IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.16710 of 2007 SUNIL KUMAR YADAV Versus THE STATE OF BIHAR & ORS ----------- 5 11.8.2008 Heard. The petitioner has challenged the certificate proceeding being Certificate Case No.794 of 1998 as instituted under the orders of Managing Director, Purnia Central Co-operative Bank, Purnia. The requisition, which is annexure-4 is solely against the petitioner showing him to be as Chairman of the Purnia Primary Agriculture Co-operative Society Ltd. (PACS). PACS is a society registered under the provisions of Bihar and Orissa Co-operative Societies Act, 1935. The petitioner submits that the proceedings are wholly without jurisdiction and are not maintainable against him. Purnia Central Co-operative Bank have appeared and filed a counter affidavit. In the counter affidavit in paras 7 and 8 it is categorically stated that Purnia Central Co-operative Bank had advanced money to the PACS aforesaid, respondent no.5, of which the petitioner was Chairman. It is specifically stated that the petitioner in the capacity of the Chairman of the PACS had received money to which the said PACS failed to re-pay. In my view, this specific assertion in the counter affidavit clearly admits that no money was advanced by Purnia Central Co-operative Bank to the petitioner in his individual capacity. Money not having been advanced in his individual capacity, the petitioner cannot be made liable for re- payment in his individual capacity. This distinction between an individual office bearer through shareholder and corporate entity i.e. a 2 company/co-operative has been consistently held the field for over two centuries. Here PACS is corporate body, which had received financial accommodation, no office bearer or employee thereof or any member thereof can be made individually liable for dues of PACS. After review of case laws in this regard a Division Bench of this Court in the case of Kanhaiya Lal Vs. The State of Bihar reported in 2002(2) PLJR 553 has clearly held that there is a clear distinction between the individuals and the co-operative of which they work. In that case a Director-cum- shareholder of a company was being proceeded against for dues of the Bihar State Electricity Board. The Division Bench of this Court held that dues cannot be recovered from the Director of the said company as it was a corporate liability. In that view of the matter the certificate proceedings as instituted against the petitioner cannot proceed any further. It is held to be wholly without jurisdiction and is quashed as such. The writ petition, thus, stands allowed. Md.S. ( Navaniti Prasad Singh,J. )