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2021 Supreme(Guj) 148

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BIREN VAISHNAV, J.
Mahendrasinh Ratnasinh Karmariya - Appellant
Versus
State Of Gujarat - Respondent
R/SPECIAL CIVIL APPLICATION NO. 12068 of 2020 With CIVIL APPLICATION (FOR JOINING PARTY) NO. 1 of 2020 In R/SPECIAL CIVIL APPLICATION NO. 12068 of 2020
Decided on : 11-02-2021

Advocates:
Advocate Appeared:
MR.DIPAN DESAI, LD. ADVOCATE with MR HR PRAJAPATI, MS.MANISHA LUVKUMAR, MS.AISHVARYA GUPTA, MR.ZUBIN BHARDA, LD. ADVOCATE

Point of Law: Provisions of Section 76(B(2) would stand somewhat on different footing. This Court when is taking a view that action could be initiated under subsection (2) only after passing order of removal, issuance of notice prior thereto for proposed action of disqualification would not be permissible and therefore, sending reply to show cause notice could be considered only for proposed action of removal.

Headnote:

Constitution of India, 1950 - Article 226, 14, 19(1)(g) and 21 - Gujarat Cooperative Societies Act – Section 76(B)(1) and 76(B)(2) – Removal of Officer - Writ of mandamus - Show cause notice - Jurisdiction - Whether act or omission of petitioner on merits required interference inasmuch as ingredients of Section 76B(1) of Act are attracted or not - Case of petitioner that Manager of society called a meeting of Executive Committee - Out of 19 Committee members, two members had expired. Therefore, out of 17 existing members, 10 members moved a motion of no confidence against President and requested authorities to call for a meeting within a period of 30 days - Letter was addressed by members of Executive Committee - President was also informed on the same day. A request was also made to President that meeting that he had called be cancelled

Finding of the court: Once matter was pending before this court and was sub-judice, first respondent Regional Commissioner of Municipalities ought to have stayed his hands and could not have entered into the merits of a dispute which was already subject matter before this court. Till date when he issued the communication, it appears that first respondent Regional Commissioner of Municipalities was not aware of the writ petitions filed by Jay Corporation before this court, however, once this fact was brought to his notice, first respondent ought to have waited till the outcome of the petitions - Provision of Sec. 76B itself expressly incorporates right of affording hearing before passing order thereunder; and there would be no gainsaying that order under Section 76B entails civil consequence suffered by person against whom it is passed. Right to hearing has to be viewed in aforesaid context of provision and this has its significance. When Legislature has provided for right to hearing before taking a decision, concept of post-decisional hearing has to be ruled out at first blush.

Result: Petition allowed

JUDGMENT :

1. By way of this petition under Article 226 of the Constitution of India, the prayer of the petitioner reads as under:

    “7(a) YOUR LORDSHIPS to be pleased to issue a writ of mandamus or any other appropriate writ, order and/or direction and be pleased to quash and set aside the impugned order dated 14.9.2020 passed by the respondent no.2 in purported exercise of powers u/s. 76(B)(1) and 76(B)(2) of the Act is exfacie illegal, invalid, null & void, suffering from malafides, colourable exercise of powers, without jurisdiction and competence, unreasonable, unjust, unfair and violative of Arts. 14, 19(1)(g) and 21 of the Constitution of India.”

2. Facts in brief are as under:

3. The petitioner is the Vice President of Valiya Taluka Cooperative Purcahse and Sale Union Limited. The election to the Executive Committee of the Society was lastly held in the year 2015. As per the byelaws, there are 19 members of the Executive Committee and one Shri Yogendrasingh Yashvantsinh Mahida is the President of the Society. It is the case of the petitioner that the Manager of the society called a meeting of the Executive Committee on 23.06.2020. Out of the 19 Committee members, two members had expired. Therefore, out of 17 existing members, 10 members moved a motion of no confidence against the President and requested the authorities to call for a meeting within a period of 30 days. The letter was addressed on 22.06.2020 by the members of the Executive Committee. The President was also informed on the same day. A request was also made to the President that the meeting that he had called on 23.06.2020 be cancelled. The case of the petitioner is that however the President proceeded to hold a meeting on 23.06.2020. On 25.06.2020 the petitioner by a letter to the Manager of the society, informed him that all the transactions being done under the Manager and the President be cancelled. On 26.06.2020, 11 members of the Executive Committee wrote to the President to call for a meeting of the Executive Committee by issuing a new agenda. The agenda included an issue to fill up vacant posts of members of the Executive Committee under Section 74(1c)(1) of the Act. Since the President and the Manager did not act on the requests, on 28.06.2020, the petitioner took out an agenda calling a meeting on 29.06.2020. On 29.06.2020, the meeting was conducted where 11 members of the Executive Committee were present, where it was unanimously decided to fill up three vacant posts of members of the Executive Committee by co-opting three members. As the respondents remained inactive for calling the meeting for the no confidence motion, 13 members of the Executive Committee wrote a letter on 20.07.2020 to the President to call a meeting immediately, failing which, within three days, the petitioner would be compelled to take out an agenda of the meeting. It is the case of the petitioner that since the Manager was not calling a meeting, the members sought a clarification on 29.07.2020. Ultimately, it was decided to hold a meeting on 30.07.2020 which was so held and it was informed to the petitioner that such a meeting should not be called.

4. As a result of this episode, a show cause notice dated 06.08.2020 was issued by the respondents to the petitioner under Sections 76B(1) and 76B(2) of the Gujarat Cooperative Societies Act on the following grounds:

    I. The Vice President inspite of the no confidence motion, not having been passed against the President and inspite of the President continuing in office, the petitioner called the meetings dated 29.06.2020 and 30.07.2020 and thereby committed a violation of the byelaws of the society.

II. In the meeting called by the petitioner on 29.06.2020, three vacancies in the Executive Committee were filled in by co-opting three members. This is in violation of Section 74(1C) as such vacancies have been filled in after a period of 60 days prescribed in the provision.

III. The vacancies in the Executive Committee have been filled in v

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