Back
2017 Supreme(P&H) 30
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
AMIT RAWAL, J.
M.L. Narang and others - Petitioners
Vs.
Registrar, Co-operative Societies, Punjab and others - Respondents
CWP No. 3116 of 2014
Decided On : 11-01-2017
For the Petitioners: Mr. Amandeep Singh
For the Respondents: Mr. I.S. Saggu, Mr. Vikas Singh, Mr. Yatinder Sharma
The Registrar has the power to refuse registration and cancel the registration certificate under Section 5(6) of the Punjab Self Supporting Cooperative Societies Act, 2006, in the presence of material discrepancies and mismanagement.
Headnote:
Registrar's Power - Registration of Cooperative Society - Punjab Self Supporting Cooperative Societies Act, 2006 - Section 5, Section 53, Section 54
Fact of the Case:
The petitioners sought intervention for quashing an order cancelling the Registration Certificate of a cooperative society under the Punjab Self Supporting Cooperative Societies Act, 2006. The society faced allegations of mismanagement and misdeeds by the Managing Committee.
Finding of the Court:
The court found that the Registrar had ample powers to refuse registration and cancel the registration certificate, as material discrepancies and mismanagement were found. The order of cancellation was held to be legal and justified.
Issues: The issues revolved around the Registrar's power to cancel the registration certificate, compliance with procedural requirements for conversion, and the validity of the enquiry report.
Ratio Decidendi: The court held that the Registrar's power to cancel registration under Section 5(6) of the 2006 Act was justified in the presence of material discrepancies and mismanagement. The absence of challenge to the enquiry report led to the dismissal of the writ petition.
Final Decision: The writ petition was dismissed, upholding the Registrar's order for cancellation of the Registration Certificate.
Amit Rawal, J.
The petitioners, 24 in number, have sought the intervention of this Court by invoking Article 226 of the Constitution of India for the issuance of writ of certiorari for quashing of the impugned order dated 22.01.2014 (Annexure P-10).
2. The petitioners submit that the respondent-Society i.e. Kansal Rural Self Supporting Cooperative House building Society Ltd., Kansal had submitted an application for conversion and registration of the society under the Punjab Self Supporting Cooperative Societies Act, 2006 (hereinafter called as the “2006 Act”). Since no action was taken, they approached this Court by filing CWP No.11392 of 2011 and this Court vide order dated 17.01.2012 (Annexure P-2) directed the respondent No.1/Registrar to issue a Certificate of Registration for registering the society as a Self Supporting Cooperative Society within a fortnight from the receipt of certified copy of the order. The aforementioned order according to the averment in the writ petition was not adhered to, resulting into filing of COCP No.670 of 2012. However, during the pendency of the contempt petition, the Certificate of Registration under 2006 Act was issued and accordingly, contempt petition was rendered infructuous.
3. They further submitted that complaints were received from 31 members regarding the mismanagement and misdeamner committed by the Managing Committee alleging serious irregularities like sale of the land, hijacking the functioning of the society and tampering of the record.
4. Mr. Amandeep Singh, learned counsel appearing for the petitioners submits that on the basis of the complaint show cause notice dated 31.01.2013 (Annexure P-4) was issued which was basically an attempt to circumvent the order passed by this court. However, the same was objected to, as the notice was addressed only to the President of the Society and not all the members and only 11 days time was given to file reply thereto and without giving any opportunity of hearing to the society or its members, respondent No.2 namely the Assistant Registrar, Cooperative Societies passed the order dated 12.02.2013 (Annexure P5) cancelling the Registration Certificate.
5. The aforementioned order was challenged by the petitioner vide CWP No.5001 of 2013. This Court with the consensus of the parties allowed the writ petition by setting aside the aforementioned order and the matter was remitted back with a direction to the Registrar, Cooperative Societies to take action as per the 2006 Act as the previous action was taken under the erstwhile 1961 Act. The copy of the order dated 13.12.2013 passed in CWP No.5001 of 2013 is enclosed as Annexure P-6.
6. He further submits that the Registrar, Cooperative Societies had issued the show cause notice dated 01.01.2014 but did not issue to all the members and had drawn attention of this Court to the same i.e. Annexure P-7 which was addressed to only counsels and as well as to the Society. The show cause notice contained allegation of cancellation of the Registration Certificate. It was also submitted that some of the members who were served with the show cause notice also filed their replies and even the Society also filed the reply. Copies of the same are Annexures P-8 and P-9.
7. However, without waiting the service of the notice, the enquiry was held and ultimately, the Registrar, Cooperative Society passed the impugned order dated 31.01.2014 (Annexure P-10) whereby he had observed that conversion of the Society was obtained dishonestly by misrepresentation of the facts and fabrication of the record and the Assistant Registrar, Cooperative Societies, Mohali was directed to follow up the issue with the police and ensure that the police conduct a comprehensive inquiry into the findings of the Deputy Registrar (Enforcement).
8. He submits that the Registrar, Cooperative Societies has the jurisdiction only to act in terms of the provisions of 2006 Act. There is no compliance of the provisions of Sections 53 and 54 of
