JUDGEMENT
RAJIV NARAIN RAINA,J. -
(1.) Challenge in this petition is to the
Punjab Government order dated July 23, 1992 (Annexure P-5) and the order
of the Additional Registrar (C) Cooperative Societies dated August 7,
1991 (Annexure P-4). The relevant facts necessary to decide the lis are that at the relevant time the petitioner worked as a Secretary with the
Jatpur Cooperative Agricultural Service Society Limited, Tehsil Anandpur
Sahib, District Ropar. Respondent No.6-Dilbagh Singh was a salesman of
the society. It was the duty of Dilbagh Singh to purchase essential
commodities on behalf of the cooperative Bank required for daily use such
as sugar, ghee, flour, pulses etc. He had authority to purchase the goods
from the market independently and to sell the same onward without any
approval. The sale proceeds were required to be deposited with the
Secretary of the Bank. However, Dilbagh Singh failed to deposit the sale
proceeds either with the Secretary or with the Bank and thus a sum of L
37,388.09 became recoverable from him. The said amount remained due in essential commodities register maintained by him. On January 16, 1986
Dilbagh Singh admitted his liability in writing before the Inspector
Cooperative Societies, Dunewal. A copy of the letter of admission has
been placed at Annexure P-1. The petitioner has signed the document on
even date and has put his signatures on the document on the same day. The
translated copy of the admission reads as follows:-
"It is submitted that the notice has been issued by you on 8.12.85 for depositing L 32,388.09. Regarding the same I request that the said amount has been correctly worked out against me but I will deposit the amount within a month after understanding the calculation thereof. If, I fail to deposit the said amount, legal action may be taken against me. As such it is submitted that I will deposit my security amount also within one month in favour of the society. As such it is requested that no further action be taken against me before the expiry of one month."
(2.) In order to recover its money, the society raised an arbitration dispute against Dilbagh Singh and the present petitioner including
respondents No.7 to 13 who were either ex-President or Vice-President or
ex-members of the Committee of the Cooperative Society. The Arbitrator,
who was the Assistant Registrar, Cooperative Societies, asked the
petitioner and Dilbagh Singh to show cause as to what amounts are due
from each of owed them to the society. While Dilbagh Singh admitted to a
sum of L 5600/-. The petitioner owed up to L 5820/- as reimbursable in
favour of the society-Bank. An award was passed on January 19, 1987 to
the effect that the difference between the admitted value as against L
37,388.09 was the liability of only the petitioner to make good and not the 6th respondent.
(3.) Aggrieved by the award, the petitioner filed an appeal before the Deputy Registrar, Cooperative Societies, Ropar. By the appellate order
dated November 10, 1988 the award was set aside. The liability was
reversed to read against Dilbagh Singh. The petitioner urged that the
society owed money to him which were deposits of sums of money
returnable, that is, a sum of L 1200/- and another sum of L 2100/-, the
latter due towards his salary account and he was prepared to deposit the
remaining amount subtracted from the admitted amount. This also the
position reflected in the audit report dated June 30, 1985. The other
vital fact asserted is that the admitted amount of L 5820/- has nothing
to do with the sale proceeds of buying and selling essential commodities
for the society. Thus, the liability was fastened on the 6th respondent.;
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