In Brief
A cooperative bank sought recovery of ₹34 crores allegedly misappropriated by three employees through falsification of accounts and unauthorized computer access. The bank had impleaded the former Secretary, Managing Committee members, the deceased President's heirs, and the banking software provider as additional defendants. The Supreme Court held that the software provider cannot be impleaded because supplying software is not a 'business transaction' of the society within Section 69 of the Co-operative Societies Act. However, the Secretary and Committee members, being responsible for management, may properly be impleaded to answer for alleged mismanagement and involvement. The Court allowed the writ petitions of the software providers and dismissed the others.
The lawyer headnote and full judgment text are available to registered users.