TIRATHSINGH BISANSINGH Vs. MAHARASHTRA STATE CO OPERATIVE TRIBUNAL

JUDGEMENT

(1.) The petitioner, an Ex-Managing Director of the Poona Contractors Co-operative Bank Ltd., has impugned the order made by the Maharashtra State Co-operative Tribunal, Bombay, on 10th April, 1970 which in turn confirmed the order of the District Deputy Registrar, directing apportionment of the total costs of Rs. 825/- and saddling the petitioner with Rs. 550/-. The balance of Rs. 275/- was ordered to be paid by the Manager Mr. Gumaste, but he does not seem to have questioned the correctness of this order.

(2.) The few facts leading to these proceedings, stated briefly, are as follows: The petitioner was all material times working as the Managing Director of the above-said Bank and Mr. Gumaste was the Manager. As the Bank suffered losses, complaints reached the ears of the District Deputy Registrar and an enquiry was directed under section 83(1) of the Maharashtra Co-operative Societies Act, 1960. The District Deputy Registrar, on conducting the enquiry concluded that the petitioner was mainly responsible for the losses incurred by the Bank and to a certain extent the Manager Mr. Gumaste had contributed his mite. The Enquiry Officer assessed the fees of the enquiry at Rs. 825/- and further recommended that out of this amount the petitioner should pay Rs. 550/- and the balance of Rs. 275/- be saddled on Mr. Gumaste. On receipt of this report the District Deputy Registrar issued a show-cause notice under section 85 of the Act as to why the costs of the enquiry be not recovered from both the above-said persons. The petitioner put in his objections questioning the correctness of the findings of the Enquiry Officer and maintained that he was not at all liable for the costs. His plea was over ruled and the impugned order was made. Against this order the petitioner approached the Tribunal which confirmed the same.

(3.) Before dwelling on the merits and the legal as parts, reference may be made at this stage to the interlocutory order made by Desai and Savant JJ. on 12th February, 1974. When this special civil application came up for hearing before the learned Judges, they were informed that an enquiry under section 83 of the Act was pending against the present petitioner and Mr. A.R. Apte was appointed to conduct such enquiry. It was further submitted that in case the order of costs goes unchallenged, under Rule 58 of the Maharashtra Co-operative Societies Rules, 1961, serious consequences would ensue with the result that the petitioner would be, for ever, debarred from being a member or officer bearer of this bank; therefore, it was urged that pending the result of the proceedings under section 88, this matter be stayed. This submission prefailed with the learned Judges and they directed that the proceedings under section 88 of the Co-operative Societies Act by concluded as quickly as possible and the matter should come up before the Court on the adjourned date 22nd April, 1974.