ORDER :

1. The present Writ Petition is filed questioning the action of Respondent No.5 in issuing Notice vide Rc.No.1096/2023/C, dated 19.11.2024 and to declare the same as illegal and arbitrary and consequently to set-aside the said notice.

2. The brief facts are as follows;

Petitioner No.1, which is a House Building Society Limited was incorporated vide Proceedings Rc.No.1232/83, dated 11.03.1983 on the file of the Deputy Registrar of Co-operative Societies, Visakhapatnam. The primary object of the Society is to buy, acquire, purchase, mortgage, exchange and build any buildings for the welfare of the members of the Society. It is stated that there are a total 93 members in the Society and as per the bye-laws of the Society the general body meeting has to be conducted once in every six months. It is stated that on 04.04.2024, a committee meeting was held by the Board of Directors of the Society and it was decided to conduct a general body meeting.

3. Accordingly, notices dated 05.04.2024 through e-mail/registered post, were issued to all the members of the Petitioner-Society and a general body meeting was held on 22.04.2024. As all the members of the Society failed to attend the meeting on the scheduled date i.e., on 22.04.2024 necessary quorum for conducting general body meeting was not available and only the managing committee and two others attended the meeting.

4. While so, on 18.07.2024, a requisition was received from 53 members for conducting a special general body meeting of the Society. As per bye-laws of the Society to act upon the letter of requisition, the mandatory strength is 2/3rd members. The total strength of the Society is 93 members and 2/3rd strength comes to 62 members and the letter of requisition was signed by only 53 members and the general body meeting was not called. While so, Respondent No.5 had issued the impugned notice, dated 19.11.2024 directing the members of the Society to attend the general body on 13.12.2024. The said notice was issued under Section 60(1) of the A.P. Cooperative Societies Act, 1964 (for short “the APCS Act, 1964”), which is not applicable to the facts of this case.

5. It is stated that a requisition letter dated 07.10.2024 was issued by 53 members, pursuant to which the department had issued the impugned notice. The Petitioners submitted a detailed representation on 01.12.2024 requesting to enquire into the matter and cancel the general body meeting. However, there was no reply thereon. Hence, the present Writ Petition is filed questioning the authority of Respondent No.5 to call for the general body meeting without calling for any explanation or making any efforts to address certain basic facts.

6. In the Counter-Affidavit filed by Respondent No.5, it is stated that on 07.01.2024, 51 members of the Society had signed on the requisition to initiate action to call for general body in the first half year 2024-25 as required under Section 32(1) of APCS Act, 1964 even though a representation was given by them to that effect. It is also stated that the present President of the Society had unilaterally entered into an agreement with M/s. Hasini Infra Private Limited on 24.03.2024 as Vice-President of the previous Committee and registered the deed in favour of the Realtor in the ratio of 74:26. After this aspect was brought to the notice of the Deputy Registrar of Cooperative Societies, Visakhapatnam through a petition on 03.10.2023 and during the preliminary enquiry, the alleged acts of the President have been confirmed.

7. In that context, a direction was given by Respondent No.5 to conduct the general body of the Society and take appropriate action to redress the grievance of the members. It is also stated that the provisions of Section 32(1) of APCS Act, 1964 R/w Bye-law No.38 of the Registered Bye-laws of the Petitioner-Society, it shall be statutory obligation on the part of the managing committee of the Society to call not less than two general body meetings, provided that one meet