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1993 Supreme(Raj) 336

Rajasthan High Court
Honble J.R. Chopra & N.K. Jain, JJ.
Taranagar Kraya Vikraya Sahakari Samiti - Appellant
Versus
State of Rajasthan - Respondents
D.B. Civil Writ Petition No. 2713 of 1993
Decided On : September 16, 1993

Advocates Appeared:
K.N. Joshi, for Petitioner M.S. Singhvi, for the non-petitioners L.S. Udawat, Addl. Adv. General

Headnote:(a) Rajasthan Co-operative Societies Act, 1965, Sec. 32 (1) & 2 and Sec. 31, Sec. 29, Sec. 33 and Constitution of India, Art. 14 - Validity of Sec. 32 (1) & (2) - Enough guidelines are provided in Sec. 32 (1) for the exercise of the powers by the Registrar for proper control of the business of the Co-operative Societies — Final order passed u/s. 32 (1) is appealable u/s. 124 of the Act and is reviseable by the Govt. u/s. 128 of the Act — Sec. 32 (2) provides guidelines to watch the interest of the Co-operative Society by staying the operation of such resolutions which are not in the interest of the society — Not violative of Article 14 of the Constitution nor is violative of any of the other provisions of the Act. (Para 6)(b) Rajasthan Co-operative Societies Act, 1965, Sec. 32 (1) — Exercise of power arbitrarily — The exercise of statutory powers by the General body can not be interfered by the Joint Registrar u/s. 32 (1) of the Act — Such an action is arbitrary and unreasonable — Order issuing notice are quashed. (Para 9)

       

Honble CHOPRA, J.—By this writ petition the petitioner has challenged the validity of section 32(1) and (2) of the Rajasthan Cooperative Societies Act, 1965 and has prayed that it be declared ultra vires and void not only of section 14 of the Constitution of India but section 29 and 33 of the Rajasthan Cooperative Societies Act. The petitioner has further claimed that the non-petitioners may be restrained from interfering with the day to-day working of the petitioner society and the proceedings initiated in pursuance of notice dated 17.5.93 be quashed and set aside and the respondent No. 3 that is the Joint Registrar, Cooperative Department, Bikaner be restrained from interfering with the day to day working of the petitioner society.

(2) The facts necessary to be noticed for the disposal of this writ petition briefly stated are that one non-petitioner no. 4 Shri Amarsingh was elected as Chairman of the petitioner society along with certain other persons who were elected as members of the Executive Committee. When it was found that the Chairman has committed various illegalities and irregularities with vested interest at the cost of and against the interest of the society and its members or has misused his powers with ulterior motive then majority of the members requested the controversy may be resolved about the activities of non-petitioner no. 4. When inspite of the repeated requests and requisition having been sent under section 30 of the Act, the general body meeting was not called, the members of the society moved an application under section 31 to the Asstt. Registrar for calling the general body meeting.

(3) A notice was issued to the members of the general body in forming them that the general body meeting has been fixed on 23.4.93 at 1.00 PM to discuss the agenda which included a no- confidence motion against non-petitioner no.4 Amarsingh as also withdrawal of the Chief Executive Officer. In the general body meeting the no-confidence motion against the non-petitioner no. 4 was passed. Request was made that non-petitioner no.4 should not preside over the meeting. That application has been marked as Annex. 2 and the refusal of the Vice-President to preside over the meeting has been marked as Annex. 3. The resolution moved by the members has been marked as Annex.4. The no-confidence motion against non-petitioner no. 4 was unanimously passed. Other resolutions were also carried out, the copy of the proceedings of the general body meeting has been marked as Annex. 5. However, non-petitioner no. 4 moved an application under Section 32(1) before the non-petitioner no. 3 challenging the above resolution.

(4) The Joint Registrar before whom such an application was made issued a notice under section 32(1) to the Executive Officer only vide his order dated 17.5.93. Copy of that has been marked as Annex. 7. Section 32(2) of the Act provides that as soon as such a notice is issued by the Registrar, the resolution automatically stands suspended and this is how the validity of section 32(2) of the Act has been challenged because it provides to the Registrar are arbitrary, unreasonable and excessive. Bye-law 11(8) of the society provides that general body has the power to remove an elected Chairman of the society and when that has been done continuation of that person as the Chairman of the Executive Committee is against the interest of the society. Rule 38(5) of the Rajasthan Cooperative Societies Rules, 1966 also empowers the general body to remove the Chairman and officers of the society. When general body has passed a resolution expressing no confidence in the Chairman issuing such a notice by the Joint Registrar which makes that resolution ineffective is contrary to the interest of the society and results in misuse of the powers and is collusive in character; and, therefore, it has been claimed that the action of the non-petitioner no.3 is arbitrary and against the democratic Cooperative Movement. Certain allegations are contained i



























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