The main legal point established in the judgment is the requirement for separate consideration of evidence and separate judgments and awards in cases involving multiple defendants and allegations, as well as the implications of the provisions of the Gujarat State Cooperative Societies Act, 1961 on recovery proceedings.

JUDGMENT :

1. All these petitions are filed by Colour Merchant Co-operative Bank challenging the order passed by the Gujarat State Co-operative Tribunal [‘Tribunal’ for short] in respective appeals quashing and setting aside the judgment and award passed by the Board of Nominees in Lavad Cases for recovery of the outstanding dues from the respondents.

2. Special Civil Application No. 3903 of 2008 is filed against the order dated 05.05.2008 passed by the Gujarat State Co-operative Tribunal in Appeal No. 261 of 2002 filed by the legal heirs of late Lalbhai Bhogilal Bhavsar against the judgment and award dated 31.12.2001 passed by the Board of Nominees at Ahmedabad in Lavad Case No. 1545 of 1995.

3. The petitioner-Bank is registered under the provisions of the Gujarat State Cooperative Societies Act, 1961 [for short ‘the Act, 1961’]. Late Lalbhai Bhogilal Bhavsar, at the relevant point of time, was Joint Managing Director of the petitioner-Bank who is now represented by his legal heirs who are respondent Nos. 1/1 to 1/6 in SCA No. 3903 of 2008. Respondent No.2-M/s. Dharmanath Textile and respondent No.3- M/s. Vir Traders were proprietorship concern of Mr. Niranjan A. Shah and Late Sevantilal Manilal Shah represented through his legal heirs being respondent No.3/1 to 3/3 in SCA No. 3903 of 2008 whereas Respondent No.4-Bharatbhai Pamanlal Shah was Manager of the petitioner-Bank at the relevant point of time.

4. It is the case of the petitioner bank that in the year 1990, Rs. 25,01,800/- of the petitioner-Bank was siphoned away systematically in the name of different parties including respondent Nos. 2 and 3 by late Lalbhai Bhogilal Bhavsar and respondent No.4-Bharatbhai Shah-Ex- Manager of the petitioner-Bank in collusion with such parties.

5. The petitioner-Bank therefore, initiated action against Late Lalbhai Bhogilal Bhavsar and respondent No.4 and other account holders including respondent Nos. 2 and 3.

6. The petitioner-Bank filed 15 criminal complaints on 12.01.1990 against respondent Nos. 2 to 4 and others in Court of Metropolitan Magistrate at Ahmedabad. A notice was issued under section 76B of the Act,1961 on 17.02.1992 to the deceased Lalbhai Bhogilal Bhavsar by the District Registrar (Ahmedabad City) for misappropriation of funds of Rs. 25,01,800/-.

7. The District Registrar vide order dated 11.08.1992 passed an order to remove deceased Lalbhai Bhogilal Bhavsar from the post of Joint Managing Director of the petitioner-Bank for the period of four years. The said order was challenged by late Lalbhai Bhogilal Bhavsar by preferring Revision Application No. 71 of 1992 before the Additional Registrar, Gujarat State at Gandhinagar. The order of the District Registrar was partly modified by the order dated 13.01.1993 in the Revision Application to the extent that Late Lalbhai was ordered to be disqualified for four years for the said post and to contest the election.

8. Late Lalbhai Bhogilal Bhavsar preferred Special Civil Application No. 2391 of 2013 before this Court which was dismissed vide order dated 25.10.1994 on the ground of alternative remedy. Late Lalbhai Bhoilal Bhavsar thereafter preferred Revision Application under section 155 of the Act, 1961 before the State Government which was also dismissed by the Deputy Secretary (Appeals) which had become final in absence of any challenge by Late Lalbhai Bhogilal Bhavsar before the higher forum.

9. The District Registrar (Ahmedabad City) initiated proceedings under section 93 of the Act, 1961 against Late Lalbhai Bhavsar and others on the basis of the audit report for the year 1989-90 and issued show-cause notice dated 19.09.1991. An Inquiry Officer was appointed on 16.12.1991. The Inquiry Officer, after considering the explanation given by Late Lalbhai Bhavsar pursuant to the show-cause notice, submitted charge-sheet against him and others and framed five charges on 21.05.1992.