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2012 Supreme(Cal) 914
IN THE HIGH COURT OF CALCUTTA
Biswanath Somadder, J.
Nikhil Chandra Deb & Ors. - Appellants
Vs.
The State of West Bengal & Ors. - Respondent
W.P. No. 21934 (W) of 2012
Decided On: 10.10.2012
For Appellant/Petitioner/Plaintiff: Tarun Roy, Ashit Kumar Chakraborty, Subhajit Panja and Arnab Roy
For Respondents/Defendant:Sailaja Nanda Bhattacharya and Mojnu Sk. for the Respondent Nos. 1 to 3, Ashok De, Srimanta Dutta and Himadrisekhar Chakraborti for the Respondent Nos. 7, 9 & 10 and Malay Kumar Basu and Indranil Nandi for the Nos. 11 to 17
The Registrar of Co-operative Societies can invoke Section 34 of the West Bengal Co-operative Societies Act, 2006, on his own and is not required to act solely at the behest of the Government.
Headnote:
COOPERATIVE SOCIETY - ELECTION OF BOARD OF DIRECTORS - VALIDITY - CHALLENGE TO ORDER OF REGISTRAR OF CO-OPERATIVE SOCIETIES UNDER SECTION 34 OF WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 2006 - WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 2006, SECTIONS 34, 100(1).
Fact of the Case:
Petitioners, elected as Directors of a cooperative society in an Annual General Meeting, challenged an order of the Registrar of Co-operative Societies invoking Section 34 of the West Bengal Co-operative Societies Act, 2006, alleging that the Registrar acted at the behest of the Government and ignored their election.
Finding of the Court:
The Court held that the impugned order was not passed solely at the behest of the Government but was a continuation of proceedings initiated by the Registrar under Section 34 of the Act, based on an enquiry report highlighting irregularities in the society's affairs.
Issues: 1. Whether the Registrar of Co-operative Societies acted solely at the behest of the Government in invoking Section 34 of the West Bengal Co-operative Societies Act, 2006? 2. Whether the Registrar ignored the petitioners' election as Directors in an Annual General Meeting?
Ratio Decidendi: 1. The Registrar of Co-operative Societies has the power to invoke Section 34 of the West Bengal Co-operative Societies Act, 2006, on his own and is not required to act solely at the behest of the Government. 2. The Registrar, in the impugned order, duly considered the Annual General Meeting held on 16th October 2011, but found that it was held in violation of an earlier order dated 21st September 2011, which had directed the dissolution and reconstitution of the Board.
Final Decision: The Court dismissed the writ petition, holding that the impugned order was passed in due exercise of the Registrar's powers under Section 34 of the West Bengal Co-operative Societies Act, 2006, and did not warrant interference by the writ Court.
Biswanath Somadder, J.
1. Affidavit of service filed in Court today be kept on record. The petitioners claim to be members and shareholders of cooperative society named, "Observance Co-operative Housing Society Limited (hereinafter referred to as the Society). According to the petitioners, they were elected as Directors in the Board of the Society in an Annual General Meeting held on 16th October, 2011. They have now approached this Court challenging an order dated 28th August, 2012, issued by the Registrar of Co-operative Societies, West Bengal, invoking the provisions of Section 34 of the West Bengal Co-operative Societies Act, 2006.
2. The main thrust of the writ petitioners' case is two-fold. According to them, the provision of Section 34 of the West Bengal Cooperative Societies Act, 2006, has to be exercised by the Registrar of Co-operative Societies on his own and not at the behest of the Government of West Bengal, which the Registrar, in fact, has chosen to do while rendering the impugned order dated 28th August, 2012. The other contention of the petitioners is that although they were duly elected as members of the Board in an Annual General Meeting held on 16th October, 2011, the Registrar of Co-operative Societies has ignored this important fact and has proceeded to observe in the impugned order that the Board was last elected on 29th June, 2008. In such circumstances, it has been contended on behalf of the petitioners that the impugned order dated 28th August, 2012, is bad in law and is liable to be set aside.
3. Learned Advocate representing the respondent Nos. 11 to 17, while making his submissions, has essentially adopted the submissions made on behalf of the petitioners.
4. On the other hand, the learned Advocate for the State has submitted that the Registrar of Co-operative Societies, West Bengal, duly exercised his powers under Section 34 of the West Bengal Cooperative Societies Act, 2006, following the report submitted by the Enquiry Officer with regard to certain irregularities existing in the affairs of the Society and had not merely been obeying the directions of the Government of West Bengal, as sought to be contended on behalf of the petitioners. He also drew this Court's attention to the impugned order dated 28th August, 2012, wherein the Annual General Meeting held on 16th October, 2011, was duly taken note of and it was observed that such meeting was held suppressing the material fact that section 34 of the West Bengal Co-operative Societies Act, 2006 has already been applied and the lawful directions of the Registrar of Co-operative Societies, West Bengal, had been blatantly violated. In such circumstances, learned Advocate for the State submitted that the impugned order did not warrant any interference by this Court.
5. Learned Advocate representing the respondent Nos. 7, 9 and 10 took a stand similar to the stand taken by the learned Advocate for the State. He further submitted that the petitioners have approached this Court without challenging the validity of an earlier order dated 21st September, 2011, passed by the Registrar of Co-operative Societies, West Bengal. He drew this Court's attention to the said order dated 21st September, 2011, and submitted that the Registrar of Co-operative Societies, West Bengal, had exercised his powers under Section 34 of the West Bengal Co-operative Societies Act, 2006 while passing the said order and the impugned order dated 28th August, 2012, cannot be read in isolation and the same is required to be read along with the order dated 21st September, 2011. He also drew this Court's attention to another order dated 17th November, 2011, whereby, in exercise of power conferred under section 100(1) of the West Bengal Co-operative Societies Act, 2006, an Assistant Registrar of Co-operative Societies was authorised to cause an enquiry into the affairs of the Society, especially prevailing in the Society after issuance of the order dated 21 "September, 2011, as also
