IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K. SARATH, J.
Mr. Syed Badruddin – Applicant
Versus
The State of Telangana rep. by its Principal Secretary Agriculture and Co-operation Department - Respondents
Writ Petition No.17767 Of 2024
Decided On : 24-09-2024
(A) Telangana Cooperative Societies Act, 1964 – Section 32(3) – Disqualification of Chairman – The petitioner challenged the order disqualifying him from the post of Chairman for failing to conduct meetings as mandated by Section 32(3) of the Act. The court found that the petitioner did not hold the required meetings within the stipulated time frame, thus validating the disqualification. (Paras 1, 14, 27, 32)
(B) Principles of Natural Justice – The court held that the respondent No.3 provided reasonable opportunity for personal hearing, and the petitioner's failure to attend did not constitute a violation of natural justice. (Paras 6, 31)
Facts of the case: The petitioner was disqualified from the post of Chairman of the Society for not conducting meetings as required under the Telangana Cooperative Societies Act, 1964. The petitioner argued that he had conducted the meetings quarterly, while the respondents contended that he failed to do so within the required time frame. (Paras 1, 5, 14)
Findings of Court: The court upheld the disqualification order, stating that the petitioner did not comply with the statutory requirement of conducting meetings every three months. (Paras 27, 32)
Issues: The main issues were whether the petitioner conducted the required meetings within the stipulated time and whether the principles of natural justice were violated in the disqualification process. (Paras 6, 14)
Ratio Decidendi: The court ruled that the duty to conduct meetings under Section 32(3) is mandatory, and failure to do so results in automatic disqualification. The court also emphasized that the petitioner had been given adequate opportunity to present his case. (Paras 27, 31)
Result: Writ Petition dismissed as devoid of merits. (Para 33)
ORDER :
(K. Sarath, J.) :
This writ petition is filed questioning the order passed by the respondent No.3 vide Proceeding R.C.No.1413/2016-WS dated 20.06.2024 in disqualifying the petitioner from the post of Chairman of the respondent No.5-Society in terms of provision of Section 32(3) of the Telangana Cooperative Societies Act,1964 and devolving the powers of the Chairman on Vice-Chairman of the Society until conduct of election to the post of Chairman of the Society as illegal and arbitrary.
2. Heard Sri Avinash Desai, learned Senior Counsel for Sri Girija Shankar Sharma, learned counsel for the petitioner, learned Assistant Government Pleader for Cooperation and Sri J. Ashvini Kumar, learned counsel for the respondent No.6.
3. Learned Senior Counsel for the petitioner submits that the respondent No.5-Society functioning has been governed by the provisions of the Telangana Cooperative Societies Act, 1964 (for short ‘the Act’) read with Bye- Laws of the respondent No.5-Society. The affairs of the said Society have been managed by the Board of Directors consisting of 12 Directors, who were elected among the Members of the Society. Out of the 12 elected Directors, one Director has to be elected as Chairman and another one as Vice-Chairman.
4. Learned Senior Counsel for the petitioner further submits that as per the orders of this Court in W.P. No.21940 of 2020 dated 20.09.2021, elections were conducted on 27.03.2022, 12 candidates were unanimously elected as Directors and among them, the petitioner and the respondent No.6 were elected as Chairman and Vice-Chairman of the respondent No.5- Society. While it being so, the respondent No.6 filed W.P.No.29145 of 2023 for disqualification of the petitioner as Chairman of the Society and this Court by order dated 08.04.2024 directed the respondent No.6 herein to file appropriate representation to the respondent No.3 and on receipt of the same, the respondent No.3 shall examine the same and pass appropriate orders in accordance with the provisions of the Act within a period of two (2) months from the date of receipt of a copy of the said order duly affording an opportunity of personal hearing to all the concerned.
5. Learned Senior Counsel for the petitioner further submits that the petitioner has conducted the Managing Committee meetings every quarterly i.e, every three months and the respondents have not taken into account of every quarter or three months as a unit and passed the impugned order. As per Section 2(c) of the Act, the Co-operative year/ Financial Year means, the period commencing on the 1st day of April of every year and ending with the 31st day of March of the succeeding year and the respondents have to calculate from the 1st April of the year for calculating the three months period as one quarter. Accordingly, the petitioner has conducted meeting every quarter and without considering the same, the respondent No.3 has issued the impugned proceedings and moreover, there is no mention specifically that the three months period will be counted from the date of last meeting as per Section 32(3) of the Act. He further submits that Section 32(3) of the Act has not specified the date and the time to conduct the meeting and as such, it is left to the discretion of the President/Chairman to conduct meetings in every three months and the petitioner has conducted all the meetings of the Managing Committee each and every three months of the cooperate year i.e., 01.04.2022 to 31.03.2023.
6. Learned Senior Counsel for the petitioner further submits that the respondent No.3, without communicating the representation submitted by the respondent No.6, issued show cause notice to the petitioner. The respondent No.3, without giving opportunity of hearing in the enquiry as per the orders of this Court in W.P.No.29145 of 2023 and in spite of the representation of the petitioner on 18.06.2024, passed impugned orders on 20.06.2024 and the same is in violation of principles of natural justice and
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