Recovery : Loan taken by cooperative society cannot be recovered from secretary of the society : Bihar Co-op. Societies Act, S. 52.

The petitioner Jay Mangal Singh was at the relevant time
secretary of the Ajanta Tel Utpadak Sahyog Samiti Ltd. duly registered under the
Bihar Co-op. Societies Act, 1935. The co-op had taken a loan from Central Co-op
Bank Ltd, Aurangabad. Having taken
the loan, it defaulted in repayment, the consequence, thereof, was that for
recovery of outstanding dues a certificate proceeding was initiated against the
said co-op. 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 co-op. when the
loan was granted.

A co-operative 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 co-operative
and its constituents is well established. That being so, the loan having been
taken by the co-operative, it cannot be recovered from petitioner who was
secretary of society. Especially, as petitioner was being proceeded against only
because he happened to be elected secretary of co-operative. He was not being
proceeded against on ground of having underwritten or guaranteed repayment of
loan. He had no personal liability in the matter, except, to the extent he may
be liable for any loan or advance taken and remaining unpaid from his
co-operative. That was not the case of the respondents. That being so, the
certificate proceedings as against the petitioner cannot be sustained and would
be wholly without jurisdiction.