NAWAL KISHORE PRASAD SINGH Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioners were Chairman and Secretary of Nawada Motor Transport Cooperative Society, a duly incorporated body under the provisions of the Cooperative Societies Act. They have moved against the certificate proceedings as instituted against them including the order by which their objections filed under Section 9 of the Bihar and Orissa Public Demands Recovery Act (hereinafter referred to as "the Act") has been rejected by the Certificate Officer. Counter affidavit and reply thereto have been filed. The State is represented and the requisitioning authority being the Nawada Central Cooperative Bank has appeared and have also filed their counter affidavits.

(2.) HEARD Shri Ram Suresh Roy, learned Senior Counsel in support of the application, learned counsel for the State and Cooperative Bank.

(3.) IN that view of the matter, the entire certificate proceedings as against the petitioners in their individual capacity is wholly without jurisdiction and is liable to be quashed. The order passed under Section 10. of the Act rejecting the petitioners petition under Section 9 of the Act denying liability is erroneous on the face of it. It has no legal sanctity. The same is liable to be quashed and is quashed in so far as it relates to the petitioners in their personal capacity is concerned. It will be open to the Central Cooperative Bank to substitute the names by names of the present office bearers who again, it is made clear, would not be liable in their personal capacity. It is elementary that a corporate entity cannot by itself stand up in Court proceedings. It has to act through a person. It is only for that limited purpose, the names of office bearers would be there in the certificate proceedings.