The consultation requirement in the proviso to Section 35(1) of the West Bengal Co-operative Societies Act, 2006 is triggered only when the State Government, after analyzing the allegations and the Board's reply, forms a prima facie opinion that dissolution of the Board is warranted. Prior consultation with the Reserve Bank of India is not required at the stage of issuing a show-cause notice.

Pratap Kumar Ray, J. – Heard the learned advocates appearing for the parties.

2. Assailing the interim order dated 17th April, 2012 passed by the learned trial Judge in W.P. 6863 (W) of 2012, this appeal has been preferred.

3. The stay application has been moved today in connection with this appeal.

4. Having regard to the tenor of the order impugned and having regard to the question of maintainability of the writ application, which we have heard at length, we are of the view that appeal and stay application and concerned writ application could be disposed of by us by a common judgment.

5. Writ application accordingly is taken by us by exercising our appellate jurisdiction.

6. From the writ application and the stay application filed by the writ petitioner in connection with the writ and the appeal it appears that assailing the initiation of a proceeding under Section 35 of the West Bengal Co-operative Societies Act, 2006, writ application was moved. Section 35 of the said Act reads such:

“35. Dissolution of the board and appointment of administrator. - (1) If, on receipt of a report from the Registrar, the State Government is of opinion that-

(a) any board-

(i) has persistently made defaults, or has been grossly negligent, in the performance of its duties under this Act or the rules or the by-laws, or

(ii) has committed any act prejudicial to the interest of the concerned cooperative society or the members of any other co-operative society; or

(iii) has wilfully disobeyed or wilfully failed to comply with any lawful order or direction of the State Government or the Registrar issued under this Act; or

(b) the affairs and business of any co-operative society has com to a stalemate due to persistent default or negligence in the performance of duties by its board, the State Government may, after service of a notice upon the board and giving it an opportunity for stating its objections and upon hearing such objections, by a notification stating reasons therefor, dissolve the board, the directors of which shall forthwith vacate their offices and by the said notification [the State Government shall appoint one or more of its officers to manage the affairs of one or more co-operative societies who shall be called the administrator or administrators, as the case may be] for a period not exceeding six months and may also, by notification extend such period so, however, that the total period shall not exceed one year in any case:

Provided that the State Government shall not take any step towards immediate dissolution of the board of directors of the State Co-operative Bank or the Central Cooperative Land Development Bank or any Central Co-operative Bank or such other Cooperative Bank as comes within the provision of Part V of the Banking Regulation Act, 1949 (10 of 1949), without prior consultation with the Reserve Bank of India or the national Bank for Agriculture and Rural Development, as the case may be:

Provided further that the Registrar shall reconstitute an elected board of directors of the co-operative society in a general meeting to be convened for the purpose in accordance with the Act, rules and by-laws within the tenure of the office of the administrator as specified in the notification so that he may make over his charge to the newly elected board before expiry of his tenure.

[(1A) if an elected Board cannot be reconstituted within the period of one year from the date of dissolution of the board, the administrator shall be removed from his office by the State Government and thereupon the provision contained in subsection (7) of section 29 shall be followed.]

(2) During the tenure of office of the administrator appointed under subsection (1)-

(a) all properties of the co-operative society shall vest in the Registrar; and

(b) subject to the control of the Registrar and notwithstanding the preferring of any appeal under section 147, the administrator shall exercise all the powers and perform all the duties which may be e