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1996 Supreme(Raj) 230

RAJASTHAN HIGH COURT
Honble M.G. MUKHERJI, ACTG.C.J. & A.S. GODARA, J.
The State of Rajasthan and Others - Appellant
Versus
Swaroop Ram - Respondents
D.B. Civil Special Appeal No. 204/1996
Decided On : April 26, 1996

Advocates Appeared:
Sangeet Lodha, for Appellants P.P. Choudhary, for Respondent

Headnote:Rajasthan Co-operative Societies Act, 1965, Sec. 32 (1) – Notice given by Joint Registrar Co-operative Societies to the Managing Director to show cause as to rescinding the resolutions passed in its meeting – Joint Registrar was a member of the Board of Directors – Principles of natural justice – The self-same Joint Registrar can not take any decision and can not hear out the adjudication pursuant to show cause notices – Held – If that officer is not there and some other officer is functioning as Joint Registrar, he can continue the proceedings. (Para 19 & 20)

       If that Officer is not there and some other Officer is functioning as Joint Registrar, he can continue the proceedings pursuant to stage of the reply to the show cause notices as given by the Cooperative Society. The Cooperative Society now represented by the Administrator would really be involved in giving answer to the show cause notices, if necessary. Otherwise, answer to the show cause notice already given by the Managing Director would suffice and the proceedings are to be brought to a finality by the Joint Registrar. In case however, it is found that the Joint Registrar, who issued the impugned show cause notices is still there, the matter should in the fitness of things be adjudicated upon under section 32 of the Rajasthan Cooperative Societies Act, 1965 by the Registrar of the Cooperative Societies at Jaipur, as directed by the learned Single Judge. (Para 20)

Honble MUKHARJI, ACTG. C.J.– This special appeal is directed against a judgment and order dated November 14, 1994 passed by a learned Single Judge of our Court in S.B. Civil Writ Petition No. 2344/90.

(2). The writ petitioner-respondent Swaroop Ram filed a writ application impugning show cause notices dated 31.5.1990 and 1.6.1990 issued by the Joint Registrar, Cooperative Societies, Jodhpur Division, Jodhpur contending inter-alia that the said Joint Registrar had no authority to issue such show cause notices. The show cause notices were issued by the Joint Registrar in exercise of the powers conferred upon him under Section 32(1) of the Rajasthan Cooperative Societies Act, 1965. According to the provisions of the said Act, if in the opinion of the Registrar, any resolution passed at the meeting of any Cooperative Society or committee thereof, was opposed to the objects of the Society or was prejudicial to the interest of the Society, the Registrar, after giving the Co-operative Society an opportunity of being heard, by passing an order in writing could rescind the resolution in whole or in part specifying the reasons therefor. In the instant case, the notices referred to were issued by the Joint Registrar, Cooperative Societies, Jodhpur as a delegated authority of the Registrar calling upon Jodhpur Central Cooperative Bank, Jodhpur through its Managing Director to show cause as to why the resolutions passed by the Bank in its meeting held on 26.5.1990 and 27.5.1990 should not be rescinded being prejudicial to the interests of the Society.

(3). The writ application was contested by the present appellants-the State of Rajasthan, the Registrar, Cooperative Societies Department, Jaipur and the Joint Registrar, Cooperative Societies Department, Jodhpur Division, Jodhpur contend- ing inter- alia that the show cause notices issued were well within the jurisdiction and competence of the Joint Registrar and the writ application as otherwise was not maintainable.

(4). The learned Single Judge, who heard out the writ application, by his judgment and order dated November 14, 1994 held inter-alia that the Joint Registrar was entitled to form an opinion so as to issue a notice under section 32 of the Rajasthan Cooperative Societies Act, 1965 for rescinding the resolutions impugned dated 26.5.90 and 27.5.90 and further held that the writ application preferred against the show cause notices was rather pre-mature, inasmuch as, only show cause notices were issued to the writ petitioner-respondent. The learned Single Judge held that the Cooperative Bank through its existing Board of Directors was liable to show cause in pursuance of the notices impugned as issued by the Joint Registrar, Cooperative Societies, Jodhpur Division, Jodhpur, but the controversy would ultimately be sent for adjudication to the Registrar, Cooperative Societies, Rajasthan, Jaipur, who would decide the dispute in between the parties after affording rea- sonable opportunity of being heard. keeping in view the observations made in the writ Court. It was observed inter-alia by the learned Single Judge that since the Joint Registrar, Cooperative Societies, Jodhpur Division, Jodhpur was one of the nominated Directors of the Bank, it would therefore not be proper in the interest of justice that he should take a final decision in the matter.

(5). The contention of the appellant inter-alia is that the direction as passed by the learned Single Judge that the Registrar of the Cooperative Societies at Jaipur would adjudicate upon the dispute and it would not be proper for the Joint Registrar, Cooperative Societies at Jodhpur to hear out and adjudicate upon the show cause notices as issued on the Central Cooperative Bank was uncalled for and improper. According to the provisions of Section 3 of the Rajasthan Cooperative Societies Act, 1965, the State Government was competent to appoint other persons to assist the Registrar, Cooperative Societies. Under sub section (2) of section 3 of the


























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