The liability of past members of a cooperative society for the debts of the society ceases to exist on the date on which they cease to be a member, and recovery can only be made from them if the recovery from the society's property fails.

( 1 ) HEARD Sri L. N. Pandey, learned counsel appearing for the petitioner and Sri Vinay Malvlya, learned Standing Counsel representing respondent Nos. 1, 2, 3 and 4. Nobody appears for respondent No. 5.

( 2 ) BY the impugned citation dated 14th March, 1980, a copy whereof is Annexure-I to the writ petition, a sum of Rs. 12,139,95, plus recovery charges, is sought to be recovered from the petitioner, The amount is said to be due from Kasta Avam Loh Kala Society Lasra, post office pirohari, District Ballla, a society registered under the provisions of U. P, Co-operative Societies act, 1912 (now 1965), (hereinafter called the Act), of which the petitioner was elected as sarpanch in the year 1964, and remained as such till 1st March, 1967. In March. 1967, Sri Raj nath Pandey, respondent No. 5 became Sarpanch and took charge on 15th March. 1967.

( 3 ) THE stand taken on behalf of the contesting respondents in their counter-affidavits is that the money advanced to the society was misused by the petitioner and he was personally liable to repay the same.

( 4 ) SRI L. N. Pandey, learned counsel of the petitioner contends that the amount in question cannot be recovered from the petitioner in view of the provisions of Sections 25 and 95 of the Act.

( 5 ) IN Section 25 of the Act, the liability of a past member of a cooperative society for the debts of the society ceases to exist on the date on which he ceases to be a member of the society. Section 95 of the Act envisages that sums due from a co-operative society to the State Government may be recovered, firstly, from the co-operative society ; secondly, in case of the society the liability of the members of which is limited, from the members, past members or the estates of deceased members, subject to the limit of their liability ; and thirdly, in the case of other societies from the members, past members, or the estate of the deceased members ; provided that the liability of past members, or the estate of deceased members shall in all cases be subject to the provisions of section 25. A conjoint reading of the two sections makes it abundantly clear that liability of the past members with regard to the sums due from a society comes to an end on the date on which he ceases to be a member. Otherwise also, the first charge in respect of the said dues is on the property of the society, and it is only upon failure of the recovery from the property of the society, amount can be recovered from others. The factum of the tenure of the petitioner as member of the society coming to an end in March, 1967, upon the election of respondent No. 5 in his place has not been specifically denied by the respondents. Thus, it has to be held that the petitioner ceased to be a member of the society in march, 1967. The petitioner having ceased to be a member of the society is clearly entitled with the protection of Section 25 of the Act and the Impugned recovery cannot be effected against him.

( 6 ) IN the result, the petitioner succeeds and is allowed. The Impugned citation dated 14th March, 1980, is quashed. There is no order as to cost.

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