IN THE HIGH COURT OF JUDICATURE AT PATNA
Ahsanuddin Amanullah, Harish Kumar, JJ.
Narendra Singh @ Narendra Prasad Singh – Petitioner
Versus
The State of Bihar through the Principal Secretary, Department of Co-Operative and ors. – Respondents
Civil Writ Jurisdiction Case No.15746 of 2022
Decided On : 10-01-2023
Bihar Co-operative Societies Act, 1935 – Sections 41(5) and 44AX – Dissolution of Managing Committee of Central Co-operative Bank – There cannot be any deemed acceptance of resignation of Members of Board – There has to be some sort of a formal order – Nowhere from pleadings, much less from order impugned, there is even a whisper or Court can infer that resignations did stand accepted – Curtailing life of a duly elected body in a casual and summary manner is arbitrary and unjustified – Order impugned stands set aside and Board dissolved by order impugned of Bank stands restored. (Paras 14 to 18)
JUDGMENT :
Ahsanuddin Amanullah, JJ.
Heard Mr. Aditya Narain Singh, learned counsel along with Mr. Kundan Kumar Sinha, learned counsel for the petitioner; Mr. Mahtab Alam, learned AC to SC 20 for the State; Mr. Yogendra Mishra, learned senior counsel along with Ms. Swati Mishra, learned counsel for the respondents no. 5 to 8 and Mr. Patanjali Rishi, learned counsel for the respondent no. 4. The private respondents have already entered appearance in the present proceeding through their counsel as mentioned above.
2. The petitioner has moved the Court for the following reliefs:-
The reason for dissolution of Managing Committee as indicated in that out of 9 members/Directors, four members have resigned from their post. The resignation of said members have been accepted by the Respondent Registrar, that too on the oral statement of Managing Director of the Central Co-operative Bank Ltd. Begusarai.
It is indicated in the impugned order that resignation process of the said members was initiated in the official chamber of respondent Registrar Co-operative Societies on 14.10.2022 and on the same date the Board of Director was dissolved. The Registrar himself admits that as per the Bank Byelaws issue of resignation of the Board’s member can only be discussed by the Managing Committee/Board of Directors of the said Bank, but the respondent Registrar acting upon the statement of the Managing Director, accepted the resignation of those members on the ground that out of nine members four members have resigned, therefore there will be insufficient number for meeting the requirement of corum.”
3. The issue before the Court is as to whether the order passed by the Registrar, Co-operative Societies (hereinafter referred to as the ‘Registrar’) dated 14.10.2022 which is impugned in the present writ application is both factually and legally sustainable. The same relates to the issue of dissolution of the Board of Directors (hereinafter referred to as the ‘Board’) of Begusarai Central Co-operative Bank Limited (hereinafter referred to as the ‘Bank’).
4. Learned counsel for the petitioner submitted that the order suffers from grave illegality and also mala fide. It was contended that the order has been passed by the Registrar on the resignation submitted by four elected members of the Board of the Bank (respondents no. 5 to 8) before the Chairman of the Board (petitioner) tendering their resignation with a request to accept the same which has been forwarded by the Managing Director of the Bank to the Registrar. Learned counsel submitted that the illegality started right from the very inception inasmuch as the affidavit was affirmed by the respondents no. 5 to 8 on 10.10.2022 and thereafter on the next day i.e., 11.10.2022, the actual resignation was addressed to the Chairman of the Bank, which the Managing Director of the Bank personally took before the Registrar and he called the respondents no. 5 to 8 before him and taking their statement has passed the impugned order. It was submitted that such order has been done at the behest of the Managing Director and in contravention of the statutory provisions as also the byelaws of the Bank. In support of his contention, learned counsel submitted that the total number of members in the Board is 15 but when the present Board was constituted on 18.01.2018, there were only 9 elected members and the Managing Director, who was in office automatically become an ex officio member and Secretary of the Board. Thus, the total number in the Board of Directors according
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