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1983 Supreme(SC) 354

SUPREME COURT OF INDIA
A.P. SEN AND E.S. VENKATARAMIAH, JJ.
Chandrika Jha, Appellant
Versus
State of Bihar and others, Respondents.
Civil Appeal No. 0296 of 1983
Decided on 27-10-1983.

Advocates:
K.N.Rai, PRAMOD SVARUP

Headnote:Bihar & Orissa Co-operative Societies Act 1975, Sec. 65A, By Law 29 - Registrar has power to nominate Board of Directors - On expiry of the term of the Board, Chief minister or minister has no power to nominate - They can not usurp the function of a statutory authority - After the expiry of the term of the first Board of Directors, neither chief minister nor the minister of Co-operative or Industries could issue directions to the Registrar to nominate persons on the Board of directors - Such directions are not envisaged under sec. 65A of the Act. (Para 8 to 13)

JUDGMENT

SEN, J.:—The controversy in this appeal by special leave against an order of the Patna High Court dated September 13, 1983 relates to the legality and propriety of the action of the Chief Minister of a State in issuing certain directions, and incidentally the scope and extent of the power of a Minister to interfere with the working of a statutory functionary under his department.

2. The facts are that on the bifurcation of the district of Muzaffarpur and creation of the new districts of Muzaffarpur and Hajipur, a separate Central Co-operative Bank called the Vaishalli District Central Co-operative Bank for the district of Hajipur was registered with its registered bye-laws. Bye-law No. 29 of the said registered bye-laws provides inter alia as follows :

"29. Management : The Management of the Bank shall vest in a Board of Directors which will consist of 17 persons :

xx xx xx xx xx

Provided also that the first Board of Directors of the Bank shall be nominated by the Registrar, Cop-operative Societies, Bihar for a period not exceeding one year at a time and not exceeding three co-operative years in aggregate and that the Registrar, Co-operative Societies may modify the nomination if and when required."

3. The Registrar, Co-operative Societies, Bihar, in exercise of the powers conferred by bye-law 29 by his order dated July 22, 1981 nominated a Committee of Management of 17 members, including the appellant, to be the first Board of Directors of the Co-operative Bank for a period of six months i.e. up to December 31, 1991, or till further orders; whichever was earlier. The Committee of Management was specifically directed to get the election of the Board of Directors of the Central Bank held in accordance with the law within six months of the date of their nomination and the Registrar by the order had reserved his discretion to make changes in the nomination of the Board by the use of expression until further orders. The Registrar by his letter dated October 1, 1981 directed the Committee of Management to complete the election of the Board of Directors of the Bank as per programme laid down therein by December 20, 1981 as the six months term of the nominated Board was going to expire on December 31, 1981. Copies of the letter were endorsed to the District Co-operative Officer, Vaishalli for necessary action as also to the Executive Officer of the Bank stating that it would be his personal responsibility to get the desired steps taken in that connection as per the time schedule fixed. In accordance therewith, the District Co-operative Officer, Vaishalli by his letter dated October 23, 1981 directed the Executive Officer of the Co-operative Bank to get the election of the Board of Directors completed by December 20, 1981.

4. The case illustrates an unfortunate trend which has now become too common these days in the governance of the country. The appellant who was nominated to be the Secretary of the first Board of Directors and is apparently a political person had a direct approach to the seat of power viz., the then Chief Minister Dr; Jagannath Misra. The result was that the first Board of Directors as constituted by the Registrar kept on flouting with impunity the repeated directions of the Registrar, Co-operative Societies in that behalf, since they were not interested in holding the general meeting for the purpose of election of the Board of Directors. Instead of complying with the directions of the Registrar, the appellant by using the letterhead of the District Congress Committee (I), Vaishalli and after bypassing the Registrar of Co-operative Societies and all other officials, directly approached Dr. Jagannath Misra the then Chief Minister of Bihar; and got the term of the first Board of Directors extended from time to time and the election of the new Board postponed without any lawful justification. The then chief Minister made an endorsement thereon dated October 29, 1981 addressed to the Minister (Co-operation) with a di



















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