Where the matter is referred to the Deputy Registrar, Co-operative Societies in terms of Section 54 of the Punjab Co-operative Societies Act, 1961, the filing of FIR on the same facts is not permitted by law till the surcharge proceedings are completed.

S.D.Bajaj, J.

1. District Magistrate, Markfed, Ferozepur, wrote to the S.S.P. Ferozepur Cantt. vide his letter No. PEP-21908 dated 21.5.1988, Subject: Lodging of FIR against Surjit Singh, Field Officer, Shri Balwan Singh, Field Assistant and Rajinder, Paul Salesman, Branch Office Markfed, Talwandi Bhai. Sir, It is submitted that the above officials were holding the charge of wheat stock at Markfed storage points at Talwandi Bhai under double lock with one or other. The stock purchased on behalf of Government of India further to be delivered to it through private parties during the period of delivery of the same the above said officials failed to hand over the complete stock and account of stock of Markfed and have caused a loss to the Markfed as detailed below :-

Name of Official From Shortage Value of Stock Sh. Surjit Singh 85-86 125-61-400 Rs. 45232.28 F.O. Balwinder Singh, F.A. -do- 84-85 22-94-500 Rs. 6257.80 Sh. Balwinder Singh 85-86 1993-36-018 Rs. 538282.42 F.A. Baljinder Paul S/M Sh. Surjit singh F.O. 85-86 730-25-480 Rs. 197146.88 Bajinder Paul S/M -do- 86-87 6 Bags 803-84-00 Rs. 287061.44 Rs. 972980.82

As the above stocks have been misappropriated by the above said officials, it is, therefore, requested that a criminal case may be registered against the said officials and may be dealt with according to law". On its basis FIR No. 134 was registered against the petitioner in Police Station Ghall Khurd on 18.8.1988 under section 409 of Indian Penal Code for misappropriation/embezzlement of wheat stocks valued at Rs. 9,72,980.82 during the years 1984 to 1987; while posted as Field Assistant in the Branch Office of Markfed at Talwandi Bhai, District Ferozepur.

2. Criminal Misc. No. 9312-M of 1988 and Criminal Misc. No. 323-M of 1989 have been filed by. Barjinder Pal and Balwinder Singh both petitioners, in their respective independent petitions aforesaid for quashing FIR No. 134 dated 18-8-1988 on the grounds that the matter having been referred to the Deputy Registrar, Co-operative Societies in terms of Section 54 of the Punjab Co-operative Societies Act, 1961 , is rendered to be "a dispute of civil nature and the filing of FIR on same facts is not permitted by law till the surcharge proceedings aforesaid are completed. Registration of the FIR has, therefore, been described in the quashing petitions aforesaid as an abuse of the process of the Court and, therefore, a claim for its quashing on this score has been made therein.

3. I have beard Shri G.S. Bhatia, Advocate, for the two petitioners in their individual petitions, Shri D.S. Bath Advocate., for the State and perused the relevant record very carefully.

4. Relevant section of the Punjab Co-operative Societies Act, 1961 , reads "54: Surcharge :-

(1) If in the course of an audit, inquiry, inspection or the winding up of a co-operative society it is found that any person, who is or was entrusted with organisation or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, the rules of the bye-laws or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fraudulently has retained any money. or other property belonging to, such society, the Registrar may of his own motion or on the application of the committee, liquidator or any creditor, enquire himself or direct any person authorised by him, by an order in writing in this behalf, to enquire into the conduct of such person.

5 Provided that no such inquiry shall be held after the expiry of six years from the date of Any act or omission referred to in this sub-section.

(2) Where an inquiry is made under sub-section (1) the Registrar may, after giving the person concerned an opportunity of being heard, make an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to pay contribution and cost or compensa