IN THE HON’BLE COURT OF ASSISTANT REGISTRAR, COOPERATIVE

SOCIETIES, U.T., CHANDIGARH

Reference No. ____________of

2015

The Chandigarh State Cooperative Bank Ltd; ________________,

Union Territory, Chandigarh, through its Branch Manager.

Versus
1. Sh. Dinesh Kumar S/o Sh. Gian Chand Sood, House No.
2212, Sector 22-C, Chandigarh.

..Loanee

2. Sh. Pardeep Kumar S/o Sh. Chunni Lal, House No. 635,
Sector 22-A, Chandigarh.

3. Sh. Ved Parkash S/o Sh. Karam Chand , House No. 3194,
Sector 23-D, Chandigarh

…
Gurantors

Reference of dispute under sections 55

& 56 of Punjab Coperative Societies Act,
1961 for the recovery of Rs. 41,021/-
upto 30.06.2007 and with future
interest @ 19% per annum till
realization of the amount. (File No. 330)

Respectfully Showeth:-

The above named applicant states as follows: -

(i) Description of the duspute: -

1. That the Chandigarh State Cooperative Bank Ltd;

Chandigarh (hereinafter referred to as the Bank) is a
Cooperative society registered under the provisions of the
Punjab Coperative Societies Act, 1961(hereinafter referred to
as the Act). The Bank is the body corporate and is capable of
suing and be sued in its corporate name. The Boasrd of
Directors of the Chandigarh State Cooperative Bank Ltd; SCO
No. 1088-89, Sector 22-B has passed a resolution no. 3 in its
meeting held on 12.09.2002, wherein the Bank Managers of
the Branches were authorized to file arbitration cases. A copy
of the resolution dated 12.09.2002 is enclosed for the kind
perusal of this Hon’ble Court.

2. That the respondent no. 1 (Sh. Dinesh Kumer, Loanee)

and the Respondents no 2 and 3 were admitted as nominal
members of the Bank. Therefore, the dispute between the
 applicant (Ist Party) and Respondents (2 nd Party) is capable of
being adjudicated under section 55/56 of the Act

3. That Respondent no. 1(Sh. Dinesh Kumer, Loanee) had

applied for loan and the Applicant-Bank had sanctioned loan
for Rs. 40,000/- on 04.09.2002 to him @ 15% per annum
with quaterly rests and in case of default penal interest @ 3%
per annum with quarterly rests shall be charged. At present
Rs. 41,021/- is outstanding against the Respondent.

4. That the respondent no. 1 (Sh. Dinesh Kumer, Loanee)

has executed documents i.e. Loan Application, Affidavit,
Letter of Continuity, Letter of Waiver, Authority Letter,
Receipt, Promissory Note, Surety Bond, Agreement between
the Bank and the Borrower and other documents which
warrents the recovery of the amount from the Respondents
from the Court of Law.

5. That inspite of repeated notices and reminders, the

Respondents failed to liquidate the entire above said loan
amount as on 30.06.2007 along with overdue interest and
penal interest as per Agreement.

6. That Respondent No. 2 & 3 executed Surety Bonds for

the repayment of amount together with interest thereon.

7. That thereafter recovery notice dated 28.06.2007 was

issued by the Advocate of the Bank in which the Respondents
were called upon to square up the account with interest upto
date, But no amount was paid by the Respondents to the
Apllicant-bank till date, hence this Arbitration Reference.

8. That the Respondents have not been able to repay the

loan, therefore they have become liable to pay the loan
amount upto the date of filing the dispute, the Applicant
Bank has claimed interest at the agreed rate of interest @
15% per annum with quarterly rests from the date of filing,
the Respondents have become liable to pay penal interest @
3% per annum with quartery rests.

(ii) Cause of Action in berief: -

9. That since Respondent No. 1 nad 2 & 3 being the

guarantors, have failed to discharge the obligation
undertaken by them in spite of demand by the Applicant-
Bank. Therefore, a dispute has arisen between the Ist party
 and the 2nd party for the recovery of Rs. 41,021/- plus interst
upto 30.06.2007. Since the Respondent No. 2 & 3 are
Guarantors and the dispute touches the business of the
Applicant-Bank, the matter is required to be referred to the
Assistant Registrar, Cooperative Societies, U.T., Chandigarh
under section 55/56 of the Act.

(iii) Description of the relief claimed: -

10. It is, therfore, respectfully prayed that an Award of Rs.

41,021/- including interest upto 30.06.2007 and with future
interest @ 18% per annum with quarterly rests till realization
along with special cost, expenses and counsel fee of Rs.
1,000/- may kindly be passed in favour of the Applicant-Bank
(Ist Party) and against the Respondents (2 nd Party) jointly and
severally.

(iv) List of Documents to be relied upon: -

11. That the Loanee) had executed documents i.e. Loan

Application, Affidavit, Letter of Continuity, Letter of Waiver,
Authority Letter, Receipt, Promissory Note, Surety Bond,
Agreement between the Bank and the Borrower and other
documents which warrents the recovery of the amount from
the Respondents from the Court of Law.

Chandigarh Applicant (Ist Party)

Dated:
Through

Verification:

Verified that the contents of my above reference of

dispute are true and correct to the best of my knowledge and
belief as per the record derived from the Bank. No part therof
is false and nothing material has been concealed therfrom.

Verified at Chandigarh on 09.07.2007

Applicant (Ist Party)