SHYAM LAL Vs. STATE

JUDGEMENT

(1.) Petitioner among other things challenges the vires of S.82 of the Cooperative Societies Act of 1960. It is contended that the said section is ultra vires of Art.14 of the Constitution as it denies protection of law and equality before law to the petitioner.

(2.) Petitioner seems to have borrowed some amount from the respondent No. 2 and mortgaged his land as security for repayment of the said loan. On an earlier occasion the respondent No. 2 appears to have passed a sale order on 1-9-1981 against the petitioner. Petitioner contends that he had challenged the said order before the High Court and the same was quashed. Annexure-I is copy of the order passed by the High Court on 22-8-1983. The earlier order seems to have been quashed, for, there was no compliance of sub-sec.(2) of S.82 of J. and K. Co-operative Societies Act, 1960 and a concession was made by the counsel for the respondent No.2. The Bank was however allowed to take fresh proceedings in accordance with law. Consequent upon the order of the High Court fresh proceedings were initiated and sale order issued.

(3.) The short point canvassed before us is that whereas S.79 of the Co-operative Societies Act provides safeguard to the borrowers and they are to be proceeded against through a suit on the mortgage or the Bank may take any other proceedings for recoveries of moneies due under the mortgage. Section 79 provides procedure for receiving money and granting discharges notwithstanding the fact that the mortgage executed in favour of Land Development Bank has been transferred or is deemed under the provisions of S.17 to have been transferred to the Land Development Bank. Clause (a) of S.79 makes payments valid to the Land Development Bank as a consequence of transfer of such payments to the Land Development Bank. Clause (b) of the said section provides that in the absence of specific directions issued by the Board of Trustees and communicated to the Land Development Bank, the said bank is entitled to sue on the mortgage or take any other proceeding for the recovery of the moneys due under the mortgage.