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2025 Supreme(Jhk) 549

IN THE HIGH COURT OF JHARKHAND AT RANCHI
ANUBHA RAWAT CHOUDHARY, J.
The State of Jharkhand - Appellant  
Versus
The State of Bihar - Respondent 
W.P. (C) No. 2485 of 2025
Decided on : 08-05-2025


Advocates:
Advocate Appeared:
For the Appellant : Mr. Rajiv Ranjan, Mr. Sachin Kumar, Mr. Ashutosh Anand, Mr. Shray Mishra, Mr. Rishi Bharti, adv
For the Respondent:Mr. Anil Kumar, Mr. Abhijeet Kr. Singh, Mr. S.P. Roy, Mr. Manoj Tondon, Advocate

The court affirmed that the State of Jharkhand retains rights to nominate a director in BISCOMAUN despite claims of zero equity by the State of Bihar, emphasizing the need for equitable representation post-bifurcation.

Headnote:(A) Multi State Cooperative Societies Act, 2002 - Sections 48(1)(a), 48(1)(c), and 103 - Dispute regarding nominee director of Government of Jharkhand on the Board of BISCOMAUN - The court examined the shareholding structure post-bifurcation of Bihar and Jharkhand, determining that the State of Jharkhand retains rights to nominate a director despite claims of zero equity by the State of Bihar. (Paras 22, 27, 29)

(B) Writ Jurisdiction - Maintainability - The court found that the dispute primarily concerns the rights of the successor states regarding share equity in BISCOMAUN, which is a matter for the Supreme Court under Article 131 of the Constitution. (Paras 28, 29)

Facts of the case:
The petitioner, representing the State of Jharkhand, challenged the notification from the State of Bihar denying the nomination of a director from Jharkhand on the grounds of shareholding, asserting that the bifurcation did not eliminate Jharkhand's equity in BISCOMAUN. (Paras 4, 8)

Findings of Court:
The court ruled that the election could proceed but the results would be withheld pending further hearings, emphasizing the need to balance equities between the states involved. (Paras 29, 30)

Issues: The core issue was whether the State of Jharkhand has any share equity in BISCOMAUN post-bifurcation and the implications for its nominee director. (Paras 27, 28)

Ratio Decidendi: The court concluded that the State of Jharkhand retains rights to nominate a director based on its share equity, which has not been conclusively determined post-bifurcation. (Paras 22, 27)

Result: The election is to proceed, but the results will not be declared until the next hearing date.

JUDGMENT :

ANUBHA RAWAT CHOUDHARY, J.

1. Heard the learned counsels appearing on behalf of the parties.

I.A. No. 6374 of 2025

2. Mr. Manoj Tondon, Advocate, submits that I.A. No. 6374 of 2025 has been filed seeking intervention of Manoj Kumar Singh who is one of the nominees of the State of Jharkhand. He submits that the petitioner may be directed to implead the present intervener as party respondent in the present case.

3. This writ petition has been filed for the following reliefs: -

“i. For issuance of a writ of certiorari to quash and cancel the letter dated 5.5.2025 (Annexure-8) issued by the Respondent No. 3 whereby and whereunder it has been decided that thee cannot be a nominee director of Govt. of Jharkhand on the Board of BISCOMAUN in the absence of equity share holding of the State of Jharkhand.

ii. For issuance of a writ of certiorari to quash and cancel the notification issued by the Respondent No. 2 contained in memo no. 3066 dated 3.4.2025 (Annexure-7) whereby it has been mentioned that the State of Bihar has 99.26% share holding in the BISCOMAUN and the Govt. of Jharkhand has no share capital in the BISCOMAUN and as such the Director nominated by the Govt. of Jharkhand is not in accordance with Section 48(1)(c) of Multi State Cooperative Society Act, 2002.

iii. For a writ of mandamus command the respondents to allow the nominee Director of the State of Jharkhand to participate in the Election of office bearers in BISCOMAUN to be held on 8 and 9th of May, 2025.

iv. Be further pleased to stay the operation of the impugned letter dated 5.5.2025 and notification dated 3.4.2025 during the pendency of the present writ application.

v. For issuance of other appropriate writ/writs, order/orders, direction/directions as may deem fit and proper by this Hon’ble Court in the facts and circumstances of the case.”

Arguments of the Petitioner-State of Jharkhand

4. The learned Advocate General, State of Jharkhand has submitted that Bihar State Cooperative Marketing Union Limited (hereinafter referred to as theBISCOMAUN”) came into existence in 1958 and at that point of time, the State of Bihar had 99.26% shares in BISCOMAUN and remaining 0.74 shares were held by the members of the Cooperative Societies. He submits that by virtue of Bihar Reorganization Act, 2000, BISCOMAUN continued to function in both the States and the area of operation of the BISCOMAUN became the two successor states, namely, State of Bihar as well as the State of Jharkhand. He submits that there was a dispute raised in writ petition filed before Hon’ble Patna High Court being C.W.J.C. No. 23268 of 2013 between the Board of Directors of BISCOMAUN and the Government of India and ultimately a certificate of registration was issued by the office of Central Registrar of Cooperative Societies, Government of India indicating that BISCOMAUN is now registered as Multi State Cooperative Society under Section 103 of the Multi State Cooperative Societies Act, 2002 (hereinafter referred to as the “Act of 2002”) and the rules framed thereunder and the registration number of the society was also given way back in the year 2014 vide certificate of registration dated 01.08.2014 (Annexure-1) clearly indicating that the area of operation of the society shall be confined to the present State of Bihar and Jharkhand. The learned Advocate General has submitted that the by-laws as approved have been placed on record and he has referred to by-law No. 27 to submit that the Registrar, Cooperative Society, Jharkhand has a right to nominate a person in the Board of BISCOMAUN.

5. The learned Advocate General has further submitted that letter dated 06.02.2025 (Annexure-3) was issued by the Joint Registrar of Cooperative Societies, Jharkhand to BISCOMAUN whereby in terms of clause 27(vi) of the by-laws , name of Shri Aframe Jorge Kujur, Deputy Registrar, Cooperative Societies, Jharkhand was nominated for the purposes of election. He has also referred to another letter dated 21.02.2025 (Annexure-4) t

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