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1987 Supreme(Guj) 8

Gujarat High Court
Judgename :S.B.MAJMUDAR
KANTILAL CHANDULAL SHAH - Appellant
Versus
C.J.JOSE - Respondent
S.C.A. 5606 of 1986
Decided On : 03/05/1987

Advocates Appeared: DIPAK K.TRIVEDI, K.G.VAKHARIA

Headnote:

Gujarat Co-operative Societies Act 1961 - Article 226 - Section 76-B, 49 61 and 73 - Elected post - Disqualified - Confirmed order - Petitioner has challenged legality of order -In order to appreciate aforesaid contention in its true perspective it is necessary to note a few relevant facts leading to this petition at relevant time was working as a Director in Co-operative Bank which is a co-operative society duly registered provisions of Act - He was served with a show cause notice calling upon him to show cause why he should not be removed from office of Director of said society on grounds mentioned in show cause notice - He was also called upon to show cause why he should not be declared disqualified from being elected as a member of committee of any other Co-operative Society - A copy of said show cause notice is at annexure C to petition – Held, In present case admittedly there is no removal order in field - Consequently disqualification order must be treated to be entirely without jurisdiction and ultra scheme - Only on this short ground this petition will have to be allowed - It is made clear that court express on merits of controversy between parties or on merits of charges leveled against petitioner - Only on aforesaid technical ground this petition is allowed - Rule is made absolute Orders at annexure A and B are quashed and set aside Consequently there will remain no question of petitioner being held disqualified from being elected to Co-operative Bank or any other co-operative society – Order accordingly

S. B. MAJMUDAR, J.

( 1 ) IN this petition under Art. 226 of the Constitution the petitioner has challenged the legality of the order dated 14/15-10-1986 passed by the Registrar of Co-operative Societies Gujarat State respondent No. 1 herein whereby he confirmed the order dated 19-9-1986 passed by the second respondent District Registrar of Co-operative Societies. The impugned orders are at annexures A and B to the petition. By the original order at annexure A which is confirmed by the first respondent the petitioner has been disqualified to hold any elected post for a period of four years either on the Managing Committee of Navdeep Co-operative Bank Limited Navrangpura Ahmedabad or on the Managing Committee of any other Co-operative Society. The said order has been passed by the second respondent under sec. 76-B (2) of the Gujarat Co-operative Societies Act 1961 (the Act for short ). The said order has been challenged on diverse grounds but it is not necessary to mention all of them for the simple reason that one ground put in the forefront goes to the rest of the matter and entitles the petitioner to succeed. The said ground runs as under:

( 2 ) THE competent authority exercising power under sec. 76-B (2) can order disqualification of the concerned officer of a society only if the competent authority has first passed an order of removal of such officer from the society wherein he operated at the relevant time. In the absence of any removal order passed under sec. 76-B (1) against the concerned officer no subsequent disqualification order under sec. 76-B (2) can be passed against such officer and in the present case as there is no order passed against the petitioner removing him from the society as per sec. 76-B (1) the order passed by the second respondent under sec. 76-B (2) is ex-facie without jurisdiction and null and void and its confirmation by the appellate authority viz. respondent No. 1 is also equally otiose and an exercise in futility.

( 3 ) IN order to appreciate the aforesaid contention in its true perspective it is necessary to note a few relevant facts leading to this petition The petitioner at the relevant time was working as a Director in Navdeep Co-operative Bank which is a co-operative society duly registered under the provisions of the Act. He was served with a show cause notice dated 30-8-1986 calling upon him to show cause why he should not be removed from the office of the Director of the said society on the grounds mentioned in the show cause notice. He was also called upon to show cause why he should not be declared disqualified from being elected as a member of the committee of any other Co-operative Society. A copy of the said show cause notice is at annexure C to the petition. It clearly covers the proposed actions under sec. 76-B76-B (1) as well as 76-B (2) of the Act. It will be profitable at the outset to have a look at the aforesaid relevant provisions of sec. 76-B: 76 (1) If in the opinion of the Registrar any officer makes persistent default or is negligent in performance of the duties imposed on him by this Act or the rules or the bye-laws or does anything which is prejudicial to the interests of the society or where he stands disqualified by or under this Act the Registrar may after giving the officer an opportunity of being heard by order remove such officer and direct the society to elect or appoint a person or a qualified member in the vacancy caused by such removal and the officer so elected or appointed shall hold office so long only as the officer in whose place he is elected or appointed would have held if the vacancy had not occurred. (2) The Registrar may by order direct that the officer as removed shall be disqualified to hold or to contest election for any office in the society from which he is removed and in any other society for a period not exceeding four years from the date of the order and such officer shall stand disqualified accordingly.

( 4 ) IT transpires that after service









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