The court upheld the finding of willful negligence against the petitioner under the U.P. Cooperative Societies Act, yet remitted the surcharge quantum for reconsideration due to lack of justification.

JUDGMENT :

SAURABH SHYAM SHAMSHERY, J.

1. Petitioner was Deputy General Manager (Collection) at District Cooperative Bank, Fatehpur. In the year 2011 an inspection was conducted at Kishunpur Branch and Khakhreru Branch of said Bank under the provisions of Section 66 of U.P. Cooperative Societies Act, 1965 (hereinafter referred to as “Act, 1965”) and a report was submitted where in Financial Years 2006-07, 2007-08, 2008-09 and 2009-10 at Kishunpur Branch and in Financial Years 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10 at Khakhreru Branch various financial irregularities were came into light and embezzlement was running to the tune of Rs. 1757.58 lacs and Rs. 3007.43 lacs respectively. By a detail inquiry Cashier and Branch Manager of said Branches were found guilty and since petitioner and other Officers at Headquarter were also found guilty of omission of work, they were also held responsible. Relevant part of inquiry reports dated 03.09.2014 (in Writ-C No. 23458 of 2017) and 30.09.2014 (in Writ-C No. 23460 of 2017) submitted under Section 68(1) of Act, 1965 are reproduced hereinafter:

2. In aforesaid circumstances, the proceedings were initiated under Section 68 of Act, 1965 and notices were issued to erring Officers including petitioner on 19.09.2014 (in Writ-C No. 23458 of 2017) and 20.12.2014 (in Writ-C No. 23460 of 2017) as required under Section 68(2) of Act, 1965. Petitioner submitted his reply and denied the charges and relevant part of replies dated 16.10.2014 and 06.01.2015 respectively in both writ petitions are mentioned hereinafter:

3. In aforesaid circumstances, Joint Commissioner and Joint Registrar, Cooperative, Allahabad Mandal, Allahabad vide order dated 22.12.2015 considering the replies filed by erring Officers including petitioner found them guilty and fixed liability for recovery in terms of concerned applicable provisions. Liability of petitioner was fixed around Rs. 33 lacs. Relevant part of order order dated 22.12.2015 is reproduced hereinafter :

4. Petitioner thereafter filed an appeal before U.P. Cooperative Tribunal, Lucknow which was dismissed vide order dated 27.04.2017 and relevant part thereof is reproduced hereinafter:

5. Above referred both orders dated 22.12.2015 and 27.04.2017 were challenged in above referred two writ petitions, i.e., Writ-C Nos. 23458 of 2017 and 23460 of 2017 wherein following interim orders were passed in both writ petitions on 25.05.2017:

“This writ petition has been filed to challenge the orders dated 27.04.2017 passed by the Co-operative Tribunal, U.P. Lucknow arising from the order passed by the Joint Commissioner/Joint Registrar, Allahabad dated 22.12.2015 under Section 68 of the U.P. Co-operative Act, 1965.

Heard Sri Ashok Khare, learned Senior Counsel assisted by Sri Siddharth Khare, learned counsel for the petitioner, Sri Bal Mukund Singh, learned counsel appearing on behalf of the respondent no.4 and learned Standing Counsel, who has accepted notice on behalf of the State-respondents no. 1 to 3.

In brief, it is the case of the respondents that the petitioner while he was posted as Deputy General Manager (Collection) at Fatehpur District Co-operative Bank, certain embezzlement took place at Kishunpur Branch of the said Bank. The enquiry report names the employees of the Branch namely Mahavir Prasad Upadhyay, Bhola Singh, Santosh Kumar Singh, Vijay Shankar Tiwari and Abhay Singh Chauhan, who indulged in such misappropriation or embezzlement.

Occasioned by the aforesaid enquiry, the