SAMAY BIR SINGH Vs. ASST. REGISTRAR, CO

JUDGEMENT

(1.) The petitioner was a member and Khazanchi of a Co-operative Society known as Sadhan Sahkari Samiti Limited, Parsol. This society was registered under the U.P. Co-operative Societies Act. The petitioner embezzled a huge amount of the society and on inquiry it was found that an amount of Rs. 35,000 was due against the petitioner which he did not pay. An agreement was thereafter entered into between the petitioner and the society, which has been attached as Annexure 1 to the petition, on 24th Feb., 1970. In pursuance of this agreement the petitioner hypothecated his immovable property and further agreed to pay the entire amount outstanding in five equal annual instalments together with interest calculated at 12 per cent per year. The petitioner defaulted in the payment of the instalments and as such an application was made under Sec. 91 of the Co-operative Societies Act, 1965 for enforcement of the charge and consequently the sale of the hypothecated properties. A notice was issued on this application. No objection was filed and ultimately by an order dated 26th July, 1973 the Assistant Registrar, Co-operative Societies passed an order that the amount may be realised by the sale of the properties which were the subject-matter of the charge. This order was sought to be executed by the Society by filing an application before the Civil Judge, Bulandshahr. When the Civil Judge proceeded to execute the order passed by the Assistant Registrar, objections were filed by the petitioner. The petitioner wanted stay of the proceedings, but they were not stayed, and, consequently, the present petition was filed in this Court challenging the proceedings before the Civil Judge and further sought relief for quashing the award and the execution thereof.

(2.) We have heard the learned counsel for the petitioner as well as the learned Standing Counsel.

(3.) Learned counsel for the petitioner has urged that the Assistant Registrar, Co-operative Societies had no jurisdiction Ito pass an award to the tune of Rs. 59,970 and as such the award is void in law, and the proceedings consequent to the award are also, therefore, liable to be quashed.