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1999 Supreme(AP) 961

Andhra Pradesh High Court
Judges : V.V.S.RAO
Appana Suribabu - Appellant
Versus
Registrar of Co-operative Societies, Peddapuram - Respondent
Decided On : 11-01-99

Headnote:

Madras co-op. Societies Act, 1961 – Sections 64 , 65 , 66 , 72 and 76 - A. P. Co-op. Societies Act, 1964 - Sections 34 and 2 - Facts in this case are not seriously disputed - That petitioners were elected that they were in charge of affairs of society for last 4 1/2 years, that there were no adverse remarks against committee, that a notice is issued to them giving 3 days time to show cause as to why action should not be taken against them for allegedly appointing one daily wage worker and paying an amount of Rs - 60,000/- to employees of Society towards arrears of D, A and that impugned order came to bepassed are not disputed - Serious contentious issue is that petitioners have not chosen to file any reply to show-cause notice which is denied by petitioners saying that when only 3 days time was granted for giving explanation, first petitioner filed an application before 3rd respondent seeking extension of time for filing proper reply - Be that as it may, impugned order came to be passed by third respondent for alleged willful disobedience of orders of authorities while Society took action in respect of others referred to herein above – Held , if in opinion of Registrar, committee of any regd - society is not functioning properly or willfully disobeys or willfully fails to comply with any lawful order or direction issued by Registrar under this Act or Rules, he may, after giving committee an opportunity of making its representations, by order in writing, dissolve committee and appoint either a person or a committee of two or more persons to manage affairs of society for a specified period not exceeding two years before taking any action in respect of any regd - society, Registrar shall consult financing bank to which society is indebted if in opinion of Registrar, committee is not functioning properly or willfully disobeys or fails to comply with any lawful order or direction issued by Registrar under this Act or Rules, he may, after giving committee, an opportunity of making its representation, by order supersede committee from a specified date, and appoint either a person or a committee of two or more persons to manage affairs of Society for a period not exceeding two years, specified in order, which period, may at discretion of Registrar be extended from time to time - Writ Petition is accordingly allowed

V. V. S. RAO, J.

( 1 ) THE first petitioner is the President of Primary Agricultural Co-op. Credit society, D. Polavaram and petitioners 2 to 12 are the members of the Managing committee. Aggrieved by the proceedings in R. C. No. 954/99, dated 3-7-1999 issued by the 3rd respondent, they have approached this Court praying for a Writ of Mandamus declaring the action of the 3rd respondent as illegal. By the impugned order purporting to be under Sec. 34 (1) of the A. P. Co-op. Societies Act, 1964 (hereinafter called the Act ), the 3rd respondent passed orders superseding the Managing Committee and the President of the Society with effect from 3-7-1999 and appointing one P. Nageswara Rao, Circle supervisor of the Dist. Co-op. Central Bank-Branch, Tuni as a Special Officer for a period of three months.

( 2 ) THE facts in this case are not seriously disputed. That the petitioners were elected on 20-7-1995, that they were in charge of the affairs of the society for the last 4 1/2 years, that there were no adverse remarks against the committee, that a notice is issued to them on 17-5-1999 giving 3 days time to show cause as to why action should not be taken against them under sec. 34 (1) of the Act for allegedly appointing one daily wage worker and paying an amount of Rs. 60,000/- to the employees of the Society towards arrears of D, A. , etc. , and that on 3-7-1999 the impugned order came to bepassed are not disputed. The serious contentious issue is that the petitioners have not chosen to file any reply to the show-cause notice which is denied by the petitioners saying that when only 3 days time was granted for giving explanation, on 8-6-99 the first petitioner filed an application before the 3rd respondent seeking extension of time for filing proper reply. Be that as it may, the impugned order came to be passed by the third respondent for alleged wilful disobedience of the orders of the authorities while the Society took action in respect of wo others referred to herein above.

( 3 ) THE learned Counsel for the petitioners Mr. M. Adinarayana Raju has made three submissions. It is contended by him that the facts in this case do not call for exercise of power under Sec. 34 (1) of the Act. Secondly there is no adequate opportunity to the petitioners as required under the said provision before passing the impugned order and therefore the same is avoid (sic. void ). Lastly it is submitted that under Sec. 34 (6) of the Act, the 3rd respondent is bound to consult the financing bank and that being a condition precedent for exercise of power under Sec. 34 (1) of the Act, the impugned order is illegal.

( 4 ) THE learned AGP for Co-operation, Mr. Madhav Reddy, submits that these grounds are not available to the petitioners for the simple reason that in spite of the show-cause notice dt. 17-5-1999 they have not produced material nor they filed proper reply and therefore they cannot be heard to say anything before this Court. He further submits that there is an effective alternative remedy to the petitioners under Sec. 76 (1) of the Act to the Registrar of coop. Societies against the orders of the third respondent and, therefore, this writ Petition is not maintainable.

( 5 ) I have heard the learned Counsel for the petitioners and the learned agp for Co-operation and the matter is being disposed of at the Admission stage with the consent of the learned Counsel.

( 6 ) THE learned AGP is correct that ordinarily this Court shall not exercise its jurisdiction when there is an effective alternative remedy. As has been held repeatedly this rule of prudence has three exceptions, one such exception being that availability of alternative remedy is not a bar for approaching this Court when the order is passed contrary to the provisions of the Act. In the present case, admittedly before passing an order on 3-7-1999, the 3rd respondent has not consulted the financing bank as required under Sec. 34 (6) of the Act. As per Sec. 2 (f) of the Act, a financing




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