IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Vinay Joshi, Valmiki Sa Menezes, JJ.
Chandrapur District Central – Appellant
Versus
State of Maharashtra – Respondent
Writ Petition No. 8041 of 2022
Decided On : 03-03-2023
The petitioner, a Co-operative Society registered under the Maharashtra Co-operative Societies Act, sought to quash the order of stay granted by the Chief Minister to the staff recruitment process of the petitioner's Co-operative Bank. The petitioner faced acute staff shortage and had followed due process to obtain permission for recruitment. The respondents opposed the petition, alleging malpractices by the existing Managing Body and the need for stay in public interest. The court found that the Chief Minister had no independent power to review or modify the decision taken by the concerned In-charge-Minister and quashed the impugned order of stay.
JUDGMENT
VINAY JOSHI, J. - Rule. Rule made returnable forthwith. Heard finally by consent of learned counsel appearing for respective parties.
2. The principal challenge in this petition is to the competency of Chief Minister in granting stay to the staff recruitment process of petitioner' Co-operative Bank vide order dtd. 29/11/2022.
3. Petitioner No.1 Chandrapur District Central Co-operative Bank Ltd., is registered under the provisions of the Maharashtra Co-operative Societies Act, 1960 ('MCS Act'). Petitioner No.2 is elected Chairman of the Petitioner No.1 Bank. Petitioner Bank is doing business of banking under the licence of the Reserve Bank of India. Petitioner Bank has not been funded in any manner by the State Government. The petitioner Bank has its area of operation in entire revenue district of Chadrapur, whilst head office at Chandrapur. Bank has 93 branches spread over the entire Chandrapur District. The Bank has approved staffing pattern of 885 employees. In passage of time, several employees have been retired resulting into shriking the strength to the extent of 525 employees only. Resultantly 393 posts are lying vacant. In proximity, more posts would lie vacant due to upcoming retirements.
4. The petitioner Bank is facing acute shortage of staff making it difficult to run various Branches. The banking business has been largely affected due to acute shortage of staff. Considering the said contingency faced by the Bank, Board of Directors in meeting dtd. 18/11/2021 resolved to take necessary steps for filling up vacancies by undertaking recruitment process. The District Deputy Registrar, Co-operative Societies also attended the Board meeting dtd. 18/11/2021 and partook in resolving about need of recruitment. It resolved to forward a proposal to the Commissioner of Co-operation, Pune seeking approval for undertaking recruitment process.
5. In pursuance of Board Resolution dtd. 18/11/2021, the petitioner Bank sent proposal for approval to the respondent No.3, Divisional Joint Registrar, Co-operative Societies, Nagpur for forwarding the proposal to respondent No.2, Commissioner of Co-operation, Pune. After considering the proposal and recommendations made by respondent No.3 Divisional Joint Registrar, Co-operative Societies, Nagpur, vide order dtd. 25/2/2022 Commissioner of Co-operation accorded permission/sanction for undertaking recruitment process by petitioner Bank. In accordance with the sanction, initial steps have been taken by the Bank in the shape of issuing public advertisement inviting applications from reputed agencies to undertake recruitment process.
6. It is petitioners' case that political opponent of the petitioner No. 2 i.e. member of Parliament from Bhadrawati Constituency started\ making false allegation against the petitioner. Writ petition No. 2126/2022 was filed seeking appointment of Administrator for the Management of petitioner Bank. In the said petition, notices have been issued, however no interim orders have been passed.
7. The petitioner has received a communication dated 12. 05.2022, by which recruitment undertaken by the petitioner Bank has been stayed. The petitioner has challenged the stay order in Writ Petition No. 2689/2022 which is pending. The petitioner also made representation dtd. 11/11/2022 to the Minister, Co-operation for vacating the stay. In response, the Minister of Co-operation after considering the representation, vacated the stay which was communicated vide letter dtd. 23/11/2022. The petitioner was about to resume the recruitment process, however vide impugned order dtd. 29/11/2022, the Chief Minister has again stayed the recruitment process.
The petitioner learnt that respondent Nos.5 and 6 made certain grievances to the Chief Minister, on which, without making inquiry and hearing the petitioner, stay has been granted.
8. The petitioner has challenged the impugned order of the Chief Minister inter alia on following grounds :-
(1) The Chief Minister has no jurisdiction to
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