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1984 Supreme(Guj) 184

Gujarat High Court
Judgename :S.A.SHAH
PRABHAVATIBEN CHANDRASHANKER TRIVEDI - Appellant
Versus
SPECIAL RECOVERY OFFICER - Respondent
S.C.A. 2613 of 1978
Decided On : 08/31/1984

Advocates Appeared: N.R.TANDEL, R.N.SHAH

Headnote:

Code of Civil Procedure 1908 – Section 2 – Gujarat Co-operative Societies Act 1961 – Sections 106, 96, 103, 110, 155 – Issuance of Certificate – Being aggrieved by the issuance of the said Certificate the petitioner has filed this petition before this court mainly on two grounds viz. : (1) The certificate has been issued without holding inquiry as contemplated by section 106 of the Act and therefore it is in violation of principles of natural justice and void. (2)RECOVERY Officer has recovered an amount of Rs. 1 590 from the petitioner which is illegal and not authorised by law and therefore the said amount should he refunded – Held, Additional surcharge to the extent of 40% which is now sought to be recovered from the petitioner-society by threatening coercive process 25 per letter could never be recovered as it is completely without any authority of law" – IN the instant case as observed by J. B. Mehta J. originally surcharge was leviable when recovery is to be made under sec. 59 which is similar to sec. 103 of the Gujarat Act – By no stretch of imagination such provision can be made applicable to sec. 106 of the Act – However the State Government relies upon the Circular of J955 for its power – In courts opinion the said Circular of 1955 will not be available to Government for any purpose because on repeal of the Bombay Rules the said Circular also stood repealed – In that view of the matter the action of the Recovery Officer in recovering an amount of Rs. 1 590 as surcharge by coercive method was illegal and not authorised by law and therefore the said amount requires to be refunded to the petitioner – Petition Party Allowed

S. A. SHAH, J.

( 1 ) PETITIONER Smt. Prabhavatiben is the widow of Chandrashanker Narmadashanker Trivedi who had taken loan from the Gota Group Seva Sahakari Co-operative Society Limited (hereinafter referred to as the Society ). Since the petitioner could not repay the amount of loan in time the Society made an application to the Registrar of the Co-operative Societies Sabarkantha at Himatnagar under sec. 106 of the Gujarat Co-operative Societies Act 1961 (hereinafter referred to as the Act) for the issuance of Certificate The District Assistant Registrar Sabarkantha at Himatnagar after making inquiry issued Certificate dated 26-8-1976 (Annexure A to the petition) holding that an amount of Rs. 11 198. 42 paise by way of principal amount Rs. 3 85. 09 paise by way of interest Rs. 124. 55 paise by way of penal interest and Rs. 3. 00 for notice fee i. e. in all an amount of Rs. 14 411. 06 paise was due and payable by the debtor to the creditor and directed that the said amount be realised by respondent no. 3-Society from the petitioner. In clause 5 of the said Certificate it was further mentioned that the respondent no. 3-Society shall recover surcharge in accordance with the rules and regulations and credit the said amount in the Treasury.

( 2 ) BEING aggrieved by the issuance of the said Certificate the petitioner has filed this petition before this court mainly on two grounds viz. : (1) The certificate has been issued without holding inquiry as contemplated by section 106 of the Act and therefore it is in violation of principles of natural justice and void. (2)RECOVERY Officer has recovered an amount of Rs. 1 590 on 14-6-1977 from the petitioner which is illegal and not authorised by law and therefore the said amount should he refunded.

( 3 ) IN paragraph 7 of the petition the petitioner has stated that the recovery certificate issued is for the total amount of Rs 14 411. 06 paise and against that amount the petitioner has paid an amount of Rs. 15 805. 31 paise on the dates mentioned therein. The amount of Rs. 1 590 recovered from the petitioner by way of surcharge appears to have been included in the total amount of Rs. 15 805. 31 paise. Mr. N. R. Tandel learned Advocate for the petitioner is not in a position to say definitely that this amount of Rs. 1 590 is not included in the said amount of Rs. 15 805. 31 paise. However his contention is hat the petitioner has paid full amount under the Certificate and that she has paid Rs. 1 590 by way of surcharge.

( 4 ) RESPONDENT-SOCIETY has not filed any affidavit and has not denied the averment of para 7 of the petition. Special Recovery Officer Co-operative Societies Himatnagar Shri Kantilal P. Desai has filed affidavit-in-reply and in para 4 thereof he has stated that the Society informed the Special Recovery Officer that dues were recovered and accordingly auction was postponed. There is no specific denial to the averments made in para 7 of the petition. In absence or any other evidence on record and the fact that the petitioner has in specific terms stated that she has paid the amount shown in the Certificate (Annexure A ). the contention of the petitioner that nothing remains due and payable by her under the Certificate shall have to be accepted. Mr. R. N. Shall learned Advocate for respondent no. 3-Society is also not in a position to assist the Court in this behalf.

( 5 ) IN view of the fact that the amount has been paid and the dues under the Certificate having been totally discharged it will be futile to consider whether the Certificate was issued after proper inquiry or not. However in para 2 of the affidavit in-reply it has been in terms stated that before the issuance of the Certificate by the Asstt. District Registrar notice was given and necessary inquiries were made. There is no reason not to accept this part of the affidavit-in-reply. Therefore the first contention of Mr. Tandel requires to be rejected.

( 6 ) MR. Tandel has submitted that in any view of the matter the











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