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2025 Supreme(All) 3671

HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW
RAJAN ROY, PRASHANT KUMAR, JJ.
Praveen Singh @ Praveen Singh Bafila and Another – Appellants
Versus
Bahujan Nirbal Varg Sahkari Grih Nirman Samiti Ltd. Thru. its Secy. and Others – Respondents
Special Appeal No. 297 of 2025 
Decided On : 18-12-2025

Advocates Appeared:
For the Appellants : Pt. S. Chandra, Ravi Kant Mishra, Ravindra Nath Shukla
For the Respondents: Sharad Pathak, C.S.C., Gaurav Mehrotra, Utsav Mishra

Courts can mold relief and order investigations in cases of fraud, ensuring justice even beyond explicit petition requests.

Headnote:(A) Uttar Pradesh Cooperative Societies Act, 1965 - Sections 70 and 71 - Jurisdiction of the court - A special appeal was filed against the interim order passed by the learned Single Judge, challenging interlocutory orders of the Statutory Arbitrator regarding a cooperative society election. The court found the learned Single Judge acted beyond jurisdiction by issuing directions concerning criminal investigation not related to the scope of the writ petition. The issue of fraud and siphoning off funds was crucial, justifying intervention. The appeal was maintained, emphasizing the court's obligation to address apparent injustice and protect the integrity of the cooperative society. (Paras 20-39)

Facts of the case:
The appellants, previously elected members of a cooperative society, executed multiple sale deeds fraudulently without authorization after their term expired. Substantial amounts were siphoned off, leading to a fraud complaint, prompting writ petitions to challenge the actions of the Statutory Arbitrator and the legitimacy of ongoing arbitration proceedings initiated against them. (Paras 3-18)

Findings of Court:
The court found that the learned Single Judge acted within his jurisdiction to investigate the fraud allegations, ordering police inquiries to address substantial misconduct, even beyond the immediate scope of the original writ petition. (Paras 56-60)

Issues: Whether the learned Single Judge had the jurisdiction to issue directions for police investigations and to maintain the authority of newly elected members of the cooperative society against the prior administration's fraudulent actions. (Paras 22-27)

Ratio Decidendi: The court determined that the High Court has the inherent power under Article 226 of the Constitution to grant relief necessary to prevent injustice and to ensure thorough investigations into fraud, regardless of the specific prayers made in petitions. (Paras 73-76)

Result: Appeal dismissed; the directions of the learned Single Judge upheld.

Table of Content
1. the legal standing of intrinsic fraud and procedural conformity. (Para 1 , 2 , 5 , 10 , 19)
2. interim orders must conform to the broader scope of justice. (Para 3 , 4 , 30 , 32 , 34 , 76)
3. judicial discretion allows for contextual adjustment of legal relief. (Para 12 , 33 , 38 , 50 , 52)
4. regulatory action is permissible to prevent abuse. (Para 20 , 31 , 61 , 73)
5. affirmation of the judicial discretion exercised by the single judge. (Para 22 , 24 , 79)

JUDGMENT :

Rajan Roy, J.

(1) Heard Sri Pt. S. Chandra, learned Senior Counsel assisted by Sri Ravi Kant Mishra, learned counsel appearing for the appellants, Sri Pritish Kumar, learned Additional Advocate General assisted by Sri Nishant Shukla, learned Additional Chief Standing Counsel for the State-respondents Sri Sharad Pathak, learned counsel appearing for respondent no.3 and Sri Utsav Mishra, learned counsel appearing for respondent nos.7 and 8.

(2) This is a special appeal under Chapter VIII Rule V of the Allahabad High Court Rules, 1952 (in short 'the Rules, 1952') challenging an order dated 20.08.2025 passed in Writ-C No.7497 of 2025 [Bahujan Nirbal Varg Sahkari Grih Nirman Samiti Ltd. & Ors. vs. State of U.P. & Ors.].

(3) A preliminary objection has been raised by Sri Sharad Pathak, learned counsel appearing for the private opposite parties regarding maintainability of this appeal in view of Chapter VIII Rule V of the Rules, 1952 as, according to him, the impugned order has been passed by the writ court in a writ petition arising out of an order passed by a Statutory Arbitrator under Section 70 of the U.P. Cooperative Societies Act, 1965 (in short 'the Act, 1965') which is an enactment referable to Entry-32 of the State List as such view of the language used in Chapter VIII Rule V aforesaid, this appeal is not maintainable. Secondly, the order impugned is an interim order, therefore, for this reason also this appeal is not maintainable as there is no finality attached to such an order especially as the appellants herein have moved an application for vacation of the same on 15.09.2025 which is still pending.

(4) On the other hand, learned counsel for the appellants submits that the order passed by learned Single Judge is beyond the scope of the writ petition as also the roster assigned to him by order of Hon'ble the Chief Justice as he has proceeded to issue directions and made observations with regard to certain issues under the criminal law to the extent that he has ensured lodging of F.I.R. against the appellants herein and its investigation by a specialized agency which was not the subject matter of the writ petition and certainly not within the jurisdiction of learned Single Judge. He also submitted that by means of the impugned order, learned Single Judge has stayed the proceedings of arbitration pertaining to the election in question to the managing committee of the co-opearative society under Section 70 read with Section 71 of the Act, 1965 which was impermissible especially as a writ petition against an interlocutory order passed in such proceedings would not be maintainable especially in view of Section 71 (3) of the Act, 1965 which permits passing of interlocutory orders in such proceedings. As regards the contention that the order impugned is an interim order, therefore, not amenable to an intra-court appeal, he submitted that direction of final nature that too without jurisdiction has been issued, therefore, the order impugned has the trappings of a final order and in any case is without jurisdiction, therefore, the appeal is very much maintainable.

(5) We have perused the memo of the writ petition in which the impugned order has been passed. The relief clause of the writ petition reads as under:-

"I. Issue a writ, order or direction in the nature of Certiorari quashing the impugned order dated 10.03.2025 passed by opposite party no. 2 in case No. 1831 of 2023 and impugned order dated 12.05.2023 passed by opposite party no. 2 in case No. 1831 of

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