( 1 ) THE appellant on 9/2/1961 was appointed as an Officer in Grade III in the respondent Bank (for short "the Bank"), He was promoted on 1/4/1968 as a Grade D Officer in the Foreign Exchange Department in the head office of the Bank. Sometime in 1964, Manoj Cooperative Housing Society (for short "the Society") was formed of which the appellant was one of the Chief Promoters and thereafter its secretary. The object of the Society was to construct residential premises for the employees of the Bank and its other members. It appears that a complaint was received in respect of the affairs of the Society relating to misappropriation of the funds of the Society and consequently, in exercise of the powers under Section 83 of the Maharashtra Cooperative Societies Act, 1961 (for short "the Act"), the Registrar on 23/4/1969 instituted an inquiry thereof. Mr. A. S. Rangnekar was appointed the Registrars nominee who on 4/10/1969, submitted the report holding the appellant and two other officer-bearers of the Society negligent in dealing with the funds of the Society causing a loss to the tune of Rs. 3,59,000. 00. The Registrar on 21/10/19699, passed an order appointing an officer under Section 88 of the Act to assess the loss caused to the Society. However, the government by its order dated 29/11/1969 annulled the Registrars order dated 23/4/1969 and 21/10/19699 and directed a fresh inquiry into the affairs of the Society.

( 2 ) ON 17/12/1969, the Bank issued a show-cause notice to the appellant to explain within fifteen days his alleged negligent conduct in dealing with the affairs of the Society as revealed in the report dated 4/10/1969. In the meantime, Mr. Godbole came to be appointed by the Registrar vide his order dated 26/7/1969, to make inquiries under Section 88 of the Act. The petitioner by his reply dated 18/1/1970/22/1/1970 submitted his explanation and also challenged the legality of the inquiry and the findings recorded therein. On 5/3/1970, Mr. M. S. Mavalkar, Treasurer of the Society and an employee of the Bank filed two criminal complaints in the court of Additional Chief Presidency Magistrate, Bombay alleging that the appellant and two other officer-bearers of the Society had dishonestly misappropriated a sum of Rs. 51,000. 00 and Rs. 80,000. 00 respectively which was entrusted to the appellant in his capacity as Promoter and secretary of the Society and thereby committed criminal breach of trust. The Magistrate framed the charges against the appellant under S. 409 and 109 of the Indian Penal Code. The Bank having regard to the serious misconduct of the appellant involving moral turpitude vide its order dated 3/11/1970 suspended the appellant pending trial. The appellant protested against this action of the Bank complaining that he was not given an opportunity of hearing before passing the order of suspension. In the meantime, Mr. Godbole, the authorized officer appointed by the Registrar vide his order dated 9/10/1971 held the appellant liable to pay Rs. 2,36,000. 00 to the Society in addition to the amount of Rs. 2,03,000. 00 for which he (the appellant) and two other office-bearers of the Society were held jointly liable. The Bank in view of this finding, vide its order dated 29/11/1971 terminated the services of the appellant with effect from 1/12/1971 along with notice pay. The appellantprotested against the action of the Bank and on 3-12-1971 filed detailed representation against the order of termination. The Bank replied to the appellants representation and justified its action. The appellant on 28/12/19711 submitted his reply to the Bank staling, inter alia, that the termination of his services was not simpliciter and was in violation of the principles of natural justice; that no opportunity of hearing was given to him; that the termination order attached a stigma. The appellant aggrieved by the findings and order made by Mr. Godbole preferred Appeal No. 22 of 1972 before the Maharashtra State Cooperative tribun