PRAVINSINH DILUBHA Vs. DISTRICT REGISTRAR

JUDGEMENT

(1.) The short facts of the case are that the petitioners are the office bearers of the Shree Monpur Sahakari Sangh Mandli Ltd (hereinafter referred to as "the Society"). The State Govt floated the scheme for abolition of debts of agriculturists pursuant to the policy declared by the Govt.of Gujarat. As per the said scheme if any agriculturist who had taken loan of less than Rs.10,000.00 the amount was to be waived and if the agriculturist has taken loan exceeding Rs.10,000.00 he would be entitled to waiver of 50% of the said amount and the balance amount was to be paid by the agriculturist as outstanding on the date when the scheme came into force. The society had taken loan on the interest at the rate of 7.5% p.a. from Bhavnagar Dist.Coop.Bank Ltd (hereinafter referred to as "the Dist.Bank"). The loan, pursuant to the policy of the State Govt, was to be recovered from the agriculturists who had taken loan exceeding amount of Rs.10,000.00. However, instead of recovering the amount from the member-agriculturists concerned the Managing Committee of the society comprising of petitioners took a decision to take loan of Rs.9,47,309.00 from the Dist.Coop.Bank Ltd on interest at the rate of 14% p.a. and credited as recovery from the members concerned with a view to see that the benefit under abolition of agriculturists' debt scheme is made available. One of the contentions of the petitioner-society was that if the amount of loan was not paid the society would have been shown as defaulter by the Dist.Bank and therefore also the loan was taken. Be that as it may, there is no dispute on the point that the additional amount of loan which was taken on interest at 14% p.a. whereas the existing outstanding loan which was earlier taken from the Dist.Coop.Bank was on interest at the rate of 7.5% p.a. The case of the petitioner is that they had taken fresh loan from the Dist.Coop.Bank with a view to provide the said loan to the farmers who are members of the society so that these farmers can take the benefit of the abolition of agriculturists' debt scheme. The said scheme is produced on record and the clause 6 of the said scheme provides that if the amount is fully paid by the concerned agriculturists after deduction of available set-off or waiver of the debt then only he would be entitled to fresh loan. It is the case of the petitioner that after the fresh loan on interest at the rate of 14% p.a. was taken, the Govt did not extend the benefit of said scheme of abolition of agriculturists' debt and therefore the society had to bear the burden of interest. The facts in detail shall be dealt with hereinafter. However, the aforesaid is the background of the matter.

(2.) It appears that the Dist.Registrar, Cooperative Societies, Bhavnagar in the year 1993 passed order for holding inquiry under section 94 of the Act on the basis of the report submitted by the Auditor that due to the action of the Managing Committee of the society of taking loan on interest at the rate of 14% p.a. as against the earlier loan given to the farmers on interest at the rate of 7.5% p.a. the society has suffered loss of difference of interest at the rate of 4.75% p.a. amounting to Rs.21,002.00 There was also aduit inquiry report that the expenses of postage and telegram charges of Rs.10.00 and Rs.107.00 have wrongly debited and it was also further mentioned in the audit report that for attending rally of cooperative societies on 8.11.991 at Gandhinagar the travelling expenses of Rs.1257.00 is wrongly debited. It was on account of aforesaid remarks and quarries raised in the audit report the order was passed by the Dist.Registrar for holding inquiry under section 93 of the Act. The inquiry officer, in addition to the amount of Rs.21,002.00 as referred to by the auditor, also included further amount of interest at the rate of 18% p.a. on the aforesaid amount of Rs.21,002.00. It was included by him as Rs.12,894.00. Thus in all it was Rs.33,896.00(Rs.21,002/-+ Rs.12,894.00). Inquiry Officer has issued chargesheet, reply was submitted and witnesses including the auditor were examined and ultimately on 30.11.1994 the Inquiry Officer found that each of the petitioners is liable for amount of Rs.7,430.60ps, totalling to Rs.37,153.00+ Rs.2,000.00 towards expenses of inquiry and if the amount is not paid within one month further interest at the rate of 18% p.a. also be recovered. Copy of said inquiry report is produced at annexure "B" to the petition.

(3.) The petitioners preferred appeal before the Gujarat State Cooperative Tribunal being Appeal No.3/95. It is the case of the petitioners that written arguments were submitted and all the contentions are not taken into consideration. However, the tribunal, ultimately passed judgment and order dated 8.10.1998 whereby the tribunal observed that all the principles of natural justice are complied with while holding inquiry by the Inquiry Officer and there is no material irregularity committed by the inquiry officer and therefore the appeal is dismissed. Under the circumstances, the petitioners preferred this petition.