The Purnea Distict Central Co-operative Bank Ltd. vs The State of Bihar and Others

This Letters Patent Appeal has been filed against the judgment and order dated 20.4.2010 passed by learned Single Judge in C.W.J.C. No. 13882 of 2007 allowing the writ petition and quashing the recovery certificate issued by the appellant.

The appellant is a District Cooperative Bank Ltd. from which the petitioner/respondent Satya Narayan Singh had taken loan and on account of failure in installment and dues accrued against him for recovery of which the certificate was issued.

The learned Single Judge has quashed the recovery certificate on the ground that the amount was not recoverable under the Bihar and Orissa Public Demand Recovery Act, 1994 (sic--1914?) in absence of written agreement. It appears that the learned counsel appearing for the appellant Cooperative Bank could not draw the attention of the learned Single Judge on Section 52 of the Bihar Cooperative Societies Act which reads as under:--

Recovery of sums due.--Any sum payable by any person or by any registered society-

(a) as fees for an audit held u/s 33,

(b) In accordance with an order of the Registrar u/s 39(b) apportioning the costs of an inquiry or inspections,

(c) in accordance with an order passed u/s 40,

(d) in accordance with an order of the Registrar or of a liquidator passed u/s 44,

(e) in accordance with an order, decision or award passed or made u/s 48, or

[(f) as an amount due from member, past member or the nominee, heir, or legal representative of the deceased member of a Primary Co-operative Society.]

Shall be recoverable, as a public demand in any area, in which the Bihar and Orissa Public Demand Recovery Act, 1914 (B.&O. Act 4 of 1914), is in force or as an arrear of land revenue throughout the whole of the State and the Registrar or other person authorized by him in this behalf, shall be deemed to be the person to whom such public demand is due or to whom such arrear of land revenue is payable.

Thus dues clearly recoverable as public demand in the area in which the Bihar and Orissa Public Demand Recovery Act, 1940 (sic--914?) is in force. It is not in dispute that the Bihar and Orissa Public Demand Recovery Act, 1940 (sic--1914?) is not in force in the area. Therefore, the amount was recoverable as orders of land revenue. Thus, the judgment of the learned Single Judge is set aside and recovery certificate is held valid. However, further steps on the certificate shall be proceeded with after giving a month''s notice to the respondents.