LAIQ SINGH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS is a writ petition for quashing of arbitration proceedings initiated by the Assistant Registrar, Co-operative Societies, Dasuya under Section 55 of the Punjab Cooperative Societies Act, 1961. At the time of filing of the writ petition, award had not been passed by the Arbitrator. However, during the pendency of the writ petition, award dated 21.3.1994 (Annexure P7) has been passed and by way of Civil Miscellaneous Application No. 5909 of 1994, the petitioner has challenged the legality of the award as well. Other prayers made by the petitioner include a prayer for issue of a direction for his reinstatement and for issue of a writ of prohibition restraining the respondents from taking any action against him.

(2.) PETITIONER was appointed as Secretary of Rajwal Cooperative Agricultural Service Society Limited (in short the Society) on 18.2.1978. Vide notice dated 19.7.1993 (Annexure P4), the petitioner was called upon by Inspector, Cooperative Societies, Datarpur to appear for hearing before the Assistant Registrar, Cooperative Societies, Dasuya regarding the case of embezzlement of Rs. 62,344/-. The petitioner was directed to produce his evidence. The petitioner appeared before the Assistant Registrar and submitted a representation dated 11.10.1993 (Annexure P6) stating therein that the allegation of embezzlement levelled against him is baseless because in the earlier audit reports, no embezzlement had been detected.

(3.) CASE of respondent No. 6 is that when two remedies were available to it under Sections 54 and 55 of the Act, it was perfectly legitimate for the Society to elect one of them. Respondents Nos. 1 to 3 have pleaded that in terms of Section 48 of 1961 Act, a statutory duty is imposed on them to conduct audit of every Cooperative Society. In furtherance of that statutory duty, audit was conducted by Shri Pawan Kumar, Inspector Cooperative Societies, Talwara who found embezzlement of the funds of the Society and shortages. He reported the matter to the Assistant Registrar who called upon the petitioner to submit his explanation and after giving full opportunity to the petitioner, arbitration award Annexure P7 has been passed.