Kamaljeet Singh v. State of Haryana and Others

CWP-4376-2023o(O&M))ooooooo-1-ooooooooooo2023:PHHC:082811o o o o o o INoTHEoHIGHoCOURToOFoPUNJABo&oHARYANAo AToCHANDIGARHo o o 105o o o o o CWP-4376-2023o(O&M).o o o o o o Reservedoon:o10.05.2023.oo o o o o o DateoofoDecision:o26.05.2023.o o o KAMALJEEToSINGHoo o o o o o o o...Petitionero o o o o o o Versuso o STATEoOFoHARYANAoANDoOTHERSo o o o ,Respondentso o o CORAM:oo HON'BLEoMR.oJUSTICEoVINODoS.oBHARDWAJo o *****o o Present:ooo Dr.oPankajoNanhera,oAdvocate,oandoo Mr.oRahuloGautam,oAdvocate,otheopetitioner.o o o Mr.oPankajoMulwani,oDAG,oHaryana,o o o o o fororespondentsoNo.1,o2oando5.ooo o o o oo o o NoneofororespondentsoNo.3oando4.oo o o o o *****o VINODoS.oBHARDWAJ.ooJo(ORAL)o o o o Thiso writo petitiono haso beeno filedo byo ao Retiredo Senioro AccountantoofotheoBankoforoseekingotooeffectorecovery,oafteroconductingo departmentaloenquiryoagainstorespondentsoNo.6otoo8,oforotheolossothatohaso occasionedo aso ao resulto ofo theo misconducto ofo theo saido respondents.o Ao furtherodirectionohasobeenosoughtotoorespondentoNo.5-DirectoroGeneraloofo Police,otooregisteroanoFIRoagainstotheoprivateorespondentsoandotoohando CWP-4376-2023o(O&M))ooooooo-2-ooooooooooo2023:PHHC:082811o o o o o o overo theo investigationo too anyo independento agencyo oro too theo Specialo InvestigationoTeamoonoaccountoofocorruptionoofotheopublicomoney.oo o o Theo petitionero claimso thato heo waso ino theo serviceo ofo respondentoBankoandohadoretiredoono30.09.2020oafteroservingoforonearlyo 34o years.o Ito haso beeno allegedo thato thereo hado beeno certaino chronico defaultersowhoocausedohugeolossotootheoBankowhichocameoupowithoaoOneo Timeo Settlemento Schemeo (OTS)o thato waso scheduledo too remaino operationalotillo31.07.2007oandowasolateroonoextendedouptoo31.03.2008.oIto isoallegedothatotheoprivateorespondentsonamelyoRajivoMathur-respondento No.6,o Smt.o Gurpreeto Kaur-respondento No.7o ando Anando Saxena-respondentoNo.8oconspiredowithoeachootheroandocommittedocorruptiono witho theo respondento banko thuso causedo embezzlemento too ano extento ofo Rs.10ocroresowhichocouldonotobeorecoveredodespiteosufficientodocumentso onorecordoandotheodecisionoofotheoBoardoofoDirectorsotootheosaidoeffect.oIto isofurtheroaverredothatoauditoofoOneoTimeoSettlementoSchemeo(OTS)owaso doneo ando ao reporto hado beeno submittedo byo theo Charteredo Accountanto whichoshowedothatoitowasoaocaseoofogrossonegligenceoonotheopartoofotheo authoritiesoconcerned.oTheoRegistraroofoCooperativeoSocietiesowroteoao letterotootheoChairman,oTheoPanchkulaoDistrictoCentraloCooperativeoBanko LimitedothatotheomatterobeoplacedobeforeotheoBoardoofoDirectorsoandoano actionobeotakenoimmediatelyoagainstotheoguiltyoofficialsoandoalsootooeffecto theorecoveryovideohisoletterodatedo06.01.2012.oThereafterotheomatterowaso putoupobeforeotheoBoardoofoDirectorsoandoitoopinedoinotheoreportodatedo

10.10.2012o (Annexureo P-4)o thato ano amounto ofo Rs.3,32,90,854/-o beo recoveredofromotheodelinquentoofficialsoi.e.otheothenoManagingoDirectoro CWP-4376-2023o(O&M))ooooooo-3-ooooooooooo2023:PHHC:082811o o o o o o (respondento No.8),o Generalo Managero (respondento No.7)o ando Projecto Officero (respondento No.6)o foro havingo committedo breacho ofo trust.o Ano opiniono waso thereaftero soughto byo theo Generalo Managero againsto theo privateorespondentsowhereuponoitowasoinformedothatotheyowereoguiltyoofo havingocommittedofraudobyomisusingotheiropoweroagainstotheointerestoofo theo Banko ando ino favouro ofo theo Company-Anilo Pesticideso Limitedo foro whichotheyoareoliableotoobeoprosecuted.oTheoamountoinoquestionohadonoto beenorecoveredoandonooactionoagainstotheoprivateorespondentsohasoalsoo beenotakenodespiteorepeatedorequestsohavingobeenomadeobyotheopetitioner.o Ito iso alsoo averredo thato theo mattero ino questiono hado beeno sento too theo Vigilanceo Departmento ando eveno theo Vigilanceo Departmento hado recommendedotoorespondentono.1oforotakingoactionoagainstotheoprivateo respondentsoNo.6otoo8ovideotheiroletterodatedo05.08.2020.oHowever,onoo actionowasotakenothereupon.oAorepresentationowasothereafterosubmittedo byotheopetitionerotoorespondentono.1oi.e.oStateoofoHaryanaoono23.09.2022o foroinitiationoofocriminaloactionoasowelloasofororecoveryoofotheoembezzledo amount,ohowever,otheo saido representationo isostillopending.o Subsequento representationso wereo alsoo sento byo theo petitionero througho E-mailo ono differentodates,ohowever,onooactionowasotaken,ohence,otheopresentowrito petitionohadobeenofiled.oo o o ReplyoonobehalfooforespondentoNo.3oi.e.otheoHaryanaoStateo CooperativeoApexoBankoLimited,oChandigarhohasobeenofiledothroughotheo ManagingoDirectoroofotheosaidoBank.oTheorelevantoextractoofotheoreplyoiso reproducedohereinafterobelow:-oooooo CWP-4376-2023o(O&M))ooooooo-4-ooooooooooo2023:PHHC:082811o o o o o o "3.oThatotheoallegationsowhichoareotheosubjectomatteroofotheo representationo(AnnexureoP-7)ofiledobyotheopetitionerorelateo tootheoaccountoofooneoM/soSyschemoIndiaoLtd.oKalka,owhicho wasopreviouslyoknownoasoM/soAniloPesticidesoLtd.,owhereino aoloanoofoRs.3oCroresowasoadvancedoforosettingoupoofotheo industrialounitoforomanufacturingoofopesticidesoinotheoyearo 1995.o Theo amounto becameo overdueo becauseo ofo non-o repaymento ofo installments.o Eventually,o theo companyo waso invitedo foro One-Timeo Settlemento (OTS)oofotheoaccountoaso submittedobyotheocompany.oTheoOTSoproposalosubmittedobyo theo companyo waso consideredo byo theo Boardo ofo AdministratorsoofotheoPanchkulaoCentraloCooperativeoBanko Ltd.,oPanchkulaoinoitsomeetingoheldoono04.12.2007oandoito wasoresolvedotooreferotheoproposaloofoOTSotoosomeotechnicalo experts/Charteredo Accountanto foro detailedo appraisalo ando suitableoguidelinesotootheobankofororecoveryoofotheostickyo loan.oCopyooforesolutionoNo.11odatedo04.12.2007oisoannexedo asoAnnexureoR-1.oAodetailedoreport/adviceodatedo25.10.2008o (Annexureo R-2)o waso receivedo fromo HCB&o Associates,o CharteredoAccountantsoandotheosameowasoconsideredobyotheo BoardoofoAdministratorsoofotheoBankoinoaomeetingoheldoono

07.11.2008.o Aftero dueo deliberationso ono theo detailedo report/adviceosooreceivedofromotheoCharteredoAccountants,o theo OTSo proposalo waso acceptedo byo theo Boardo ofo Administrators,o subjecto too theo approvalo byo theo Registrar,o CooperativeoSocieties,oHaryana.oCopyooforesolutionopassedo byo theo Boardo Administratorso ofo theo Panchkulao Centralo Cooperativeo Banko Ltd.,o Panchkulao ino meetingo datedo

07.11.2008o iso annexedo aso Annexureo R-3.o Thereafter,o theo Registrar,oCooperativeoSocietiesoalsoograntedoapprovalovideo memoodatedo24.09.2009(AnnexureoR-4)oandothereafter,otheo companyo waso allowedo One-Timeo Settlemento (OTS)o ofo itso CWP-4376-2023o(O&M))ooooooo-5-ooooooooooo2023:PHHC:082811o o o o o o

4.ooThatolateroon,oatotheotimeoofoauditoofoaccountsoofotheo bank,osomeolapsesowereoreportedoandotherefore,oinoorderotoo findooutotheofacts,otheothenocompetentoauthoritiesodeemedoito appropriateotoogetoanoenquiryoconductedotoofindoout,oifoSh.o RajivoMathur,otheothenoProjectoOfficer,oandoSmt.oGurpreeto Kaur,otheothenoGeneraloManageroofotheoPanchkulaoCentralo Cooperativeo Banko Ltd.,o Panchkula,o wereo sincereo ino theiro dutiesoorohadocommittedoanyoirregularity.oAccordingly,otheo concernedoofficialsowereoissuedochargesheetsoforo(i)obreacho ofo theo ruleso &o violationo ofo instructions;o (ii)o actingo ino ao mannerowhichowasoprejudicialotootheointerestoofotheobanko ando likelyo too involveo theo banko ino seriouso loss;o (iii)o negligenceoinoperformanceoofoofficialodutiesocausingolossotoo theo bank.o Theo Enquiryo Officero waso appointedo ando theo enquiryoreportothusosubmitted,owasothereafteroplacedobeforeo theo Staffo Sub-Committeeo undero theo Chairmanshipo ofo theo theno Principalo Secretary,o Cooperativeo Departmentso &o Chairman,o HARCOo Bank.o Theo competento authority,o aftero detailedo deliberationso decidedo too issueo theo delinquento ano advisoryonoteoandoaocopyoofotheowarningowasoplacedoinotheo personalo fileo ofo theseo officers.o Disciplinaryo proceedingso wereoalsooinitiatedobyotheoGovernmentoagainstoSh.oAnando Saxena,otheothenoManagingoDirectoroofotheoBankoandoheo wasoalsooabsolvedoofotheochargesobyotheoGovernment.oo

5.ooThatomuchothereafter,ooneoShivoKumaroS/ooRoshanoLalo R/ooHouseoNo.o94,oSectoro15,oPanchkulaohadosubmittedoao policeocomplaintoagainstotheoaforementionedoofficers.oWhileo takingo cognizanceoofo theosaido complaint,o ano enquiryo waso conductedobyoStateoVigilanceoBureau,othroughoaoDSPolevelo officerowhooconcludedovideoaodetailedoreport,othatotheoactiono ofotheodelinquentoofficials,odidonotoestablishoanyocriminalo misconducto ino theo absenceo ofo anyo menso rea.o Hence,o theo CWP-4376-2023o(O&M))ooooooo-6-ooooooooooo2023:PHHC:082811o o o o o o complaintowasofiledoono22.05.2020obyotheoDirectoroGeneral,o StateoVigilanceoBureau,oHaryana,oItowasoalsoorecordedoino theoreportothatoinocaseotheoBankohadonototakenothisodecision,o itowouldonotohaveobeenoinoaopositionotoorecoverotheoamounto dueo ando wouldo haveo sufferedo ao financialo loss.o Trueo translatedocopyoofotheoreportoofoStateoVigilanceoBureauoareo annexedoasoAnnexureoR-5.o

6.o Thatosince,o theo matterohasoalreadyoreachedo itso logicalo conclusionoafterotheoacceptanceoofotheorecommendationsoofo theoVigilanceoBureauobyotheoStateoGovernmentowithorespecto too theo absolvingo ofo theo Banko officialso ofo allo allegations.o therefore,o theo presento writo petitiono preferredo byo theo petitionero iso completelyo berefto ofo anyo merito aso theo departmentalo proceedingso aso wello aso enquiryo intoo theo allegationsohaveoalreadyoconcludedoandotheofindingsohaveo beenoacceptedobyotheoStateoGovernment."o o o o Ao separateo statuso reporto byo wayo ofo affidavito ofo Registraro CooperativeoSocieties,oHaryana,oonobehalfooforespondentoNo.2owasoalsoo filedowhereinoitowasostatedoasounder:-o "2.oThatotheorepresentationodatedo23.09.2022o(AnnexureoP-7)omadeobyotheopetitionerowasosentotooManagingoDirector,o HarcooBanko(RespondentoNo.o3)owithotheorequestotoosendo commentsoonotheosame.oTheocommentsohaveobeenoreceivedo inothisoregard.o

3.ooThat,oasomentionedobyotheopetitioneroinoParaoNo.o11oofo theo writo petition,o theo mattero waso alsoo enquiredo byo Stateo VigilanceoDepartment,oHaryanaoconcludingopartoofowhichoiso asofollows-o o CWP-4376-2023o(O&M))ooooooo-7-ooooooooooo2023:PHHC:082811o o o o o o "………..Consideringotheseofacts,otheoofficersoofotheobanko Sh.o Rajivo Mathuro Projecto Officero ando Smt.o Gurpreeto KauroGeneraloManagerowereosparedobyoissuingowarningo onlyoandotheodepartmentaloenquiryoofoSh.oAnandoSaxenao M.D.owasoclosed,owhichoisocorrect.oInotheowholeoenquiry,o noo sucho factso cameo too lighto againsto Sh.o Rajivo Mathuro ProjectoOfficer,oSmt.oGurpreetoKauroGeneraloManagero ando Sh.o Anando Saxenao M.D.o whicho couldo proveo theiro criminalo intent.o Ino lighto ofo allo theo aboveo facts,o ito iso recommendedo too fileo thiso enquiryo Sh.o Rajivo Mathuro ProjectoOfficer,oSmt.oGurpreetoKauroGeneraloManagero ando Sh.o Anando Saxenao M.D.o Ifo Govt.o wisheso theno explanationofromoB.O.D.omayobeotaken.oTherefore,otheo chargeostandsoprovedotootheoaboveolimit."o o oooooTheo aboveo reporto waso examinedo byo Govt.o ando orderso wereoissuedobyotheoofficeoofoChiefoSecretary,oHaryana,otheo operativeopartoofowhichoisoasofollows-o o "(i)oInoreferenceotootheoaboveosubject.o o

(ii)o Theo aboveo citedo mattero waso goto preliminarilyo enquiredo Stateo Vigilanceo Bureau,o Haryana.o Thiso Departmento examinedo theo enquiryo reporto ando aftero examination,oitohasobeenodecidedothat,oasoperosuggestiono ofoStateoVigilanceoBureau,oactionobeotakenoafteroseekingo commentsofromoChairman/BoardoofoDirectorso(B.O.D.)o Theo Panchkulao Centralo Cooperativeo Banko Ltd.,o Panchkula.o o

(iii)o Oneo copyo eacho ofo Finalo reporto ofo Investigatingo Officeroandoletterono.o4586/SVB(H)odatedo22.05.2020oofo commentso madeo byo Directoro General,o Stateo Vigilanceo CWP-4376-2023o(O&M))ooooooo-8-ooooooooooo2023:PHHC:082811o o o o o o Bureauo ono theo same,o iso beingo sento too youo foro takingo actionoaccordinglyoandoforointimatingothisoDepartmento regardingotheoactionotakenobyoyou."o

4.o That,o ino complianceo ofo theoaboveodirectionso issuedo byo Govt.,ocopiesoofoproceedingsoforotheomeetingoofoBoardoofo Administratorso ofo theo banko heldo ono 04.12.2007o ando

07.11.2008o wereo soughto fromo Generalo Manager,o Districto Centralo Cooperativeo Bank,o Panchkulao soo aso too knowo theo detailsoofoadministrators/officersowhooparticipatedoinotheseo meetingso ando commentso couldo beo soughto fromo theseo participantsoofosuchomeetings.oTheseocopiesowereoreceivedo andoito waso foundothato theo meetingodatedo 04.12.2007o waso attendedobyoSh.oJ.P.oPanjeta,otheothenoAdditionaloRegistraro Cooperativeo Societies,o Sh.o Anando Saxena,o theo theno M.D.o Districto Centralo Cooperativeo Banko Panchkulao ando Smt.o Gurpreeto Kauro nomineeo ofo Harcoo Bank.o Further,o theo meetingodatedo07.11.2008owasoattendedobyoSh.oJ.P.oPanjeta,o theo theno Additionalo Registraro Cooperativeo Societies,o Sh.o KapooroSinghoGill,otheothenoDeputyoRegistraroCooperativeo Societieso Kurukshetra,o Sh.o Anando Saxena,o theo theno M.D.o DistrictoCentraloCooperativeoBankoPanchkulaoandoSh.oV.P.o Singh,o Generalo Manager,o Nomineeo ofo Harcoo Bank.o Therefore,o commentso haveo beeno soughto fromo theseo participants/theothenomembersoofoBoardoofoAdministratorso ofotheobank.o Onceo theo commentso areo receivedo fromo theo theno membero ofo Boardo ofo Administratorso ofo theo bank,o theo decisionoonotheosameoasowelloasoonotheorepresentationodatedo

23.09.2022o(AnnexureoP-7)owillobeotakenobyotheodeponento accordingly.oTherefore,oitoisoprayedothatotheopresentopetitiono mayokindlyobeodismissedoquaoRespondentoNo.2."o o CWP-4376-2023o(O&M))ooooooo-9-ooooooooooo2023:PHHC:082811o o o o o o o o Learnedocounseloappearingoonobehalfoofotheopetitionerohaso vehementlyocontendedothatotheorespondentsohaveofailedotootakeoactiono despiteorepeatedoremindersosent.oHeorefersotootheostatusoreportofiledobyo wayoofoaffidavitoofoRegistraroCooperativeoSocieties,oHaryana,owhereinoito hasobeenostatedobyohimothatotheorepresentationodatedo23.09.2022osentobyo theopetitionerohasoalreadyobeenoforwardedotootheoManagingoDirectoroofo theo Harcoo Banko foro hiso commentso ando thato theo saido commentso haveo alreadyobeenoreceived.oItoisostatedoinotheoreplyothatotheoproceedingsoofotheo meetingo ofo theo Boardo ofo Administratorso ofo theo Banko waso heldo ono

04.12.2007o ando 07.11.2008o aso pero theo orderso issuedo byo theo officeo ofo ChiefoSecretaryoandothatoonoreceiptoofotheocommentsofromotheoBoardoofo AdministratorsoofotheoBank,oaodecisionoonotheosameoasowelloasoonotheo representationodatedo23.09.2022o(AnnexureoP-7)oshallobeotakenobyotheo RegistraroofotheoCooperativeoSocieties.oo o o Learnedocounseloforotheopetitionerohasolaidoemphasisoonotheo minutesoofotheomeetingsothatotookoplaceoinoOctobero2012oquaotheoOneo Timeo Settlemento Schemeo (OTS)o whicho waso scheduledo too remaino tillo

31.07.2007o ando itso extensiono aso wello aso theo benefito waso wronglyo extendedobyotheobank.oHeohasoplacedorelianceoonotheofollowingoextractoofo theomeetingoheldoono10.10.2012:-o "3.o Sh.o Rajivo Mathur,o Projecto officero ando Smt.o Gurpreeto Kaur,oGeneraloManageromisledoandoconcealedotheofactsoando notopresentedofactualopositionobeforeoB.O.D.oinotheomeetingo heldoono04.12.2007oaboutotheoexistenceoofoscheme.o CWP-4376-2023o(O&M))ooooooo-10-ooooooooooo2023:PHHC:082811o o o o o o Theo Boardo ofo Administratoro waso misledo byo noto disclosingo theo facto thato theo saleo caseo U/so 75/76o ofo theo Haryanao coop.o Societieso Acto 1984o hado alreadyo beeno precededoandoorderoregardingoappointmentoofoReceiveroU/so 82oofotheoHaryanaocoop.oSocietiesoActo1984owasoissuedobyo theoA.R.C.S.oNaraingarhoonodatedo19.10.2006(Annexure-8).o Theomatterowasoplacedoinotheomeetingodatedo17.07.2007obuto theo itemo waso postponedo aso Managingo Directoro ofo theo companyooroanyoauthorizedorepresentativeodidonotoappearo beforeotheoBoardoofoAdministratorsoinospiteoofodeliveryoofo noticeotoothem.oButotheomatteroofoappointmentooforeceiveroino theo companyo aso pero decisiono ofo BOA'so ono datedo

17.07.2007(Annexure-2)owasonotoplacedoinotheonextoBOA'so meetingo datedo 04.12.2007.o Theo agendao oro oneo timeo settlementowasoputoforwardoinoBOAomeetingoofo4-12-2007o whenothereowasonooapprovalonorothereowasoanyosuchoschemeo sooitoshouldohaveobeenotheoagendaothatoasotheoschemeohaso expiredosootheodecisionohasotoobeotakenoforotheoappointmento ofotheoreceiveroandonotoforotheooneotimeosettlementobutobyo concealingo theo previouso resolutiono datedo 17-07-2007o ofo appointmento ofo receivero (Annexure-o 2),o theo aboveo saido Official/Officerso misleado theo BOAS.o Ifo theo receivero waso appointedoforotheocompanyoinotimeoono04.12.2007otheoactualo valueoofotheoland,obuilding,oplantoandomachinery,olicenseo andoguaranteeoofotheotwoodirectorsoofotheoCompanyocouldo haveo beeno assessedo properlyo ando genuinelyo Insteado ofo consideringo theo selfo madeo proposalo submittedo byo theo company.o Theoversionogivenobyotheoaboveosaidopersonsobyowayo ofotheiroexplanationotoothisoallegationoisoagainoaotryotootwisto theoactualofactsoasoperotheiroconvenience.oTheoprojectoofficero dido noto bringo ino theo noticeo abouto theo Ordero foro theo appointmentoofotheoreceiver,ore-schedulement,omoratoriumo CWP-4376-2023o(O&M))ooooooo-11-ooooooooooo2023:PHHC:082811o o o o o o period,odueoInstallmentsoetc.oItoisopertinentotoomentionohereo thato theo fromo theo bareo perusalo ofo theo resolutiono datedo

04.12.2007,oitoisoampleoclearothatotheodecisionowasotakeno withouto consideringo theo factso thato theo valuationo ofo theo propertiesoandoassetsowereoneverotakenointooconsiderationo noro ito waso takeno intoo considerationo thato theo loano waso ao securedoloanoandoinohasteotheodecisionowasotakenobyojusto forwardingotheoproposaloputoforwardobyotheocompanyowhereo aso ito waso theo dutyo ofo theo aboveo saido officers/officialso too checkoforotheowelfareoofotheobank.o

4.ooTheoproposaloofocompanyoregardingooneotimeosettlemento wasoseparatelyodealt,oandoseparateonormsowereoconsideredo andoseparateorulesowereoappliedobyopresentingoaoseparateo agenda,o whereaso foro theo sameo purposeo ao committeeo waso constitutedobyotheoBOAsomeetingoDatedo17.07.2007.o Ao committeeo waso constitutedo byo theo BOAso ino itso meetingo datedo 17.07.2007o (Annexure-2)o too dealo witho theo casesowhichocanofallounderotheooneotimeosettlementoschemeo 2007obutodespiteothatotheocaseoofotheoM/soAniloPesticideso Ltd.,oforoOneoTimeosettlementoofoaccountsowasodealtobyoRajivo Mathuro&oGurpreetoKauroonly.oAsoperoOTSoschemeo2007o approvedobyoBOAotheoaccountoshouldobeodoubtfuloNPAoono

31.03.2004o(Annexure-1)obutotheoaboveosaidopersonsotooko theo saido dateo aso 31.12.1998.o Theo amounto showno byo theo Companyo too theo tuneo ofo Rs.13296573.00o aso re-paymento whereas,o aso pero theo Banko recordo theo saido amounto waso Rs.9283548.00o (Annexure-7).o BOAso ono datedo 17.07.2007o (Annexure-2)o approvedo theo OTSo schemeo 2007o witho theo decisionotoosendotheoproposaloM/soAniloPesticidesoLtd.oaso perosaidoschemeoandotheoproposalosubmittedobyotheocompanyo waso acceptedo byo theo officials/officerso i.eo theo theno Rajivo MathuroP.O.oGurpreetoKaur,oG.M.o&oAnandoSaxena,oM.D.o TheosaidoproposalowasonotoaccordingotootheoOTSoschemeo CWP-4376-2023o(O&M))ooooooo-12-ooooooooooo2023:PHHC:082811o o o o o o 2007.Theyo goto approvalo deposito ofo oneo timeo settlemento amounto ofo Rs.o 30333961.82o whicho ino facto comeso too Rs.6.36.24.815.82oasoperonormsosettledounderoOTSoschemeo 2007.oOnoaccountoofothisotheobankosufferedofinancialolossoofo Rs.3,32,90,854.00.o Theo explanationo puto forwardo byo theo delinquento employeesoisoagainojustoanoexcuseoandoaotryotooconcealotheiro wrongs.oTheocompanyosubmittedotheoselfomadeoproposaloono

20.10.2007.o Ino responseo too ouro lettero No.o NFF/2007-08/3233odatedo18.08.2007owhereoasotheoOTSoschemeo2007o wasoinoexistencesoi.e.ouptoo31.10.2007.oInotheolightoofotheseo factsotheoexcuseothatoasotheocompanyodidonotoIodepositotheo 10%o amounto ando thiso takeso theo proposalo beyondo OTSo schemeo2007oisoabsolutelyofrivolous.oInothatocaseoasodetailedo above,o theo aboveo saido Officials/Officerso shouldo haveo returnedotheoproposalobutotheyoactedoasoemployeesoofotheo companyo ando noto ofo theo banko ando illegallyo favouredo theo companyobyoacceptingotheoproposaloonosameotermsoasowaso submittedobyotheocompany.oTheyodidonototakeocareoofotheo factsothatotheosaidoproposaloshouldohaveobeenodealtowithoaso pero theo prudentialo normso seto byo NABARDo oro aso pero theo policyo framedo undero OTSo schemeo 2007o only,o buto theyo framedotheiroownorulesoandocreateoaoformulaowhichowasonoto accordingotooOTSoschemeo2007oandoinothisomanneroillegallyo favouredotheocompanyoandocausedohugeolossesotootheobank.o Theolossocausedotootheobankobeorecoveredofromotheoguiltyo Officials/Officers."o o oo AoreferenceowasoalsoomadeotootheoletterosentobyotheoChiefo SecretaryotootheoAdditionaloChiefoSecretary,oDepartmentoofoCooperativeso thatoproceedingsobeoinitiatedoasoperotheoGovernmentodirectionsoforotheo CWP-4376-2023o(O&M))ooooooo-13-ooooooooooo2023:PHHC:082811o o o o o o PanchkulaocircleoCooperativeoBankowhichowasosentoafterotheoreportoofotheo StateoVigilanceoBureauoono22.05.2020.oo oo Further,o ito haso beeno averredo thato theo mattero hado beeno enquiredo intoo byo theo Stateo Vigilanceo Departmento whereino ito waso recommendedothatoconsideringotheofactsoofotheocase,otheoofficersoofotheo bankonamelyoSh.oRajivoMathur,oProjectoOfficeroandoSmt.oGurpreetoKaur,o GeneraloManagerowereosparedobyoissuingowarningoandotheodepartmentalo enquiryoofoSh.oAnandoSaxena,oManagingoDirectorowasoclosed.oNoosucho factso cameo toolightoagainsto theosaidoofficialso whicho couldoproveo theiro criminalointent.oItowasorecommendedotoofileotheoenquiryoagainstotheosaido officersoandotheoGovernmentohadobeenopermittedotooproceedoagainstotheo BoardoofoDirectors.oTheosaidoreportoofotheoVigilanceoDepartmentowaso examinedobyotheoGovernmentoandoanoorderowasoissuedobyotheoofficeoofo ChiefoSecretaryotooseekocommentsofromoChairman/BoardoofoDirectorsoofo TheoPanchkulaoCentraloCooperativeoBankoLimited.o o Io haveo heardo learnedo counselo appearingo ono behalfo ofo theo petitioneroandohaveogoneothroughotheodocumentsoplacedoonorecord.o o Theoprayeromadeoinotheopresentopetitionoisofororegistrationoofo caseoagainstotheoprivateorespondentowhoowereothenoManagingoDirector,oo GeneraloManageroasowelloasotheoProjectoOfficerobyoallegingothatotheyohado beenofoundoguiltyoofomis-conductoandoforohavingocausedoaolossotootheo banko byo concealingo theo materialo informationo ando extendingo theo OTSo Schemeoandothatotheorecoveryoinoquestionooughtotoobeoeffectedofromotheo CWP-4376-2023o(O&M))ooooooo-14-ooooooooooo2023:PHHC:082811o o o o o o o Theopetitionerolaidoemphasisoonotheominutesoofotheomeetingo heldoono10.10.2012oquaotheosaidoaspectowhichosuchodecisionowasotakeno onotheobasisoofotheoAuditoreportoasowelloasotheocommunicationosentobyotheo OfficeoofoRegistraroofoCooperativeoSocieties,oHaryana.oHowever,oitoiso alsooevidentothatotheoStateoVigilanceoBureauohadoexaminedoallotheosaido aspectsoandoaoreportodatedo22.05.2020owasosentowhichoreadsothus:-o o "Against:oSh.oRajivoMathur,oProjectoofficer,oSmt.oGurpreeto Kaur,o GMo ando Sho Ananado Saxena,o MD,o theo Panchkulao CentraloCooperativeoBankoLtd.oPanchkula.o List:o Thiso preliminaryo inquiryo iso ino complianceo too youro officeo listo no.o 65/06/2019-5o vigilanceo (1)o datedo

23.04.95/2020o ofo 2019,o ino whicho investigationo waso too beo conductedoforoallegationoonotheobasisoofotheocomplaintoofo ShrioShivoKumaros/ooShrioRatanoLal,oresidentoofoHouseoNo.o 94,o Sector-15,o Panchkula.o Theo allegationo haso beeno investigatedobyoSh.oSureshoKumar,oDeputyoSuperintendento ofo Police,o Stateo Vigilanceo Bureau,o Panchkulao undero theo supervisiono ofo Superintendento ofo Police,o Stateo Vigilanceo Bureau,o Panchkulao Divisiono Panchkula.o Theo statements/documentso obtainedo byo theo Inquiryo Officero duringotheocourseoofoinvestigationocanobeoseenoattachedoino theo relevanto files.o Aso ao resulto ofo theo investigation,o theo decisiono takeno byo theo Investigatingo Officero regardingo theo allegationoisoasofollows-o Allegationso Commentsoo Sh.o Rajivo Mathur,o P.O.,o Fromo theo perusalo ofo theo Smt.o Gurmeeto Kaur,o GMo statements,o documentso ando andoSh.o finalo reporto submittedo byotheo CWP-4376-2023o(O&M))ooooooo-15-ooooooooooo2023:PHHC:082811o o o o o o Anando Saxena,o MD,o Theo theoinvestigatingoofficer,oitohaso PanchkulaoPesticidesoLtd.,o beeno foundo thato ono pageo Kalka,Cooperativeo Banko numbero7oofodocumentofileo5,o Ltd.,o Sh.o Rajivo Mathur,o Managero Panchkula,ocausedolossoofo Harcoo Banko haso clearlyo CroresoofoRupeesotooTheo writtenoinohisonotingofileothato CentraloCooperativeoBanko ifo theo proposalo ofo Theo OTSo Ltd.,o Panchkula,o undero schemeo ofo theo companyo iso Oneo Timeo Settlemento accepted,otheobankowillogetoRso schemeoinoconnivanceowitho 40.00o lakho lesso ino theo M/so Anilo Pesticideso Ltd.,o settlement.oItohasocomeotootheo Kalka.oo foreowithotheoTimeoofficialsoofo o NABARDo thato eveno ifo theo principalo ino amounto iso recoveredofromotheocompany,o ito wouldo beo appropriateo becauseotheopresentofinancialo conditiono ofo theo companyo iso veryo bado ando theo amounto ofo theirosecurityoisoalsoonotothato much.oInotheosameonoting,oSh.o Rajivo Mathuro haso furthero writtenothatoifoBODsomakeotheo OTSo policyo aso pero theo guidelinesoofoOTSoschemeoforo thoseo caseso whicho haveo becomeo NPAo ando thoseo thato doo noto comeo undero anyo scheme,othenothatoOTSopolicyo mayo beo forwardedo too Registraro Cooperativeo Societies,o Haryanao foro CWP-4376-2023o(O&M))ooooooo-16-ooooooooooo2023:PHHC:082811o o o o o o approval.o Sh.o Rajivo Mathuro haso requestedo foro permissiono forosuchoapprovalobyoplacingo theo sameo beforeo BODs,o byo movingotheonotingofileothrougho Generalo Managero ando Managingo Directoro ando Sh.o Anando Saxena,o MD,o haso grantedo permissiono foro theo sameoando mattero waso placedo beforeoBODS.o o ItowasodecidedobyotheoBODSo ino itso meetingo heldo ono

04.12.2007o thato aboveo saido proposalomayobeosentotooanyo Charteredo Accounto foro seekingo theiro opinion.o Thereafter,o theo mattero waso referredo byo Smt.o Gurpreeto Kaur,o GMo too Sh.o Harisho Bansal,o Charteredo Accountant,o M/so HCBo Associates,o Houseo No.o 1720,o Sectoro 21,o Panchkulao foro opinion.oTheostatementoofoSh.o Harisho Bansal,o Charteredo wasowrittenoinowhichoheostatedo thato heo hado preparedo theo reportoplacedoonopageono.o15o too21oofodocumentofileo5oando CWP-4376-2023o(O&M))ooooooo-17-ooooooooooo2023:PHHC:082811o o o o o o no.o 21,o theo neto wortho ofo theo companyo iso Rs.185.18o lakhso ando company'so proposalo iso Rs.300.00olakhounderotheoOTSo scheme,o whicho equalso too theo originalo amounto ando heo haso endorsedothisoproposal.o o Thereafter,otheoopinionoofotheo Charteredo Accountanto waso placedobeforeotheoBODsoinotheo meetingodatedo07.11.2008.oIno thisomeeting,owhileoacceptingo theoproposaloofotheocompany,o ito waso decidedo thato theo amounto Rs.3,03,34,000/-o whichowasotakenounderoOTS,o wasocorrectofromotheofinancialo pointoofoview.oIfotheobankohado noto takeno thiso decision,o theo banko wouldo noto haveo goto itso principalo amounto ando theo banko wouldo haveo sufferedo ao financialo loss.o Keepingo ino viewo ofo theseo facts,o theo departmentaloenquiryoofficerso ofo theo banko exoneratedo Sh.o RajivoMathuroProjectoOfficero andoSmt.oGurpreetoKauroGMo onlyo witho ao warningo ando stoppedo theo departmentalo CWP-4376-2023o(O&M))ooooooo-18-ooooooooooo2023:PHHC:082811o o o o o o MD,owhichoisoappropriate.oIno thiso entireo investigation,o noo sucho facto haso comeo outo thato exposesoanyocriminalomindseto onopartoof.oSh.oRajivoMathuro ProjectoOfficer,oSmt.oGurpreeto Kauro GMo ando Sh.o Anando SaxenaoMD.oInotheolightoofoallo theo aboveo facts,o ito iso recommendedo too fileo thiso inquiryo againsto Sh.o Rajivo Mathuro Projecto Officer,o Smt.o Gurpreeto Kauro GMo ando Sh.o Anando Saxenao MD.o Ifo theo Governmento wants,o ito cano seeko clarificationo fromo theo BODSoofotheobank.oTherefore,o theo chargeso stando provedo too theoaboveoextent."o o o o AoperusaloofotheoaforesaidoreportoapprovedobyotheoDirectoro GeneraloofoStateoVigilanceoBureauoshowsothatotheoallegationsoinoquestiono quaoembezzlementoand/oroissuesoofocorruptionohaveobeenoenquiredointoo byotheoStateoVigilanceoBureauoandothatotheodecisionoinothisoregardohado beeno takeno byo theo Boardo ofo Directors.o Theo Vigilanceo Bureauo InvestigationoReportowasodulyoverifiedobyotheoDirectoroGeneraloVigilanceo andoitowasoconcludedothatothereowasonoocognizableocriminalooffence.oTheo aboveo saido reporto iso noto ao subjecto mattero ofo challenge.o Onceo ano investigationohasoalreadyobeenoconductedoatotheohighestoleveloandofindso CWP-4376-2023o(O&M))ooooooo-19-ooooooooooo2023:PHHC:082811o o o o o o noocriminality,othereoisonooreasonoforothisoCourtotoodisbelieveosuchoreporto orotoodirectoanyofreshoinvestigationointooit.oWhileorulingooutocommissiono ofo ao criminalo offence,o theo Vigilanceo hado onlyo recommendedo thato commentsomayobeosoughtofromotheoBoardoofoDirectorsoquaotheodecisiono takeno byo them.o Theo sameo cannoto beo interpretedo too concludeo thato theo respondentsohereinohadoanyocriminalointentoatotheiroend.oTheomatteroquao themohasobeenofinalized.oo o o Itoisoaowellosettledoprincipleoofolawothatoaoreportohasotoobeo seeno aso ao wholeo ando cannoto beo reado selectivelyo oro piece-meal.o Theo recommendation,o"IfotheoGovt.owants,oitocanoseekoclarificationofromotheo Boardo ofo Directorso ofo theo Bank,"o cannoto over-rideo ao specifico findingo recordingotootheofollowingoeffect:-o o o "Inothisoentireoinvestigation,onoosuchofactohasocomeooutothato expressesoanyocriminalomindsetoonotheopartoofoSh.RajivoMathur,oProjecto Officer,oSmt.oGurpreetoKaur,oGeneraloManageroandoSh.oAnandoSaxena,o M.D.oInotheolightoofoallotheoaboveofacts,oitoisorecommendedotoofileothiso enquiryoagainstoSh.RajivoMathur,oProjectoOfficer,oSmt.oGurpreetoKaur,o GeneraloManageroandoSh.oAnandoSaxena,oM.D.o o o TheogeneralorecommendationoagainstoBODowouldonotolayo groundotoore-openotheocaseoagainstotheorespondentsowhoohaveoalreadyo facedo vigilanceo enquiryo aso wello aso departmentalo actiono ando noneo ofo which,otheirocriminaloinvolvementohasobeenonoticed.oo CWP-4376-2023o(O&M))ooooooo-20-ooooooooooo2023:PHHC:082811o o o o o o o o Ito iso evidento fromo ao perusalo ofo theo replyo filedo byo theo respondentothatoaoregularodepartmentaloenquiryowasoalsooconductedobyo theoDepartmentoandotheoreportowasosubmittedotootheoStaffoSub-Committeeo headedo byo Principalo Secretary,o Cooperativeo Departmento ando alsoo theo ChairmanoofotheoHarcooBank.oOnlyoanoadvisoryonoteowasoissuedotootheo Projecto Officero andotheo Generalo Managero andotheo Govt.o absolvedotheo M.D.o ofo allo theo charges.o Hence,o theo Departmentalo proceedingso haveo culminatedo upo too theo Highesto levelo i.e.o theo Principalo Secretary,o DepartmentoofoCooperative.oTheoRegistraroCooperativeoSocietiesobeingo anoauthorityosubordinateotootheoPrincipaloSecretaryocannotore-examineo sucho decisiono ando sucho actiono cano onlyo beo confinedo too theo Boardo ofo Directorsoalone,oasoperotheorecommendationoofoVigilanceoandoitsoscopeo cannotoextendoanyofurther.oo o o Anyocommunicationoquaotheosaidoaspectocannotobeocitedotoo re-openo concludedo proceedingso quao theo privateo respondentso herein,o more-soowhenononeoofotheofinaloordersoareounderochallenge.ooooo oo TheosubsequentocommunicationobyotheoChiefoSecretaryoalsoo hasotoobeoseenoinotheocontextoofotheorecommendationomadeobyotheoStateo VigilanceoBureauowhichohasonotoonlyoruledooutotheoinvolvementoofotheo privateorespondentsoinoanyocriminaloembezzlementoorocriminalointentobuto hasoalsooupheldotheopunishmentoofowarningogivenobyotheoDepartmentotoo theoaboveosaidoofficers.oTheoDirectoroGeneraloofoPolice,oStateoVigilanceo Bureau,o hado recordedo hiso findingo aftero goingo througho theo entireo enquiry/investigationoconductedobyotheoStateoVigilanceoBureauoandotheo CWP-4376-2023o(O&M))ooooooo-21-ooooooooooo2023:PHHC:082811o o o o o o conclusionowasobasedouponoconsiderationoofoallotheomaterialothatowaso broughtobeforeotheoStateoVigilanceoBureau.oTheodecisionowhichoisonowo pendingo witho theo respondento Authoritieso relateso onlyo too theo recommendationsomadeobyotheoStateoVigilanceoBureauoagainstotheoBoardo ofoDirectors/BoardoofoAdministrators.oo oo Theo Registraro Cooperativeo Societies,o Haryana,o has,o however,oinoitsowrittenostatementosubmittedothatocommentsoofotheoofficerso haveo alreadyo soughto foro ando ao decisiono ono theo representationo datedo

23.09.2022oshallobeotakenoimmediatelyoonoreceiptoofotheirocomments.oo o Theoaboveosaidoreplyoisoaoresponseotootheostageowhereotheo representationoofotheopetitioneroisopending,owhichoisomoreoofoaoroutineo mechanicalo response,o ando cannoto beo perceivedo thato theo guilto ofo theo privateorespondentsoisoyetotoobeofinallyodetermined.oo o Ito seemso thato filingo ofo theo presento petitiono iso intendedo too extendoaosteppingostoneotoore-open,owhatohasoalreadyobeenoclosed,oandoforo certainoextraneousoconsiderations.oo o Theosameoleadsotootheoprayeromadeoinotheopresentopetition.oo o Ino soo faro aso theo prayero foro recoveryo ofo Rs.10o croreso aso mentionedo ino theo representationo (Rs.3.32o croreso Principalo +o Rs.6.76o croresointerest)oareoconcerned,osuchoprayeroisonototenableoasotheoregularo departmentalo enquiryo oro theo Vigilanceo haso noto heldo themo liableo foro havingocausedoanyoloss.oRather,oitowasorecordedothatotheodecisionowaso takenotoopreventoescalationoofoloss.oInofinancialoandobankingomatters,oOneo CWP-4376-2023o(O&M))ooooooo-22-ooooooooooo2023:PHHC:082811o o o o o o TimeoSettlementoSchemeso(OTS)oareoaoregularofestiveoandoanyowaiveroofo interesto undero sucho schemeso cannoto beo labelledo aso criminal.o Fiscalo disciplineoandohealthoofoaoFinancialoInstitutionotakesoshocksoofovariouso otherocostsoandolossoofobusinessoopportunities.oTheoinitialoproceedingsoofo theoyearo2007;o2008oando2012oofotheoBoardoofoAdministratorsocannotobeo reliedoanyofurtheroafterotheoconclusionoofoRegularoDepartmentaloEnquiryo andoEnquiryobyotheoStateoVigilanceoBureauowhichohaveonotofoundotheo privateorespondentsoguiltyoofosameoorodirectedoanyorecovery.oThereocano beo noo presumptiono ofo losso onceo theo departmentalo enquiryo haso beeno concluded.oo o Theoprayerotoodirectorespondentsotooconductodepartmentalo enquiryo iso alsoo liableo too beo rejectedo sinceo departmentalo enquiryo haso alreadyobeenoconcludedoandotheopetitionerohasochosenonototoochallengeo theosameooroevenotoodiscloseotheosameoinohisopleadings.oNoogroundsoexisto forodirectingodepartmentaloproceedingsotoobeoconductedoafresh.oo o Theo prayero foro directingo registrationo ofo FIRo cannoto beo acceptedoforotheoreasonothatoStateoVigilanceoBureauohasoalsooinvestigatedo theocriminaloaspectoandoconcludedothatonoocriminalocaseoisomadeoout.oo ThereoisohenceonoomaterialoforothisoCourtotoodirectoregistrationoofoFIRo againstoprivateorespondents.oooo o Ino soo faro aso theo prayero foro directingo decisiono ono representationso iso concerned,o theo Registraro Cooperativeo Societieso haso alreadyosaidoinotheoreplyothatoheoisoseizedoofotheomatteroandocommentso fromo theo memberso ofo theo Boardo ofo Administratoro areo awaited.o Theo CWP-4376-2023o(O&M))ooooooo-23-ooooooooooo2023:PHHC:082811o o o o o o petitionerohasonotoprayedoanyoreliefoagainstotheoBoardoofoAdministratoro ando haso rathero reado theo sameo againsto theo privateo respondentso hereino whicho cannotobeo directed.o Anyo sucho directiono wouldo beoperceivedo aso validationoofotheoactionoagainstoprivateorespondentsobyotheoHighoCourt.o Theo issueo cano thuso onlyo beo examinedo byo theo Registraro Cooperativeo SocietiesotootheoextentooforecommendationomadeobyotheoStateoVigilanceo Bureauoandonotoagainstotheoprivateorespondentsoherein.oThisoCourtowouldo thuso noto issueo ao directiono too doo indirectlyo whato iso noto permissibleo directly.oooooooooooooooo o o Takingointooconsiderationothatotheoreportowasosubmittedobyo theo Stateo Vigilanceo Bureauo ino theo yearo 2020o ando theo Registraro CooperativeoSocietiesohasostatedothatoaodecisionoshallobeotakenoasowell,o thatoalreadyoaoperiodoofomoreothano03oyearsohasoelapsedosinceothen,oitoiso expectedo thato ano expeditiouso decisiono iso takeno quao theo Boardo ofo Administrator/BoardoofoDirectorsoonotheorepresentationosubmittedobyotheo petitioneroisodecidedoandopreferablyowithinoaoperiodoofo06omonthsoofotheo receiptoofocertifiedocopyoofothisoorder.oo o o Petitionoisoaccordinglyodisposedoof.ooo o Mayo26,o2023o o o oooooooooooo(VINODoS.oBHARDWAJ)oo rajoarorao o o o o o o JUDGEo o Whetherospeaking/reasonedo:oo Yes/Noo Whetheroreportableo:oo o o Yes/Nooo