MANAGER Vs. DEORAM DALPAT PATIL

JUDGEMENT

(1.) THE issue involved in this revision petition is whether a Co -operative Society can refuse to refund the maturity amount to the depositors on the grounds of its financial weakness The simple answer to the question is No.

(2.) THE complainant is a retired employee of Nashik District Co -operative Bank who has deposited his life long savings of Rs. 2,85,000 with Shree Agarasen Nagari Sahakari Patsanstha -a co -operative society(hereinafter be referred as society) in a monthly income scheme on various dates. Monthly interest and matured deposits are credited to his savings bank account from time to time. The society refused to refund the amount transferred to the Savings Bank Account on the ground that his demand is right but the previous Board of Directors did not take any vigorous action for the recovery of debt, the liquidity of the Patsanstha has gone down. In this connection, it is relevant to quote from the written statement of the Society that the staff and directors have started the vigorous action against the defaulter and so that the economical condition of the Patsanstha will be improved in future and the amount of depositor will be refunded as per the recovery of loans and the amount will be distributed in installment is expected by staff and directors.

(3.) THE District Forum after hearing the parties allowed the complaint and directed the society to refund the amount of Rs.2,60,686, along with interest at the decided rates till the date of refund with Rs.750 as costs.