STATE BANK OF INDIA Vs. SACHIV AGRA VANIJIYIK BANK KARAMCHARI VETAN BHOGI SAHKARI RIN EVAM SAKH SAMITI LTD

JUDGEMENT

(1.) HEARD Shri Vipin Sinha, learned Counsel for the petitioners " and Shri M. K. Gupta for the respondent No. 1 Co-operative Society. Learned Standing Counsel appears for respondent No. 3. With the consent of the parties, this writ petition is being finally decided at the admission stage.

(2.) THE petitioner has prayed for setting aside the order passed by the Joint Registrar, Cooperative Societies, U. P. , Agra Division, Agra dated March 3rd, 2008 made under Section 40 (3) of the U. P. Cooperative Societies Act, 1965 directing that the amount of Rs. 2,04,065/- (Rupees two lacs four thousand sixty five only) be recovered from Shri Kanhaiya Lal Agarwal-petitioner No. 2, the then Branch Manager of the State Bank of India, Industrial Estate Branch, Nunhai, Agra.

(3.) SHRI Vipin Sinha, learned Counsel appearing for the petitioners submits that the management of the State Bank of India processing the VRS application did not have knowledge about the deduction of the installments or the unpaid loan and that SHRI Kanhaiya Lal Agarwal-petitioner No. 2 was not posted as Branch Manager in the concerned branch in the period, when the ex-gratia payment was made to SHRI Ashok Kumar. He submits that bank had shown sufficient cause in failing to make deductions in terms of sub-section (2) of Section 40 of the Act, and that in any case SHRI Kanhaiya Lal Agarwal could not be held responsible as he was not posted as Branch Manager of the bank on the relevant date. His collusion has been wrongly assumed by the Joint Registrar, Cooperative Societ ies.