Supreme Court Dismisses Appeal of Ex-Treasurer in Cooperative Society Dispute — Clarifies Revisional Powers of Registrar.

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Case Note & Summary

The dispute arose from allegations against the appellant, an Ex-Treasurer of a Co-operative Society, for defalcating a sum of Rs. 95,790.54. Proceedings were initiated under Section 48 of the Bihar and Orissa Cooperative Societies Act, 1935, leading to an award by the Assistant Registrar. The Deputy Registrar initially set aside this award, but upon revision, the Additional Registrar confirmed the award and directed payment of interest. The appellant's writ petition was dismissed by the High Court, prompting the appeal to the Supreme Court. The appellant contended that the Registrar lacked revisional jurisdiction under Section 56 since the award was made by the Assistant Registrar acting as a delegate. Additionally, the appellant argued that the surcharge proceedings initiated under Section 40 constituted double jeopardy for the same liability. The Supreme Court dismissed the appeal, affirming that the Registrar retains supervisory and revisional powers over subordinate officers, and that the proceedings under Sections 40 and 48 are independent, thus not constituting double jeopardy. The court clarified that the language of Section 56 allows for revisional powers without limitation, and the exercise of jurisdiction under Section 48 does not violate the appellant's rights under Article 20. The appeal was dismissed with no costs ordered against the respondents.

Headnote

A) Cooperative Societies Law - Revisional Powers - Scope of Revisional Powers of Registrar - Bihar and Orissa Cooperative Societies Act, 1935, Sections 48, 56 - The court held that the Registrar retains revisional powers over orders made by subordinate officers, and the language of Section 56 allows for such powers without limitation. The court clarified that the revisional power is independent of appellate powers under Section 48(6) (Paras 148-150).

B) Cooperative Societies Law - Double Jeopardy - Distinction Between Proceedings Under Sections 40 and 48 - Bihar and Orissa Cooperative Societies Act, 1935, Sections 40, 48 - The court found that proceedings under Section 40 are independent of those under Section 48, and thus, the initiation of surcharge proceedings does not amount to double jeopardy. The court emphasized that the exercise of jurisdiction under Section 48 does not infringe upon rights under Article 20 (Paras 151-152).

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Issue of Consideration

Whether the Registrar had revisional jurisdiction under Section 56 and if the proceedings under Section 40 constituted double jeopardy.

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Final Decision

The Supreme Court dismissed the appeal, affirming the legality of the Additional Registrar's exercise of revisional powers and clarifying that the proceedings under Sections 40 and 48 are independent, thus not constituting double jeopardy.

Law Points

  • Revisional powers
  • double jeopardy
  • legislative intention
  • supervisory authority
  • powers of Registrar
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Case Details

1991 LawText (SC) (09) 30

Civil Appeal No.2168 of 1980

1991-09-17

K. Ramaswamy, M.M. Punchhi

1991 AIR 2137, 1991 SCR Supl. (1) 143, 1992 SCC Supl. (1) 720

R.K. Khanna, L.C. Goyal

Yogendra Prasad

Addl. Registrar, Co-op. Societies, Bihar and Ors.

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Nature of Litigation

Dispute regarding defalcation and recovery proceedings under cooperative society law.

Remedy Sought

The appellant sought to challenge the revisional jurisdiction of the Registrar and the legality of the award.

Filing Reason

The appellant filed a writ petition after the Additional Registrar confirmed the award against him.

Previous Decisions

The High Court dismissed the appellant's writ petition in limine.

Issues

Whether the Registrar had revisional jurisdiction under Section 56. Whether the proceedings under Section 40 constituted double jeopardy.

Submissions/Arguments

The appellant argued that the Registrar lacked revisional jurisdiction as the award was made by a delegate. The appellant contended that the surcharge proceedings initiated under Section 40 amounted to double jeopardy.

Ratio Decidendi

The court held that the Registrar retains supervisory and revisional powers over orders made by subordinate officers, and that proceedings under Sections 40 and 48 are independent, thus not constituting double jeopardy.

Judgment Excerpts

A bare reading of the relevant provisions in Section 48 clearly manifests the legislative intention that the Registrar on reference, himself may decide the dispute or transfer it for disposal to a person exercising powers of the Registrar in this behalf. The proceedings under s. 40 are not in substitution of s. 48, but are independent of and in addition to the normal civil remedy under s. 48.

Procedural History

The appellant filed a writ petition after the Additional Registrar confirmed the award, which was dismissed by the High Court. The appeal was subsequently filed in the Supreme Court.

Acts & Sections

  • Bihar and Orissa Cooperative Societies Act: 2(1), 6, 40, 48, 56
  • Code of Civil Procedure, 1908 (CPC): 9, 115
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