This order will dispose of Writ Petitions Nos.7074 of 2003 and 7078 of 2003.
2. Facts giving rise to the present writ petitions are to the effect that the writ petitioners in both the writ petitions alongwith respondents Nos.4 to 7 were members of a Society registered under Cooperative Societies Act, 1925 styled as "Anjuman Imdad-e-Bahmi-wa-Kashatkaran Ganna", Chak No.254/R.B., Tehsil and District Faisalabad. The said Society had obtained financial facility of a loan of Rs.3,99,700 from the Provincial Cooperative Bank Branch, Faisalabad respondent No.3 after performance of all the legal requirements of law provided in the Cooperative Societies Act and the Rules framed thereunder. During the course of audit proceedings in exercise of its powers under sections 20 and 21-A of the Cooperative Societies Act, 1925, the Registrar found that the amount of loan received by the office holders of the Society had not been disbursed to other members of the Society rather it was used for their own purposes and thus they had misused the office of the Registrar Societies and vide his, order dated 22-12-2000 and the Assistant Registrar, Cooperative Societies, Faisalabad, after an enquiry and performing all the legal requirements observed that Muhammad Yaqoob son of Ghulam Rasool, President, Sardar Muhammad son of Raheem Bakhsh, Vice-President, Abdul Hameed son of Shah Muhammad, Treasurer, Ghulam Mustafa son of Faqir Muhammad and Muhammad Akram son of Ghulam Muhammad, Secretary were responsible for misappropriating the loan amount and not disbursing the same to other members of the Society and were also responsible to cause loss to the assets of the Society. He directed to recover the principal amount of Rs.3,99,700 as mark-up @ 14% and Rs.19,985 as execution charges @ 5% from.
The delinquents.
3. The said order had been challenged through an appeal before the Government by Abdul Hameed and Muhammad Akram respondents Nos.4 and 5 in Writ Petition No.7074 of 2000 and the Secretary, Cooperative Societies, Government of the Punjab, the Appellate Authority, after hearing the appellants and the respondents, vide his impugned order dated 28-4-2003, directed Muhammad Yaqoob writ petitioner to deposit Rs.2,00,000 within 10 days to show his bona fide in Punjab Provincial Cooperative Bank Limited, Faisalabad Branch and adjourned the case to 20-5- 2003 for further proceedings and to await the report of, the Manager about recovery of the said amount. The impugned interim order dated 28-4-2003 passed by the Appellate Authority has been assailed through these two writ petitions.
4. The learned counsel for the petitioner has contended that the impugned order passed by respondent No. 1 is illegal and without lawful authority and that the order dated 22-12-2000 determining the liability of the petitioner in defaulting the payment of the loan amount was passed without issuing any notice to the petitioner and in violation of principle of natural justice which is not sustainable in law.
5. I have heard the arguments of the learned counsel for the petitioner and have perused the record.
6. The Registrar himself or by some person authorized by him in writing by general or special order in this behalf is empowered to audit the account of every society once at least in every year and the audit shall include an examination of over due debts, if any. The verification of cash balance, securities and valuation of assets and liabilities of the Society and while auditing the record of the Society, the Directors, Managers and other officers of the Society shall furnish to the Registrar or other person appointed to audit the accounts of a Society of such information as to its transaction and working as Registrar or such person may require and if after auditing the record of the Society under section 22 of the Cooperative Societies Act, 1925 it appears to the Registrar that there exists any such ground as specified in section 55-A, he may of his own motion or on an application by a person authorized by him under section 22 exercise the powers specified in section 50-A.
7. The application was submitted before the Assistant Registrar, Cooperative Societies for audit of the same by Sub-Inspector, Cooperative Societies and during the proceedings notice was issued to the members of the Society but despite the service effected on them no one turned up to face the enquiry. A publication was also issued in "Daily Nawa-i-Waqt" but except the Manager of the Bank no one entered appearance to face the enquiry. After examining the record of the Society in accordance with the provisions of section 22 which has provided procedure for audit of the account, the Assistant Registrar exercised the powers under section 50-A of the said Act. For ready reference the same is reproduced as under:-- 50-A Power of Registrar to assess damage against delinquent promoters, etc.---(1) Where in the course winding-up of a Society it appears that any person who has taken part in the organization or management of the Society or any past or present Chairman, Secretary, Member of the Managing Committee or officer of the Society has misapplied or retained or become liable or accountable for any money or- property of the Society or has been guilty of misfeasance or breach of trust in relation to the Society, or, where the Society is acting under subsection (4) of section 34 as agent of the financing bank, has made any payment contrary to the instructions of the financing bank the Registrar may, on the application of the liquidator or of any creditor or contributory, examine into the conduct of such person and make an order requiring him to repay or restore the money or property or any part thereof respectively with interest (or return) at such rate as the Registrar thinks just or to contribute such sum to the assets of the Society or of the financing bank by way of compensation in regard to the misapplication, retainer, misfeasance or breach of trust as the Registrar thinks just.
8. The Registrar of the Society was of the opinion that the office holders, the President, Vice- President, Treasurer and one member of the Society Ghulam Mustafa were defaulters and an amount of Rs.3,97,700 was outstanding against them which neither they returned to the Bank nor disbursed the same to other members of the Society.
9. The appeal had been filed by Abdul Hameed and Muhammad Akram, respondents Nos.4 and 5 who were held liable to make payment alongwith the petitioner of the outstanding amount of the Society. The appeal filed by the respondents before the Government/Appellate Authority has not been finally disposed of and only interim order has been passed directing the petitioner Muhammad Yaqoob, the President of the Society, to deposit Rs.2,00,000 with the Cooperative Bank within 10 days.
10. Since the appeal has been filed before the Appellate Authority under section 64 of the Cooperative Societies Act, 1925 which has not been finally disposed of, the matter is sub judice before the Appellate Authority and the petitioner through these two writ petitions has challenged the interlocutory order of the Appellate Authority during pendency of the appeal, therefore, the writ against the impugned order being not maintainable is liable to be dismissed. Reliance can be placed on the cases of "Managing Committee, Revenue Employees, Cooperative Housing Society, Rawalpindi through Secretary v. Secretary, Cooperative Societies, Government of Punjab, Lahore and 3 others" 2001 CLC 838 Lahore, M.A. Faiz Baluch v. The Chief Commissioner (The Appellate Court), Islamabad Capital Territory, Islamabad and 4 others 1998 CLC 687 (Lahore) and "The Engineers Cooperative Housing Society Limited v. The Registrar of Cooperative Societies, Punjab and another 1992 CLC 547 Lahore.
11. The learned counsel for the petitioner has not been able to point out any illegality in the impugned order passed by respondent No. 1 or that it has been passed without jurisdiction and lawful authority.
12. For the foregoing reasons and following the dictum laid down in the aforesaid cases, these two writ petitions being devoid of any force are dismissed in limine.