RABINARAYAN NANDA Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE petitioner in this writ application has sought for a direction to the opposite parties not to disturb the petitioner's status and right in the Ranpurgarh Service Cooperative Society Limited (hereinafter referred to as 'Society') by quashing Annexures 2 and 4.

(2.) THE case of the petitioner is that he is the President of the Managing Committee of the Society which is a primary society. Having been elected, the committee resumed office in September, 1997. The opposite party No. 2 is the Secretary of the Society. The petitioner applied for a loan for agricultural operation of high yielding variety of paddy during the agricultural year 1999 -2000. The Society is affiliated to Khurda Central Co -operative Bank Ltd. The primary society sanctioned Rs. 28,000/ - on 31.3.1999 fixing the repayment dates to 15.6.1999, 28.2.2000 and 15.6.2000. Rs. 9,200/ -was disbursed to the petitioner on 31.3.1999, Rs. 10,000/ - on -1.6.1999, Rs.1,100/ - on 29.9.1999 and the balance Rs. 7,700/ - on 24.12.1999. Opposite party No. 2 issued a demand notice on 12.6.1999, that is, 3 days prior to the first instalment of Rs. 9,895/ - fell due for repayment. The petitioner paid Rs. 10,765/ - on 22.12.1999. In spite of such payment the Assistant Registrar, Cooperative Societies, Nayagarh, having no power under the provisions of the Orissa Cooperative Societies Act, 1962 (for short 'the Act') and knowing fully well that opposite party No.2 is not a functionary to determine default and disqualification, wrote a letter to opposite party No. 2 on 3.12.1999 instructing him to issue demand notice and take action if the petitioner fails to pay the dues. Pursuant to the same on 16.12.1999 opposite party No.2 intimated the petitioner by way of a notice that having defaulted in payment of the instalment, the petitioner is disqualified to continue as Member of the Society.

(3.) COUNTER has been filed by opposite party No.2 - Secretary of the Society, wherein it is stated that after becoming a Member of the Society the petitioner was elected as the President in the year 1997. While continuing as such, the petitioner submitted an application before the Secretary of the Society on 30.12.1998 for grant of loan for cultivation of high yielding paddy and accordingly loan to the tune of Rs.9.200/ -was sanctioned by the Society and the same was taken by the petitioner for cultivation. The same was required to be paid back on or before 15.6.1999 with interest at the rate of 16.5 percent. The petitioner having failed to pay the amount within the time, he was requested to pay the dues. Although the petitioner received the notice, he remained silent and again he was informed on 6.8.1999 to pay the dues. He was also intimated that if the dues are not paid, appropriate action shall be taken against him. Since the petitioner again failed to pay, the said fact was intimated by the financing bank to the Society on 23.12.1999. Due to failure on the part of the petitioner in payment of the dues, the Society issued notice on 16.12.1999 informing the petitioner that due to non -payment of the dues within the stipulated time, he is disqualified to be a member of the Society as per Section 28(3)(e) of the Act.