IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.1263 of 2008 JAY MANGAL SINGH Versus THE BIHAR STATE CO-OPT.BANK LTD. ----------- 06 28.07.2008 Heard the parties. The petitioner Jay Mangal Singh was at the relevant time Secretary of the Ajanta Tel Utpadak Sahyog Samiti Limited, duly registered under the Bihar Cooperative Societies Act, 1935. The Cooperative had taken a loan from Central Cooperative Bank Limited, Aurangabad. Having taken loan, it defaulted in repayment, the consequences, thereof, was that for recovery of outstanding dues a certificate proceeding was initiated against the said Cooperative. While doing so, petitioner was made a party to the certificate proceeding and shown as a certificate debtor. This was done specifically mentioning that the petitioner was the Secretary of the said Cooperative when the loan was granted. The Cooperative challenged the proceedings before this Court in the earlier writ petition, which was dismissed. Petitioner has now challenged the proceedings as against - 2 - him and has submitted that being a Secretary and merely an officer bearer of the Cooperative he cannot be made personally liable for the dues incurred by the Cooperative. The loan was neither sanctioned to the petitioner nor taken by the petitioner. The petitioner had neither underwritten the loan nor guaranteed its repayment. He was merely Secretary of the Cooperative, which cannot visit him with personal liability. On the other hand, the learned counsel for the Central Cooperative Bank submits that loan having been taken by the Cooperative under the Secretaryship of the petitioner, petitioner would be accountable someone had to repay the loan. Having heard the parties and considered the matter, in my view, the certificate proceedings as against the writ petitioner cannot be sustained under the provisions of the Bihar Cooperative Societies Act. A Cooperative is a body incorporate and an independent juristic entity. That being so, it is distinct from not only its member but members elected as office bearers. This distinction as between the - 3 - Cooperative and its constituents is to well establish for any further discussion on the matter. That being so, the loan having been taken by the Cooperative, it cannot be recovered from the petitioner. Especially, as petitioner is being proceeded against only because he happen to be the elected Secretary of the Cooperative. He is not being proceeded against on the ground of having underwritten or guaranteed the repayment of loan. He has no personal liability in the matter, except, to the extent he may be liable for any loan or advances taken and remaining unpaid from his Cooperative. That is not the case of the respondents. That being so, the certificate proceedings as against the petitioner cannot be sustained and are wholly without jurisdiction. Petitioner cannot be proceeded against. The certificate proceedings to that extent as pending before District Cooperative Officer, Aurangabad shall stand quashed. The writ petition is allowed to the extent, as indicated above. (Navaniti Prasad Singh,J.) Trivedi/ - 4 -