T. BYLANJINAPPA S/O. THIMMAIAH Vs. THE STATE OF KARNATAKA REP. BY ITS PRINCIPAL SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, GOVERNMENT OF KARNATAKA, THE ASST. REGISTRAR OF CO-OP. SOCIETIES AND ALUR VYAVASAYA SEVA SAHAKARA BANK NIYAMITHA

JUDGEMENT

(1.) THE Petitioner was working as the Secretary of Alur Vyavasaya Seva Sahakara Bank Niyamitha, Alur, Dasanapura Hobli. Bangalore North Taluk, the 3rd Respondent herein. He was suspended from the service of the 3rd Respondent on 15.10.1993. After holding an enquiry, he was dismissed from the service on 29.5.1996. An enquiry was directed against him under Section 64 of the Karnataka Co -operative Societies Act, 1959 (for short 'the Act'). In the enquiry report, the authority concerned held that the Petitioner had misappropriated a total sum of Rs. 10,23,082/ -. The 3rd Respondent initiated a dispute under Section 70 of the Act, for recovery of the aforesaid amount with interest at 24% per annum. The dispute was allowed by the 2nd Respondent as per the order at Annexure -A dated 7.5.2004 and the Petitioner was directed to pay the aforesaid amount with accrued interest thereon at 24% p.a. from the date of his suspension till the date of payment. Feeling aggrieved, the Petitioner filed an appeal before the appellate authority. The appellate authority has dismissed the appeal as per the order at Annexure -B dated 20.02.2009. The Petitioner has called in question the validity of the said orders in this writ petition.

(2.) DURING the pendency of this writ petiton, the Petitioner has deposited a sum of Rs. 10.00.000/ - before the 3rd Respondent Bank.

(3.) IT is not in dispute that the Petitioner was dismissed from service of the 3rd Respondent on 29.5.1996 on the ground of misappropriation of the funds of the 3rd Respondent. The dispute filed by the 3rd Respondent under Section 70 of the Act was allowed by the competent authority. The Petitioner was directed to pay the sum of Rs. 24.85.508/ - inclusive of interest at 24% p.a. and future Interest at the same rate from the date of the order till the date of payment. Having perused the materials placed on record. I am of the view that the order passed by the appellate authority confirming the order at Annexure -A passed by the Assistant Registrar of Co -operative Societies is just and reasonable. The finding of fact recorded by the authorities is on proper appreciation of the material on record and there is no perversity, illegality or irregularity whatsoever in those findings. However, I am of the view that the interest awarded by the 2nd Respondent is excessive. Having regard to the facts and circumstances of the case, I am of the view that it is just and proper to award the interest at 6% p.a. on Rs. 10,23,082/ - (the misappropriated amount) from the date of suspension, i.e., from 15.10.1993 till the date of payment.