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2015 Supreme(Del) 2573

IN THE HIGH COURT OF DELHI AT NEW DELHI
GITA MITTAL & I.S. MEHTA, JJ.
BIJENDER SINGH & ORS. - Petitioner
Versus
UNION OF INDIA & ORS. - Respondent
W.P. (C) 3897/2015 & CM No. 6960/2015
Decided On : 01-09-2015

Advocates:
Advocate Appeared:
For the Petitioners: Mr. V.P. Singh, Sr. Adv. with Mr. Anil Amrit, Adv
For the Respondents:Mr. Amit Mahajan, Standing Counsel for Union of India/ Respondent no.1 Mr. J.P. Sengh, Sr. Adv. with Ms. Zubeda Begum, Ms. Sana Ansari and Ms. Vanessa, Advs. for NCCF-Respondent no.3 herein Mr. Jayant K. Mehta, Ms. Madhavi Khare and Mr. Saurabh Dev Karan Singh, Adv. for Respondent no.5

The impugned order and corrigendum were issued without providing the petitioners with an opportunity to defend their elections and without compliance with the statutory provisions, thereby violating the principles of natural justice and the mandate of Section 123 of the Multi State Cooperative Societies Act, 2002.

Headnote:

Election - National Cooperative Consumer’s Federation of India Ltd. - MSCS Act, 2002, Section 122, 123 - The court set aside and quashed the impugned order dated 8th April, 2015 and the corrigendum dated 22nd April, 2015 issued by Director (Cooperation), Ministry of Consumer Affairs, Food & Public Distribution, Government of India for violation of principles of natural justice and the mandate of Section 123 of the Multi State Cooperative Societies Act, 2002.

Fact of the Case:

The petitioners challenged the order appointing an administrator of the National Cooperative Consumer’s Federation of India Ltd. (NCCF) and setting aside the election results for the post of Chairman and Vice-Chairman. The petitioners contended that the impugned order was issued in violation of the principles of natural justice and the mandate of Section 123 of the Multi State Cooperative Societies Act, 2002.

Finding of the Court:

The court found that the impugned order and corrigendum were issued without providing the petitioners with an opportunity to defend their elections and without compliance with the statutory provisions. The court held that the impugned order and corrigendum were in violation of principles of natural justice and the mandate of Section 123 of the Multi State Cooperative Societies Act, 2002.

Issues: The primary issue was whether the impugned order and corrigendum were issued in violation of the principles of natural justice and the mandate of Section 123 of the Multi State Cooperative Societies Act, 2002.

Ratio Decidendi: The court held that the impugned order and corrigendum were issued without providing the petitioners with an opportunity to defend their elections and without compliance with the statutory provisions. The court set aside and quashed the impugned order and corrigendum for violation of principles of natural justice and the mandate of Section 123 of the Multi State Cooperative Societies Act, 2002.

Final Decision: The court allowed the writ petition and set aside and quashed the impugned order and corrigendum for violation of principles of natural justice and the mandate of Section 123 of the Multi State Cooperative Societies Act, 2002.

JUDGMENT :

GITA MITTAL, J.

1. The order dated 8th April, 2015 passed by the respondent no. 1 appointing an administrator of the National Cooperative Consumer’s Federation of India Ltd. (“NCCF” for brevity hereafter) arrayed as respondent no. 3 herein premised on allegations relating to the elections to the post of Chairman and Vice-Chairman of the Board of Directors which were held on the 6th of February, 2015 is the subject matter of this writ petition. The NCCF is stated to have been constituted and registered under the provision of the Multi-State Cooperatives Societies Act, 2002 (“MSCS Act, 2002”hereafter). The impugned order is sourced to exercise of powers under Section 122 and 123 of this enactment.

2. The writ petitioners herein are members of the respondent no. 3 who successfully stood for the elections to the Board of Directors of the respondent no. 3 conducted on 6th February, 2015. The petitioner nos. 1 & 2 were also elected to the posts of Chairman and Vice-Chairman respectively in a separate election of office bearers on the same day. Certain complaints came to be made by the respondent no. 5 with regard to the eligibility of two societies (being Priya Consumer Cooperative Store and Janta Central Consumer Cooperative Store Ltd.) of which the petitioner nos. 1 and 2 were members. These societies had been declared as valid members of the respondent no.3. As a result, the eligibility of petitioner nos. 1 and 2 to contest the elections of office bearers to the Board of Directors was questioned. On these complaints, the respondent no. 1 firstly initiated an enquiry and thereafter proceeded to pass the order dated 8th April, 2015 inter alia directing that the result of the elections to the post of Chairman and Vice-Chairman set aside; results of elections to the Board of Directors be kept in abeyance and appointed an administrator to manage the affairs of the respondent no.3.

3. Before proceeding in the matter, it may be useful to extract the operative portion of the order dated 8th April, 2015 which reads thus:-

“Now the Government of India in exercise of the powers conferred by Sections 122 and 123 of the Multi State Co-operative Societies Act, 2002 in the overall interests of NCCF makes the following directions:

1. The elections held on 06.02.2015 to the post of Chairman and Vice Chairman of Board of NCCF are hereby set aside due to gross irregularities;

2. The results of elections to the Board of Directors be kept at abeyance till the allegations into the two co-operative societies namely Priya Consumer Co-operative Store Ltd., New Delhi and Janta Central Co-operative Store Ltd., Mumbai, not satisfying the criteria to contest elections to the NCCF Board are enquired into and a decision is taken by the Government thereafter in the matter;

3. The inquiry into the allegations of ineligibility and irregularity as set out in Para 2 above be conducted by a committee comprising of Shri Ashok Kumar Jain, Chief Vigilance Officer of NCCF. He will submit the inquiry report to the Government within three months from the date of this order.

4. MD, NCCF will seize all documents in connection with the controversial elections to the Board of NCCF and hand the same over to the Government for safe custody;

5. Until further orders, the Joint Secretary in the Department of Consumer Affairs will function as Administrator of NCCF. The present Managing Director, NCCF will assist the Administrator in the matter of day to day functioning of the Federation.

6. That until further orders, the MD, NCCF will seek orders of Government through Administrator on all major policy issues, financial and services matters.” (Underlining by us)

4. The instant writ petition came to be filed before us on 16th April, 2015 and was listed before us for the first time on 21st April, 2015. Notice was issued to the respondents for 23rd April, 2015. It appears that after the filing of the writ petition, the respondent no. 1 issued a corrigendum dated 23rd April, 2015 directi































































































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