GURDASPUR CENTRAL COOPERATIVE BANK LTD. Vs. PREM SINGH

JUDGEMENT

(1.) THIS is an appeal by Gurdaspur Central Coop. Bank Ltd. against the order of the District Forum dated 5.10.2006 by which the complaint of the complainant Mr. Prem Singh was allowed in the following terms: "No doubt, the opposite party has relied upon the affidavit of the complainant Ex. R4 through which he undertook that if the persons for whom he stood surety do not make the payments, and then the amount to be received by him at the time of retirement may be adjusted against the said loans. The opposite parties have not served any notice upon the person for whom he stood surety in order to know whether they have refused to make the payment of the loan amount or not and in the absence of the same, it cannot be presumed that the persons for whom he stood surety have refused to make the payment of their loan. It was incumbent on the part of the opposite party to serve a notice upon the complainant that neither he nor the persons for whom he stood surety had paid the loan amount and hence, the amount received by him on account of Provident Fund is fully adjusted against the said loans, there is deficiency in service on the part of the opposite parties by utilizing the said amount of its own accord. Hence, there being merit in the complaint, the same is hereby allowed and opposite parties are directed to credit the amount of the complainant in the Staff Account No. 7104 of the complainant. It is, however, further stated that as and when the complainant furnishing surety in the sum of Rs. 5,00,000 undertaking therein that he will pay the loan amount taken by him from the opposite parties and also the loan amount in which he stood surety, then the complainant may be allowed to operate his account."

(2.) BRIEF facts giving rise to this appeal may be noticed. Complainant was working as Assistant Manager with the appellant -Bank. He had retired as such from the Bank on 31.3.2006. He approached the Head Office of the bank for the release of the provident fund, which was due to him and a cheque of Rs. 4,54,305 dated 4.5.2006 drawn on State Bank of India, Amritsar was issued by the Commissioner, Provident Fund, Amritsar. It was further alleged in the complaint that the appellant -Bank sent the said cheque for clearance to Amritsar Central Coop. Bank, Amritsar on 13.5.2006 and after the clearance of the cheque prepared a DD of the said amount vide DD No. 939314 dated 19.5.2006 and the Central Coop. Bank, Gurdaspur (appellant) collected the said DD and took the same on 22.5.2006. When the amount as aforesaid was not credited to the account of the complainant, he filed the complaint before the District Forum.

(3.) WHILE resisting the complaint the stand of the appellant as opposite party before the District Forum, was that there were allegations against the complainant of defalcation, irregularities, etc. in sanctioning/recommending the loan, etc. to various persons including his own relations (sons). An inquiry for taking disciplinary action was initiated against him. After the issuance of the show -cause notice the complainant filed an affidavit with the appellant dated 29.3.2006. Paragraph Nos. 1 and 2 of the affidavit is in the following terms (Devnagri script) : "1. Eh Kay mere puttran Shri Rajiv Singh Ate Shri Paramjit Singh Walon The Gurdaspur Kendri Sehkari Bank Limi. Branch Narot Jaimal Singh Ton Cash Credit Traders Limtan Mablag 2.15 lakh rupees ate 2.60 lakh rupees Jinan de Ta -tareekh bakaya mere bande retirement dues ate hor bakaya vichon cut laye jan. Keonkay main ohna di guarantee diti hoi hai. 2. Eh Kay Shri Mangat Ram Walon Non -farm Sectors karze adheen Messers Mangat Ram Shuttering Store, pind Bamiyal liya see, us da aj tak banda bakaya jekar oh khud jan us de guarantor merian koshishan karan de bavzood karze di rakam bank nu wapis ada na kar sakan tan miti 31.3.2007 ton baad eh rakam main ada karan da jumewar howanga. Eh paise mere retirement dues ate hor bakaya wichon suspense account wich jaman kar laye jan, is sabandhi mainu koe aitraj nahin hovega. Uprant eh rakam karze vich kat lai jave."