IMPORTANT POINT
The power of the Registrar to dissolve the Board of a society under Section 78(1) of the Manipur Co-operative Societies Act 1976 includes the authority to remove the Board, and compliance with the principle of natural justice is required before such dissolution.

JUDGMENT

1. Heard Mr. Th. Jugindro, learned counsel appearing for the petitioners, Mr. A. Vashum, learned Government Advocate appearing for the respondents No. 1 & 2 and Mr. L. Anand, learned counsel appearing for the respondent No. 3.

The present writ petition had been filed assailing the orders dated 28.08.20200 issued by the Registrar of Co-operative Societies, Manipur dissolving the Board of Manipur Apex Co-operating Marketing Societies Limited (MACMS Ltd.) coupled with a prayer for allowing the Board to continue functioning till completion of its tenure.

2. The facts of the present case in a nutshell is that the petitioners are all elected members of the MACPMS Ltd., which is a Society registered under the Manipur Co-operative Societies Act 1976. The present Board of Directors of the society was elected in the special general body meeting held on 22.11.2017 and the term of their office is for the period of 5 years w.e.f. the date of election.

3. During the tenure of office of the present petitioners, the Registrar of Co-operative Societies issued an order dated 16.12.2019 constituting a three members committee to enquire into the constitution, working and financial affairs of the MACMS Ltd. under Section 83 of the Manipur Cooperative Societies Act, 1976. After holding an enquiry, the said committee submitted a report dated 06.01.2020 to the Registrar of Co-operative Societies stating, inter-alia, that the Chairman of the Society misapplied, retained, indulged into misefficient, misappropriated the society's fund amounting to rupees sixty-one Lakhs and not maintained records for the period from July, 2019 to November, 2019. On receiving the said report, the Deputy Registrar of Co-operative Societies, Manipur, sent a notice dated 06.06.2020 to the Chairman, MACMS Ltd. enclosing therein the said enquiry report and directing to explain within 15 days from the date of issue of the said notice as to why necessary action should not be taken up against him. Copy of the said notice dated 06.06.2020 was also furnished to the Board of Directors of the MACMS Ltd.

4. On receiving the said notice dated 06.06.2020 along with the copy of the enquiry report dated 06.01.2020, the petitioner No. 1, who was the Chairman of the MACMS Ltd., submitted a written reply dated 19.06.2020 under covered of a letter dated 19.06.2020 addressed to the Registrar of Co-operative Societies, Manipur.

After considering the written reply submitted by the petitioner No. 1, the Registrar of Co-operative Societies Manipur issued the impugned order dated 28.08.2020 thereby dissolving the Board of MACMS Ltd. until further orders and the said order was published in the Manipur Gazette bearing No. 136 dated 01.09.2020 as required under the Rules 62 of the Manipur Co-operative Societies Rules, 1977. Having been aggrieved, the petitioners approached this Court by filing the present writ petition for redressing their grievances.

5. Mr. Th. Jugindro, learned counsel appearing for the petitioners raised only two grounds in assailing the order dated 28.08.2020 issued by the Registrar of Co-operative Societies, Manipur. The first ground raised by the learned counsel for the petitioner is that no notice was given to the petitioners prior to issuance of the impugned order as provided under Section 78 (1) of the Manipur Co-operative Societies Act, 1976 and Rules 62 (2) of the Manipur Co-operative Societies Rules 1977. Accordingly, the impugned order is liable to be quashed and set aside as the same had been issued in violation of the principle of natural justice. The second ground raised by the counsel for the petitioner is that under Section 78 (1) of the Manipur Co-operative Societies Act, 1976, the Registrar has no power or authority to dissolve the Board of the MACMS Ltd.

6. In connection with the first ground, it has been submitted by the learned counsel for the petitioners that under Section 78 (1) of the Manipur Co-operative Societies Act, 1976 and Rule 62 (2) of the Manipur C