GUJARAT STATE CO-OPERATIVE MARKETING FEDERATION LIMITED Vs. JUNAGADH DISTRICT CENTRAL CO- OPERATIVE BANK LIMITED

JUDGEMENT

(1.) By filing the present petition, petitionerGujarat State Co-operative Marketing Federation Limited, has challenged judgment and order dated 10th August, 2004 passed by the Gujarat State Co-operative Tribunal in Appeal No.96 of 2001 dismissing the same as well as further order dated 01st November, 2007 passed by the Tribunal in Review Application No.80 of 2004 which was also dismissed.

(2.) The proceedings before the Tribunal arose from the judgment and order dated 08th December, 2000 passed by the Joint Registrar and Member, Board of Nominees, Ahmedabad in Lavad Case No.581 of 1999. The Board of Nominees partially decreed the suit of the plaintiff-petitioner herein, holding that the plaintiff is entitled to recover Rs.13,98,595.87 Ps. from 01st April, 1999 with 18% interest with cost from defendant No.1. As far as defendant No.2 was concerned, Lavad Suit was ordered to be dismissed by the Board of Nominees.

(3.) The petitioner which is a apex society, having area of operation in the State and which supplies fertilizers to the District, Taluka Level Sales and Purchase Unions, had given loan to defendant No.1-Maliya Hatina Taluka Sahakari Kharid Vechan Sangh. The said member agreed to take fertilizers on credit from the petitioner-Federation. It is the case of the petitioner-plaintiff that under the provisions of Sections 45 and 46 of the Gujarat Co-operative Societies Act, 1961, the petitioner-Federation cannot give credit to its members unless a guarantee is given by any member of the petitioner-Federation. In respect of the transaction in question, necessary guarantee bond was given by defendant No.2-Junagadh District Central Co-operative Bank Limited-the respondent herein.