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2012 Supreme(P&H) 1279

IN THE HIGH COURT OF PUNJAB AND HARYANA
Before
The Hon’ble Mr. Justice Ranjit Singh
CWP No.3837 of 2012 (O&M)
Balram Kaushal & Ors.
v.
Registrar, Coop. Socieities & Ors.
{Decided on 05/10/2012}

Advocates:
For the Petitioners:Mr. D.V. Sharma, Sr. Advocate with Mr. Amit Mehta, Advocate.
Mr. Yatinder Sharma, DAG, Punjab.
For the Respondent No.3:Mr. Ashwani Prashar, Advocate.

Headnote:Punjab Cooperative Societies Act, 1961--Opportunity of Hearing--General body of society passed adverse order against petitioner deleting their name from membership of society without giving opportunity of hearing--Order set aside--Held; If any, order is to be passed by the General Body, the petitioners would be entitled to remain present and afforded an opportunity to represent their side--If the General Body is still intending to pass any order, it can do so only thereafter. (Para 8)

       

JUDGMENT

Mr. Ranjit Singh, J.: - The petitioners claimed themselves as members of the third respondent – Nangal Cooperative Truck Operators Goods Carriers Transport Society Ltd., Nangal (hereinafter called the Society). The same was registered at Naya Nangal, Tehsil Anandpur Sahib under Punjab Cooperative Societies Act, 1961. The Managing Committee of the Society on 19.10.2011 without any reason and notice deleted all the entries of truck numbers of the petitioners i.e. all the 16 truck numbers registered with the Society were deleted from the register. The work is allotted only to the truck registered as members of the society. The petitioners therefore, left with the no allotment of work. The petitioners were having 18 trucks and thus, were deprived of Rs.50,000/- p.m.

2. The petitioners made a complaint/application on 02.11.2011 to the Assistant Registrar, Cooperative Society, Anandpur Sahib against the action of deleting the truck numbers of the petitioners from the register arbitrarily. Assistant Registrar issued notice on this application of the complainant to the President and Manager of the Society. Despite notice, the President did not appear. The petitioners, however, appeared before the Assistant Registrar and produced record about the membership. The Assistant Registrar after inquiry has held that Managing Committee had illegally and arbitrarily deleted the membership of the petitioners and further directed the Committee to restore the deleted truck numbers of the petitioners. The petitioners were thus, entitled to allotment of work. Instructions were also issued to the Inspector, Cooperative Society to implement the order passed. The Inspector thereafter visited the office of the Committee on 03.12.2011 and served the order dated 02.12.2011 to the society after obtaining the due receipt. The Inspector called upon the Committee to comply with the order.

3. On 13.01.2012, the Assistant Registrar issued a show cause notice to the Managing Committee of the Society and framed 8 charges against the Committee. One of the charge was with regard to non-compliance of the orders passed by the authorities and gave 15 days time to the Committee to comply with the directions and to file response to the allegations made in the show cause notice.

4. The Managing Committee even thereafter did not restore the membership of the petitioners and comply with the order passed. The petitioners made a representation to the Registrar as well as Assistant Registrar stating therein that the directions for restoring the truck numbers of the petitioners vide order dated 02.12.2011 had not been complied with. Since the petitioners were suffering huge financial loss has approached this Court by way of present writ petition.

5. After noticing the contention raised by Mr. D.V. Sharma, Sr. Counsel on behalf of the petitioner and hearing the counsel for the parties, this Court passed a detailed order on 23.05.2012, operative part of which is as under:

“Without going into the allegations and counterallegations of the parties and disputed questions of fact, there can be no gain-saying that the foundation of the rule of law is giving hearing to persons whose rights are likely to be affected by action taken. There is preponderance of authorities in support of the proposition that if the determination by a body depends upon following the principles of natural justice; the decision given by it would be treated as a nullity in case it has failed to follow those principles. An aggrieved party would in that case be not under any obligation to have the decision set aside in appeal. It would be open to it to challenge its validity at the stage of execution and even in collateral proceedings. On failure to perform this sacred duty of giving hearing, together with the reason as to why action is being taken, then action taken contrary to the rule of law is not only to be regarded as procedurally ultra vires, but also without jurisdiction. It has been so held by t







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