Mr. T. Bylanjinappa vs The State of Karnataka and Alur Vyavasaya Seva Sahakara Bank Niyamitha

S. Abdul Nazeer, J.—The Petitioner was working as the Secretary of Alur Vyavasaya Seva Sahakara Bank Niyamitha, Alur, Dasanapura Hobli. Bangalore North Taluk, the 3rd Respondent herein. He was suspended from the service of the 3rd Respondent on 15.10.1993. After holding an enquiry, he was dismissed from the service on 29.5.1996. An enquiry was directed against him u/s 64 of the Karnataka Co-operative Societies Act, 1959 (for short ''the Act''). In the enquiry report, the authority concerned held that the Petitioner had misappropriated a total sum of Rs. 10,23,082/-. The 3rd Respondent initiated a dispute u/s 70 of the Act, for recovery of the aforesaid amount with interest at 24% per annum. The dispute was allowed by the 2nd Respondent as per the order at Annexure-A dated 7.5.2004 and the Petitioner was directed to pay the aforesaid amount with accrued interest thereon at 24% p.a. from the date of his suspension till the date of payment. Feeling aggrieved, the Petitioner filed an appeal before the appellate authority. The appellate authority has dismissed the appeal as per the order at Annexure-B dated 20.02.2009. The Petitioner has called in question the validity of the said orders in this writ petition.

During the pendency of this writ petiton, the Petitioner has deposited a sum of Rs. 10.00.000/- before the 3rd Respondent Bank.

I have heard learned Counsel for the parties.

It is not in dispute that the Petitioner was dismissed from service of the 3rd Respondent on 29.5.1996 on the ground of misappropriation of the funds of the 3rd Respondent. The dispute filed by the 3rd Respondent u/s 70 of the Act was allowed by the competent authority. The Petitioner was directed to pay the sum of Rs. 24.85.508/- inclusive of interest at 24% p.a. and future Interest at the same rate from the date of the order till the date of payment. Having perused the materials placed on record. I am of the view that the order passed by the appellate authority confirming the order at Annexure-A passed by the Assistant Registrar of Co-operative Societies is just and reasonable. The finding of fact recorded by the authorities is on proper appreciation of the material on record and there is no perversity, illegality or irregularity whatsoever in those findings. However, I am of the view that the interest awarded by the 2nd Respondent is excessive. Having regard to the facts and circumstances of the case, I am of the view that it is just and proper to award the interest at 6% p.a. on Rs. 10,23,082/- (the misappropriated amount) from the date of suspension, i.e., from 15.10.1993 till the date of payment.

In the result, the writ petition succeeds and it is accordingly allowed in part. The Petitioner is directed to pay a sum of Rs. 10,23,082/- with simple interest at 6% p.a. from 15.10.1993 till the date of payment. The deposit made by the Petitioner in a sum of Rs. 10.00,000/- as above shall be deducted from the amount payable by the Petitioner pursuant to this order. The Petitioner shall not alienate the property bearing No. 61/1 measuring 1 acre 17 guntas situated at Alur Village, Dasanapur Hobli, Bangalore North Taluk, till the payment of entire amount to the 3rd Respondent-Bank in terms of this order.

At this stage, learned Counsel for the Petitioner submits that the Petitioner may be granted three months time to pay the balance of the amount. As noticed above, the Petitioner has already deposited a sum of Rs. 10,00,000/- with the 3rd Respondent in obedience of an interim order passed in this case. Having regard to the facts and circumstances of the case, it is reasonable to grant some time to the Petitioner to pay the balance of the decretal amount. Therefore, the Petitioner is granted three months time from today to pay the balance of the amount in terms of this order. No costs.