RAMSINGH Vs. UJJAIN PARASPAR SAHAKARI BANK

JUDGEMENT

(1.) BEING aggrieved with the order dated 8.7.2002 passed by Joint Registrar, Coop. Societies, Ujjain in Appeal No. 77-11-99-2000, appellants have preferred this Second Appeal u/s 78 (2) of M.P. Coop. Societies Act, 1960 (for short the Act).

(2.) BRIEF facts are that the appellants took the loan from the respondent bank on 26.12.1986. The respondent bank filed a dispute u/s 64 of the Act in the Court of Dy. Registrar, Coop. Societies, Ujjain. Vide order dated 24.10.1998 Court of Dy Registrar decreed the claim of respondent bank and directed the appellant to pay Rs.4,303.10 alongwith interest @ 17% p.a. and penal interest @ 2% p.a. The appellants/defendants preferred appeal in the Court of Joint Registrar who vide impugned order dated 8.7.2002 dismissed the appeal. Hence this second appeal by the appellants/ defendants.

(3.) THE counsel for the appellants has submitted that the appellants are entitled for the advantage of section 37A of the Act because they had taken the loan on 26.12.1986. At that time advantage of section 37A was permissible to an advance of loan made by the societies whether before or after commencement of M.P. Cooperative Societies (Second Amendment) Act 1979. The benefit of section 37A has been withdrawn by the State Govt. Coop. Department vide notification No. 140/3036/15-1/50 dated 14.11.1990 which clearly says that the Urban banks were given exemption u/s 37A of the Act. The Urban Coop. Banks were exempted from the provisions of section 37A of the Act by Madhya Pradesh Coop. Societies (Amendment) Act, 1996. In short it is submitted that the appellants were entitled of the benefit u/s 37A of the Act. They have taken the loan in the year 1986.