INDU BHUSHAN GUPTA Vs. STATE OF U P

JUDGEMENT

(1.) THE appel lant, as a member of the Azamgarh Gram Co-operative Society, took loans from the Society aggregating Rs. 9,000/-. Disputes having arisen they were referred to arbitra tion. The arbitrator by his award dated 12th May, 1951, awarded a sum of Rupees 11,294/- as the principal and interest in favour of the Society and against the ap pellant. The appellant's appeal was dis missed by the Deputy Registrar, though the award in respect of interest was modified. Due to certain moves of the appellant, reco very of the amount was stayed at the in stance of the State Government. But the proceedings were re- started somewhere in 1959. Thereupon, the appellant preferred a writ petition in this Court, which was however, dismissed. Hence the present ap peal.

(2.) THE learned Counsel for the ap pellant has reiterated before us the three points that were taken before the learned Single Judge. After having heard learned Counsel, we find no substance in any of them.

(3.) THE second point urged was that the recovery proceedings are barred by time under Section 23 of the Act. Section 23 provides that the liability of a past member for the debts of a registered society as they existed at the time when he ceased to be a member of the society shall continue for a period of two years from the date of his ceasing to be a member. According to the appellant, he ceased to be a member of the Society on 30th June, 1953, and, so, his liability extinguished after two years of that date. The provision restricts the lia bility of a past member in relation to the debts of the Society, that is to say, if a debt due from the society is sought to be recovered from a member, he will not be liable to pay after the expiry of two years from the date when he ceased to be a member. This Section is not applicable to a situation where the member himself is indebted to the Society. The words 'debts of a registered society' occurring in Sec tion 23 do not extend to a case where the member himself is indebted to the Society. We see no merit in this submission.