( 1 ) ). The challenge in this petition under Art. 226 of the Constitution of India is against the order dt. 29-11-1982 passed under Section 86 of the Gujarat Cooperative Societies Act 1961 (Act) by respondent No. 1-Joint Registrar Cooperative Societies (Marketing) Gujarat State against the petitioner.

( 2 ) ). The petitioner-Gujarat State Co-operative Marketing Federation Limited respondent of the Apex level federal co-operative societies and its area of operation is in the entire Gujarat State. The petitioner-society has amongst its members about 95 co-operative societies. The petitioner-society is one of the largest co-operative institutions and it represents lakhs of farmers in the State of Gujarat which is established in 1960.

( 3 ) ). Before the impugned order at Annexure A was passed the first respondent had issued show cause notice dt. 10th November 1981 calling upon the petitioner-society to show cause as to why inquiry under Section 96 of the Act should not be instituted. The petitioner had also submitted its reply dt. 4th December 1981 pursuance to the said show cause notice.

( 4 ) ). The Board of Directors of the petitioner-society consists of elected representatives of marketing and processing co-operative societies of Gujarat State Co-operative Bank Limited District Central Co-operative Bank Gujarat State Co-operative Consumers Federation Limited Gujarat State Oil Industries Limited and also Government nominees. Out of the Government nominees two officers are the Registrar of Co-operative Societies Gujarat State Ahmedabad or his nominee and the Financial Advisor Agriculture Forest and Co-operation Department and two non official Government nominees.

( 5 ) ). The case of the petitioner is that the first respondent who is Joint Registrar of Co-operative Societies Gujarat State Ahmedabad attended most of the meetings of the Board of Directors of the: petitioner-society and he had attended most of the meetings of the Board of Directors held during the years 1979-80 1980 The first respondent has become Joint Registrar since last about four to five years and prior thereto he was working as Deputy Registrar of the Cooperative Societies Gujarat State. He had attended the meetings of the Board of Directors of the petitioner-society in his aforesaid both the capacities. It is further averred that the Board of Directors have always taken unanimous decisions and hardly except on one or two occassions the Registrar of Co-operative Societies. Gujarat State or his nominee or Financial Advisor or any other Government nominee had never voted against the resolutions passed in the Board of Directors meetings.

( 6 ) ). It is also the contention of the petitioner that the policy programme balance-sheet and audited accounts are placed for consideration and approval of the Board of Directors and at no point of time the first respondent who used to attend most of the meetings of the Board of Directors and Financial Advisor and also other Government Nominees had voted against any of the aforesaid items. It is also emphasized that the balancesheet and audited accounts which reflect the financial position of the petitioner society are always unanimously approved by the Board of Directors.

( 7 ) ). The petitioner-society carries various business activities and deals with various marketing projects and that too various member co-operative societies. Therefore it has to employ a large fleet of staff. It is the case of the petitioner that total number of employees when this petition was filed was about 750. The area of operation of the petitioner-society is the entire State of Gujarat. The main office of the petitioner-society is at Ahmedabad and there are various branches. In short it is contended that in order to co-ordinate and to effectively carry out various activities the petitioner society had to employ various vehicles and one of the allegations made by the respondent No. 1 in the inquiry is about irregularity in use or