Authority: High Court of Himachal Pradesh, Shimla
Order Date: 07 July 2026
Case Overview
- Petitioner: Kangra Central Co-operative Bank Ltd. (Keylong Branch)
- Respondents: Raman Kumar Sharma and others
- The petition challenged the order dated 15 June 2024 of the Additional Registrar, Co-operative Societies, North Zone, which had dismissed the bank’s appeal under Section 93 of the Himachal Pradesh Cooperative Societies Act, 1968 and affirmed the Assistant Registrar’s order dated 23 December 2022.
- Under Section 72/73 of the Act, the bank alleged non‑payment of a loan by Respondent No. 1. Arbitration proceedings (Case No. 30/2022) were initiated.
- The Arbitrator (Assistant Registrar I Jaram Singh) held that the bank had financed a vehicle loan of Rs 2,88,934 and a personal loan of Rs 50,000 on 19 February 2010.
- The bank deputed two officers on 21 November 2022 to reconcile the account; a statement dated 23 December 2022 from Sh. Ashok Kumar, clerk at the Keylong branch, indicated that verification of entries with Punjab National Bank was still ongoing and more time was required.
- The Arbitrator concluded that the financing branch failed to reconcile deposits up to December 2022, constituting gross negligence by the bank officials.
- It was ordered that any amount recoverable after reconciliation may be recovered from the negligent bank officers, and the aggrieved loanee could appeal under Section 93 of the Act.
- The Additional Registrar’s order of 15 June 2024 affirmed the Arbitrator’s award, finding the bank at fault and dismissing the bank’s appeal.
Final Outcome
- The High Court, after hearing, affirmed the Arbitrator’s findings and the Additional Registrar’s order, holding that the bank officials were negligent.
- The writ petition filed by Kangra Central Co‑operative Bank Ltd. was dismissed with no relief granted.
- All pending miscellaneous applications, if any, were disposed of.
Topics: Co‑operative Banking, Bank Negligence, Judicial Review