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2002 Supreme(SC) 336

(2009) 16 Supreme Court Cases 247
SYED SHAH MOHAMMED QUADRIAND S.N. VARIAVA, JJ.
SANT PRASAD – Appellant
Versus
GOVERDHAN PRASAD AND ANOTHER – Respondents.
Civil Appeal No. 1973 of 2002
Decided on : March 8, 2002

Headnote:Uttar Pradesh Cooperative Societies Act, 1965, Section 70 - Cooperatice Societies – Suit regarding compensation – Filing of by the society - Claim by society for any loss caused to it by an employee - Falls within the disputes contemplated under Section 70 of the Act.

       [Para 6]

ORDER

1. Leave is granted.

2. The short question that arises for consideration in this appeal is, whether recovery of loss caused to the society by an employee of the society can be the subject-matter of dispute under Section 70 of the V.P. Cooperative Societies Act, 1965.

3. The appellant was the Secretary of the Society. The dispute with regard to loss occasioned to the Society while the appellant was functioning as Secretary thereof, was referred to the Registrar under Section 70 of the V.P. Cooperative Societies Act, 1965 (for short "the Act"). The Registrar passed an award on 24-1-1995 directing recovery of loss of Rs 87,934.75p. from the appellant. Aggrieved by the award of the Registrar h the appellant filed an appeal before the Competent Cooperative Tribunal, V.P.(for short "the Tribunal"). The appeal was dismissed by the Tribunal on 24-91997. That order was challenged by the appellant before the High Court in CMWP No. 37093 of 1997. Declining to interfere with the said order of the Tribunal, the High Court dismissed the writ petition on 16-3-2000. It is the correctness of that order of the High Court that is assailed in this appeal, by special leave.

4. Heard learned counsel for the parties.

5. To appreciate the contention that the dispute of the nature causing loss to the society does not fall under Section 70 of the Act, it will be useful to refer to the provision of clause (c) of sub-section (2) of Section 70 which is relevant. It reads as follows:

"70. Disputes which may be referred to arbitration.-(I) * * * (2) For the purpose of sub-section (I), the following shall be deemed to be included in dispute relating to the constitution, management or the business of a cooperative society, namely-

(a)-(b) * * *

(c) a claim by a society for any loss caused to it by a member, officer, agent or employee including past or deceased member, officer, agent or employee, whether individually or collectively and whether such loss be admitted or not; and

(d) * * *"

6. From a perusal of this provision it is clear that the claim by a society for any loss caused to it by an employee, whether such loss is admitted or not falls within the disputes contemplated under Section 70 of the Act.

7. In view of this position, there is no illegality in the impugned order of the High Court. No interference is, therefore, warranted with the order of the High Court. The appeal is dismissed. No costs.

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