DEV RAJ Vs. BHATYAT VIKASHNAGAR SAHAKARI UPBHOKTA BHANDAR

JUDGEMENT

(1.) Dev Raj had approached this Court in the year 1976 for redress in respect of an order adverse to him passed in arbitration proceedings under the provisions of the Himachal Pradesh Co-operative Societies Act and the Rules framed thereunder.

(2.) Dev Raj was appointed as a salesman in the Bhatyat Vikashnagar Sahakari Upbhokta Bhandar Samiti, Chowari, Via Bakloh, District Chamba, (for brief,"the Samiti") on March 16,1967. He took charge on March 22,1967, and resigned on December 31, 1969, but was relived on March 7, 1979. During this period he was found to have defaulted in making deposits of certain amounts for which he had made cash sales of the goods belonging to the Samiti. He was also found responsible for not accounting for some stocks and other goods. A special audit of the accounts of the Samiti was made which discovered these discrepancies. While the special audit [was going on Dev Raj was requested to associate himself with the work in order to enable the audit party to find out the true facts. He, however, did not do so.

(3.) After the special audit, the Samiti took recourse to arbitration proceedings in respect of the liability of Dev Raj. The proceedings were held before the Registrar Co-operative Societies (Primary) Chamba District. The attitude of Dev Raj in these proceedings also was not very helpful because all that he was pleading was that he owed nothing to the Samiti. The Arbitrator, namely, the Registrar Co-operative Societies (Primary) on consideration of the facts, as appearing from the special audit report, held that Dev Raj was accountable for short deposits of the amount of sale proceeds to an extent of Rs. 22,598,46 p. as well as for a sum of Rs. 19,423.62 p. in respect of stocks and other goods as on January 20, 1971. However, he held Dev Raj liable only for a sum of Rs. 19,761.00 P. by making an award to that effect on May 25,1971. The Registrar took the view that Dev Raj and his sureties were jointly and severally liable for this amount which was ordered to be paid by them by June 24, 1981, failing Which interest at the rate of 10% per annum till full recovery and 10% costs thereon was to be charged from time to time.In respect of the remaining losses of the Samiti the Registrar of Co-operative- Societies held that the different Managing Committees were responsible therefor.