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1993 Supreme(Guj) 91

Gujarat High Court
Judgename :S.NAINAR SUNDARAM, SHARAD D.DAVE
BILESHWER KHAND UDYOG KHEDUT SAHAKARI MANDALI LIMITED - Appellant
Versus
STATE - Respondent
L.P.A.246 of 1984
Decided On : 03/03/1993

Advocates Appeared: B.M.MANGUKIYA, HARIN P.RAVAL, SHIRISH JOSHI

Headnote:Gujarat Co-operative Societies Act, 1961 - Sec. 80(2) - Appointment of Government nominees in appellant Society - Order passed with out Society being heard - Autonomy of Society is affected and even if proceeding are construed as only administrative then too Civil consequences follows - Doctrine of natural Justice is attracted - Refusal of Single Judge to read such obligation to hear concerned Society in the provision could not be supported - Order of Single Judge set aside.

       Right to function autonomous is intruded and invaded upon, when the State Government chooses to nominate its representatives when it forms an opinion that it is necessary or expedient to do so, having regard to the public interest involved in the operation of the society. The formation of the opinion and the expression of it, by setting in motion the process under section 80(2) do have repercussion adverse to the autonomy of the society. Thus, the proceedings do involve Civil consequences. Even if court construes the proceedings under section 80(2)as only administrative they leading to Civil consequences, must adhere to the principles of natural justice. The law must now be taken to be well settled that even in administrative proceedings, which involve Civil consequences, the doctrine of natural justice must be held to be applicable. The statute as such need not speak expressly to that effect. The silence of the statute has no exclusionary effect on the application of the principles of natural justice, when the proceedings prosecuted thereunder result in Civil consequences. Court bound to countenance the grievance of the appellants that the impugned proceedings had come to be passed in violation of the principles of natural justice. In this view, court is not able to subscribe our support to the opinion of the learned single Judge on this question.

       [Pars 6]

S. NAINAR SUNDARAM, J.

( 1 ) THIS Letters Patent Appeal is directed against the order of the learned single Judge in Special Civil Application No. 5609 of 1982. The petitioners in Special Civil Application are the appellants herein and the respondents in the Special Civil Application are the respondents herein. For respondents Nos. 1 to 6 there is representation by the Assistant Government pleader. For respondents Nos. 7 and 8 there is representation by Mr. Shirish J. Joshi.

( 2 ) THE appellants challenge the proceedings under Sec. 80 (2) of the Gujarat co-operative Societies Act, 1961, hereinafter referred to as the Act, dated 17-12-1982, whereunder respondents Nos. 7 and 8 were appointed as the government nominees in appellant No. 1-Society. The learned single Judge, amongst two contentions, was asked to deal with the contention that the impugned proceedings have come to be passed without appellant No. 1-Society being heard on the question and this violated the principles of natural justice. The learned single Judge found that by express verbalism of Sec. 80 (2) of the Act, there is no such obligation cast upon the State Government to hear the concerned Society and the learned single Judge declined to read any such obligation into that provision, as coveted on behalf of the appellants. Before us this contention alone is being put forth in the fore front for the purpose of asking interference at our hands in Letters Patent Appeal. The learned single Judge dismissed the Special civil Application negativing also the other contention built upon the allegation of mala fides.

( 3 ) MR. Harin P. Raval, learned Counsel for the appellant would submit that though there is no express provision adumberated in Sec. 80 (2) of the Act enjoining upon the State Government to hear the concerned society before making nominations of the State Governments representatives on the committee of the society under Sec. 80 (2) of the Act, yet such an obligation has got to be read into the provision, as laid down by the pronouncement of a Bench of this Court in Amreli District Cooperative sale and Purchase Union Ltd. and Ors. v. State of Gujarat, [1984 (2)] XXV (2) GLR 1244.

( 4 ) SECTION 80 of the Act as a whole reads as follows :"80 (1) Where the State Government has subscribed the share capital of a society, directly or through another society, or has guaranteed the repayment of the principal of and payment of interest on, debentures issued or loans raised by a society, the State Government shall, notwithstanding anything contained in the byelaws of such society, have the right to nominate three representatives on the Committee of such society, in such manner as may be determined by the State Government from time to time. The members so nominated shall hold office during the pleasure of the state Government, or for such period as may be specified in the order by which they are appointed, and any such member on assuming office shall have all rights, duties, responsibilities and liabilities as if he were a member of the committee duly elected. Explanation :- Any nomination of the Registrar or his nominee on the Committee of a society under the bye-laws of such society shall not be construed as nomination of the representative on that Committee in exercise of the right of the State Government under this sub-section. (2) Where the State Government is of the opinion that having regard to the public interest involved in the operation of a society it is necessary or expedient so to do, it may nominate its representatives on the committee of such society as if the State government had subscribed to the share capital of the society and the provisions of sub-sec. (1) shall, so far as may be apply to such nomination. "while sub-sec. (1) of Sec. 80 speaks about the right of the State Government to nominate three representatives on the committee of a society, to the share capital of which the State Government has subscribed or to which the State Government has ext







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