pay 6% interest on the principal amount i.e. Rs. 93,430/- from the said date till the date of payment. The revisional order dated 2.3.2000 (Annexure P/13) is also subject matter of challenge since the petitioner's appeal had been allowed on 29.1.1992 (Annexure P/12).
(2.) Vide resolution dated 19.9.1974 (Annexure P/1), the members of the respondent no.4-society decided to file writ petition in this Court aggrieved against the notices for recovery issued against the members by respondent no.5-Inspector Hari Ram now deceased. Resultantly Civil Writ Petition No.5127 of 1974 was filed by the society through Amir Singh challenging the notices under Section 67-A(2) & 3 of the Punjab Co-operative Societies Act, 1961 (hereinafter referred to as "the Act"). In the written statement filed by respondent no.3, the plea taken was that the right course would be to appear before the answering respondent and to produce the receipts given by the Treasurer and since disputed questions were arising. It was also pleaded the record of the society was in the custody of Rattan Singh, Secretary the present petitioner as per the letter of the Inspector of the Society. Keeping in view the defence, the writ petition was got dismissed as withdrawn on 12.11.1974 on account of undertaking given in para No. 28 of the Registrar's written statement since it had been averred that the receipts could be produced and at the best Managing Committee of the society may collect the receipts and produce the same before the respondents and the amount would not be recovered in that eventuality from the members concerned. Thereafter, on 25.11.1974 (Annexure P/4) notices were issued by the Assistant Registrar for production of the receipts and for the record of the society for making verification. Another notice was issued on 15.4.1975 (Annexure P/5) that the members should come present on 30.4.1975 and produce the receipts. The then President Amir Singh of the society lodged FIR No.91 dated 16.5.1975 against the present petitioner Rattan Singh, Amir Singh, Hukam Singh, Hari Singh and Surta under Sections 408, 467, 468, 471 and 201 IPC at Police Station, Jhajjar on the ground that they had misappropriated the amount received from the members of the society and had not deposited the same with the Co-operative Bank. Thereafter, a resolution was passed on 2.12.1975 (Annexure P/7) by the Administrator of the society that since the amount had been retained by said five persons, the case be forwarded for decision under Section 55(1) of the Act and a decree be passed in favour of the society for an amount of Rs. 93,430/- as principal and interest etc. On the basis of the said resolution the arbitration proceedings were initiated against five persons including the petitioner and respondent no.5-now deceased. In the meantime, on 12.8.1985 (Annexure P/6) the criminal proceedings ended in favour of the accused including the petitioner on the ground that matter was totally civil in nature and accused could not be saddled with criminal liability as such. The Assistant Registrar directed recovery as noticed above solely on the ground that receipts were not being produced and one of the respondent therein namely, Surta had stated that he had not given any amount to Hari Singh and recovery of the amount was made by the present petitioner the then Secretary from the members. The relevant observations reads as under:- "I tried my level best to get the society record produced but the society record was not produced before me. Sh. Surat Singh, formerly cashier stated that he had not given any amount to Shri Hari Ram, Inspector and the recovery of the all the loan amount was made by Shri Rattan Singh, the then Secy from the members. After hearing the parties and perusal of all the record, placed on the case file and the statements/affidavits of the society members, given on plain paper and affidavits, I come to the conclusion that the recovery of the amount of Rs.93,430/- was definitely made from the Society members and Shri Surat Singh, formerly cashier was found ignorant of the receipts. The receipts were produced by Sh. Rattan Singh, formerly Secretary. Thus, I declare that Shri Surat Singh son of Shri Chuni Lal, Shri Amir Singh son of Shri Nanak, Sh. Hukam Chand son of Shri Jamna and Shri Hari Singh son of Shri Chuni Lal are not at fault in this case and for all this, I declare Shri Rattan Singh son of Shri Sukh Ram, formerly Secretary to be the defaulter."
(3.) The appeal filed by Rattan Singh was allowed by the Deputy Registrar by noticing that no member of society had come forward to show any receipt to the Arbitrator and earlier conduct was noted whereby the proceedings under Section 67-A of the Act had been initiated against the society and how the members had resorted to litigation before this Court. The relevant findings read as under:- "I have come to the conclusion that actually no amount have been recovered from the members as no member of the society came forward to show any receipt to Assistant Registrar, Coop. Societies, Rohtak when he issued notices to 64 members under Section 67-A in compliance of undertaking given by Shri Ram Singh Pachhar before High Court that no amount will be recovered from members if they produced the receipt. No member presented any receipt before Assistant Registrar, Coop. Societies, Rohtak even after giving registered A.D. Notice to Shri Amir Singh, President that he should inform all members to show receipts on 9.12.1974 in the office of Assistant Registrar, Coop. Societies, Rohtak. Judicial Magistrate Ist Class, Rohtak has also clearly mentioned in his judgment dated 12.8.1985 on page no.23 "that the petition was withdrawn because of assurance having been given by the authority that any one who proves to have paid the loan amount cannot be asked to pay again. He has also recorded at page no.25 of judgment, the accused particularly, Rattan Singh can not be held responsible for an embezzlement because in the absence of any specific amount it is not proper to pin any liability upon him. The undertaking under para 28 of the High Court was not properly implemented by the then Assistant Registrar, Coop. Societies, Rohtak who gave undertaking reasons best known to him. He dropped the undertaking after giving notices to members under Section 67-A for showing the receipts in token of payment of loan. Neither Assistant Registrar nor members took interest and the case was diverted towards criminal and arbitration cases against Shri Rattan Singh, Shri Surat Singh, Hukam Chand, Amir Singh and Hari Singh all office bearers except Shri Rattan Singh. The whole case revolved around the amount of forged receipts amounting to Rs.93430/- and no actual amount of recovery was calculated on the basis of record which was available and produced before the Arbitrator on 8.3.1976 by the concerned clerk of Assistant Registrar, Coop. Societies, Rohtak which is clear from his letter No.7050 dated 15.7.1976 endorsed to Deputy Registrar, Coop. Societies, Rohtak. So far all the above noticed facts, I have reached to the conclusion that no amount has been recovered from members and I direct Shri Kanwal Singh (Liquidator) the Inspector, Coop. Societies, Jhajjar to confirm all loans outstanding against the members and the amount of loan paid by them after verifying the receipts of payment of loan. The record be traced from the office of Assistant Registrar, Coop. Societies, Rohtak who admits the custody of record in his letter No.7050 dated 15.7.1976 endorsed to Deputy Registrar, Co-operative Societies, Rohtak. You are further directed to prepare a fresh arbitration case against those persons who has actually effected recovery from members and the members should give proof in the shape of receipts. The record of recovery should be base of an arbitration case as observed by the High Court and undertaking taken by the then Assistant Registrar, Coop. Societies, Rohtak.";