S.P. Khare, J.
Narendra Pratap Singh
vs
Board Of Revenue And Ors.
Decided on : 7 October, 1999
CO-OPERATIVE SOCIETIES - RESIGNATION OF DIRECTORS - ACCEPTANCE - BY-LAWS - JURISDICTION - BOARD OF REVENUE - CO-OPERATIVE TRIBUNAL - CONTEMPT OF COURT - NOTICE - ISSUANCE - CONDITIONS.
Fact of the Case:
The petitioner, one of the nine elected directors of a District Co-operative Central Bank, resigned along with six other directors. The Board of Revenue, in a revision petition, directed the Committee to consider the resignations within ten days. The Committee meeting was held on 26-4-1999, but only one elected director was present, resulting in the cancellation of the meeting due to lack of quorum. The Assistant Registrar wrote to the Registrar, stating that the Bank's functioning had come to a standstill. The Additional Registrar appointed the Collector as a one-man Committee to manage the Bank under Section 53(13) of the M.P. Co-operative Societies Act, 1960. The Board of Revenue set aside the Additional Registrar's order and directed the maintenance of status quo. The petitioner challenged this order, arguing that the Board of Revenue lacked jurisdiction and that the Additional Registrar's order was valid.
Finding of the Court:
The court held that the petitioner had locus standi to file the petition as he had sufficient interest in ensuring the lawful management of the Bank. The Board of Revenue lacked jurisdiction to pass the impugned order as the M.P. Co-operative Tribunal had been constituted from 1-5-1999, and all proceedings under the Act were transferred to the Tribunal. The Additional Registrar's order appointing the Collector as a one-man Committee was legal and valid. The Board of Revenue's direction to issue contempt notices to the Additional Registrar and the Collector was not justified as they were not parties to the revision petition in which the order directing the maintenance of status quo was passed. The meeting had already been held, and the Additional Registrar had acted within his statutory powers to ensure the Bank's functioning.
Issues: 1. Whether the petitioner had locus standi to file the petition. 2. Whether the Board of Revenue had jurisdiction to pass the impugned order. 3. Whether it was proper and desirable to issue contempt notice to the Additional Registrar and the Collector.
Ratio Decidendi: 1. The court held that the petitioner had locus standi as he was an aggrieved or interested person in the broader sense and had sufficient interest in ensuring the lawful management of the Bank. 2. The court held that the Board of Revenue lacked jurisdiction to pass the impugned order as the M.P. Co-operative Tribunal had been constituted from 1-5-1999, and all proceedings under the Act were transferred to the Tribunal. 3. The court held that it was not proper or desirable to issue contempt notice to the Additional Registrar and the Collector as they were not parties to the revision petition in which the order directing the maintenance of status quo was passed. The meeting had already been held, and the Additional Registrar had acted within his statutory powers to ensure the Bank's functioning.
Final Decision: The petition was allowed, the impugned order was quashed, and the Additional Registrar's order appointing the Collector as a one-man Committee was upheld.
S.P. Khare, J.
1. This is a petition under Articles 226 and 227 of the Constitution of India challenging the order dated 6-5-1999 (Annexure P-15) passed by the Board of Revenue in Misc. Case No. 806/3-99.
2. The petitioner was one of the nine elected directors of respondent No. 4 District Co-operative Central Bank, Sidhi. Respondent No. 6 Rajbali Singh was the Chairman of the Board of Directors. The petitioner and six other directors have resigned. Four of them did so on 23-3-1999, two on 29-3-1999 and one on 26-4-1999. The Manager of the Bank who is also Secretary of the Committee (Board of Directors) convened a meeting to be held on 30-3-1999 for consideration of these resignations by the Committee. Respondent No. 6 challenged the notice calling this meeting before the Board of Revenue in Revision No. 564/3-99. By an order dated 26-3-1999 the Board of Revenue sent the case to the Joint Registrar, Co-operative Societies, Rewa as he had concurrent jurisdiction in hearing the revision. The Joint Registrar after hearing the parties by order dated 16-4-1999 (Annexure P-4) directed the Committee to consider the resignations within a period of ten days. Respondent No. 6 challenged this order before the Board of Revenue on the ground that the Joint Registrar had no power to pass such order. That was revision No. 739/3-99. The Board of Revenue by order dated 28-4-1999 (Annexure P-5) directed maintenance of status-quo up to 17-5-1999. But the meeting of the Committee was already held on 26-4-1999 in which only one elected director respondent No. 6 was present. The quorum of the meeting of the Committee was half of its members. The meeting was cancelled for want of quorum. The Assistant Registrar and the Manager of the Bank were present in the meeting. The Manager of the Bank wrote the letter dated 26-4-1999 (Annexure P-7) stating therein that the meeting had been cancelled in the absence of quorum. He also wrote that four directors including the petitioner had resigned on 23-3-1999 and therefore as per bye-law 23/2 their resignations had become effective automatically after the expiry of 30 days. These four directors submitted affidavits also to that effect before the Manager. Three other directors also submitted affidavits before him supporting their resignations. The directors who had resigned refused to participate in any proceeding.
3. The Assistant Registrar, Co-operative Societies wrote a detailed letter dated 28-4-1999 (Annexure P-8) to the Registrar apprising him of all the facts mentioned above and mentioning that the working of the Bank has come to stand still as the Committee had ceased to function. On receipt of this report respondent No. 2 Additional Registrar passed the order dated 1-5-1999 (Annexure P-9). By that date the resignations of six directors had become effective by efflux of the time of 30 days from the date of submission of their resignations. The Additional Registrar after recording his satisfaction that the Committee has ceased to function appointed the Collector, Sidhi as one man Committee, to look after the management of the Bank as per Section 53(13) of the M.P. Co-operative Societies Act, 1960 (hereinafter to be referred to as the 'Act'). Respondent No. 6 submitted an application before the Board of Revenue for initiating contempt proceedings against the Additional Registrar and the Collector for violation of order dated 28-4-1999. In reply it was pointed out that the meeting had already taken place on 26-4-1999 and the Additional Registrar and the Collector were not parties to the revision in which order dated 28-4-1999 was passed. It was also pointed out that the M.P. Co-operative Tribunal has been constituted under Chapter-X of the Act by the notification dated 12-3-1999 with effect from 1-5-1999 and the jurisdiction of the Board of Revenue under the Act had come to an end. All appeals, revisions and other proceedings were transferred to the Tribunal by an Ordinance issued on 29-4-1999. The Board o
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