HYDERABAD CO OPERATIVE CENTRAL TRADING SOCIETY LIMITED HYDERABAD Vs. REGISTRAR OF CO OPERATIVE SOCIETIES ANDHRA PRADESH HYDERABAD

JUDGEMENT

(1.) The Petitioner is a Cooperative Society registered under the Multi State Co-operative Societies Act, 1984 (hereafter called 'MSCS Act') which was running business in the name and style of Lakshmi Super Bazaar. The petitioner society availed cash credit facility from Hyderabad District Co-operative Central Bank Limited (hereafter called 'HDCCB'); in 1974 towards working capital for running Lakshmi Super Bazaar. The loan was guaranteed by Central Government. However, during the financial year 1994-95, Central Government did not extend bank guarantee and therefore third respondent stopped cash credit facility to the petitioner society. Whatever be the reason, Lakshmi Super Bazaar was closed with effect from 31.7.1998. Therefore HDCCB recalled the loan outstanding as on 31.3.1994. Challenging the same, petitioner filed W.P. No.33564 of 2001 before this Court and obtained an order of interim suspension and also allegedly paid an amount of Rs.25,00,000/- to HDCCB. Later the said writ petition was withdrawn.

(2.) The Registrar of Co-operative Societies (hereafter called 'RCS') passed an award under MSCS Act against the petitioner society. Aggrieved by the same, an appeal under Section 90 of the said Act was filed and the same was allowed by the Appellate Authority-cum-Joint Secretary to Central Government on the ground that RCS is not competent to pass award against the petitioner society under 1984 Act. Be that as it is, when HDCCB approached the second respondent for certificate for recovery of loan amount, an order came to be passed on 10.12.2003 directing the petitioner society to pay an amount of Rs.1,00,68,914/- with interest at 18.5% + 2% per annum from 1.7.2003 till the date of payment. Assailing the said order, the present writ petition is filed.

(3.) The learned Counsel for petitioner Sri A.K. Jayaprakash Rao contends that Respondents 1 and 2 are not competent to pass any award or issue certificate for recovery against the petitioner society as the petitioner society is not a member of HDCCB. Secondly he would urge that the petitioner society being one registered under the 1984 Central Act, third respondent has to take action in accordance with the said Act, which is now been repealed by the Multi State Co-operative Societies Act, 2002. Elaborating the submissions, he would submit that earlier when HDCCB referred the matter to the District Cooperative Officer, R.R. District, by order dated 29-8.2000 the first respondent returned the case giving liberty to HDCCB to seek a reference under Central Act of 1984. Thereafter when the first respondent passed orders on 2.11.2001 under Section 74 of the Central Act directing the petitioner society to pay an amount of Rs.84,41,656.87 ps., the petitioner preferred appeal before the Joint Secretary to Central Government under Section 90 of the Central Act. The appeal was allowed holding that first respondent is not competent to pass orders and ordered for payment under the Central Act. Therefore, the learned Counsel would urge that the certificate for recovery dated 10.12.2003 is illegal and without jurisdiction.