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2024 Supreme(MP) 605

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
Gurpal Singh Ahluwalia, J.
Sindhi Samaj Kalyan Samiti Waraseoni Through Its President - Petitioner
Versus
The State Of Madhya Pradesh Through Its Principal Secretary Department Of Cooperative Society and ors. – Respondents
Writ Petition No. 21147 of 2023
Decided On : 03-01-2024

Advocates:
Advocate Appeared:
For the Petitioner:Shri Shailendra Verma -Advocate
For the Respondent:Shri K.S. Baghel – Government Advocate, Shri Utkarsh Agrawal – Advocate

The court emphasized the necessity for reasoned decisions in administrative orders, particularly regarding compliance with statutory requirements.

Headnote:(A) Madhya Pradesh Society Registrikaran Adhiniyam - Sections 27 and 28 - Petition under Article 226 challenging the cancellation of registration of a Society - The order was set aside due to its cryptic nature and lack of application of mind, remanding the matter for fresh consideration. (Paras 1, 12)

(B) Administrative Law - Principles of natural justice - The court emphasized the need for a reasoned decision and proper consideration of compliance with statutory requirements. (Paras 8, 10)

Facts of the case:
The petitioner Society, registered under the Madhya Pradesh Society Registrikaran Adhiniyam, faced cancellation of registration due to alleged non-compliance with statutory requirements, which it contested by submitting necessary information and audit reports. (Paras 2, 3)

Findings of Court:
The court found the impugned order to be cryptic and lacking in reasoning, necessitating a remand for a fresh decision on compliance and allegations against the Society. (Paras 12)

Issues: The main issues included whether the non-compliance was deliberate, if the Society received funds, and whether any commercial complexes were improperly transferred. (Paras 12)

Ratio Decidendi: The court ruled that the order lacked sufficient reasoning and failed to address key allegations, thus requiring a fresh examination of the case. (Paras 12)

Result: The order was set aside and the matter was remanded for fresh consideration.

ORDER :

Gurpal Singh Ahluwalia, J.

This Petition under Article 226 of Constitution of India has been filed against order dated 25.07.2023 passed by Principal Secretary, Department of Industrial Policy and Investment Encouragement in File No.F-IPI/02/2022/B-11, Bhopal.

2. It is the case of petitioner that petitioner is a Society registered under the Madhya Pradesh Society Registrikaran Adhiniyam. A show-cause notice dated 25.09.2017 was served upon petitioner requiring it to submit an information under Section 27/28 of Madhya Pradesh Society Registrikaran Adhiniyam. Petitioner submitted the information to the respondent within stipulated period and paid the deficit amount. The information dated 12.12.2017 has been filed as Annexure P/3. By order dated 19.09.2019, respondent No.3/Assistant Registrar, Firms and Societies cancelled the registration of petitioner Society for non fulfillment of requirements of Section 27/28 of Madhya Pradesh Society Registrikaran Adhiniyam. The said order was passed on the basis of complaint made by respondents No.5 and 6 in personal and revengeful manner.

3. Being aggrieved by order passed by Assistant Registrar, Firms and Societies, petitioner preferred an appeal before Registrar, Firms and Societies, which was partially allowed by order dated 18.12.2020 and petitioner was directed to submit an information under Section 27/28 of Madhya Pradesh Society Registrikaran Adhiniyam within a period of one month with a further stipulation that in case, if petitioner fails to comply the aforesaid direction, then respondent shall be free to take action in accordance with law. It is the case of petitioner that accordingly, on 12.01.2021, petitioner submitted its information under Section 27/28 of Madhya Pradesh Society Registrikaran Adhiniyam with requisite fees.

4. Being aggrieved by order dated 18.12.2020, respondents No.5 and 6 preferred an appeal under Section 40 of Madhya Pradesh Society Registrikaran Adhiniyam before the Principal Secretary, Department of Industrial Policy and Investment Encouragement. By the impugned order dated 25.07.2023, the appeal has been allowed.

5. Challenging the order passed by respondent No.2, it is submitted by counsel for petitioner that petitioner Society is involved in social services. After cancellation of registration, the Registrar, Firms and Societies by its order dated 18.12.2020 had permitted the petitioner to submit requisite information within a period of one month, which was duly complied by petitioner. Audits of Society were conducted from time to time and because of inadvertent mistake, information was not sent to the concerning authority. Audit was conducted by Shri Atul Agrawal, Charted Accountant, whose report was submitted. However, respondent No.5 also threatened Shri Atul Agrawal of taking a false action against him. Parliamentarian fund as mentioned in the appeal by respondent No.5 was not received by petitioner Society. Whatever works were done by petitioner Society were executed by Public Works Department. All the instructions issued to the Society by the Registrar from time to time were complied with. However, on account of some bonafide mistake information could not be submitted, which has been done now. Various social activities were organized by petitioner Society in Tahsil Waraseoni, District Balaghat. Since petitioner was not aware of the requirements of Section 27 and 28 of Madhya Pradesh Society Registrikaran Adhiniyam, therefore, information was not filed and the said aspect has been rectified by petitioner.

6. Respondent No.5 has filed his return. It is submitted by counsel for respondent No.5 that there is no authorization letter in favour of Shri Lakhiram Ramchandani to file present petition. Without any authorization, he is not competent to file present petition on behalf of the Society. Respondent No.5 was raising regular objections against the irregularities committed by petitioner Society mainly on the ground that Samiti do not carry out its a

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