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2007 Supreme(Guj) 870

IN THE HIGH COURT OF GUJARAT
D.A. MEHTA, J.
Jentibhai Chitabhai Patel – Petitioner
Versus
State of Gujarat and Others – Respondents
Special Civil Application No. 13484 of 2006
Decided On : 15-03-2007

Advocates:
Advocate Appeared:
For the Petitioner: Chirag B. Patel.
For the Respondent: Manish R. Bhatt.

Headnote:

Gujarat Co-operative Societies Act, 1961 – Section 36 -Respondent Society passed a resolution at the Annual General Meeting held on petitioner was expelled from the membership of the Society in exercise of powers under Section 36 of Gujarat Co-operative Societies Act, 1961 petitioner had been served a show cause notice on and the petitioner tendered his reply dated came to be considered by the Society at Annual General Meeting. After the resolution dated Society forwarded the resolution to the District Registrar for approval as required by provisions of Section 36 of the Act – Communication Order dated District Registrar accorded his approval petitioner went in appeal under Section 153 of the Act before the Additional Registrar Co-operative Societies, Gujarat State said appeal, being Appeal came to be dismissed vide order dated Appellate Authority petitioner carried the matter further by way of Revision before the Additional Secretary, Agriculture and Co-operative Department – Held, Facts of the case may be examined in light of the aforesaid legal position – Admittedly, the petitioner was served with a show cause notice dated Society made pointed reference to various acts of the petitioner which were detrimental to the interest of the Society – Only by way of illustration one may refer it was found that in various communications addressed to the Society and its office bearers, the petitioner had made an endorsement that the copies of communication were forwarded to the Deputy Secretary, Revenue Department Society having contacted said Authority communication dated said Authority denied outright having received any such copy of communication from the petitioner it was found by the Society that there were various acts committed by the petitioner by petitioner was making wild allegations and threatening the members of the Society by so called reference to superior authorities to whom in fact no communication had been forwarded – Petition is accordingly rejected.

JUDGMENT :

D.A. MEHTA, J.

1. Considering the scope of the controversy between the parties, the petition has been taken up for final hearing and disposal. Rule. The learned advocates appearing for respective respondents waive service.

2. The petition has been filed praying for following reliefs:

“8. The petitioner, therefore, most humbly prays to this Hon'ble Court that:-

(a) Your Lordships be pleased to issue writ of certiorari or any other appropriate writ order or direction, quashing and setting aside the order passed by the Respondent No. 3 dated 06.10.2004 at Annexure-A to the petition, judgment and order passed by the respondent No. 2 dated 16.08.2005 at Annexure-B and also the order passed by the respondent No. 1 dated 22.05.2006 at Annexure-C to the petition.

(b) During the pendency admission and final disposal of this petition, Your Lordships be pleased to stay the further operation and implementation of the order passed by the respondent No. 3 dated 06.10.2004 at Annexure-A judgment and order passed by the respondent No. 2 dated 16.08.2005 at Annexure-B and order passed by the respondent No. 1 dated 22.05.2006 at Annexure-C to the petition.

(c) Cost of this petition be provided for.

(d) Be pleased to grant such other and further reliefs as may be deemed just and proper in the facts and circumstances of the case.”

3. On 01.08.2004, respondent No. 4-Society passed a resolution at the Annual General Meeting held on the said day whereunder the petitioner was expelled from the membership of the Society in exercise of powers under Section 36 of the Gujarat Co-operative Societies Act, 1961 (the Act). The petitioner had been served a show cause notice on 22.07.2004 and the petitioner tendered his reply dated 30.07.2004 which came to be considered by the Society at the Annual General Meeting. After the resolution dated 01.08.2004, the Society forwarded the resolution to the District Registrar for approval as required by provisions of Section 36 of the Act. Vide Communication/Order dated 06.10.2004, the District Registrar accorded his approval. The petitioner went in appeal under Section 153 of the Act before the Additional Registrar (Appeals) Co-operative Societies, Gujarat State. The said appeal, being Appeal No. 157 of 2004, came to be dismissed vide order dated 16.08.2005 by the Appellate Authority. The petitioner carried the matter further by way of Revision before the Additional Secretary, Agriculture and Co-operative Department. The Revision Application No. 184 of 2005 came to be rejected vide order dated 22nd May, 2006.

4. The learned advocate has challenged all the three orders principally on the ground that the entire proceedings are vitiated in absence of any reasoning in the order dated 06.10.2004 made by the District Registrar. According to him, in absence of any reasons in the order made by the District Registrar the statutory right of appeal was idle formality and the petitioner was deprived of exercising the statutory right. In support of the propositions, he has placed reliance on observations made by the Appellate Authority wherein while passing the order the Appellate Authority has observed that it would have been better and more just if the District Registrar had assigned reasons while granting approval to the resolution of the Society. However, on merits, the Appellate Authority did not agree with the petitioner and came to the conclusion that on facts the resolution was rightly passed by the Society. The learned advocate for the petitioner places reliance on decision of this Court in case of Gordhanbhai N. Vaghela vs. Maruti Co. Op. Housing Society, 2002 (3) GLH 747 to submit that an expulsion of a member adversely affects the rights of the member and is a serious action which attaches stigma; that, therefore, before passing the resolution under Section-36 of the Act, the Society must observe principles of natural justice and exercise the powers of expulsion only as a last resort, more particularly where the Society

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