In disputes pertaining to the governance or affairs of a cooperative society, the society is a necessary party. Failure to implead the society in appellate proceedings violates the principles of natural justice (audi alteram partem), necessitating a remand for proper adjudication.

CAV Order

1. With consent of the learned counsel for the parties, heard the matter finally.

2. The petitioner has preferred this writ petition under Article 226 of the Constitution of India seeking following reliefs :-

“10.1 That this Hon'ble Court may kindly be pleased to set aside/quash the order dated 03/01/2025 (Annexure P-1) and 14/11/2024 (Annexure P-2) passed by the learned President, Chhattisgarh Cooperative Society Tribunal, Bilaspur (C.G.) and respondent No.5 respectively and maintain the order dated 29/10/2024 (Annexure P-6) passed by respondent No.4.

10.2 Any other relief, which may be deemed, fit by this Hon'ble Court in the facts and circumstances of the case may also be provided in favour of the petitioner.”

3. Brief facts of the case, as projected in instant writ petition, are that, election of members of respondent No. 14/Seva Sahakari Samiti Maryadit, Korbi (henceforth referred to as ‘Society’), was held on 16-6-2019 and in that election, vide Annexure P-3, the petitioner along with other ten persons have been elected as members of above said Society and the members elected the petitioner as President of the elected body to manage the affairs of the society. Upon a complaint made by respondent No. 6/Manikant Agrawal to the Collector Janjgir, an enquiry team was constituted to inquire the compliant regarding cheating and embezzlement of amount, thereafter the FIR has been registered against the petitioner bearing Crime No.468/2022 at police station Balauda, for the offences under sections 420, 120(B) read with 34 of IPC and the petitioner was languishing in jail from 24/02/2023 to till 02/08/2023.

3.1 The elected body was working from 16/06/2019 to 16/12/2022. The respondent No.5/Dy. Registrar, Cooperative Societies passed an order (Annexure P-4) on 16/12/2022 and superseded the governing body under section 53(1) of the C.G. Cooperative Societies Act, 1960 (henceforth referred to as ‘Act of 1960’). The petitioner being aggrieved by the order (Annexure P-4) dated 16/12/2022, preferred a First Appeal under section 78(1) of the Act of 1960 before respondent No.4/Joint Registrar, Cooperative Societies and the same was dismissed on 20/09/2023 on a technical ground of limitation. Thereafter, the petitioner has preferred a Second Appeal No. 08/2024 under section 78(2) of the Act of 1960 before the Chhattisgarh State Cooperative Tribunal, Bilaspur (henceforth, referred to as ‘the Tribunal’) and the learned Tribunal passed order (Annexure P-5) dated 10-09-2024 in favour of the petitioner whereby it has set aside the order dated 20-09-2023 passed by respondent No.4, remitted back the matter and directed the respondent No.4 to decide the case of petitioner on merit. The respondent No.4/Joint Registrar allowed the first appeal of the petitioner vide order (Annexure P-6) dated 29-10-2024 and set aside the order dated 16/12/2022 passed by the respondent No.5. Thereafter, the petitioner made various representations (Annexure P-7 collectively) for handing over the charge of the said Society and also requested respondent No.5 to decide his representation but no action has been taken on his representation. The respondent No.5 instead of taking action on the representations of the petitioner, vide order Annexure P-2 dated 14-11-2024 appointed respondent No.6 as Administrator/ Authorized Officer to run and manage of the affairs of the Society.

3.2 The respondent No.6 has preferred an appeal No. 30/2024 before the Tribunal against the order dated 29-10-2024 passed by respondent No.4 and the same appeal has been