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High Court Of Rajasthan
Judgename : N.M.Kasliwal
PRAJA SABKARI UDYOG BHARATPAR LTD. - Appellant
Versus
JOINT REGISTRAR, CO-OPERATIVE SOCIETIES, BHARATPUR Zone, BHARATPUR - Respondent
S. B. C. W. P. 462 Of 1980
Decided On : 07/29/1981
CO-OPERATIVE SOCIETY - AMENDMENT OF BYE-LAWS - REGISTRATION - JURISDICTION - MULTI-UNIT CO-OPERATIVE SOCIETIES ACT, 1942 - RAJASTHAN CO-OPERATIVE SOCIETIES ACT, 1965 - SECTION 13 - SECTION 36 - ARTICLE 226 OF THE CONSTITUTION.
Fact of the Case:
The petitioner, Praja Sahkari Udyog Bharatpur Ltd., a Multi-Unit Co-operative Society, challenged the orders passed by the Joint Registrar, Co-operative Societies, Bharatpur, removing the Board of Management of the society and appointing an administrator. The petitioner claimed that it was governed by the Multi-Unit Co-operative Societies Act, 1942, and not the Rajasthan Co-operative Societies Act, 1965, and that the impugned orders were passed without jurisdiction.
Finding of the Court:
The court held that the petitioner society was registered under the Rajasthan Co-operative Societies Act, 1965, and that the amendment of its bye-laws to adopt the Uttar Pradesh Co-operative Societies Act, 1965, was not registered as required under Section 13 of the Rajasthan Act. The court also held that the Joint Registrar, Co-operative Societies, Bharatpur, had the authority to take action under Section 36 of the Rajasthan Act, and that the impugned orders were passed with jurisdiction.
Issues: 1. Whether the petitioner society was governed by the Multi-Unit Co-operative Societies Act, 1942, or the Rajasthan Co-operative Societies Act, 1965. 2. Whether the amendment of the petitioner society's bye-laws to adopt the Uttar Pradesh Co-operative Societies Act, 1965, was valid. 3. Whether the Joint Registrar, Co-operative Societies, Bharatpur, had the authority to take action under Section 36 of the Rajasthan Act.
Ratio Decidendi: 1. The court held that the petitioner society was governed by the Rajasthan Co-operative Societies Act, 1965, because it was registered under that Act and the amendment of its bye-laws to adopt the Uttar Pradesh Co-operative Societies Act, 1965, was not registered as required under Section 13 of the Rajasthan Act. 2. The court held that the Joint Registrar, Co-operative Societies, Bharatpur, had the authority to take action under Section 36 of the Rajasthan Act because the Central Government had issued a notification empowering him to do so under Section 5(b) of the Multi-Unit Co-operative Societies Act, 1942.
Final Decision: The court dismissed the writ petition with costs.
N. M. KASLIWAL, J.
( 1 ) ACCORDING to the allegations made in the writ petition, the petitioner M/s. Praja Sahkari Udyog Bharatpur Ltd. , (hereinafter referred to as the Society) Is a Multi-Unit Co-operative Society which is governed under the Multi-Unit Co operative Societies Act, 1942 (hereinafter refrred to as the Central Act ). It was originally registered under the Rajasthan Cooperative societies Act, 1965 (hereinafter referred to as the Rajasthan Act) on 3-11-1971 vide registration No. 2079 and lateron sought an amendment vide resolutions passed in the general body meeting held on 29-11-1971, notice of which was served upon the Registrar of Co-operative Societies, Ra jastban vide registry receipt No. 678, dated 7-12-1971 for seeking amendment for the adoption of Uttar Pradesh Co-operative Societies Act, 1965 and rules made thereunder on the ground that the proposed principal place of business of the petitioner stands shifted from Bbaratpur to Launi (U. P. ). An order dated 3-5-1972 was issued for making an inquiry and thereafter liquidation order was issued on 6-6-1972. The petitioner filed a writ petition, which was decided in favour of the petitioner and whereby both the aforesaid orders were quashed and charge of the society was taken over by the then Chairman of the society from the so called liquidator. According to the petitioner the so called liquidator Shri K. S. Mathur, Inspector, Co-operative Department falsified the accounts and realised certain amount unlawfully and complaints to this effect were filed by the petitioner and in result thereof Shri k. S. Mathur was arrested by the Police and due to this reason the officers of the Co-operative Dept. were bent upon to take over the said falsified and forged accounts from the elected members of the Board of Management of the society in order to correct the wrongs. The respondent No. 7 Punjab national Bank, Branch Bharatpur also embezzled a sum of Rs. 551. 30 out of the cuirent account of the society in June. 1972 by making false entries and a complaint to this effect was also filed by the society, due to which the said respondent No. 7 also tried to avoid payments to the society for one reason or the other and did not obey the lawful instructions of the petitioner-society for the transfer of its account from Bharatpur Branch to Delhi Branch. The society also filed civil suit for damages amounting to Rs. 6. 80 crores in the civil Court at Jaipur as the working of the society was unlawfully stopped by the State of Rajasthan through is police and Co-operative Department and inspite of decision of the writ petition in favour of the society, by the High court on 25-1-1974. The S. H. O. Police Station Kotwali, Bbaratpur arranged once again to stop working of the society by order dated 1-2-1974 in the name of respondent No. 7 and directing the bankers of the society not to release money out of its own accounts. On account of such illegal action of the State of Rajasthan through its police department, the petitioner society has been put in such an embarrassing position that it could not pay the salary to its employees and also could not lefund the money to the members. The society as such filed another suit for damages amounting to Rs. 10 crores against the State of Rajasthan and the respondent no. 7 in the Civil Court at Jaipur. The society also moved a petition under section 482, Cr. P. C. against the orders of the S. H. O. Kotwali, Bharatpur dated 1-2-1974 and this Honble Court quashed the orders of the S. H. O. on 10-1-1979.
( 2 ) ON 9-1-1979 the State of Rajasthan through Joint Registrar, Co-operative Societies, bharatpur Zone, Bharatpur issued an illegal order purported to have been passed by the said Joint Registrar under the powers of the Central registrar, Co-operative Societies, New Delhi conferred upon him under the central Act and the same was handed over to Shri H. C. Kumar, the moment he came out of the court room on 10-1-1979. by this order dated
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