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2024 Supreme(All) 1540

IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
ANJANI KUMAR MISHRA, JAYANT BANERJI, JJ.
Committee of Management Grih Laxmi Sakhari Awas Samiti Ltd and Others - Petitioners
Versus
State of Uttar Pradesh and Others - Respondents
Writ - C No. 24279 of 2024
Decided On : 22-08-2024

Advocates Appeared:
For the Petitioner:Lavlesh Kumar Shukla, Sr. Advocate.
For the Respondent: Ayank Mishra, C.S.C., Nipun Singh.

IMPORTANT POINT
The Registrar's orders for removal of officers from a Cooperative Society were quashed due to lack of jurisdiction and failure to consider ongoing arbitration, emphasizing the necessity of due process and the Society's autonomy.

Headnote:

(A) Uttar Pradesh Cooperative Societies Act, 1965 - Sections 38(1) and 38(2) - Writ petition challenging orders for removal of Secretary and Chairman of a Cooperative Society - The Registrar's orders were quashed due to lack of jurisdiction and failure to consider ongoing arbitration proceedings regarding the same dispute - The court emphasized the necessity of due process and the importance of the Society's autonomy in management decisions. (Paras 51-54)

(B) Principles of Natural Justice - The court held that the Registrar must provide relevant materials to the Society to ensure fair opportunity for the officers concerned before any removal action is taken. (Paras 51-52)

(C) Judicial Review - The court reiterated that the exercise of discretion by the Registrar must be based on relevant materials and not arbitrary or unreasonable conclusions. (Paras 51-54)

JUDGMENT :

Jayant Banerji, J.

1. When the matter was last listed on 6.8.2024, the following order was passed :-

    “Heard learned counsel for the petitioners and Sri Ravi Anand Agarwal learned counsel appearing for the respondent No.2 & 3 who has produced another file containing original records.

    With the consent of the parties this matter was heard for final disposal.

    No counter affidavit has been called because the same does not appear to be required as the original record has already been produced and is available and the dispute is primarily one of jurisdiction of the respondent No.2 to pass the impugned orders.

    List on 22.08.2024 for delivery of judgment.

    Till that date, further proceedings consequent to the impugned orders, shall remain stayed.

    The files containing original records shall be returned back after the delivery of judgment.”

2. This writ petition has been filed seeking the following reliefs:-

    “(i) Issue a suitable writ, order or direction in the nature of certiorari quashing the impugned orders dated 30.05.2024 and 04.07.2024 passed by the Additional Housing Commissioner/Additional Registrar, Uttar Pradesh Avas Evam Vikas Parishad, Lucknow (Annexure Nos.4 and 7 to the writ petition).

    (ii) Issue a suitable writ, order or direction in the nature of mandamus commanding the respondents not to give effect to the impugned orders referred to above and stay all further proceedings consequent thereupon during the pendency of the writ petition.

    (iii) Issue a suitable writ, order or direction in the nature of mandamus commanding the respondents not to interfere in the peaceful functioning of the petitioners as Committee of Management of Grih Laxmi Sahkari Awas Samiti Ltd., District Gautam Buddh Nagar and its office bearers as President and Secretary respectively.

    (iv) Issue any other writ, order or direction which this Hon'ble Court may deem fit and proper in the facts and circumstances of the case.

    (v) Award the cost of the writ petition.”

3. By the impugned order dated 30.5.2024, the respondent no.2, the Additional Registrar of Cooperative Societies, in exercise of power under Section 38(1) of the Uttar Pradesh Cooperative Societies Act, 1965, [Act, 1965], directed the petitioner no.1- Committee of Management of Grih Laxmi Sahkari Awas Samiti Limited, Gautam Budh Nagar to remove the Secretary and Chairman of the Society, [Grih Laxmi Sahkari Awas Samiti Limited, Gautam Budh Nagar] within one month from the posts occupied by them under intimation to the office.

By the other impugned order dated 4.7.2024, exercising power under Section 38(2) of the Act, 1965, the respondent no.2 has directed the petitioner no.2-Chairman and the petitioner no.3-Secretary of the Society to appear before him for purpose of affording them opportunity of hearing prior to their removal or removal and disqualification.

4. Briefly stated case of the petitioners is that the Society is registered under the Act, 1965 having its registered by-laws. The election of the Committee of Management of the Society was held in the month of February 2023, in which the petitioner no.2 was elected as Chairman and petitioner no.3 was appointed by the elected Committee of Management as Secretary of the Society under Section 31 of the Act, 1965. The respondent no.4, Smt. Kunta Devi, is stated to be a member of the Society and there is a dispute in respect of the Flat No. H-207 allotted/registered in the name of Smt. Kunta Devi, as a complaint had been received that the said flat was registered in her favour by the former Secretary of the Society, namely Smt. Sushila Saraswat, even without payment being made by Smt. Kunta Devi and without the same being deposited in the account of the Society. It is stated that even after the election in February 2023, the former Secretary, Smt. Sushila Saraswat, has not handed over papers of the Society. It is stated that the daughter of Smt. Sushila Saraswat is married to the son of respondent No.4, Smt. Kunta Devi.

Notice was issued by the petitione

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