25 August vs B.S. Sajwan
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Uttarakhand High Court

25 August vs B.S. Sajwan on 25 August, 2025

Author: Pankaj Purohit

Bench: Pankaj Purohit

                                                       2025:UHC:7519



HIGH COURT OF UTTARAKHAND AT NAINITAL
      Writ Petition Misc. Single No. 1585 of 2021
                         25 August, 2025
Mandaleeya Rin Sahakari Awas Samiti Ltd.
                                                        --Petitioner
                              Versus

B.S. Sajwan                                           --Respondent
----------------------------------------------------------------------
Presence:-
      Mr. Anil K. Bisht, learned counsel for the petitioner.
      Mr. Sandeep Kothari, learned counsel for the respondent.

Hon'ble Pankaj Purohit, J. (Oral)

Supplementary affidavit filed by petitioner is taken on record. Miscellaneous Application (IA/4/2024) made therefor, is allowed.

2. By means of the present writ petition under filed under Section 227 of the Constitution of India, petitioner has challenged the impugned Judgment and Order dated 14.05.2019 passed by learned Co-operative Tribunal, Dehradun, whereby, the appeal of the petitioner was partly allowed.

3. Learned counsel for the petitioner submits that the petitioner/Samiti is a member of apex Cooperative Society i.e. U.P. Awas Sahkari Sangh Ltd. Lucknow. Respondent applied for home loan of Rs.1,25,000/- in the year 1991 from the petitioner-Samiti and the loan of Rs.93,750/- was sanctioned and the same was given to respondent in two installments i.e.Rs.31,250/- and Rs.62,450/- by way of bank draft. The loan was to be repaid by the respondent in 20 years in 80 equal quarterly installments of Rs.3,470.62/-. He further submits that the respondent paid 36 installments during 1991 to 2001 to the tune of Rs.1,26,645.45/- and did not

2025:UHC:7519 pay the balance amount i.e.Rs.78,732/-. Thereafter, the petitioner/Samiti served the notice to respondent on 20.09.2005 to pay the amount of Rs.1,57,238.32/-, which was due at that time i.e. till the date of notice i.e. 20.09.2005. Although, the respondent deposited an amount of Rs.78,732/- (which was due in the year 2001) on 10.10.2005 in the bank account of petitioner/Samiti, but, did not deposit the amount which was due for the period 2001 to 10.10.2005.

4. Learned counsel for the petitioner further submits that the respondent made complaint before the then Hon'ble Chief Minister, on which, the inquiry was ordered, and the Enquiry Officer had stated that as the last installment of loan was paid by the respondent, therefore, no interest be charged from him, but only the remaining principal amount be recovered from him, whereupon, the learned Assistant Registrar, Cooperative Societies vide letter dated 27.10.2005 asked the petitioner to comply with the inquiry report. He further submits that thereafter, U.P. Awas Sahkari Sangh Ltd. Lucknow vide its letter dated 13.07.2006 raised objection to the letter dated 27.10.2005 of learned Assistant Registrar and requested learned Assistant Registrar to give directions to the respondent to pay entire amount of loan including interest, penal interest and advance principal amount etc. But, respondent, instead of repaying the dues, made a complaint before the learned District Consumer Forum Dehradun, which was dismissed by the learned Consumer Forum on 11.08.2008 on the ground that as the dispute is between Cooperative Society and its member, therefore, respondent may move an application before the learned Arbitrator for an award under Section 70 of the U.P. Cooperative Societies Act, 1965 and the

2025:UHC:7519 respondent on 30.11.2008 made reference under Section 70 of the U.P. Cooperative Societies Act, 1965. In the arbitration proceedings, allegations made by the respondent were denied and the petitioner-Society submitted that the learned Arbitrator has no jurisdiction to decide the matter and he is not competent to sit and decide the controversy and petitioner/Samiti is entitled to receive interest, penal interest and advance principal amount, insurance installments etc. due since 2001 to up to date and also claimed that Rs.1,64,475/- is due against the respondent.

5. He further contends that initially the arbitration case was being conducted by the learned Assistant Registrar, Cooperative Societies since 2008, but as the Sangh coming under the provisions of Multi-State Cooperative Societies Act, 2002. Therefore, the case was transferred to learned Deputy Registrar, Pauri and the arbitration award was passed on 11.07.2017 and respondent was directed to pay Rs.78506/- to the petitioner within one month. Against the award dated 11.07.2017, petitioner filed an Appeal No.10 of 2017 Mandaleeya Rin Sahakari Awas Samiti Ltd. Vs. B.S. Sajwan, which was partially allowed vide order dated 14.05.2019 and respondent was directed to pay an amount of Rs.48,571/- towards current interest, Rs.1,616/- towards insurance and Rs.161/- towards other Head and the amount of Rs.28,384/- has been exempted.

6. Learned counsel for the petitioner vehemently argued that the learned Arbitrator and learned Tribunal did not consider the vital aspect of the matter that as the petitioner is not having its own source of income and financial resources and it works only for the benefits of

2025:UHC:7519 its member so that the needy member get loan on reasonable rate of interest for constructing the home and non-payment of loan in time, would cause financial burden on the petitioner/Society. He also argued that learned Arbitrator and learned Tribunal also did not consider the fact that from where the petitioner/Society would bear the loss cause due to the late payment of the installments.

7. Learned counsel for the respondent on the basis of counter affidavit submits that the respondent was the Principal in Kendriya Vidyalaya Sangathan and applied for loan from the petitioner in the year 1991. He had paid total 36 installments till 2001 and submitted a sum of Rs.1,26,645.45/- and both the parties are ad- idem with regard to this fact. Thereafter, when the respondent got retired from service, he wished to repay the entire balance dues in one installment and had made letters of request on several occasions. In compliance of aforesaid communications, learned Assistant Registrar, U.P. Cooperative Awas Sahkari Sangh Ltd., Lucknow, vide letter No.13072 dated 17.11.2000 directed the Branch Manager of the said Sangh Branch Dehradun to inform the respondent about the amount required to be paid in order to close the account. But petitioner/ Society instead of informing the respondent issued letter No.299 dated 20.09.2005 directing him to pay total amount of Rs.1,57,238.32/- towards arrears of balance principal, interest on regular installment and penal interest etc.

8. He further submits that the respondent has regularly deposited the installments of loan till 01.01.2001 and outstanding amount of Rs.78,732/- was paid on 10.10.2005 and further denied the liability of payment of any interest or penal interest or any further

2025:UHC:7519 amount as claimed by the petitioner. He further contends that the writ petition filed by the petitioner is totally misconceived and the same is liable to be dismissed.

9. Having heard the learned counsel for the parties and on perusal of the entire documents available on record, this Court finds no merit in the present writ petition. The petitioner challenged the arbitral award and the appellate order mainly on the ground of lack of jurisdiction and wrong application of statutory provisions. Learned Arbitrator and the learned Tribunal have passed appropriate orders after assessment of the dues and no perversity or legal infirmity is found in these orders.

10. This Court cannot reappreciate factual findings in its jurisdiction under Article 227 of the Constitution of India, particularly when the petitioner has already availed the statutory remedy. Moreover, the present writ petition lacks any exceptional ground warranting interference.

11. Accordingly, the present writ petition is dismissed.

12. Pending application(s), if any, also stands disposed of.

(Pankaj Purohit, J.) 25.08.2025 PN PREETI Digitally signed by PREETI NEGI DN: c=IN, o=HIGH COURT OF UTTARAKHAND, ou=HIGH COURT OF UTTARAKHAND, 2.5.4.20=63c75a8c4765581180a58d7478fadbe38331bac55c78b

NEGI 5f9f0276c16432f6aab, postalCode=263001, st=UTTARAKHAND, serialNumber=2BA53171893B3C3CB3CCCAE81FAE064498483A 83D84BDB0F9229D5BF08D959AC, cn=PREETI NEGI Date: 2025.08.29 15:08:40 +05'30'