ALMORA URBAN COOPERATIVE BANK Vs. STATE OF UTTARAKHAND

JUDGEMENT

(1.) Petitioner is an Urban Cooperative Bank, as defined under Sec. 2 (L-2) of the Uttarakhand Cooperative Societies Act, 2003. Petitioner advanced a loan to respondent no. 6, however, respondent no. 6 defaulted in repayment of the loan.

(2.) According to the petitioner, since it was a dispute between a Member and a Primary Cooperative Bank, therefore, the same was referred to Arbitration under Sec. 70 of the Act. The Deputy Registrar, as Arbitrator, gave his award on 29/1/2011, by declaring that the petitioner shall be entitled to recover a sum of ? 4,33,789/- from the borrower and if the said amount is not recoverable from the borrower, then the petitioner may recover the same from guarantors.

(3.) Learned counsel for the petitioner submits that the aforesaid award was not challenged by the borrower/guarantor, as such the same attained finality. Since neither the borrower nor the guarantor deposited the outstanding amount in terms of the award, therefore, petitioner made an application under Rule 333(a) of Uttarakhand Cooperative Societies Rules, 2004 to the Collector, Almora for execution of the award. The said application was supported by a certificate issued by District Assistant Registrar, Cooperative Societies, Almora. Since the assets mortgaged with the bank were situate within District Nainital, therefore, District Magistrate, Almora referred the matter to District Magistrate, Nainital vide letter dtd. 25/11/2014.