PUNJAB & HARYANA HIGH COURT
Mehinder Singh Sullar, J.
Inderjit Singh
Versus
State Of Punjab
Civil Writ Petition No. 10099 of 2009,
Decided On : JANUARY 13, 2011
Disqualification--Petitioner elected as Director of the Gurdaspur Central Cooperative Bank Ltd--Performing his duties honestly--Also elected as Director of Gurdaspur Cooperative Labour and Construction Union Ltd.--Subsequently, he tendered resignation from the Co-operative Union--Accepted by the authorities--Joint Registrar Cooperative Societies issued show cause notice--Replied that he has already resigned from the directorship of the Co-operative Union--Resignation has been accepted--At present Director of only Cooperative Bank--Joint Registrar ceased the membership of the petitioner of the Board of Director of Cooperative Bank--Now, this Writ petition--District Manager reported the matter on 11.6.2009--In a very hasty manner, show cause notice issued on same day--Registrar has slipped into a legal error, in ceasing the directorship of the petitioner--Restrictions as contemplated u/s 26-B of the Act would only be applicable to the directorship/membership of Co-operative Union--Disqualification, the petitioner had incurred, was in regard to his membership of the Co-operative Union from which, his resignation had already been accepted--This disqualification cannot legally be made applicable to the directorship/membership of the Cooperative Bank, as has been done by the Registrar by virtue of Impugned order--Held, the registrar has illegally ceased the membership/directorship of the petitioner of the Cooperative Bank, therefore, the impugned order is against the statutory provisions and cannot possibly be sustained in the eyes of law--Impugned order set aside--Writ petition accepted.
Mehinder Singh Sullar, J.
1. The compendium of the facts, which needs a necessary mention for a limited purpose of deciding the core controversy, involved in the instant writ petition and emanating from the record, is that petitioner Inderjit Singh son of Bachan Singh, was duly elected as Director of the Gurdaspur Central Cooperative Bank Ltd., Gurdaspur (hereinafter to be referred as "the Cooperative Bank") (Ist society) in the elections of Board of Directors, held on 26.7.2006, in view of the provisions of the Punjab Cooperative Societies Act, 1961 (for short "the Act"). According to the petitioner, ever since then, he has been performing his duties honestly. He was also elected as Director of the Gurdaspur Cooperative Labour and Construction Union Ltd. (for brevity "the Co-operative Union") (2nd society) on 18.8.2008. Sub-sequently, he tendered his resignation (Annexure PI) on 6.3.2009 from the Co-operative Union (2nd Society), which was duly accepted by the authorities in its meeting held on 13.6.2009 (Annexure P4).
2. In the wake of report dated 11.6.2009 of District Manager (respondent No.4) of the Cooperative Bank (Ist society), the Joint Registrar, Cooperative Societies, Jalandhar Division (respondent No.2) issued show cause notice dated 11.6.2009 (Annexure P5) of the same date, to which, the petitioner sent reply (Annexure P6), informing that he has already resigned from the directorship of the Co-operative Union (2nd society) on 6.3.2009. The resignation has been accepted by its Board in its emergent meeting dated 13.6.2009. At present, he is Director of only of the Cooperative Bank (Ist society). However, the Joint Registrar, while exercising the powers of Registrar, Cooperative Societies, ceased the membership of the petitioner of the Board of Director of Cooperative Bank (Ist society) as well for alleged violation of section 26-B of the Act, by virtue of impugned order dated 24.6.2009 (Annexure P7).
3. The petitioner did not feel satisfied and filed the instant writ petition, challenging the impugned order (Annexure P7), invoking the provisions of Articles 226 and 227 of the Constitution of India.
4. The case set up by the petitioner, in brief in so far as relevant, is that as his resignation has already been accepted by the Board from the Directorship of Co-operative Union (2nd society), much prior to the passing of impugned order, therefore, the provisions of section 26-B of the Act will not be attracted to his membership/directorship of Co-operative Bank (Ist society). Hence, the impugned order is illegal and without jurisdiction.
5. Not only that, the impugned order was stated to have been passed by respondent No.2 under the pressure of Ravi Karan Singh Kahlon son of Nirmal Singh Kahlon, Speaker of Punjab Vidhan Sabha (respondent No.5). Some allegations of mala fide have also been levelled by the petitioner against the District Manager (respondent No.4), who reported the matter to the Joint Registrar (respondent No.2). On the basis of aforesaid allegations, the petitioner sought the quashment of the impugned order (Annexure P7), in the manner indicated here-in-above.
6. The respondents contested the claim of the petitioner. Respondents No. 1 to 3 have filed their joint written statement, while respondent Nos.4 and 6 filed their separate joint written statement, inter-alia pleading certain preliminary objections of maintainability of the petition, locus standi and cause of action of the petitioner. The contesting respondents claimed that the petitioner became the member of the two societies and the matter was reported by respondent No.4 to respondent No.2, who ceased the Directorship of the petitioner from the Cooperative Bank (Ist society) after following the due procedure, by way of impugned order (Annexure P7), which is stated to be legal. It will not be out of place to mention here that the contesting respondents have stoutly denied all other allegations contained in the writ petition and prayed for
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