Inherent power of administrative authorities to correct inadvertent mistakes and the necessity to adhere to the grounds mentioned in the relevant legal provisions for exercising specific powers.

( 2 ) THE petitioner herein is a co-operative society, represented by its president. The, society went into liquidation and as per proceedings dated 27-7-1972, the society was ordered to be. Wound up. A liquidator, who is a departmental officer, was appointed to administer the affairs of the society. It is seen from the exhibits produced that the 2nd respondent after conducting due and detailed enquiry issued Annexure-C order dated 24-4-1989 to rescind the order of liquidation and revived the society. The liquidator, the 2nd respondent herein, was allowed to be in office in-charge of the society. In view of the fact that the order of liquidation stood revoked, the 2nd respondent thereafter represented the committee of management of the society and was administering the affairs of the society. Annexure-C order was issued under Section 72 (3) of the Co-Operative Societies Act.

( 3 ) THEREAFTER, between 1-6-1989 and 4-6-1989, the liquidator enrolled new members and on 5-6-1989, convened a general body of the members where and a group of persons were selected as directors. These directors met and elected a president. On coming to know of the same, the 1st respondent issued show cause notice on 24-8-1989 to the directors of the society to show cause why annexure-c order revoking the revival order be rescinded. On 19-9-1989, the said show-cause notice was replied. After hearing, by Annexure-B order dated 25-10-1989, Annexure c order dated 24-4-1989 was rescinded. An appeal filed by the petitioner before the 3rd respondent was unsuccessful. The said order Annexure-A and the order revoking the revival, an-nexure-b, are impugned in these proceedings.

( 4 ) I have heard the government Advocate as well. The counsel for the petitioner contended that unless there is express conferment of power to review, the 2nd respondent could not have rescinded the order dated 24-4-1989. He relied on the decision of the Supreme Court in patel narshi thakershi and others v pradyumansinghji arjunsinghji. But in this case, the stand taken by the respondents is that the power exercised by the authorities is riot the power of review but only power of rectification. According to them, there were no grounds to revoke the liquidation order and that therefore, the authority was merely setting right the error committed resulting in the restoration of position ante to 24-4-1989. According to the contesting respondent, the power exercised is under Section 72 (3) of the act and the authority exercising the said power has inherent power to set right the error. It has to be noted that it is fundamental that every authority has inherent power vested in it to correct any error which vitiates the Order, after due notice to the affected party. Such reserve power is located in every authority exercising jurisdiction. Hence, it is not necessary that there should be an express conferment of power on the 2nd respondent to rescind the order dated 24-4-1989. The position has been succinctly stated by Justice t. l. vishwanatha iyer of the Kerala high court in sasidharan v reserve bank of india, as follows:"7. The power is inherent in any administrative authority to correct accidental mistakes committed by it, in ignorance of, or overlooking the facts. Indeed such power should be exercised, where rights of third parties have been affected by the mistaken proceedings, without their knowledge, and without their being heard, resulting in miscarriage of justice. If the power to correct inadvertent mistakes is not recognised and accepted, it may lead to perpetuation of injustice and to undesirable consequences. A person whose rights are so affected by an illegal order passed behind his back need not be compelled to rush to court to get it set aside, on pain of its being held binding otherwise. The authority concerned can itself remedy the mischief, on its being apprised of its mistake and the injustice flowing therefrom. (see in this connection karunakaran nambiar v