SURATHKAL CO-OPERATIVE TOWN BANK LTD Vs. PADMANABHAYYA E

JUDGEMENT

(1.) Respondent 1 in this petition, E. Padmanabhayya, was member of and later worked as an appraiser under the petitioner-bank, Surathkal Co-operative Town Bank, Ltd. As a member he had made a deposit of Rs. 1,000 with the petitioner-bank. When he was appointed as an appraiser, that deposit was, by mutual agreement, converted into a fidelity deposit in connexion with his employment as appraiser.

(2.) On account of alleged mismanagement of the affairs of the petitioner-bank, the board of directors was superseded and the management entrusted by the Registrar of Co-operative Socities. The administrator, in the course of steps taken by him to rectify defects in the management of the affairs of the bank, terminated the services of the respondent Padmanabhayya and also forfeited the above security deposit of Rs. 1,000.

(3.) Padmanabhayya, thereupon, filed before the Munsif of Mangalore Original Suit No. 346 of 1963 for a declaration of the invalidity or illegality of the order of the administrator and for a decree directing the repayment of the sum of Rs. 1,000 (being the amount of the forfeited deposit) with interest and other consequential reliefs.