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2017 DIGILAW 884 (ORI)

Shyama Prasad Mahakud v. Fire Service Employees’ Credit Cooperative Societies, Ltd. , Sundargarh

2017-08-16

BISWANATH RATH

body2017
JUDGMENT : Biswanath Rath, J. This writ petition involves challenge to the judgment passed by the Member, Cooperative Tribunal, Orissa, Bhubaneswar in T.A. No.30 of 2001 as appearing at Annexure-1 confirming the order dated 6.10.2001 involving the dispute case No.907/97-98 a proceeding under Section 68 of the Orissa Cooperative Societies Act, 1962 and Rule 70 of the Orissa Cooperative Societies Rules, 1965. 2. Short background involved in the case is that the Fire Service Employees Credit Cooperative Society is a society governed under the Orissa Cooperative Societies Act 1962. The petitioner was the president of the said society during the period from 15.09.1993 to 3.09.1997. The Society advances credit facility for consumer durable goods for purchase of domestic articles in favour of its members as per the practice procedure. The loan amount was to be rooted through Sundergarh District Cooperative Society Bank and the orders of purchase of the consumer articles were sent to the concerned firm before purchase. The firm is required to supply the domestic articles on receipt of cheques from the lending bank. The recovery is made by installment from the salary of the lonees with intimation from the society to the Disbursement Section of the Rourkela Steel plant. Facts further reveal that in the process, a large number of lonees have been sanctioned loans. It is observed that the petitioner alongwith R.S. Singh, S.N. Pradhan, I. Tiriki J. Toppo were all sanctioned loans. It is alleged that the consumer goods were not received by them due to certain illegal and intentional tactics of the petitioner. It is also alleged that in spite of petitioner having not been authorized to issue deduction slip from the salary of the aforesaid loanees to the authority of the Rourkela Steel Plant, the petitioner issued flimsy deduction slip for deduction of the installment amount from the salary of the loanees and effected deductions in a specified format prescribed by the authority of the Rourkela Steel Plant. During the audit enquiry of the society for the year 1995-96, an amount of Rs.85,273.73/-was assessed as the liability on the petitioner towards the society. Petitioner having refused to make the recovery after even serving a notice on the petitioner, the opposite party instituted a Dispute Case bearing No.907/97-98 before the Assistant Registrar, Co-operative Society. By order dated 1.10.2010 the Asst. Petitioner having refused to make the recovery after even serving a notice on the petitioner, the opposite party instituted a Dispute Case bearing No.907/97-98 before the Assistant Registrar, Co-operative Society. By order dated 1.10.2010 the Asst. Registrar Co-operative Society passed the award against the petitioner to the tune of Rs.80,694/-together with interest @ 15% per annum. Petitioner preferred an appeal registered as T.A. No.30/01 before the Member, Cooperative Tribunal, Orissa. The appeal was also decided against the petitioner confirming the award passed by the Asst. Registrar Cooperative Societies. 3. Assailing the orders vide Annexures-1 & 2, Sri Nayak, learned counsel for the petitioner raised the following grounds: “(1) The award was not passed on the date fixed and therefore such award is not valid in the eye of law. (2) There is deliberate ignorance of the enquiry report submitted by the Sub-Asst. Registrar Cooperative Society and the same has been illegally overlooked without assigning any reason. (3) There is no consideration of the reconciliation of the account statement in respect of the member loanees.” It is alleged that rejection of the grounds taken by the petitioner having not supported with any reasons, both the impugned orders suffer. Sri Nayak, learned counsel for the petitioner thus prayed this Court for interference with the impugned orders and setting aside the same. 4. Despite sufficiency of notice and appearance of a set of counsel on behalf of the private opposite parties, nobody appears on behalf of the opposite parties at the time of hearing. Accordingly, the matter is decided only hearing the counsel for the petitioner. 5. Taking into consideration the grounds taken by the learned counsel for the petitioner, this Court finds, the Dispute Case No.907/97-98 involving a dispute under Section 68 of Orissa Cooperative Societies Act, 1962 and Rule 70 of the Orissa Cooperative Societies Rules 1965 the original authority for the desire of the parties involved therein, decided the proceeding after providing opportunity of evidence to both the sides. The original authority taking into consideration the provision at clause 17 of the Bye-laws of the Society which since authorizes only the Secretary of the Society involving all the documents creating a charge of obligation on the Society, has come to hold that for the provisions in the Bye-law, the president misconducted himself involving the loan transaction. The original authority taking into consideration the provision at clause 17 of the Bye-laws of the Society which since authorizes only the Secretary of the Society involving all the documents creating a charge of obligation on the Society, has come to hold that for the provisions in the Bye-law, the president misconducted himself involving the loan transaction. The original authority also observed that the President unauthorizedly directly contacted with the S.D.C.C. Bank, Rourkela and M/s. Glamore directly in dealing with the transactions mentioned therein at page 23 & 24 of the brief. From the evidence and after thorough scrutiny of the brief the original authority held that Sri S.P. Mohakud the petitioner has mis-utilized the power and has acted as a broker in the financial bank in clear and deliberate ignorance/avoidance of the provision in the Bye-laws. 6. The original authority also taking into consideration the account enquiry at the instance of the Asst. Registrar Co-operative Society and the admission of Sri S.P. Mohakud during course of examination of Sri S.P. Mohakud that he and other persons have not availed loan in any manner has come to observe that the Society was compelled to erode the funds to the tune of Rs.38,736/-. On the submission of the learned counsel for the petitioner that there is reconciliation of the amount the original authority has also come to categorically observe that the entire claim of reconciliation by the petitioner is just a stage managed and a paper transaction thus have no reality. There is also a clear observation to the effect that in the enquiry though the Secretary and the Treasurer of the Society failed to attend the enquiry, but the defendant therein i.e. the petitioner herein attended the enquiry and convinced the enquiry officer with an agreement that the C.D.L. account of the alleged misappropriation amount will be reconciled within twenty days positively. For the clear observation by the original authority, this Court finds, there is no infirmity in the order of the original authority vide Annexure-2 and the grounds raised by the petitioner herein are all not sustainable in the eye of law. 7. Perusal of the order involving T.A. No.30 of 2001, this Court finds, for the clear observations and findings of the original authority, the appellate authority had no other option than to concur with the observation and findings of the original authority. 7. Perusal of the order involving T.A. No.30 of 2001, this Court finds, for the clear observations and findings of the original authority, the appellate authority had no other option than to concur with the observation and findings of the original authority. Grounds taken herein are all raised in the appeal after taking into consideration all these grounds, the Member, Cooperative Tribunal answering all the questions raised therein, confirmed the observation and findings of the original authority. For the concurrent finding of fact by both the Courts below, this Court finds no scope for interfering with the impugned orders in exercise of power under Article 227 of the Constitution of India. Accordingly this writ petition stands dismissed. No cost.