R C KOHLI Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) Petitioner R.C.Kohli by this writ petition assails the order dated 8th June, 2007 passed by the Chairperson, Delhi Cooperative Tribunal, New Delhi in Appeal No.214 and 286/2002. The grievance of the petitioner is that the Tribunal has modified the order passed by the Registrar, Cooperative Societies and resultantly held the petitioner and Shri Mohar Singh Ram Narayan, Junior Vice President as responsible for the loss to the society. The Tribunal further held that no other office bearer or Managing Committee member or Shri Munshi Ram could be held responsible for the loss.

(2.) Petitioner by this writ petition assails the finding holding him responsible for the loss as also the exoneration of other members of the Managing Committee and Shri Munshi Ram. Facts relevant for the disposal of writ petition may be noted briefly. One Shri P.N.Manchanda was appointed as an Inquiry Officer to go into embezzlement and shortage of cash amounting to Rs.3,52,963.60 of the society during the period from 1.4.1997 to 22.11.1997. The Inquiry Officer conducted an inquiry and found that Shri Rai Singh Kataria, Cashier was receiving contributions and making disbursements in consultation and direction from the Junior Vice President Shri Mohar Singh Ram Naryan. The Inquiry Officer observed that all the cash was handled by the Cashier. He further observed that the Junior Vice President and Cashier used to dispose of the applications for non deduction of repayment instalments of loans, refund of fixed deposits. Meetings of the Managing Committee were also held. The Secretary i.e Shri R.C.Kohli, petitioner herein used to write all the proceedings of the meetings. In the event, Shri R.S.Kataria, cashier expired on 1.7.1998.

(3.) The Inquiry Officer concluded and held late Shri Rai Singh Kataria, Shri Mohar Singh Ram Naryan, the Junior Vice President responsible for the embezzlement. He further concluded that petitioner, the Secretary of the Society could not escape his responsibility and held him jointly responsible for the loss of Rs.3,52,963.60 to the society. Following the Inquiry Report, the Registrar, Cooperative Societies initiated proceedings under section 59(2) of the Delhi Cooperative Societies Act, 1972. Show cause notices were issued to Shri Rai Singh Kataria, Sh. Mohar Singh Ram Naryan and Shri R.C.Kohli, petitioner. The Registrar dropped the proceedings against Shri Rai Singh Kataria following his demise. Before the Registrar Sh. Mohar Singh Ram Naryan claimed that all work and transactions were done in consultation with the Managing Committee and the records were lying in the custody of the Secretary. Financial transactions were done by the Treasurer of the Society and he was not aware of the shortage of cash in the balance sheet. The Secretary, Mr.R.C.Kohli claimed that daily book was not cross checked by any office bearer and was in the control of the Cashier. He further submitted that one Shri Munshi Ram had been appointed as an Internal Auditor to audit the daily book and ledger and it was his duty to keep an eye on the account books maintained by the Cashier and point out any shortcomings or defalcations. Petitioner also claimed that the Cashier carried out all transcations under the guidance and directions of Shri Mohar Singh Ram Naryan. However, Sh. Mohar Singh Ram Naryan, Junior Vice President claimed that all cash transactions and disbursements were done by the Cashier himself.