Rajiv Sharma, J.

1. A challenge has been laid to the order passed by the Under Secretary (Co-operation) to the Government of Himachal Pradesh, dated 15.9.2001 in appeal No. 27 of 2000.

2. The brief facts necessary for the adjudication of this petition are that arbitration proceedings were initiated against respondent No. 3 by the petitioner-Bank under Section 72 of the H.P. State Co-operative Societies Act, 1968 (hereinafter referred to as the Act for convenient sake) for the recovery of Rs. 2,32,022.20 paise stated to have been embezzled by him and interest thereon. The arbitrator passed an award for a sum of Rs. 2,16,836.75 paise on 15.2.1978. It appears that thereafter the petitioner-Bank entered into a settlement with respondent No. 3 on 14.11.1981 and the execution proceedings instituted against him were withdrawn. Consequently, a simple mortgage deed was executed on 30.4.1982 on the basis of which the respondent No. 3 was to pay a sum of Rs. 55,000/- by 22.11.1981 and for the balance amount he was to furnish two sureties who were willing to mortgage their properties and to liquidate the loan amount within one year. It was further stipulated in the simple mortgage deed t