2017 Supreme(Guj) 1024
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
S.G. Shah, J.
Mehsana District Milk Producers Union Ltd. - Appellants
Vs.
Registrar Cooperative Societies and Ors. - Respondent
Special Civil Application Nos. 18836 and 18837 of 2016
Decided On : 12-06-2017
For the Appellant : Mihir Joshi, and Dipen Desai
For the Respondents: P.K. Jani, Rohan Yagnik
Headnote:
District Milk Producers Union Limited – Petitions are arising out of the same issue though filed by different petitioners they are heard together and disposed of by this common judgment. Petitioner in Special Civil Application No. 18836 of 2016 is District Milk Producers Union Limited having its activities in Mahesana District of the State. Whereas petitioners in Special Civil Application No. 18837 of 2016 are claiming themselves as Indian National citizens and challenging the show cause notice issued by the Registrar of Co-operative Societies, Gujarat State, whereby such respondent No. 1 Mahesana District Milk Producers Union Ltd –Held, Similarly another surprising submission was made with reference to the spending of amount of cooperative society by its Managing Committee contending that it is an absolute power of the Board of Director and Managing committee to spend the amount and no one has another say amounts to admission of irregularities and illegality results into prima facie evidence to proceed further by calling the petitioners to show the reason that why further action should not be taken – Court consider that there is some force in such submission, the fact remains that at least there is selectiveness by the petitioners in disclosing certain details and hiding certain facts and to that extent, it can certainly be said that petitioners have not came forward with clean hands – Petition Dismissed.
S.G. Shah, J.
1. Both these petitions are arising out of the same issue though filed by different petitioners and, therefore, they are heard together and disposed of by this common judgment. Petitioner in Special Civil Application No. 18836 of 2016 is District Milk Producers Union Limited having its activities in Mahesana District of the State. Whereas petitioners in Special Civil Application No. 18837 of 2016 are claiming themselves as Indian National citizens and challenging the show cause notice dated 27.10.2016 issued by the Registrar of Co-operative Societies, Gujarat State, whereby such respondent No. 1 Mahesana District Milk Producers Union Ltd. being petitioner in Special Civil Application No. 18836 of 2016 so also petitioners of Special Civil Application No. 18837 of 2016 being directors of the said co-operative society were called upon to show cause that why administration of the co-operative society should not be handed over to the administrator, because of financial irregularities and several other irregularities, which result into illegality in the administration of such co-operative society by its Managing committee. Same show cause notice dated 27.10.2016 is under challenge in both the petitions.
1.1 Considering the common issue raised in both the petitions, only one set of arguments has been advanced by learned Senior Counsel Mr. Mihir Joshi appearing with learned advocate Mr. Dipen Desai for the petitioners in both the petitions and, therefore, learned Additional Advocate General Mr. Prakash Jani has also advanced one set of arguments and, hence, we have to deal with only one set of arguments for both the petitions. As already recorded herein above, the only difference between two petitions is the capacity of petitioners, whereby in one petition, the cooperative society itself is the petitioner through its Director and in another petition, all its directors are petitioners in their capacity as such.
2. At the outset, it cannot be ignored that there are number of litigations by or against the co-operative society under reference and it cannot be ignored that there are several serious allegations regarding serious financial irregularities including misappropriation and scam committed during the administration of the co-operative society by its Chairman and some of the directors. It cannot be ignored that because of such irregularities and because of several steps/actions taken by the competent authority including respondent No. 1 being Registrar of co-operative societies, there are several litigations initiated by the co-operative society and its Chairman. It is also undisputed fact that, at every stage, the issue has been raised before the High Court and few matters have been dragged upto the Honourable Supreme Court of India. However, only because of multiplicity of litigations or separate actions taken as per law by the competent authority, it cannot be said that actions taken by the competent authority are mala-fide or to secure political revenge. Such action was termed as mala-fide by the petitioners in most of the petitions which has been dealt with in detail in Special Civil Application No. 6089 of 2017 whereby by an order dated 31.03.2017 this Court has taken care of detailed submissions regarding mala-fide on the part of the State Authorities in following manner:
"56. In background of above referred basic information, now let us consider the rival submissions and discussion of merits on such submissions.
57. When petitioner is complaining about the malafide attitude of the respondents, it would be appropriate to recall some basic principles of such co-operative societies.
58. Co-operative means living, thinking, and working together to accomplish a common goal through cooperative principles. Consequently, any organisation formed by people to work together to achieve the objects for which it is formed through the co-operative principles is called a co-operative society. The concept of co-operation en