M.A. NAGENDRA Vs. DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIEITIES AND THE PRIMARY AGRICULTURE CREDIT CO-OPERATIVE

JUDGEMENT

(1.) IN this writ petition, petitioner is challenging the order dated 10.12.2012 passed by the Assistant Registrar of Cooperative Societies, Mandya Sub -Division, Mandya, as per Annexure -D thereby declaring that the petitioner stood disqualified to continue as a Director of the 3rd respondent -Society in terms of Section 29 -C of the Karnataka Co -operative Societies Act, 1959 (for short, the Act') as he had committed default in not discharging the loan amount due and payable by his deceased father. This order passed by the Assistant Registrar of Co -operative Societies was challenged before the Deputy Registrar of Co -operative Societies, Mandya, by filing an appeal under Section 106 of the Act. The said appeal has also been dismissed confirming the order passed by the Assistant Registrar. Hence, the petitioner has challenged the appellate order as well. It is not in dispute that the father of the petitioner herein one M.K. Appugowda had borrowed loan in a sum of Rs. 35,000/ - on 10.07.2007 and Rs. 25,000/ - on 03.10.2007 from the 3rd respondent -Society. He did not discharge the amount due to the Society. He died on 03.02.2009. The 3rd respondent -Society instituted the proceedings in Case No. 128/2011 -12 for recovery of a total sum of Rs. 52,173/ - along with interest at 14% p.a. An award was passed by the Arbitrator on 12.04.2012 holding that all the four sons of deceased M.K. Appugowda who were arrayed as respondents 1 to 4 to the proceedings, including the petitioner herein, were liable to discharge the loan amount along with interest failing which their movable and immovable properties would be brought for sale for recovering the said amount. Though this award passed by the Arbitrator is not part of the writ papers, counsel for the petitioner has made available a certified copy of the award for perusal of the Court. It is not in dispute that all the four brothers were parties to the dispute before the Arbitrator and they have suffered an award for recovery of the amount which was advanced as loan to their deceased father.

(2.) IT appears that one of the brothers of the petitioner has submitted a representation to the Assistant Registrar of Cooperative Societies to recover the amount from the petitioner herein and to disqualify him from continuing as Director of the 3rd respondent -Society for not discharging the loan. Based on such representation, proceedings were initiated under Section 29 -C(1)(a) of the Act for disqualification of the petitioner.

(3.) THE main contention of the learned counsel for the petitioner is that the loan was not availed by the petitioner and it was not the petitioner who was the defaulter, as the loan had been availed by his father. It is his next contention that all the four sons of deceased M.K. Appugowda were liable to discharge the loan even in terms of the award passed by the Arbitrator, therefore, it was absolutely incorrect on the part of the respondent -authorities to hold that the petitioner was liable to discharge the loan.