RAVINDRA SINGH RAKIA Vs. SMRITI NAGRIK SAHKARI BANK

JUDGEMENT

(1.) BEING aggrieved with the order dated 5.1.2005 passed by Joint Registrar Cooperative Societies, Ujjain in Case No. F-49/03-04, the appellants have preferred appeal u/s 78 ('1) of MP Cooperative Societies Act, 1960 (for short, 'the Act').

(2.) FACTS of the case are that respondent No. 1 is a Cooperative Bank. Appellant No. 1 obtained cash credit limit of Rs.5 lacs from the respondent No. 1 Bank on 6.10.2000. Appellants No. 2 and 3 stood surety for appellant No. 1 for the aforesaid transaction. The account of the appellant No. 1 remained irregular. Hence, respondent No. 1 Bank filed an application u/s 84-A of the Act for grant of Certificate for recovery of Rs.5,18,263/- on 14.7.2003 before Joint Registrar, Ujjain. Joint Registrar, Ujjain vide order dated 5.1.2005 granted the Certificate of recovery of Rs.5,18,013/-. The appellants have challenged the aforesaid order of Joint Registrar in this appeal. Tribunal dismissed the appellants appeal on 7.12.2005 on the ground of limitation. This order of Tribunal was set aside by High Court of Madhya Pradesh, Bench at Indore vide order dated 17.7.2006 in WP No.985/2006.

(3.) REFUTING the aforesaid arguments the counsel for the respondent Bank has submitted that the cash credit limit is for one year and was not for three years. The appellants have not deposited any amount till 31.3.2003. The appellants have deposited the amount at the instance of the Court's order. The Bank authorities were very fair to reduce the rate of interest as and when it was directed by Reserve Bank of India. It is also pointed out that the other expenses added as liabilities of appellants were, as per the agreement. The application of the appellant u/s 67 (2) was rightly rejected because the respondent Bank was also not permitted to be represented by any counsel.