MOHAN SINGH NEGI Vs. STATE OF U P

JUDGEMENT

(1.) In the purported exercise of powers under Section 71 of the U. P. Co-operative Societies Act, 1965 (hereinafter referred to as the Act) the arbitrator on 21st April, 1980, passed an award whereby he held that the petitioner was liable to pay sum of Rs. 9,279.45 P. to the Bhaldawa Sadhan Sahkari Samiti Limited, the respondent No. 2 (hereinafter referred to as the Samiti). The petitioner having failed to pay up the said amount, steps were taken by the Samiti to realise the said sum from him as arrears of land revenue on 3rd February, 1982, the Tehsildar concerned issued a citation calling upon the petitioner to appear before him and pay up a sum of Rs. 11,771.30 P. The recovery proceedings are being impugned in the present petition.

(2.) A counter-affidavit has been filed on behalf of the Samiti. A rejoinder-affidavit has been filed by the petitioner. From the exchange of the affidavit between the parties the material facts, which have emerge are these The Samiti had a shop in which it was carrying on the business of sale of foodgrains and other items. The petitioner was employed as a salesman in the said shop. According to the Samiti, the petitioner, in his capacity as a salesman, misappropriated the sale amount, and also committed a criminal breach of trust in respect of sale money and other items entrusted to him. Thus, the petitioner caused loss to the Samiti. After audit inspections, a notice was given by and oa behalf of the Samiti to the petitioner to pay up a certain amount. The petitioner refused to do so. Thereupon the Samiti invoked the provisions of Section 70 of the Act and that is how the matter reached the arbitrator. In spite of due notice given by the arbitrator, the petitioner failed to appear. Eventually, the arbitrator gave his award on 21st April, 1980.

(3.) It is not in dispute that the petitioner did not, at any stage of the proceedings before the arbitrator, challenge the jurisdiction of that officer and the petitioner did not avail the statutory right of appeal as given by the Act.