KRISHAN CHAND Vs. ASSISTANT REGISTRAR COOP SOCIETIES

JUDGEMENT

(1.) The petitioner was a member of the respondent No. 3 Society. He borrowed a loan of Rs. 3500/ - from the Society on December 23,1970, and failed to repay the same. The dispute was referred to Arbitrator who, by his award dated September 19,1977, directed the petitioner to pay a sum of Rs. 3500/ - towards principal, Rs. 3672/ - towards interest and Rs. 250/ -towards costs, totalling Rs. 7244/ -. As the petitioner did not pay the amount covered by the award, a sale notice was issued to the petitioner under Rule 72(11) of the Punjab Cooperative Societies Rules, 1963, for the sale of the property of the petitioner.

(2.) The petitioner being aggrieved by the said notice filed this Writ Petition. According to him, he did not obtain any loan from the Society though he admitted that he was a member of the Society. Admittedly, the petitioner had notice of the arbitration proceedings. The petitioner was also present when the award was passed on September 19, 1977. He did not challenge the award and allowed it to become final. Therefore, it is not open to the petitioner to say that he did not borrow the amount of Rs. 3500/ - from the Society.

(3.) The Arbitrator awarded interest at the rate of 17 -1/2 per cent per annum. But there is no material to show that the agreed rate of interest was at the rate of 17 -1/2 per cent per annum. It is submitted therefore that the agreed rate of interest was 9.37 per cent per annum. Therefore, the petitioner was liable to pay the principal amount of Rs. 3500/ - with interest at the rate of 9.37 per cent per annum from December 23,1970, till the date of award, i.e., September 19, 1977, and the future interest at the rate of 6 per cent per annum from the date of award till the realisation. Same view was also taken by this Court, in Mathra Dass v/s. State of Punjab : (1975) 77 P.L.R. 157.