IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
P. Thanapal - Appellant
Versus
Ajay Kumar Bhalla, I.A.S., Home Secretary, Ministry of Home Affairs, New Delhi & Others - Respondent
Sub Application No. 34 of 2022 in Contempt Petition No. 359 of 2021
Decided On : 05-05-2022
Contempt Petition - Multi-State Co-operative Societies Act, 2002 - Section 151 of C.P.C. - Section 48, Section 41 of the Multi-State Co-operative Societies Act, 2002 - The court allowed the Sub Application to reopen the Contempt Petition No.359/2021 based on deliberate and wilful disobedience of the court's order and wanton violation of statutory provisions in the Bye-law amended.
Fact of the Case:
The petitioner sought a Writ of Mandamus to direct the Managing Director of REPCO Bank to conduct the Board of Directors election, after carrying out necessary amendments as per the instructions of the Central Registrar of Co-operative Societies. The Contempt Petition was filed alleging non-compliance with the court's order and intentional non-compliance by the respondents.
Finding of the Court:
The court found deliberate and wilful disobedience of the court's order and wanton violation of statutory provisions in the Bye-law amended. The court was satisfied that the respondents intentionally breached the court's order and failed to amend the Bye-law in accordance with the law.
Issues: Non-compliance with the court's order, intentional breach of statutory provisions in the amended Bye-law, failure to monitor the amendment to Bye-law by the 3rd respondent.
Ratio Decidendi: The court's decision was based on the deliberate and wilful disobedience of the court's order and wanton violation of statutory provisions in the Bye-law amended. The court was satisfied that the respondents intentionally breached the court's order and failed to amend the Bye-law in accordance with the law.
Final Decision: The Sub Application No.34/2022 was allowed, and the Contempt Petition No.359/2021 was reopened. The court issued a statutory notice to the 3rd and 4th respondents and listed the Contempt Petition for further hearing.
JUDGMENT
(Prayer: Sub Application has been filed under Section 151 of C.P.C., to reopen the contempt petition closed on 29.06.2021 by this Hon'ble Court based on the suppressed counter and typed set filed by the respondents in the Contempt Petition No.359 of 2021 in W.P.No.26558 of 2019.)
The applicant herein is an Indian Citizen repatriated from Sri Lanka. The Repatriate Co-operative Finance and Development Bank is a Multi-State Co-operative Society, called as ‘REPCO Bank’ in short. (at the time of filing the Writ Petition and the Contempt Petition, later changed to Repatriate Co-operative Finance and Development Co-operative Society, but the petitioner alleges that the 4th respondent still retains the word ‘Bank’ in breach of the instructions given by the Central Registrar).
2. The facts leading to this Sub-application are as below:-
The petitioner herein gave a representation on 10/10/2018 to the Central Registrar/3rd respondent and the Managing Director/4th respondent to amend the Bye-laws of the Society in tune with the provisions of Multi-State Co-operative Societies Act, 2002. His representation was not acted upon and the Bye-law was not amended in tune with the Act. Hence, he filed a writ petition in W.P.No.31250/2018 for issuance of Mandamus. This Court, vide order dated 24/01/2019 disposed of the writ petition with a direction to consider the representation and dispose of it within 4 weeks from the date of receipt of that order. Pursuant to the direction in that writ petition, the Central Registrar of Co-operative Societies/3rd respondent vide his letter dated 03/05/2019 issued instruction to REPCO to carry out the necessary amendment to the Bye-law in tune with the Act, since the existing Bye-laws of REPCO Bank relating to Constitution of Board of Directors is not consistent with the provisions of Section 48 of the Multi-State Co-operative Societies Act, 2002.
3.Alleging that the instruction of the 3rd respondent issued pursuant to the order passed by this Court was not complied by the 4th respondent, but proceeding to conduct the election for the Directors, the petitioner filed a writ petition in W.P.No.26558/2019 and sought for a Writ of Mandamus to direct the 4th respondent, namely the Managing Director of REPCO Bank, to conduct the Board of Directors election, after carrying out necessary amendments, as per the instructions of the 3rd respondent/Joint Secretary (Co-op.), Central Registrar of Co-operative Societies in his letter dated 03/05/2019.
4. This Court, on considering the pleadings and after perusal of the records, disposed of the writ petition in W.P.No.26558/2019 on 10/09/2019 with the following observation and direction:-
“11. The fourth Respondent has already given notice for the General Body Meeting and the Agenda is to discuss about the amendment of the Bye-laws. Hence, this Court finds that there is no necessity to entertain this writ petition which is filed by a non-member of the Society and whose locus standi to file this Writ petition is questionable.
12. Since, the issue has already been taken cognizance by the 3rd respondent and direction has been given to the 4th respondent to amend the Bye-laws in consonance to the provisions of the Act, it is suffice to direct the 3rd respondent to monitor the affairs of the 4th respondent and ensure compliance of his direction dated 03/05/2019 at the earliest”.
5. The petitioner herein filed a Contempt Petition in Cont.P. No.359/2021 alleging that even after lapse of more than a year, the above order has not been complied by the respondents and the said non compliance is intentional. No attempt is made to amend the Bye-laws of REPCO Bank in tune with the provisions of the Act, despite specific direction given by this Court.
6. In the said contempt petition, the respondents filed counter wherein after narrating the steps taken by them to amend the Bye-laws and the reason for delay, they brought to the notice of this Court that the amendment to the Bye
Deliberate and wilful disobedience of the court's order and wanton violation of statutory provisions in the Bye-law amended.
The main legal point established in the judgment is the violation of the petitioner's fundamental right to participate in the election process due to the inconsistency between Bye-law 24(viii) and Se....
The main legal point established in the judgment is that the amendment of Bye-Laws and the conduct of elections must adhere to the statutory provisions, and failure to do so can result in the vitiati....
The restriction on the number of directors in cooperative societies to 21 under Section 73AAA of the MCS Act is constitutional and does not violate Articles 14 or 19(1)(c) of the Constitution.
The directives issued by the Reserve Bank of India (RBI) under Section 110A(1)(iii) of the Maharashtra Co-operative Societies Act, 1960 (MCS Act) are mandatory and binding on the Registrar of Co-oper....
Proper raising of objections and grounds, adherence to procedural requirements, and fair opportunity for all parties to present their case.
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