Apr - High Court of Judicature at Allahabad

1 All Harish Chandra V. U.P. Sahkari Gram Vikas Bank Ltd. and others 491
Provided that where the society is
engaged in production of sugar and--
(i) the share capital subscribed to
by the State Government is not less than
one crore rupees, or
(ii) the share of the State
Government in the share capital of the
society exceed fifty per cent of the total
share capital of the society, or
(iii) the State Government has given
loans or made advances to the society, or
guaranteed the repayment of principal or
payment of interest on debenture, issued
by the society or guaranteed the
repayment of principal and interest on
loans and advances to the society and the
amount exceeds fifty per cent in the
aggregate of the total amount so
borrowed by the society.
the State Government shall also
have the right to nominate the Chairman
of the Committee of Management, who
shall be a Government servant, of such
societies and their apex society, namely,
the Uttar Pradesh Co-operative Sugar
Factories Federation Ltd.
(2) A person nominated under subsection
(1) shall hold office during the
pleasure of the State Government.
(3) The right of nomination vested
in the 11[Joint Registrar-in-charge or
Deputy Registrar-in-charge] under this
section may be delegated by it to any
authority specified by it in that behalf.
Explanation.--For the purpose of
this section any guarantee given by the
Central Government on the
recommendation of the State Government
shall be deemed to be a guarantee given
by the State Government."
11. Under Section 34, the State
Government has a right to nominate on
the Committee of Management of such
society not more than two persons in
cases as mentioned in the said section. It
is not denied that the State Government
gives loan and makes advances to
respondent no. 1 and the U.P. Sahakari
Gramin Vikas Bank is run on the
financial aid and grants provided by the
State as has been submitted by learned
counsel for the respondents. The
respondent no. 1 thus, is clearly covered
within the meaning of section 34 and
with regard to recovery of dues of such
society section 95-A is fully attracted. As
mentioned above, the respondent no. 1 is
registered cooperative society within the
meaning of U.P. Cooperative Societies
Act, 1965 by virtue of section 131 of
1965 Act. Hence, Section 95-A is fully
attracted in the facts of the present case.
As submitted by learned counsel for the
respondents, the agricultural land of less
than 3.125 acres cannot be sold hence,
the respondent no. 1 can adopt the other
process of recovery as provided. Thus,
the respondents are free to adopt other
process of recovery except for auction of
the land result of which may render the
agriculturist having less than land 3.125
acres.
12. Full Bench judgment of this
Court in Smt. Sharda Devi (supra),
which has been relied by learned counsel
for the petitioner has laid down that
recovery of dues by banking company
under U.P. Public Moneys (Recovery of
Dues) Act, 1972 can be taken only when
the loan of advance grant or credit has
been given by bank under a State