PATNA HIGH COURT
S.N.P.Singh and Hari Lal Agrawal JJ.
Bihar State Co-operative Marketing Union Limited
Versus
Registrar, Co-operative Societies
Civil Writ Jurisdiction Case No. 419 of 1971 ;
Decided On : MAY 01, 1973
Where the Board of Directors promoted a Cashier to the post of an Account, in an application filed before the Registrar of the Cooperative Societies u/s 48.
Held that, the dispute is not relating to the business of the Society and the Registrar has no jurisdiction to deal with such dispute. I.L.R. 41 Pat 325 distinguished
(Para 5 & 10)
S.N.P.Singh, J.
1. The petitioner Bihar State Co-operative Marketing Union Ltd., (hereinafter to be called "the Marketing Union"), ie a society registered under the Bihar and Orissa Co-operative Societies Act. 1935 (hereinafter) referred to as "The Act"). In this writ application under Articles 226 and 227 of the Constitution the petitioner has challenged the validity of the order of the Registrar. Cooperative Societies, Bihar (respondent No. 1). dated the 2nd of February. 1971, passed in Miscellaneous Appeal No. 9 of 1970. A copy of the impugned order has been made Annexure 4 to the writ application.
2. The material facts for the disposal of this application may be stated as follows. Two posts of Accountant in the office of the Marketing Union fell vacant in the vear 1970. The Executive Committee of the Marketing Union recommended to the Board of Directors that one of the posts of Accountant be filled in by promotion from the ministerial staff at the Headquarters. The Board of Directors by the resolution dated the 24th of June. 1970 approved the recommendations of the executive committee and Promoted the cashier Sri H. N. Banker as accountant- Thereafter the Bihar State Co-operative Marketing Unions Employees Union (hereinafter referred to as "the Employees Union") respondent No. 2. filed an application before the Registrar under Sec. 48 (1) (b) and (c) of the Act challengins the decision of the Board of Directors. According to the employees Union, the regular channel of promotion being from Upper Division Assistant to Head Assistant and from Head Assistant to Accountant, the post of Accountant should have been filled in by promoting a person holding the post of Head Assistant. On the 31st of July. 1970, the Marketing Union filed written statement before the Registrar in which it took the stand that the post of Cashier is higher in rank to the post of Head Assistant and as such the promotion of the Cashier to the post of Accountant was legal and valid The marketing union also raised preliminary obiections about the maintainability of the application under S. 48 of the Act on the following two grounds, namely. (1) that the matter relating to the promotion of an employee is not a dispute "touching the business of a registered society:" and (2) that the dispute having been raised by the employees Union and not by any of the employees of the Marketing Union, it cannot be said to be a dispute between the society or its managing committee and any asent or servant of the society. The Registrar by the impugned order (Annexure 4) overruled the preliminary obiections raised by fee petitioner and held that the application filed by the Employees Union was maintainable. Being aggrieved by that order the Marketing Union has filed this writ application challenging the validity of the order.
3. Mr. Rama Raman. learned counsel appearing for the petitioner, submitted before us that the Registrar (respondent No. 1) has erred in law in overruling the preliminarv obiections raised by the petitioner and has taken an erroneous view on both the points which were raised before him.
4. Sec. 48 (1) of the Act reads thus-
"(1) If any dispute touching the business of a registered society (other than a dispute regarding disciplinary action taken by the society or its managing committee against a paid servant of the society) arises- (a) amongst members, past members persons claiming through members, past members or deceased members and sureties of members, past members or deceased members, whether such sureties are members or non-members; or
(b) between a member, past member, persons claiming through a member, past member or deceased member, or sureties of members, past members or deceased members whether such sureties are members or non-members, and the Society, its managing committee or any officer, agent or servant of the society; or
(c) between the society or its manning committee and any past or present officer, agent or servant of the society
Deccan Merchants Co-operative Bank Ltd. V/s. Dalichand Jugrai Jain
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