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2025 Supreme(Gau) 1113

THE GAUHATI HIGH COURT, (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) 
MANISH CHOUDHURY, J.
Foyzul Hoque Mazumdar, S/o. Late Ajob Uddin Mazumdar And Ors. – Petitioners
Versus
The State Of Assam, Represented By The Principal Secretary To The Government Of Assam Cooperation Department And Ors. – Respondents  
WP(C) No.6945 Of 2024
Decided On : 09-05-2025

Advocates:
Advocate Appeared:
Mr. B. Sinha.

The appeal against the appointment or removal of a Secretary by a cooperative society's Board is not maintainable, as such powers exclusively reside with the Board under the Assam Cooperative Societies Act.

Headnote:(A) Assam Cooperative Societies Act, 2007 - Sections 45 and 111(1) - Writ petition to challenge an interim order staying the approval of appointment of a Secretary by the board of a cooperative society - Court found that the appeal against such decisions was not maintainable, emphasizing that only the board has the authority to appoint or remove its Secretary. (Paras 12, 21)

(B) Right to Appeal - The right to appeal is a statutory right; without a specific statutory provision, an individual cannot appeal. The court reiterated that jurisdiction must be conferred by statute, and the Registrar does not have power over the Board's decisions regarding appointments. (Paras 12, 18)

(C) Judicial Precedents - The court cannot ignore binding precedents set by a Bench of equal strength, even if a related matter is pending before a larger Bench. The court reaffirmed the significance of previous rulings in its judgment. (Paras 15, 17)

Facts of the case:
The petitioners, Directors of a cooperative society, challenged an order staying the approval of the appointment of a new Secretary after their previous Secretary, having reached the age limit, was removed. The appointed Secretary was not given a chance to be heard before his removal.

Findings of Court:
The Court held that the interim order of the Registrar staying the appointment was unsustainable, as the right to appeal under Section 111(1) of the Assam Cooperative Societies Act was not applicable regarding decisions of the Board regarding the Secretary's position.

Issues: The main question was the maintainability of the appeal against the decisions of the Board relating to the appointment or removal of its Secretary under the Assam Cooperative Societies Act.

Ratio Decidendi: The Court ruled that the appeal was not maintainable; the powers to appoint or remove the Secretary are solely within the purview of the cooperative society's Board as conferred by the Act.

Result: Writ petition allowed; the impugned order quashed.

Table of Content
1. assault on an interim order in cooperative appeal. (Para 1 , 2)
2. context of petitioners and society's management. (Para 3 , 4 , 5 , 6)
3. observations on authority and procedural fairness. (Para 7 , 12 , 13)
4. statutory authority's limits on appeal and jurisdiction. (Para 14 , 20)
5. precedent and binding nature of court decisions. (Para 16 , 17 , 21)
6. petition outcome and orders. (Para 22)

JUDGMENT :

(MANISH CHOUDHURY, J.)

The instant writ petition under Article 226 of the Constitution of India is preferred inter-alia to assail an Order dated 11.12.2024 passed by the respondent no. 3 in an appeal preferred by the respondent no. 5 on 10.12.2024 against an Order dated 07.12.2024 passed by the respondent no. 4.

2. By the impugned Order dated 11.12.2024, the respondent no. 3 had admitted the appeal preferred by the respondent no. 5 under Section 111 [1] of the Assam Cooperative Societies Act, 2007 and passed an interim direction. By the impugned Order, the respondent no. 3 while admitting the appeal, had stayed the Order dated 07.12.2024 passed by the respondent no. 4 whereby the respondent no. 4 had accorded approval to a resolution passed by the Board of Directors of M/s Rajweswarpur Samabay Samity Limited, District-Hailakandi as the Secretary. The respondent no. 3 had further observed that the interim order of stay would remain in operation till the disposal of the appeal preferred by the respondent no. 5 under Section 111 [1] of the Assam Cooperative Societies Act, 2007 [‘the Act, 2007’ and/or ‘the 2007 Act’, for short].

3. The facts leading to the institution of the writ petition can be narrated, in brief, at first. The petitioners, nine in nos., have approached this Court stating that they have a common cause of action. The petitioner no. 1 to petitioner no. 8 are Directors in the Board of Directors of M/s Rajweswarpur Samabay Samity Limited, District - Hailakandi [‘the Society’, for short], a cooperative society registered under the provisions of the Act, 2007. The petitioners have stated that the petitioner no. 1 to petitioner no. 8 got elected to the Board of the Society in an Annual General Meeting [AGM]/Election, held on 18.07.2022, with five years tenure. The respondent no. 4 had approved the proceedings of the said AGM/Election on 21.07.2022.

4. According to the petitioners, the respondent no. 5 was earlier appointed as the Secretary of the Society. As the respondent no. 5 had attained the age of sixty years, the Board of the Society was in contemplation to remove him from the post of the Secretary of the Society and in order to pass a resolution to that effect, the Board decided to hold a Meeting on 04.12.2024. The petitioners have stated that the Meeting of the Board was held on 04.12.2024. In that meeting, the Board passed a resolution vide Resolution no. 5 to terminate the service of the respondent no. 5 as the Secretary of the Society. By the said Resolution, the Board also decided to appoint the petitioner no. 9 as the Secretary of the Society. The Board in the said Meeting also resolved about the monthly salary to be paid to the newly appointed Secretary of the Society. Though reasons are assigned in the Resolution no. 5 for terminating the service of the respondent no. 5 from the post of Secretary of the Society, in view of the issues involved in this writ petition, there appears no necessity to delve into those reasons. Subsequent to the Board Meeting, held on 04.12.2024, and pursuant to Resolution no. 5, a Letter of Appointment letter was issued on 05.12.2024 under the hand of the petitioner no. 1, that is, the Chairman of the Society appointing the petitioner no. 9 as the Secretary of the Society.

5. The proceedings of the Meeting of the Board, held on 04.12.2024, wherein Resolution no. 5 was taken, were sent to the respondent no. 4 for his approval. The respondent no. 4 after consideration, vide an Office Letter dated 07.12.2024, conveyed his approval to the resolution of the Board of the

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