V S TARIHAL AND SANGHA LTD Vs. JOINT REGISTRAR OF CO OP SOCIETIES

JUDGEMENT

(1.) At the apex of the Co-operative Societies of the Belgaum District, there is a Co-operative Society called as the District Central Co-operative Bank Ltd., Belgaum, (hereinafter referred to as 'the District Society) constituted and functioning under the provisions of the Karnataka Cooperative Societies Act, 1959 (hereinafter referred to as 'the Act') and the Rules framed thereunder. Among others, to the Committee of Management of the District Society, the Tarihal Vividha Seva Sahakari Sangha Niyamita, Tarihal, represented by one Shri Ningangouda Basangouda, Patil, a primary Society which is the petitioner before me, had been elected from the constituency of the Co-operative Societies of the District.

(2.) As in the, case of many other primary Co-operative, Societies, the, petitions had borrowed various amounts from the District Society agreering to pay the same on or before a particular date with interest thereon. Before the due date, the petitioner, repaid the principal amounts borrowed by it to the District Society and has repaid the, interest due thereon before the end of June, 1978, but after the stipulated due, date. Very surprisingly, the Joint Registrar of Co-operative. Societies, Belgaum Division, (hereinafter referred to as 'the Joint Registrar issued a, notice No, D|DSQ|NBP| 78-"9 dated 11-9-1978 to the, petitioner proposing to disqualify it from continuing on the, Committee of Management of the District Society on the ground that it had not paid the interest due on the amounts borrowed by it on or before the, dates due for repayment of the loans After some adjournments, the Joint Registrar posted the consideration, of the notice issued by him for hearing on 26-10-1978. At the hearing of the case the petitioner appeared through counsel and contended that the interest amounts had been paid after the due dates, but before the end of June as permitted by the Manager and Chief Executive Office of the District Society and thus there was no default in payment of either thq principal or the interest by the petitioner to the District Society and the petitioner was not therefore liable to be disqualified under any of the, provisions of the Act. By his order dated 27-10-1978 (Ext. A), the Joint Registrar repelled the contention of the petitioner and made an order as under:

(3.) The petitioner has asserted that there was neither delay nor default in payment of the interest due by it and in view of the extension of time granted by the Manager and the' Chief Executive Officer of the District Society, the findings of the authorities to the contrary are manifestly illegal. The petitioner has also asserted that it was not shown as a defaulter by the District Soeiety before the, elections were held to the Committee of Management and the District Society had never complained that it was a defaulter and the suo-motu action taken by the Joint Registrar is wholly unauthorised and illegal.