The Registrar has the discretion to extend the term of the Managing Committee or not, and that this discretion is not affected by the G. Os. exempting the societies from the provisions of Sub-section 31 (2) (b) relating to the period of extension.

ALLADI KUPPUSWAMI, J.

( 1 ) THE appellant is the President of the Managing Committee of the Nandikotkur Co-operative Land Mortgage Bank. The Managing Committee was elected in the year 1971 and its term expired in or about April, 1974. In view of certain G. Os. the term of the Managing Committee was being extended from time to time. Ultimately, the term was extended from 1-1-1976 to 31-3-1976. There was no further extension of the period of the Managing Committee and apprehending that person in charge will be appointed to manage the affairs of the Land Mortgage Bank, the petitioner filed W. P. No. 1256 of 1976 (Andh Pra) praying for the issue of a writ of Mandamus directing the Registrar of Co-operative Societies to exercise his powers under S. 31 (2) (b) of the Andhra Pradesh Co-operative Societies Act (referred to in this judgment as the Act) by extending the term of the Managing Committee. In pursuance of the interim directions given by this Court pending disposal of the writ petition, the term of the Managing Committee was extended upto 30-6-1976 in the first instance and again till 31-12-1976. Meanwhile the writ petition was heard on 21-8-1976 by Jeevan Reddy, J.

( 2 ) IN the affidavit in support of the writ petition it was submitted that it was obligatory on the part of the Registrar to extend the term of the Managing Committee and he could not arbitrarily refuse extension and exercise powers under Section 32 (7) (a) of the Act and appoint a person-in-charge.

( 3 ) IN the counter-affidavit it was pointed out that the action in extending the term of the Managing Committee was not arbitrary. The enquiry conducted by the Deputy Registrar, Agricultural Development Banks and the Joint Registrar Liaison Officer revealed that the president of the society had gone to Japan by spending huge amounts of the Bank without any appropriate sanction and that a Jeep was purchased without prior permission of the Registrar. The President appointed unqualified staff without reference to the Employment Exchange. The Managing Committee did not care to see the proper utilisation of loans sanctioned to the members and the enquiry revealed misutilisation of the said loans. The enquiry brought to light several serious irregularities in the management of the funds of the Bank and breach of trust on the part of the Managing Committee.

( 4 ) AS Jeevan Reddy, J. felt that the allegations in the counter affidavit were vague and a reply affidavit was also filed denying the allegations in the counter-affidavit, he went through the relevant file. After considering the various allegations referred to in the report, he found that some of the allegations were irrelevant. But in regard to two of them, namely the foreign tour undertaken by the President at the expense of the Society and the appointment of staff otherwise than through the employment of staff otherwise than through the employment exchange. Jeevan Reddy J. felt that it could not be said that there was no material before the first respondent upon which he could have come to the opinion that it was not in the interests of the Society to extend the term of the committee. It was argued before him that if some of the grounds which weighed with the authority were irrelevant, it could not be predicted to what extent the irrelevant grounds would have influenced the formation of opinion and hence the satisfaction must be held to be vitiated. Jeevan Reddy, J. held that this principle which was applied in the case of Preventive Detention could not be extended to other cases. In the result he held that no case was made out for interference and dismissed the writ petition.

( 5 ) THE appellant has preferred this writ appeal against the judgment and order of Jeevan Reddy J. In the Writ appeal, it is contended that it is obligatory on the part of the Registrar to extend the term of the Managing Committee by reason of certain G. Os. issued by the Government. It is further contended that even if he has a discretio

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