Point of Law: Appointment of a one man committee is only as an interim measure for convening meeting and holding election.

JUDGMENT :

The instant writ petition has been filed by the Petitioners challenging the order dated 31.07.2018 issued by the Assistant Registrar of Cooperative Societies disapproving the proceedings of the Annual General Meeting of the Board held on 25.05.2018 and directing the Joint Registrar of Cooperative Societies, Guwahati to constitute a Board of Directors of the Bank by appointing one Departmental Officer as well as for setting aside the order dated 02.08.2018 issued by the Zonal Joint Registrar of Cooperative Societies by which the Respondent No.5 was appointed as the one man committee in terms with Section 41 (6) of the Assam Cooperative Societies Act, 2007 (in short the ‘Act of 2007).

2. This Court has duly taken note of the order dated 31.07.2018 passed by the Assistant Registrar of Cooperative Societies. From a perusal of the said order, it reveals that there was an adjourned AGM held on 25.05.2018 and the proceedings of the AGM were submitted before the Assistant Registrar of Cooperative Societies for approval on 31.05.2018. Pursuant thereto, there were various complaint petitions filed against the proceedings of the AGM. The Assistant Registrar of Cooperative Societies vide the order dated 31.07.2018 disapproved the AGM of the Respondent No. 6/Bank held on 25.05.2018. In the said order, the Assistant Registrar of Cooperative Societies also observed that the management waited upto 25.05.2018 to complete the election of the new Board of Directors whereas it should have been completed well ahead so as to ensure that the newly elected member of the Board assumes office immediately on the expiry of the office of the members of the outgoing Board. It was further observed that the last election of the Board of Directors was held on 25.07.2013 and the Board of Directors did not think about the period to submit the proceedings of the AGM and getting the approval of the same as per the provisions of Section 45 (1) of the Act of 2007. It was further mentioned in the said order that the earlier Board did not take necessary steps against Sri Ganesh Ch. Rahang for his alleged misappropriation of Rs.5 lakhs on 04.07.2016.

3. It further appears from the records that on 02.08.2018, the Zonal Joint Registrar of the Cooperative Societies had in exercise of the power under Section 41(6) of the Act of 2007 appointed the Respondent No. 5 who is the Senior Inspector of Cooperative Societies to perform all the functions of the Board and to convene the Annual General Meeting of the Cooperative City Bank Ltd. to constitute the Board of Directors within ninety days from the date of the issue of the said order. These two orders have been assailed as above mentioned.

4. It further reveals from the records that on 10.10.2018, the Managing Director of the Cooperative City Bank Ltd. had issued a notice stating interalia that the AGM of the Cooperative City Bank Ltd. would be held on 29.10.2018. Under such circumstances, an Interlocutory Application was filed being I.A. (Civil) No. 3768/2018 seeking the stay of all proceedings in relation to the notice dated 10.10.2018 including filing of nominations, holding of AGM cum election of the Board of Directors on 29.10.2018. This Court vide an order dated 12.10.2018 in the writ petition issued notice and in the meantime, stayed the notice dated 10.10.2018 issued by the Managing Director of the Cooperative City Bank Ltd.

5. While the instant writ petition was pending, a Notification was issued on 13.08.2020 for recruitment for the post of Managing Director of the Cooperative City Bank Ltd. Under such circumstances, the Petitioners herein filed an application before this Court for stay of the recruitment for the post of Managing Director of the Respondent No.6/Cooperative City Bank Ltd. This Court vide an order dated 05.10.2020 passed in IA(Civil) No. 1495/2020 directed that the selection to the post of Managing Director as published by the Advertisement dated 13.08.2020 shall not be finalised till the next d