CIVIL WRIT JURISDICTION CASE No.3282 OF 1987 WITH CIVIL WRIT JURISDICTION CASE NO.8679 OF 1998 ***** In the matter of applications under Articles 226 and 227 of the Constitution of India. ****** In C.W.J.C. No.3282 of 1987: 1. Ganpati Singh, son of Shri Sheo Pujan Singh, resident of Mohalla- Punaichak, P.S. Shastri Nagar, District- Patna. 2. Chandra Bhushan Singh, son of Shri Vikramaditya, resident of Mohalla- Punaichak, P.S. Shastri Nagar, District- Patna. 3. Shree Vijayay Sahkari Grih Nirman Samiti Limited, Patna having it registered office in Mohalla Punaichak, P.S. Shastri Nagar, District- Patna, through Chandra Bhushan Singh its Secretary. .... Petitioners. Versus 1. The State of Bihar. 2. Registrar Co-operative Societies, Co-operative Department, Government of Bihar, Patna. 3. Managing Director, Bihar State Co-operative Bank Limited, Ashok Raj Path, Patna. 4. Bihar State Co-operative Bank Ltd. Ashok Raj Path, through its Managing Director. 5. Bihar State Housing Co-operative Federation, through its Managing Director, Lalit Bhawan, Bailey Road, Patna. 6. Collector, Patna, District- Patna. 7. Housing and Urban Development Corporation, having its registered office at HUDCO House, Lodhi Road, New Delhi, through its Development Officer, Jainat Pur Kothi Bank Road, Patna. .... Respondents. ****** For the petitioners: Ms. Namrata Mishra, Advocate For the Respondents: Mr. Sanjay Kumar, G.P. 15 with Mr. S.K. Ravi, A.C. to GP 15. ***** In CWJC No.8679 oF 1998: 1. Ganpati Singh, son of late Shiv Pujan Singh, at present residing at Mohalla Punai Chaik, Police Station Shastri Nagar, Patna Town, 2 District Patna (Secretary, Sri Vijaya Sahkari Grih Nirman Samiti Limited). 2. Sri Vijaya Sahkari Grih Nirman Samiti Limited having its registered office at Mohalla Punai Chaik, Police Station Shastri Nagar, Patna Town, District Patna, through its President, Chandra Bhushan Singh. .... Petitioners. Versus 1. The State of Bihar, through the Secretary, Revenue & Land Reforms Department, Government of Bihar, Patna. 2. The Secretary, Revenue & Land Reforms Department, Government of Bihar, Patna. 3. The Director, Land Acquisition, Department of Revenue & Land Reforms Department, Govt. of Bihar, Patna. 4. The Deputy Secretary, Department of Revenue & Land Reforms Department, Government of Bihar, Patna. 5. The Collector, Patna. 6. The Bihar State Co-operative Bank Limited, Ashok Rajpath through its Managing Director. 7. The Housing & Urban Development Corporation, Lodhi Road having its Registered office at HUDCO House, Lodhi Road, New Delhi, through its Development Officer having his office at in the town of Patna. 8. Shri S.N.P.N. Sinha, IAS, son of name not known to the petitioners, at present working as Vigilance Commissioner, having his office at No.12A, Jawahar Lal Nehru Marg in the town of Patna. 9. Mrs. Rajbala Verma, the present Collector, Patna, District Patna. 10. Jag Narain Singh, son of Late Abhilakh Singh (vide Court’s order dated 4.8.2000 respondent no.10 deleted and Anita Singh has been substituted). 11. Ram Narain Singh, son of Late Abilakh Singh. 12. Jeet Narain Singh, son of Late Ram Lal Singh. 13. Rajeshwar Pd. Singh, son of Jeet Narain Singh. 14. Rameshwar Pd. Singh, son of Jeet Narain Singh. 15. Bimla Sharan Singh, son of Late Jitu Singh (vide Court’s order dated4.8.2000 respondent no.15 deleted and Ramdas Devi substituted). 16. Ravindra Kumar Singh, son of Late Deva Singh. 3 17. Ramlakhan Singh, son of Late Yuga Sharma Singh (vide Court’s order dated 23.01.2003 respondent no.17 deleted and Yogendra Singh has been substituted). 18. Ram Sewak Singh, son of Late Foujdar Singh (vide Court’s order dated 23.1.2003 respondent no.18 deleted and Dasrath Singh @ Dasu Singh and Vijay Singh have been substituted). 19. Sarju Singh, son of Late Foujdar Singh. 20. Rajendra Pd. Singh, son of Late Foujdar Singh. 21. Girija Nandan Singh, son of Soukhilal Rai. 22. Raj Kumari Devi, wife of Ramanand Singh. 23. Bindra Devi, wife of Munglal Singh (deceased). 23(a). Suresh Singh 23(b). Bijendar Singh. 23(c). Harendra Singh. 24. Rajpati Devi (deceased), wife of Santilal Singh. 24(a). Vinay Singh. 24(b). Ranjay Singh. 24(c). Pramod Singh. 25. Mittal Singh, son of Late Prakash Singh. 26. Kamal Singh. 27. Raj Ballabh Singh, son of Late Kuldeep Singh. 28. Upendra Singh, son of Raj Deo Singh. 29. Chandeshwar Pd. Singh. 30. Dhaneshwar Pd. Singh, son of late Lal Bahadur Singh. 31. Bindeshwar Pd. Singh, son of Late Lal Bahadur Singh. 32. Awadh Behari Singh, son of Bansi Singh. 33. Shyam Behari Singh, son of Bansi Singh. 34. Shia Sharan Singh, son of Balgobind Singh. 35. Raghuni Singh, son of Narain Singh (vide Court’s order dated 17.3.2004 respondent no.35 has been deleted and in his place Kailash Singh, his legal heir substituted) 36. Devendra Pd. Singh, son of Parmanand Singh. 37. Jagat Singh, son of Late Nanda Singh. 38. Satya Narayan Singh (deceased), son of Late Nanda Singh. 38(a). Arun Singh. 38(b). Rajendra Singh 38(c) Yogendra Singh. 39. Brahmadeo Singh, son of Late Kuldeep Singh. 40. Bharat Bhushan Singh, son of Ramgati Singh. 41. Lal Mani Devi, wife of Ram Swarat Singh. 42. Ramgati Singh, son of late Yadu Nandan Singh. 4 43. Ramswarath Singh, son of Late Yadu Nandan Singh. 44. Patia Devi, wife of Late Bishundeo Singh. 45. Mishri Singh (deceased), son of Sarwandhari Singh. 45(a). Jitendra Singh. 45(b). Upendra Singh. 45(c). Narendra Singh. 45(d). Lala Singh. 46. Parmanand Singh, son of Late Ram Das Singh. 47. Rajendra Pd. Singh, son of Bengali Singh. 48. Bhagwan Rai , son of Bundela Rai. 49. Mangal Rai, son of Late Jaglal Rai. 50. Ram Chandra Rai, son of Late Jalun Rai. 51. Deolal Rai, son of Late Jatan Rai. 52. Bhagu Rai, son of Late Muni Rai. 53. Briju Rai, son of Deepan Rai. 54. Sital Singh, son of Late Ram Khelawan Rai. 55. Agib Lal Singh, son of Khusi Singh. 56. Dasrat Singh, son of Late Soukhi Singh. 57. Ram Pd. Singh, son of Deodhari Singh. 58. Kaushore Singh, son of Late Pradeep Singh. 59. Jagannath Rai, son of Late Sahdeo Rai. 60. Sadhu Rai, son of Late Sahdeo Rai. 61. Rameshwar Pd. Singh, son of Late Madan Singh. 62. Tejan Singh, son of Late Ramlagan Singh. 63. Dukhan Singh, son of Anurag Singh. 64. Rameshwar Singh, son of Dukhu Singh. 65. Ram Prasad Sharma, son of Late Bakhori Miatri. 66. Nageshwar Rajak, son of late Kachauri Rajak. 67. Baleshwar Rajak, son of Late Kachauri Rajak. 68. Jalashwar Rajak, son of late Kachauri Rajak. 69. Ranjan Rajak, son of late Kachauri Rajak. 70. Jawahar Rajak, son of late Bandhu Rajak. 71. Moti Rajak, son of late Bandhu Rajak. 72. Shama Rajak, son of late Bandhu Rajak. 73. Satya Narain Singh, son of Dawan Singh. 74. Fekni Devi, wife of Binay Singh. 75. Sheo Dayal Choudhary, son of Rarak Chaudhary. 76. Rajendra Sah, son of late Kishori Sah. 77. Ganesh Lal Sah, son of late Non Sahi Sah. 78. Surendra Sah, son of Late Ram Deo Sah. 79. Raj Bali Singh (deceased), son of Ramayan Singh. 79(a). Raj Kishore Singh. 79(b). Rajeshwar Singh. 80. Ramjeewan Sah, son of Late Danchari Sah. 81. Amri Lal Singh, son of Sital Singh. 82. Saraswati Devi, wife of Dr. Bashant Narain Singh. 5 83. Ramanand Singh, son of Late Gauri Charan Singh. All resident of village Rupaspur Mahal Dhanaut, P.S. Danapur, Distt. Patna. ..... Respondents. ***** For The Petitioner : Ms. Namrata Mishra, Advocate For The Respondent : Mr. Shyam Kishore Sharma, G.A.-5 with Mr. Sanjay Prakash Verma, A.C. to G.A. 5. ***** P R E S E N T THE HON'BLE MR. JUSTICE SUDHIR KUMAR KATRIAR THE HON'BLE MR. JUSTICE KISHORE KUMAR MANDAL ****** S K Katriar, J. C.W.J.C. No.8679 of 1998 has been preferred by the Co-operative Housing Society and its members for a direction to the State Government to lease the lands measuring 128.48 acres set apart for the co-operative society, and/or acquire for the purpose of construction of houses by its members. The analogous C.W.J.C. No.3282 of 1987 has been filed by the same petitioners for a direction to the State Government to refund the amount deposited by the co-operative society with the State Government towards the costs of acquisition. 2. We shall first take up C.W.J.C. No.8679 of 1998. A brief statement of facts essential for the disposal of the writ petition 6 may be indicated. Petitioner no.2 is a cooperative society comprising of its members constituted, inter alia, for the purpose of construction of residential houses. With that object, the co-operative society approached the State Government for allotment of lands. The State Government decided to allot 104.2800 acres of its Khas Mahal lands, and the balance area of 23.6684 acres was to be acquired from the farmers, totalling 128.403 acres. The requisite gazette notification was issued, whereafter the State Government took a Cabinet decision not to allot and/or acquire land for housing purposes in and around the township of Patna. This led to a number of writ petitions at the instance of the petitioner-co-operative society, wherein the State Government was directed to allot lands. However, subsequently, for various reasons including passage of time and the aforesaid Cabinet decision, the lands could not be allotted. The present writ petition has, therefore, been preferred for a direction to the State Government to make available 128.403 acres of lands to the petitioner-Society for distribution of its members. 3. According to the analogous C.W.J.C. No.3282 of 1987, the petitioners had initially 7 deposited a sum of Rs.1,00,000/-, and thereafter a sum of Rs.5,00,000/- with the State Government towards the cost of acquisition. It is further stated in this writ petition that the petitioner society had negotiated a loan with the Bihar State Co-operative Bank Limited (respondent no.6) to make available the loan amount towards acquisition cost known as‘re-financing’. The petitioners allege that the lands have not been made available and the money is also not being refunded. 4. We have perused the materials on record and considered the submissions of learned counsel for the parties. In so far as C.W.J.C. No.8679 of 1998 is concerned, it does appear to us that the State Government had decided to make available 104.2800 acres of land of Khas Mahal to the co-operative societies, and a further area of 23.6684 acres of land of the farmers was indeed acquired and the requisite gazette notification was issued. However, the State Government took a long time. Before possession of the lands in question could be handed over to the petitioner Society, the State Government took the decision neither to allot khas Mahal land, nor to acquire private land in and around the township of Patna for housing purposes. It appears to us that, for 8 various circumstances which have accumulated over a long length of time, it is now no longer possible to make available the lands in question to the petitioner Society for housing activities. C.W.J.C. No.8679 of 1998 is accordingly dismissed. 5. In so far as the question of refund of money is concerned, it appears that the Bank sanctioned loan amount of Rs.2.63 crores to the Co-operative society to meet the cost of acquisition. The Bank had issued cheque for Rs.2.63 crores directly in favour of the State Government. The State Government and its functionaries deposited the same with the Bankers for collection, but the amount could not be collected and credited on the account of the State Government because of paucity of funds. It is relevant to emphasise that the established practice in such lending matters is that the cheque is issued directly in favour of the State Government. In fact, after the cheque had bounced, the State Government had started a criminal case against the co-operative society and its office bearers. However, it resulted in judgment of acquittal dated 23.3.1998, passed by the learned Judicial Magistrate 1st Class, Patna, in G.R. No.1504 of 1987/Tr. No.16 of 1995 which has attained finality. We are convinced that, in so 9 far as non-encashment cheque is concerned, the petitioners and its functionaries are not in the least responsible. If the process of loan and sanction of the amount in favour of the co- operative society was not complete, the Bank should not have issued the cheque to the State Government. Any loss of interest in this behalf must go to the debit of the respondent Bank and cannot be realised from the cooperative society and/or its office bearers/members. We must also note the alternative contention of the parties that, even if the loan amount was credited to the State Government and/or refunded to the Bank, any claim of the Bank shall lie against the State Government and under no circumstance against the co-operative society and its members. 6. The petitioners submit that in view of the claim raised by the respondent Bank against the petitioners, it has withheld cheque amount of Rs.1,00,000/-, and the further amount of Rs.5,00,000/-, issued to the State Government and refunded to the Bank which have been withheld towards the claim of the respondent Bank. We have already stated hereinabove that no part of the claim can be raised against the co-operative society and its office bearers. It will, therefore, be open to the co-operative society to 10 move the Bank for release of the sum of Rs.1,00,000/- and/or Rs.5,00,000/-, if it has been withheld towards payment of dues. In case the said amount is found lying in deposit with the Bank, then the same shall be refunded to the co-operative society with interest at the rate of 15% from the date the State Government had refunded the amount to the Bank till the date of refund. 7. The writ petitions are accordingly disposed of. (S K Katriar, J.) Kishore K. Mandal, J. I agree. (Kishore K. Mandal, J.) Patna High Court, Patna Dated the 16th day of October 2009. S.K.Pathak/ (N.A.F.R.)