High Court Of Madhya Pradesh
R. K. VIJAYVARGIYA, H. G. MISHRA
BOARD OF DIRECTORS OF SHRI GANESH SAHKARI VIPNAN (MARKETTING) SANSTHA MARYADIT - Appellant
Versus
DY.REGISTRAR, CO-OPERATIVE SOCIETIES, KHARGONE - Respondents
Misc. Petition 232 Of 1981
Decided On : 09/15/1981
(2) Constitution of India-Arts. 226 & 227-petition brought by "Board of Directors" which is not a juristic person-another person comptent to file petition also a co petitioner-joining of 'Board of Director's as petitioner is only a defect' pertaining to mere from and does nut affect the tenability of the petition. [Para 5]
(3) Constitution of India-Art. 226 & 227 - super-session of a co-operative society challenged by one member-other members not made parties-this is only want of proper party and not that of a necessary party-petition cannot be dismissed on this ground. [Para 5]
(4) Co-operative Societies Act, 1960 (MP)-S. 53 (2)-service of notice to show-cause issued in the name the President, Directors and representatives managing the Committee and not in the name of the Committee-service on one is not service on all-notice not served on President-mandatory provision not followed. [Para 6]
(5) Co-operative Societies Act, 1960 (MP)-S. 53 (2)-service of notice the President of the society, in the knowledge of the Dy, Registrar, went to a foreign country for 20 days-he cannot be said to be avoiding service of show cause notice. [Para 6]
(6) Co-operative Societies Act, 1960 (MP)-S. 53 (7)-consultation with financing bank-should be prior to taking action of super-session-all relevant material should be sent to the bank-opion should be awaited for 45 days provision is mandatory.
The Deputy Regirtrar sent a copy of the show cause notice to the bank concerned for ad vice, full particulars were not sent. Even wit bout waiting for 45 days, the order of super-session of the society was passed.
Held: The position of law with regard to consultation as envisaged by section 53(7) appears to be as under: (i) that there should be effective and meaningful consultation. For this purpose sufficient information, i.e. relevant material must be shown to have been placed to the Bank consulted to enable it to tender advice on the questions on which the advice is sought in the light of the views of the authority seeking advice; and (ii) that sufficient opportunity must be given to the Bank to tender advice, i.e. the authority seeking advice must await communication of the views by the Bank consulted for a period of 45 days. AIR 1966 SC 992, 1975 JLJ SN 17 & 1972 JLJ 435 relied on, [Para 8]
(7) Co-operative Societies Act, 1960 (MP)-S. 57 (7)-opinion of concerned financing bank not obtained - section 57 (7) contravened-any member of the superseded society has a right to seek redress-Constitution of India Arts, 226 & 227.
A distinction has to be made between enforcement of a provision with regard to consultation of a B1nk and challenging the order of super-session of Committee on the ground of absence of consultation, as enjoined by the law. In a case where a member of Committed is challenging the validity of the order of super-session of the Committee of which he was a member it has to be held that he has a right to maintain writ petition for the purpose. [Para 9]
(8) Constitution of India-Arts. 226 & 227-dteranate remedy of appeal available-writ petition admitted- in the meantime limitation for appeal expired-writ petition cannot be rejected because of the alternative remedy. [Para 11]
( 1 ) THIS is a petition under Articles 226/227 of the Constitution of India, whereby the petitioners seek issuance of a writ of Certiorari and/or any other appropriate direction or order in tbe nature of a writ for quashing the order of supersession of the Board of Directors of Shri Ganesh Sahkari vipnan (Marketing) Sanstha, Maryadit, Khargone, passed by the Deputy registrar, Co-operative Societies, Khargone, on 22. 5. 1981 (Annexure-3 ).
( 2 ) SHORTLY put the facts necessary for decision of this petition are as under : Shri Ganesh Sahkari Vipnan (Marketing) Sanstha, Maryadit, khargone (hereinafter referred to as the Society) is a co-operative society governed by the Madhya Pradesh Co-operative Societies Act, 1960 (for short the Act ). The Board of Directors of this Society was constituted on 22. 5. 1979 for a period of three years, ending on 22. 5. 1982. At the relevant time the society was indebted to the Jila Kendriya Sahkari Bank Maryadit, khargone (respondent No. 2 ). After issuing a show cause notice No. Vidhi/81/1549, dated 4. 5. 19. 1 (Annexure-2), the Deputy Registrar, Co-operative societies, Khargone, by his order No Vidhi/1723/81, dated 22 5. 1981 (Annexure-3) passed the order of supersession of the Committee and in place of supreseded committee, an ad hoc committee respondent No. 3) has been appointed to discharge its functions. Hence this petition.
( 3 ) THE petitioner contended that the impugned order of supersession of the Board of Directors (for short, the Committee) is illegal, void and inoperative inter alia on the grounds that (1) the show-cause notice dated 4. 5 1981 (Annexure-2), issued by the Deputy Registrar respondent No. 1)was not served on petitioner No. 2 Prakashchandra Shivrana Vyas, President of the commitee, who was at the relevant time in the knowledge of respondent No 1 at Maxico, and thus, there has been denial of reasonable opportunity of showing cause against the proposed order of supersession of the Committee and as such, there has been contravention of Section 53 (2)of the Act; (2) that the Society at the relevant time was a Society indebted to the Jila Kendriya Sahkari Bank Maryadit, Khargone (respondent No. 2)and as such, it was obligatory on the part of respondent No. 1 to have consulted the said Bank in the manner enjoined by Section 53 (7) of the Act. However, in this case there was no consuttation as envisaged by the law. Moreover, without waiting for a period of 45 days, respondent No. 1 has hastened to pass the impugned order of supersession, for this reason also it is illegal, void and inoperative.
( 4 ) ON behalf of the respondents the petition is opposed by submitting separate returns. However, the main grounds on which the petition is resisted are' (i) (a) that the petition cannot be maintained in the name of 'board of Directors' as it is not a juristic person, and (b) that the petition suffers from the defect of non-joinder of parties, inasmuch as members of the Committee, other than petitioner No. 2, have not been joined as parties to the petition ; (ii) that service of notice to show-cause oa petitioner No. 2 was not necessary, as serviee on other member of the commute is deemed to be service on all members thereof ; (Hi) that the provisions placed in Section 53 (7) are not mandatory and are merely directory in nature ; (iv) that the proviso to Section 53 (7) is for the benefit of the financing Bank. As such, no grievance can be made in respect of non-compliance thereof by the petitioner ; that (v) passing of the order of supersession prior to expiry of 45 days, does riot vitiate it, and (vi) that the alternative remedy of appeal under Section 77 of the Act being available to them, the petitioners cannot invoke the extraordinary jurisdiction vested in this Court under Articles 226/227 of the Constitution of india.
( 5 ) IT is true that the 'board of Directors' has not been given the status of a juristic person by any provision placed in the Act. By virtue of the d
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