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Proceedings under the Revenue Recovery Act for realization of tax due from a co-operative society on an individual who was the president of the society. Liability of a member of a society for tax dues of the society. Interpretation of the definition of "person" under the Agricultural Income-tax Act. Analysis: The petitioner, a doctor, is facing proceedings under the Revenue Recovery Act for the recovery of tax amounts due under the Kerala Agricultural Income-tax Act from a co-operative society, of which he was the president for a term. The tax is due for specific assessment years, and the petitioner was personally served with the order of assessment, even though he had ceased to be the president. The petitioner objected to the proceedings, stating that he had no personal liability for the tax assessed, and it should be recovered from the society. The main issue is whether a member of a society, including office bearers, can be held personally liable for the tax dues of the society. The court examined the definition of "person" under the Agricultural Income-tax Act, which includes individuals or associations of individuals owning property. The co-operative society in question is a body corporate with limited liability, where the liability of members is limited to their share. The court relied on precedents to establish that individuals cannot be held personally liable for the dues of a corporate body like a society, unless there is a specific contract or statutory provision making them liable. The court cited cases where directors of companies were not held personally liable for company debts, emphasizing the separate legal personality of corporate entities. The court emphasized that a co-operative society, being a legal entity with a corporate personality, is distinct from its members. The liability of the society is separate from that of its members unless there is a provision creating personal liability or unless individuals have undertaken such liability. The court found no provision in the Co-operative Societies Act or the statute imposing personal liability on members of a co-operative society. Consequently, the proceedings initiated against the petitioner for recovery of tax dues from the society were deemed incompetent, and the petition was allowed, quashing the recovery proceedings against the petitioner while allowing recovery from the society's assets. In conclusion, the judgment clarified that members or office bearers of a society cannot be held personally liable for the society's debts unless there is a specific provision creating such liability. The court highlighted the principle that the liability of a society is its own and must be met by the society itself, barring exceptional circumstances where personal liability is established.
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