SATISH KUMAR MITTAL,J. - (1.) THE Rajpura Janta Cooperative House Building Society Limited has filed this petition under Article 226 of the Constitution of India for quashing the order dated 26.7.2004 passed by respondent No. 5, whereby the appeal filed by Smt. Lakshmi Devi widow of Shri Brij Mohan Sharma (respondent No. 6 herein) was allowed and arbitration award dated 13.3.2000 passed by the Administrator, Cooperative Societies, Chapar was set aside; and the order dated 28.1.2008 whereby the revision filed by the petitioner Society against the aforesaid order has been dismissed by the Additional Registrar (G), Cooperative Societies (Respondent No. 2 herein) while observing as under :- "....the legal heirs of the loanee members already deposited Rs. 1,12,964/-, which is almost thrice the loan taken by the member. Moreover, the society has filed the arbitration proceedings in 1999 much after the death of the loanee member. Moreover the total loan advance is insured at the Housefed level and in case of death of the member it is to be recovered from the Insurance Company not from the legal heir of the deceased member. It appears that the official of Housefed, Punjab did not file timely insurance claim. Therefore, I do not find any reason to interfere into the well reasoned decision of the ARCS Rajpura dated 26.7.2004."
(2.) IN the present case, the late husband of respondent No. 6 Shri Brij Mohan Sharma, who was a Member of the petitioner Society, had taken a loan of Rs. 35,000/- from the petitioner Society in the year 1982-83. Unfortunately, he died on 17.6.1994. At that time, the total amount due was Rs. 38,051/- after adding the interest. In the year 1999, the petitioner Society initiated arbitration proceedings under Sections 51, 55 and 56 of the Punjab Cooperative Societies Act, 1961 (hereinafter referred to as 'the Act') for recovering an amount of Rs. 1,86,404/- including interest. The Arbitrator vide its order dated 13.3.2000 decided arbitration case against Smt. Lakshmi Sharma (respondent No. 6) and ordered for recovering an amount of Rs. 1,86,404/- from her. Against the said order, respondent No. 6 filed an appeal under Section 68 of the Act. The Assistant Registrar, Cooperative Societies, Rajpura accepted the said appeal and set aside the award, passed by the Arbitrator vide order dated 26.7.2004, while observing as under : "As far as Section 22 of the Cooperative Societies Act, 1961 is concerned no arbitration case can be prepared after the expiry of two years, of the death of the loanee. In this case Shri Brij Mohan Sharma who was Member of the Society died on 17.6.1994 whereas the arbitration case was prepared in the year 1999. On the other hand, the case which has been prepared by the respondent Society regarding the installments of the loan amount plus the penal interest on account of the default which has been prepared against Shri Brij Mohan Sharma has been shown a case of loan only because nothing is recoverable from the appellant. Even then if the respondent Society wanted to recover the loan amount then the same should have been done within a period of two years from the date of death of the loanee. On the basis of the above and keeping in view the remand order passed by the State of Punjab the appeal is accepted and the arbitration order dated 13.3.2000 (certificate) is set aside." The said order has been upheld in revision by the revisional authority vide order dated 28.1.2008. After hearing the counsel for the petitioner, we do not find any merit in this petition. Undisputedly, in this case, an amount of Rs. 35,000/- was taken as a loan by late Shri Brij Mohan Sharma, husband of respondent No. 6. Against the said loan amount, respondent No. 6 had already paid an amount of Rs. 1,12,964/-. Section 22 of the Act clearly provides that subject to the provisions of sub-section (2) the liability of a past member or of the estate of a deceased member of a Cooperative Society for the debts of the Society as they existed, (a) in the case of a past member, on the date on which he ceased to be a member (b) in the case of deceased member, on the date of his death; shall continue for a period of two years from such date. Therefore, in this case when the reference was sought in the year 1999, the recovery was already time barred. In our opinion, the Appellate Authority has rightly set aside the award of the Arbitrator and the said order has been rightly upheld in revision by the revisional authority. Thus, we do not find any ground to quash the impugned orders in exercise of the writ jurisdiction of this Court under Article 226 of the Constitutional of India. Dismissed. Petition dismissed.;