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2021 Supreme(UK) 658

IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Manoj Kumar Tiwari, J.
Krishna Pal Singh - Appellant
Versus
State Of Uttarakhand & Ors. - Respondents
Writ Petition (M/S) No. 971 of 2021, 951 of 2021
Decided On : 21-05-2021

Advocates Appeared:
Jitendra Chaudhary, Advocate, B.N. Molakhi, Advocate, T.S. Phartiyal, Advocate, G.S. Negi, Advocate, Ajay Veer Pundir, Advocate

The central legal point established in the judgment is the requirement to provide an opportunity of hearing to the affected parties before passing any order with civil consequences.

Headnote:

Natural Justice - Cooperative Society - [Section 17, Section 18, Section 19] - The court discussed the violation of principles of natural justice in the decision-making process of the Registrar, which adversely affected the interests of the petitioners. The court emphasized that any order with civil consequences should be passed only after providing an opportunity of hearing to the affected parties. The impugned order was quashed, and the matter was remitted back to the Registrar to pass a fresh order after hearing all stakeholders, including the petitioners.

Fact of the Case:

The petitioners, who were members of a Cooperative Society, were removed from the membership of the Committee of Management based on their absence from meetings. They approached the District Assistant Registrar, Cooperative Societies, and were permitted to participate in the next meeting. However, the Registrar set aside the permission without affording the petitioners an opportunity of hearing.

Finding of the Court:

The court found that the impugned order passed by the Registrar violated the principles of natural justice by not providing an opportunity of hearing to the petitioners before setting aside the permission granted by the District Assistant Registrar.

Issues: Violation of principles of natural justice, setting aside of the permission without hearing the petitioners.

Ratio Decidendi: Any order with civil consequences should be passed only after providing an opportunity of hearing to the affected parties. The impugned order, passed without hearing the petitioners, was held to be in violation of principles of natural justice.

Final Decision: The writ petition was allowed, the impugned order was quashed, and the matter was remitted back to the Registrar to pass a fresh order after hearing all stakeholders, including the petitioners.

JUDGMENT

Manoj Kumar Tiwari, J. - Heard learned counsel for the parties through video conferencing.

2. Defect, as pointed out by the Registry is over-ruled.

3. Since common question of law and facts are involved in these writ petitions, therefore with the consent of parties these writ petitions are being taken up together and are being adjudicated by this common judgment. However, for the sake of brevity, facts of WPMS No. 971 of 2021 are being considered.

4. Mr. Krishna Pal Singh (petitioner in WPMS No. 971 of 2021) was elected as Director/Member of Committee of Management of a Cooperative Society, namely, Buhuddesiya Narsan Gurukul Kisan Sewa Sahkari Samiti Limited, Haridwar, on 23.07.2018. According to learned counsel for the petitioner, thereafter, he was elected as Chairman of the Committee of Management of the said Cooperative Society for a period of five years, thus, his term as Chairman was to last up-to 10.08.2023. On 08.08.2020, the Committee of Management passed a resolution for removal of Mr. Krishan Pal Singh (petitioner in WPMS No. 971 of 2021) and two more persons, namely, Mr. Vishnu and Mr. Ashok Kumar (petitioners in WPMS No. 951 of 2021) from the membership of Committee of Management of the Cooperative Society on the ground that they have absented from three consecutive meetings of the Committee of Management.

5. Feeling aggrieved by their removal, petitioners approached the District Assistant Registrar, Cooperative Societies, by filing a representation. Based on the said representation, District Assistant Registrar, Cooperative Society, Haridwar appointed Additional District Cooperative Officer, Narsan, Haridwar as Inquiry Officer. The Inquiry Officer submitted his report. Based on the Inquiry Report, District Assistant Registrar issued a notice to the Managing Director of the Cooperative Society concerned on 17.03.2021 calling upon him to show cause as to why disciplinary proceedings may not be initiated against him for fraudulently removing the petitioners from the membership of the Cooperative Society. It was further provided in the notice that petitioners shall be permitted to participate in the next meeting of the Committee of Management/Board of Directors.

6. It is the case of the petitioners that pursuant to the order passed by the District Assistant Registrar, they participated in the next meeting of Committee of Management/Board of Directors held on 18.03.2021.

7. Petitioners are aggrieved by the order dated 31.03.2021, passed by the Registrar, which is on record as Annexure No.-12 to the writ petition. By the said order, Registrar, Cooperative Societies, Uttarakhand has set-aside the notice/order dated 17.03.2021 passed by District Assistant Registrar, Cooperative Societies, Haridwar, whereby petitioners were permitted to participate in the next meetings of Committee of Management/Board of Directors of the Cooperative Society. This order was passed on an application moved by one Mr. Mohit Chaudhary, Director of the Cooperative Society concerned, who presided the meeting of Committee of Management held on 08.08.2020, in which petitioners were removed from the membership of Committee of Management.

8. Learned counsel for the petitioners submits that the impugned order passed by the Registrar on 31.03.2021, whereby the order/show cause notice issued by the District Assistant Registrar on 17.03.2021 was set-aside, has been passed without issuing any notice to the petitioners or without affording any opportunity of hearing to them. He, thus, submits that since the order passed by District Assistant Registrar on 17.03.2021 was in favour of the petitioners, therefore, they were entitled to be heard before setting-aside the said order, as the order impugned passed by the Registrar, was prejudicial to the interest of the petitioners.

9. Mr. T.S. Phartiyal, learned Additional C.S.C. appearing for the State and Mr. Ajay Veer Pundir, learned counsel appearing for respondent no. 5 do not dispute the submission made on b

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