GAJENDRA BEHERA Vs. SECRETARY BALASORE BHADRAK

JUDGEMENT

(1.) A short question is involved in this case to the effect that whether after an award passed by the Arbitrator, the Opposite party can proceed otherwise than the procedure given in the Orissa Co -operative Societies Act, 1962 (for short 'the Act') for execution of award by making an order to the effect that an amount of Rs. 1,000/ - per month shall be realized from the monthly salary bills of the Petitioners who are the guarantors to the loan amounting to Rs. 9,00,000/ - granted to the original borrower.

(2.) THE brief fact of the case are that one Agani Sahu approached the Opposite party for granting loan to the tune of Rs. 9,00,000/ -. The Petitioners -the employees of the bank were the guarantors for the loan which was granted and disbursed in the year 1997 by the Opposite party. After receiving the amount of loan, the original borrower, i.e., Agani Sahu defaulted in making payment of instalments. Thereafter though the bank took the recourse of attaching the mortgage property of the original borrower and sold out the the same, it could not realize the default amount inclusive of interest.

(3.) NOW the question has arisen as to whether after the arbitration award being made final, it is open for the Opposite party to pass a suo motu order attaching the salary of the Petitioners instead of taking recourse of law for the execution of the award. In this regard Section 103 of the Act provides: