( 1 ) THE petitioners, who are members of the Board of Directors of respondent No. 3 Society, are seeking, in this petition under Article 226 of the constitution, quashing of the show cause notice issued under Section 53 (2) of the M. P. Co-operative Societies Act, 1960 and also for striking down Section 53 (10) of the Act as ultra vires of the Constitution.

( 2 ) THE respondent No. 3 Sahkari Nipnan Samiti, Khachrod was established in 1967 with the object of sale and purchase of agricultural inputs, improved seeds, chemical fertilizers and essential commodities of domestic use to its members ; to arrange for proper storage and marketing of members agricultural produce and generally to improve their economic condition ; to work as an agent of Government or of M. P. State Co-operative Marketing Federation or of other institution for the above purpose. It was registered under the M. P. Co-operative societies Act, 1960 and the petitioner No. 2 was elected as President of board of Directors. The respondent No. 2, i. e. the Assistant Registrar of co-operative Societies, Ujjain, issued a show cause notice on 16-3-1985 to the petitioners under Section 53 (2) of the Act as to why the Board of Directors be not suspended for serious irregularities, illegalities, mismanagement, misappropriation, mis-utilisation of the funds of the Society. The same day an order was passed under Section 53 (10) suspending the Board of Directors and appointing respondent No. 4 as officer-in-charge of the Society. The petitioners grievance is that the show cause notice was given on the basis of certain enquiry made behind the back of the petitioners and without hearing them and there was no justification for suspending the Board of Directors ; at the most the functioning of the Society under the supervision of an authority nominated by respondent no. 2 would have been sufficient, as required under sub-section (10) of Section 53; there was no necessity of taking action under Section 53 when the respondent no. 2 could have taken action under Section 61 for rectification of the defect, if any, found in the inspection ; the charges related to the period when the old board of management was functioning and the present Board of management was not responsible for the same ; Section 53 (10) violates Article 14 of the constitution as it cuts down the three years tenure of the elected body under section 49 ; it gives arbitrary power to the respondents to suspend the duly elected body and thereby curtailing its tenure and prevent its functioning.

( 3 ) THE petition is being opposed by the respondents saying that the petition is misconceived ; no final order has been passed ; curtailment of the period under Section 53 (10) of the Act is justified and the State has the authority to do so and can impose such reasonable restrictions under Article 19 (4) of the constitution in the larger interests of the Society.

( 4 ) HAVING heard the parties, we are of the opinion that there is no merit in this petition. The Joint Registrar, Co-operative Societies and the Collector, Ujjain informed respondent No. 2, Assistant Registrar, Co-operative Societies, Ujjain in January 1985 that proper accounts has not been maintained by the Society and due payments have not been made to the farmers and there was a demonstration by more than 200 farmers before the Sub-Divisional Officer on 10-1-1985; therefore, the respondent No. 2 by invoking his powers under Section 59 of the act, authorised the Audit Officer, Ujjain to enquire into the affairs of the society. The Audit Officer by his report submitted that the Board of Directors have committed serious irregularities and illegalities in the working of the society on the basis of the records of theSociety there is misappropriation and misutilisation of the funds of the Society, has not maintained record properly and upto date, for this reasons the financial position of the Society is not sound and he, therefore, proposed that the Bo