Case Note & Summary
The petitioner, Sri K.S. Chaugule, was appointed as Special Officer of the Bijapur District Central Co-operative Bank Ltd. under Section 30A of the Karnataka Co-operative Societies Act, 1959. During his tenure, he appointed the second defendant, a retired District Auditor, as his personal assistant on a temporary basis with a monthly remuneration of Rs.1,000/-. The bank filed a suit for recovery of Rs.10,110/- with interest at 18% p.a. against both defendants, claiming that the appointment was unauthorized and that the Special Officer was personally liable. The trial court decreed the suit, holding both defendants jointly and severally liable. The petitioner challenged this decree in revision under Section 115 CPC. The High Court upheld the trial court's decision, holding that the Special Officer acted beyond his authority by appointing a personal assistant without the approval of the Board of Directors, and thus he was personally liable for the salary. The court also noted that the bank was not vicariously liable as it did not ratify the appointment. The revision petition was dismissed.
Headnote
A) Co-operative Law - Special Officer's Powers - Section 30A Karnataka Co-operative Societies Act, 1959 - Personal Liability - The Special Officer appointed under Section 30A has powers of the Board but must act within the framework of the Act and Bye-laws; appointment of a personal assistant without Board approval is unauthorized, and the Special Officer is personally liable for the salary. (Paras 1-10) B) Civil Procedure Code - Revision - Section 115 CPC - Scope - The High Court in revision can interfere if the trial court has exercised jurisdiction not vested in it or has acted illegally or with material irregularity; concurrent findings of fact are not normally disturbed unless perverse. (Paras 1-2) C) Contract - Unauthorized Appointment - Liability - A person who makes an unauthorized appointment on behalf of another is personally liable for the salary unless the principal ratifies the act; in this case, the bank did not ratify the appointment of the personal assistant by the Special Officer. (Paras 3-10)
Issue of Consideration
Whether the Special Officer appointed under Section 30A of the Karnataka Co-operative Societies Act, 1959 can be held personally liable for the salary of a personal assistant appointed by him without the approval of the Board of Directors, and whether the bank is vicariously liable for such appointment.
Final Decision
The High Court dismissed the civil revision petition, upholding the trial court's judgment and decree. The court held that the Special Officer acted beyond his authority in appointing a personal assistant without Board approval, and thus he was personally liable for the salary. The bank was not vicariously liable as it did not ratify the appointment.
Law Points
- Personal liability of Special Officer for unauthorized appointments
- vicarious liability of co-operative bank for acts of Special Officer
- interpretation of Section 30A of Karnataka Co-operative Societies Act
- 1959
- scope of revision under Section 115 CPC
