PARAMJIT SINGH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Challenge in this writ petition filed by Paramjit Singh and others, employees of Punjab State Cooperative Agricultural Development Bank Ltd., Chandigarh, is to the order dated July 9, 1991 - Annexure P/5, passed by the Registrar, Co-operative Societies, Punjab, Chandigarh, vide which the Registrar modified the decision taken by the Board of Directors of the Punjab State Agricultural Development Bank Limited, Chandigarh. Copy of the decision is Annexure P/5. The Board of Directors had taken a decision in view of the healthy financial condition of the Cooperative Society to grant two months, gross salary as incentive to its workers, subject to certain conditions. When the matter went to the Registrar, he imposed a condition that this amount of incentive would be paid after deducting the amount of bonus already paid to the workers, which was to the extent of 20% of the profits. The contention of learned counsel for the petitioners is two fold: firstly that the Registrar had no jurisdiction to sit over the decision of the Board of Directors, as contained in Annexure P/5, which is a final authority under Section 23(1) of the Punjab Societies Act. This contention is devoid of merit. Where finances are involved, Section 41 of Act would come into play, which reads as under :-

(2.) In a Co-operative Society with unlimited liability no divident bonus shall be paid until a period of five years has elapsed from the date of registration.

(3.) No dividend shall be paid by the Co-operative Society while any claim due from the Co-operative Society to a depositor or lender remains unsatisfied.