A.N. GROVER, J.

(1) THIS is an appeal by special leave from ajudgment of the Allahabad High court. The facts may be briefly stated: The appellant was the treasurer of government Treasury at Lakhimpur, District Kheri, in the State of Uttar Pradesh and the respondent as a body incorporated under Section 18 of the U.P. Co-operative Societies Act, 1912 (Act 11 of 1912), hereinafter called the Act, carried on the business of banking at that place. According to the bye-laws of the Bank an Honorary Treasurer was elected who held the office for a year. A sum of Rs. 10,000.00 was kept deposited with me Treasurer for disbursement on the Banks account. When the appellant was re-elected as Honorary Treasurer in 1946 he represented that he did not have sufficient time to carry out the responsibilities of the post himself and he could act through his nominee only. It is stated that with the concurrence of the authorities of the Bank and with their knowledge one Mool Chand was nominated to act on his behalf. It appears that a good deal of money was embezzled from the Bank and on 12/12/1952 the Managing Director lodged a report with the police. After investigation Mool Chand and Hazari Lal