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2023 Supreme(P&H) 3084

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
PANKAJ JAIN, J.
Punjab State Co-op Supply Marketing Federation (Marked) – Petitioner
Versus
Financial Commissioner (Co-operation), Punjab & Ors. – Respondents
CWP-1187 of 2017, CWP-1188 of 2017, CWP-1189 of 20
Decided On : 01-06-2023

Advocates Appeared:
Mr. Abhishek Arora, Advocate and Ms. Ananya Ahluwalia, Advocate; For the Petitioner(s) in CWP Nos.1187, 1188, 1189, 3937, 3948, 4144, 6387 and 2451 of 2017.
Mr. Amanpreet Singh, Advocate; For the Petitioner in CWP-33961-2019.
Mr. Vikas Singh, Advocate; For the Petitioner in CWP-9478-2022.
Mr. A.P. Singh, Advocate; For the Petitioner in CWP-33961-2019.
Mr. Tahaf Bains, Advocate for Respondents No. 4 and 5 in CWP-3948-2017.
Mr. H.S. Bedi, Advocate for the respondents No. 4 and 5 in CWP Nos.3937 and 4144 of 2017.
Mr. Raman Kaplish, Advocate for Mr. Shiv Kumar, Advocate for the respondent in CWP-9478-2022.
Mr. Inderpreet Singh Kang, AAG, Pu

Headnote:(A) Punjab Cooperative Societies Act, 1961 - Sections 55, 56, and 68 - Cooperative society's claim against employee regarding negligence leading to loss - Appeals against arbitration award dismissed as time-barred, without considering sufficient cause for delay - Court ruled that denying to entertain delay due to no explicit provision for condonation is against the cooperative principles - Appeals allowed and orders set aside, with remand for consideration of sufficient cause under the law. (Paras 25, 24, 23 and 22)

(B) Limitation Act, 1963 - Section 29(2) - Applicability considered within the framework of cooperative law and limitations defined therein; hence cannot exclude the condonation of delay principle. (Paras 10 and 11)

Facts of the case:
The petitioner, a cooperative society, faced losses due to alleged negligence of an employee. Arbitration proceedings were initiated for recovery. The appeals were dismissed as time-barred after a significant delay with no consideration of condonation.

Findings of Court:
The court maintained that the authority erred in not considering the sufficiency of cause for the delay, undermining cooperative principles.

Issues: The main issues involved whether the appellate authority could condone delays in appeals filed beyond the statutory limit under the Punjab Cooperative Societies Act.

Ratio Decidendi: The court emphasized that strict interpretation of limitation provisions without regard for sufficient cause contradicts cooperative movement principles and thus must be reconsidered.

Result: Writ petitions allowed; orders set aside and matters remanded.

Table of Content
1. petitioner claims loss due to negligence. (Para 1 , 2)
2. appeals filed beyond prescribed period. (Para 3 , 19)
3. condonation of delay arguments presented. (Para 4 , 5 , 6)
4. dispute over authority's power to condone delay. (Para 10 , 11 , 12 , 13)
5. condoning delay aligns with cooperative movement objectives. (Para 14 , 15 , 20 , 22 , 23)
6. court remands case for reconsideration of delay. (Para 25 , 26)

JUDGMENT

Mr. Pankaj Jain, J. (Oral)

The afore-captioned 11 writ petitions involve common question of law based upon common set of facts. For convenience, facts are being taken from CWP- 1187-2017.

2. Petitioner is a co-operative society. Respondent No.4 was working as Field Officer with the petitioner and was custodian of Wheat stocks for the year 1998-99, 2000-01. Petitioner-Department claims that due to negligence of respondent No.4, the petitioner suffered a loss of Rs.69,83,741/- owing to shortage and rate difference in the wheat crop for the crop years, he was custodian of the crop. Arbitration proceedings under Section 55 -56 of the Punjab Cooperative Societies Act, 1961 (in short 1961 Act') were initiated against respondent No.4 for recovery of 50% of total loss (50% of 6983741 = 3491870.50) alongwith interest @ 18%. Arbitrator- respondent No.3 dismissed the claim petition and answered the arbitral dispute in favour of respondent No.4. Aggrieved by the award, petitioner preferred appeal before Registrar Cooperative Societies against Award (P-1). Section 68 of the 1961 Act provides for appeal. Registrar Cooperative Societies vide order dated 04.12.2013 (P-2) has dismissed the appeal preferred by the petitioner being barred by delay holding as under:-

    "xx xx xx

    After hearing the arguments of the counsels for both the parties, keeping in view the record available in the file and judgments passed by the Hon'ble Punjab and Haryana High Court/Financial Commissioner Cooperation, I have come to this conclusion that the appellant were liable to file the appeal within 60 days under section 68 (2) of the Punjab Cooperative Societies Act, 1961 and this appeal has been filed after 321 days of the limitation period. Therefore, being time-barred, this appeal is hereby rejected. Decision is pronounced in the open court."

3. In all these writ petitions, the disputes relate to recovery proceedings initiated by the petitioner against the employees for having caused loss. In all these matters, the appeals preferred by the petitioner have been filed beyond prescribed period. The same are accompanied by applications seeking condonation of delay. The appeals have been dismissed holding that there is no provision contained in the 1961 Act to condone the delay. It has been held that in the absence of any enabling provision, the authority has no power to condone the delay and thus sufficient cause as pleaded cannot be looked into.

4. Counsel for the petitioner has pressed into service provision contained in Section 29(2) of the LIMITATION ACT to claim that since 1961 Act being Special/Local law provides for appeal, a period of limitation is different from the period prescribed by the schedule appended to the LIMITATION ACT , 1963, the provision contained in Section 4 to 24 (inclusive) shall apply as there is no express exclusion thereof by 1961 Act.

5. Reliance is being placed upon three bench judgment rendered by Apex Court in Civil Appeal No.8276/8277 of 2019, titled as ' Superintending Engineer/Dehar Power House Circle BBMB v. Excise and Taxation Officer, Sunder Nagar ' decided on 25.10.2019.

6. Per contra, counsels representing the respondents have very eloquently submitted that as per settled law, there is no provision enabling the Appellate Authority to condone delay in filing the appeal. The matter is fully covered by decision rendered by Division Bench of this Court in LPA-755-2013 decided on 13.07.2015 titled as ' Balbir Singh Jammu v. Financial Commissioner, Cooperation, Punjab and others', wherein it was held that Sec

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