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2021 Supreme(Guj) 319

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
VIKRAM NATH, J. B. PARDIWALA, JJ.
PATEL GAURANGBHAI NARANBHAI - Appellant
Versus
STATE OF GUJARAT - Respondent
LETTERS PATENT APPEAL NO. 430 of 2020
In
R/SPECIAL CIVIL APPLICATION NO. 7539 of 2020
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2020
In
R/LETTERS PATENT APPEAL NO. 430 of 2020
With
CIVIL APPLICATION (FOR JOINING PARTY) NO. 2 of 2020
In
R/LETTERS PATENT APPEAL NO. 430 of 2020
Decided On : 07-05-2021

Advocates Appeared:
For the Appellant :MR. PRAKASH JANI, LD. SR. COUNSEL WITH MR. ARCHIT JANI, LD, ADVOCATE WITH MR. SHIVANG P JANI
For the Respondent: MS. MANISHA LUVKUMAR SHAH, LD. GOVERNMENT PLEADER WITH MS. AISHWARYA GUPTA, LD AGP

Point of Law: In some very rare and exceptional cases, the High Court may quash a show-cause notice if it is found to be wholly without jurisdiction or for some other reason, if it is wholly illegal. However, ordinarily, the High Court should not interfere at the stage of a show-cause notice, more particularly, if there is some jurisdictional fact involved in the show-cause notice.

Headnote:

Constitution of India,1950 - Article 226 - Gujarat Co-operative Societies Rules, 1965 - Section 27 and Section 145F(e) and Rule 32 - Gujarat Co-operative Societies Act, 1961 - Section 27(3) - Indian Penal Code, 1860 - Section 153-A or Section 171-E or Section 171- F or (2) or (3) of Section 505 and 403 - Banking Regulations Act, 1949 - Execution of notice - Whether learned Single Judge committed any error in passing impugned judgment and order - Whether the show cause notice was founded on any legal premise - whether the show-cause notice has been issued by the authority empowered in law - Whether authority is competent to issue such show-cause notice - Whether show-cause notice issued is with or without jurisdiction - Whether same could be said to be without jurisdiction or not - Whether there exists any “jurisdictional fact - Pending admission hearing and final disposal of petition - Hon’ble Court may be pleased to stay operation, implementation and execution of notice and be further pleased to stay proceedings arising out show cause notice petition and be further pleased to stay communication is at Annexure-L to petition - District Central Cooperative Bank Limited, Mehsana is a specified cooperative society within the meaning of the Gujarat Cooperative Societies Act, 1961 - Mehsana District Central Cooperative Bank Limited came to be registered.

Finding of the Court : Single Judge should not have entertained the writ application on merits – Court could have set aside the impugned judgment and order passed by learned Single Judge and remitted the matter to the authority concerned for adjudication – Court deem it appropriate to observe it shall be open to the appellant to file appropriate reply to show-cause notice taking up all the contentions available to him in law and the adjudicating authority shall consider same strictly in accordance with law and dispose of matter without being influenced, in any manner, by any of observations made by the learned Single Judge in its impugned judgment and order.

Result: Appeal stands dismissed

JUDGMENT :

J.B.PARDIWALA, J.

1. This Letters Patent Appeal under clause 15 of the Letters Patent is at the instance of an unsuccessful writ applicant of a writ application and is directed against the judgement and order passed by a learned Single Judge of this Court, by which, the learned Single Judge rejected the writ application filed by the writ applicant (appellant herein) and thereby declined to interfere at the stage of a show cause notice issued by the Registrar, Cooperative Societies, State of Gujarat.

2. The facts giving rise to this appeal may be summarized as under:

2.1 The appellant herein filed the Special Civil Application No.7539 of 2020 with the following prayers:

    “(A) This Hon’ble Court may be pleased to issue writ of certiorari quashing and setting aside the showcause notice issued by the respondent bearing no.MSB/ 01/TP/6296/2020 dated 19th March 2020 which is at Annexure-J to this petition and be further pleased to quash and set aside the communication dated 27th May, 2020 which is at Annexure-L to this petition.

(B) Pending admission hearing and final disposal of this petition, this Hon’ble Court may be pleased to stay the operation, implementation and execution of the notice dated 19th March, 2020 and be further pleased to stay proceedings arising out the show cause notice which is at Annexure-J to this petition and be further pleased to stay the communication dated 27th May, 2020 which is at Annexure-L to the petition;

(C) This Hon’ble Court may be pleased to grant such other and further relief/s and/or order as deemed fit in the facts and circumstances of the case and in the interest of justice.”

2.2 The Mehsana District Central Cooperative Bank Limited, Mehsana is a specified cooperative society within the meaning of the Gujarat Cooperative Societies Act, 1961 (for short, “the Act, 1961”). The Mehsana District Central Cooperative Bank Limited came to be registered on 9th March 1950. The Bank has its bye-laws approved by the Registrar.

2.3 Under the bye-law No.32(1) of the Bank, the Committee of the Cooperative Bank (Bank Management Board) consists of 19 members. 10 members get elected from the different constituencies of the area of operation of the Mehsana District Central Cooperative Bank Limited from amongst the primary agriculture cooperative societies, who are the members of the Bank.

2.4 In the context of the above referred 10 seats, the voters are the primary agricultural cooperative societies situated in the different constituencies and who are the members of the Mehsana District Central Cooperative Bank. These primary cooperative societies would pass the resolution on the eve of the election of the Mehsana District Central Cooperative Bank and would convey the names of their representatives to the Bank. These representatives are authorized to vote and contest in the election. Thus, the primary cooperative societies, through their representatives, take part in the process of election.

2.5 The bye-law No.32(5)(2)(8)(1) of the Bye-laws of the Bank prescribes the qualifications and eligibilities to become a member of the Committee.

2.6 In the case on hand, the election programme for electing the members of the Committee of the Bank was published on 19th October 2015.

2.7 It appears from the materials on record that prior to the declaration of the election programme, the voters list came to be finalized by the Election Officer in accordance with the election rules named as the Gujarat Specified Cooperative Societies Election to Committee Rules, 1982 (for short, “the Rules, 1982”). One Shree Rampura Seva Sahakari Mandali Limited is one of the members of the Bank. Shree Rampura Seva Sahakari Mandali Limited had the audit class B for the period between 1st April 2013 and 31st March 2014. In the final voters list, the name of Shree Rampura Seva Sahakari Mandali Limited was shown as the voter of the Sidhpur cons

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