2018 Supreme(Chh) 316
IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
Sanjay K. Agrawal, J.
State of Chhattisgarh, Through the Secretary, Co-operative Department & Ors. - Petitioners
Versus
Munnaram Rajwade S/o Shri Dhansai Rajwade & Ors. - Respondents
Writ Petition (C) No.1141 of 2018
Decided On : 18-09-2018
Advocate Appeared:
For the Petitioners: Mr. Prafull N. Bharat
For the Respondents: Dr. N.K. Shukla, Mr. Ramakant Pandey, Mr. Jitendra Shrivastava, Mr. Vikas A. Shrivastava, Mrs. M. Asha, Mr. Pradeep Singh Rathore, Mr. Sourabh Sharma
Headnote:
Chhattisgarh Co-operative Societies Act, 1960 - Section 19(1) - Chhattisgarh Co-operative Societies Rules, 1962 - Rule 43(6) – Employment and Service matter - Co-operative Tribunal - Disqualification for membership of Board and for representation - Whether Co-operative Tribunal is justified in granting appeal preferred by respondent No.1 setting aside order of Registrar, C-operative Societies - Gopal Dugdh Sahakari Samiti Maryadit, Korba, was registered by Deputy Registrar, Co-operative Societies, Korba, in exercise of power conferred under Section 19(1) of Act, 1960, of which respondent No.1 was nominated as President and election was directed to be conducted within a period of three months from date of incorporation of that society - Thereafter, election of Board of Directors of Zila Sahakari Kendriya Bank Maryadit, Bilaspur was conducted in which respondent No.1 participated claiming himself to be representative of Gopal Dugdh Sahakari Samiti Maryadit and got elected as one of Directors of Board –By order Deputy Registrar, Co-operative Societies, Korba passed an order exercising jurisdiction conferred under Section 49(8) of Act, 1960 (holding that Board of Directors has ceased to function and vested powers of Board of Directors of that Society with Deputy Registrar, Co-operative Societies and thereafter, Co-operative Extension Officer was appointed as authorized officer to look after affairs of that society - Held, provisions of Section 49(8) of Act of 1960 has been invoked by learned Registrar, Co-operative Societies, finding that respondent No.1 has become ineligible to be Director of Board of that Society has ceased to exist by order of Deputy Registrar, Co-operative Societies, Korba, consequently he also ceased to be a Director and quorum of Board of Directors falling short of less than fifty percent as required by Rule 43(6) of Rules, 1962, Board of Directors of said Co-operative Bank has ceased exist under Section 49(8) of Act of 1960, as such, the provisions contained in Sections 19-AA and 49-F of Act of 1960, are not attracted at all - There is no another reason for not upholding impugned order passed by the Co-operative Tribunal - Impugned order passed by learned Co-operative Tribunal cannot be sustained and quashed - Writ petition is allowed.
1. Gopal Dugdh Sahakari Samiti Maryadit, Korba, was registered on 3-6-2011 by the Deputy Registrar, Co-operative Societies, Korba, in exercise of power conferred under Section 19(1) of the Chhattisgarh Co-operative Societies Act, 1960, of which respondent No.1 was nominated as President and election was directed to be conducted within a period of three months from the date of incorporation of that society. Thereafter, election of the Board of Directors of Zila Sahakari Kendriya Bank Maryadit, Bilaspur was conducted in which respondent No.1 participated claiming himself to be representative of Gopal Dugdh Sahakari Samiti Maryadit and got elected as one of the Directors of the Board. Eventually, on 7-9-2015, respondent No.1 was also elected as Chairman of Zila Sahakari Kendriya Bank Maryadit, Bilaspur, but the election of Gopal Dugdh Sahakari Samiti Maryadit, Korba could not be conducted within the stipulated period of three months as directed. By order dated 21-9-2015, the Deputy Registrar, Co-operative Societies, Korba passed an order exercising the jurisdiction conferred under Section 49(8) of the Chhattisgarh Co-operative Societies Act, 1960 (for short, 'the Act of 1960') holding that the Board of Directors of Gopal Dugdh Sahakari Samiti Maryadit, Korba has ceased to function and vested the powers of the Board of Directors of that Society with the Deputy Registrar, Co-operative Societies, Korba, and thereafter, Shri S.K. Kanwar, Co-operative Extension Officer was appointed as authorized officer to look after the affairs of that society. On the same day i.e. 21-9-2015, the Registrar, Co-operative Societies passed an order holding respondent No.1 as ineligible to be elected as representative of Gopal Dugdh Sahakari Samiti Maryadit, Korba. The Registrar further held that on account of the fact that election of that Society could not be conducted and in view of the order dated 21-9-2015 passed by the Deputy Registrar, Co-operative Societies, Korba and also in view of Rule 43(6) of the Chhattisgarh Co-operative Societies Rules, 1962 for want of quorum, the Board of Directors of Zila Sahakari Kendriya Bank Maryadit, Bilaspur is deemed to have been ceased to function by virtue of the provisions contained in Section 49(8) of the Act of 1960 and appointed the Collector as authorized officer to look after the affairs of the said Bank.
2. Questioning the order passed by the Registrar, Co-operative Societies, earlier, a writ petition was preferred by respondent No.1 herein namely W.P.(C)No.2147/2015 (Munna Ram Rajwade v. State of Chhattisgarh and others) before this Court which was withdrawn with liberty to file appeal. Appeal was preferred before the Cooperative Tribunal and the same was dismissed in first round by order dated 1-2-2017 against which again another writ petition was preferred by respondent No.1 herein which was allowed and this Court remitted the appeal to the Co-operative Tribunal for passing a speaking and reasoned order. This time, the Co-operative Tribunal allowed the appeal filed by respondent No.1.
3. Feeling aggrieved against the impugned order of the Co-operative Tribunal granting appeal and setting aside the order dated 21-9-2015 passed by the Registrar, Co-operative Societies, this writ petition has been preferred stating inter alia that the order passed by the Co-operative Tribunal is unsustainable and bad in law in which respondent No.1 and other parties have filed their return and opposed the writ petition.
4. Mr. Prafull N. Bharat, learned Additional Advocate General appearing for the State/petitioners, would submit as under:-
(1) The order dated 21-9-2015 passed by the Deputy Registrar, Co-operative Societies, Korba exercising the power under Section 49(8) of the Act of 1960 holding that since elections of Gopal Dugdh Sahakari Samiti Maryadit, Korba, were not held before the expiry of the period of three months as directed, therefore, the said Samiti ceased to exist and the Board of Directors of that So