2017 Supreme(P&H) 626
IN THE HIGH COURT OF PUNJAB AND HARYANA
Before
The Hon’ble Mr. Justice Amit Rawal
CWP No.3116 of 2014
M.L. Narang & Ors.
v.
Registrar, Co-operative Societies, Punjab & Ors.
{Decided on 11/01/2017}
For the Petitioners:Mr. Amandeep Singh, Advocate.
For the Respondent Nos.4 to 14:Mr. I.S. Saggu, Advocate.
For the Respondent Nos.15 to 78:Mr. Vikas Singh, Advocate, Mr. Yatinder Sharma, Addl. A.G., Punjab.
Headnote:Punjab Self Supporting Cooperative Societies Act, 2006, S.5(6)--Cancellation of Registration--Serious allegations about irregularties by managment--In the absence of challenge to the enquiry report the registrar has ample powers to refuse registration--One who has power to grant registration or conversion, can also exercise the power of cancellation particular when material discrepancy, misfeasance and mismanagement had been found. (Paras 15 & 16)
Mr. Amit Rawal J.: (Oral) - 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 misrepersentation 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 Sec