THE MANAMADURA CO-OPERATIVE URBAN BANK LIMITED, REPRESENTED BY ITS SECRETARY Vs. S. SESHADRI IYENGAR AND ORS.

JUDGEMENT

(1.) These Appeals arise out of a common order passed by the learned District Judge of Ramanathapuram at Madurai in Original Petition. Nos. 6 to 9, 16 to 19, 21 to 24 of 1961 under Sec. 49(2) of the Madras Co -operative Societies Act VI of 1932. In all the appeals, the Respondents, viz. the Manamadurai Co -operative Urban Bank limited represented by its Secretary is the Appellant. When the appeals were taken up for hearing Mr. K. Parasaran, learned Counsel for the Respondents some of the appeals raised a preliminary objection stating that as against the order of the learned District Judge or Ramanathapuram, the Respondent therein ought to have filed regular appeals under Sec. 96 and Order XLI Code of Civil Procedure. Mr. R. Gopalaswami Iyengar, learned Counsel for the Appellant, countered the objection of Mr. Parasaran by the argument that, having regard to the subject -matter of the appeal and the provisions of the Madras Co -operative Societies Act, the Appellant was not obliged to file regular appeals and was entitled to file civil miscellaneous appeals. As the preliminary objection is concerned with the very maintainability of the civil miscellaneous appeals, it has become necessary to determine this question first before hearing the appeals on merits. To appreciate the arguments of both sides on this aspect of the matter, a brief reference to the facts is necessary.

(2.) The Respondents herein were formerly office - bearers in the Appellant Bank. In the audit report, for the year 1951 -52, of the Appellant Bank, the auditor pointed out several irregularities and frauds resulting in loss to the Appellant Bank. The Special Officer appointed for the Appellant Bank made four claims before the Deputy Registrar of Co -operative Societies, Sivaganga against the former President, the former Secretary, the former Treasurer. the Directors and some of the employees of the Bank who were impleaded as Defendants. As against the employees of the Bank, the proceedings were conducted under Sec. 51 of the Madras Co -operative Societies Act, VI of 1932 (hereinafter referred to as the Act) while the proceedings against the former office -bearers and the Directors were conducted under Sec. 49 of the Act. A total sum of Rs. 23,477 -45 p. was involved in the four claims; made before the Deputy Registrar. It was alleged in the plaints that the Bank was put to loss to the above extent due to the frauds and misdeeds of the employees and the former office -bearers. In each case the Deputy Registrar passed two separate awards for the same amount, one jointly against the office bearers, viz. the former president, the former Secretary and the former Treasurer and another against two of the employees of the Bank, viz., the former Head Clerk and the former Clerk -cum -Cashier.

(3.) Aggrieved by the awards, the former office -bearers preferred Original Petition Nos. 6 to 9 of 1961, 16 to 19 of 1961 and 21 to 24 of 1961 to the District Court, Ramanathapurain, under Sec. 49(2) of the Act. During the pendency of the proceedings, the former President, Sesha Iyengar died and his legal representatives moved the Court and brought themselves on record. On a consideration of the matter, the learned District Judge came to the conclusion that the former office -bearers Cannot be said to have been guilty of breach of trust in relation to the Society within the meaning of Sec. 19 of the Act and consequently, they were not liable for the loss sustained by the Bank on account of the frauds and misappropriations committed by the Head Clerk and the Cashier. In that view, the learned District Judge allowed the petitions filed by the former office -bearers and set aside the awards passed against them in the four arbitration references. It is to canvass the correctness of the order of the learned District Judge, the Respondent in the proceedings before the learned District Judge has preferred these appeals.