HARKISHAN DASS AND OTHERS vs STATE OF HARYANA AND OTHERS

The Supreme Court upheld the dismissal of the writ petition by the Punjab and Haryana High Court, which had rejected the appellants' plea regarding the applicability of Sections 55 and 56 of The Punjab Co-operative Societies Act, 1961. The Court clarified that while the appellants, as heirs of Mathura Parshad, are liable for the principal amount due, they cannot be held personally liable beyond the interest devolved upon them from the deceased. The Court emphasized that this personal plea remains valid and can be raised in future recovery proceedings, ensuring no res judicata applies to this defense.