RAJASTHAN HIGH COURT AT JAIPUR BENCH
M.B.Sharma, J.
Kuldeep Srivastava & Ors. - Appellants
Versus
State of Raj. & ors. - Respondents
S.B. Civil Writ Petition No. 2186, 2354, 2359 of 1990.
Decided On : 26-07-1990
CO-OPERATIVE SOCIETIES - REMOVAL OF COMMITTEE - PRINCIPLES OF NATURAL JUSTICE - EXEMPTION - VALIDITY - RAJASTHAN CO-OPERATIVE SOCIETIES ACT, 1965 (RAJASTHAN ACT 19 OF 1965), SEC. 139, SEC. 36(1), RULE 110 - RAJASTHAN CO-OPERATIVE SOCIETIES RULES, 1966 (RAJASTHAN RULES 19 OF 1966), RULE 34(2).
Fact of the Case:
The petitioners, members of various co-operative societies, challenged the orders issued by the State Government under Section 139 of the Rajasthan Co-operative Societies Act, 1965 (the Act) read with rule 110 of the Rajasthan Co-operative Societies Rules, 1966 (the Rules) and the order issued by the Registrar, Co-operative Societies under Section 36 (1) of the Act removing the Board of Directors/Committee of the Society and appointing Administrator to manage the affairs of the society. The petitioners contended that under Section 139 of the Act read with rule 110 of the Rules no power is vested in the State Govt. to exempt the applicability of the principles of natural justice and despite the aforesaid order the principles of natural justice enshrined in rule 36 (6) shall apply. Even if we assume that such a power is vested or could be vested the same could only be exercised in case if any class of the societies involved in the present batch of writ petitions, fell under sub-section (I) of Section 36 of the Act and the case did not so fall. Secondly, the Registrar was required to take independent action under sub-section (I) of Section 36 of the Act and the State Government could not colour or interfere with the discretion of the Registrar, statutory authority, because the Registrar has acted under the order of the State Government and has not exercised his independent discretion, the order removing the Board of Directors/Committee and appointing the Administrator, therefore, cannot be sustained.
Finding of the Court:
The Court held that the State Government did not have the power to exempt the applicability of the principles of natural justice contained in sub-section (1) of Section 36 of the Act in respect of procedure for removal/supersession of the committee. The Court further held that the Registrar was required to exercise his own discretion independently and that the order of removal/supersession of the committee was not in accordance with law.
Issues: 1. Whether the State Government had the power to exempt the applicability of the principles of natural justice contained in sub-section (1) of Section 36 of the Act in respect of procedure for removal/supersession of the committee? 2. Whether the Registrar was required to exercise his own discretion independently?
Ratio Decidendi: 1. The Court held that the State Government did not have the power to exempt the applicability of the principles of natural justice contained in sub-section (1) of Section 36 of the Act in respect of procedure for removal/supersession of the committee. The Court relied on the fact that the principles of natural justice are enshrined in the Constitution and cannot be taken away by executive orders. 2. The Court held that the Registrar was required to exercise his own discretion independently and that the order of removal/supersession of the committee was not in accordance with law. The Court relied on the fact that the Registrar is a statutory authority and that his discretion cannot be interfered with by the State Government.
Final Decision: The Court allowed the writ petitions and quashed the orders issued by the State Government and the Registrar. The Court also set aside the removal/supersession of the committees of the respondents Banks/society and the appointment of the administrator.
The Registrar of Co-operative Societies v. Kunjabmu AIR 1980 SC 350
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