NIRANJAN SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners, two in number, have filed this petition under Articles 226 and 227 of the Constitution of India, invoking extraordinary jurisdiction of this court. They seek to challenge recovery certificates (annexed as Annexures P-13 and P-14) issued against them for recovery of the amount as determined by the arbitrator in arbitration proceedings under the Delhi Co-operative Societies Act, 1972.

(2.) The facts leading to issuance of the aforesaid recovery certificates, which are not in dispute, may be summarised first.

(3.) The respondent No.2 is the Commandant, Central Ordnance Depot (hereinafter referred to as the 'employer'). Certain workers/employees of this employer have formed Thrift and Credit Society under the name of United worker Co-operative Thrift and Credit Society Ltd. which is respondent No.5 in these proceedings (hereinafter referred to as the 'society'). The respondent No.6 is the President of this society. This society wanted loan for disbursement to its members (hereinafter referred to as the "employees') in need of the said loan. For this purpose it approached the Delhi State Co-operative Bank Ltd. (for short 'Bank'). The Bank accordingly disbursed a sum of Rs.72,000/- to the society for this purpose. This money was given to various employees. The petitioners stood guarantors for this loan. The employees also entered into agreement with the employer whereby they agreed to the effect that employer would be entitled to deduct outstanding amount from their salaries for payments to the society in terms of Section 44 of the Delhi Co-operative Societies Act (for short the 'Act'). The employer also executed an undertaking in favour of the Bank to the effect that it would deduct the outstanding amount from the respective salaries of the employees and remit the same to the Bank.