JUDGMENT

1. RULE returnable forthwith. Learned Assistant Government Pleader Mr. Krutik Parikh, waives service of notice of Rule for and on behalf of the respondent Nos.1 and 2, learned counsel Mr. Harshil Patel, waives service of notice of Rule for and on behalf of the respondent No.3 and learned counsel Mr. Baiju Joshi, waives service of notice of Rule for and on behalf of the respondent No.4.

2. With the consent of the learned counsels for the parties, the matter is taken up for final hearing and disposal.

3. By way of present petition under Article 226 of the Constitution of India read with the provisions of the Gujarat Cooperative Societies Act, 1961 (hereinafter be referred to as “the Act”), petitioners have prayed for the following reliefs :

“9(A) YOUR LORDSHIP may be pleased to admit and allow this petition.

(B) YOUR LORDSHIP may be pleased to issue writ of Certiorari or Writ in the nature of Certiorari, or any other Writ, Order or Direction quashing and setting aside the impugned notice dated 16.04.2025 (Annexure A) issued by the respondent no.2 and thereby direct the respondent authorities to drop the proceedings instituted against the petitioners pursuant to impugned notice;

(C) Pending admission, hearing and final disposal of this petition, YOUR LORDSHIP may be pleased to stay implementation, operation and execution of the further proceedings in connection with the impugned notice both dated 16.04.2025 (Annexure A) issued by the respondent no.2.

(D) YOUR LORDSHIP may be pleased to pass such other order and further orders as may be deemed just and proper in the interest of justice.”

4. Brief facts giving rise to the present petition are that, the Sonsak Group Cooperative Cotton Sale Society Limited, (herein after be referred to as ‘the Society’), Olpad, District Surat, is a cooperative Society registered under the provisions of the Gujarat Cooperative Societies Act, 1961 and was registered under Registration No. 3384 on 09.05.1921. It is the case of the petitioners that, the petitioners are serving as Chairman, Vice-Chairman, and Committee Members of the said Society and have been conducting the affairs of the Society in an honest, diligent, and transparent manner since their respective appointments.

4.1 That, on 27.07.2024, the Society received a letter regarding the audit of the Society for the period from 01.04.2023 to 31.03.2024, wherein, it was indicated that certain discrepancies were observed during the audit and the Society was directed to rectify the same and submit a corrected report to the Special Auditor, Cooperative Societies, within two months. That, upon receipt of the aforesaid communication, a meeting of the Administrative Committee was held on 30.09.2024, wherein it was decided to conduct a stock inspection of the Jahangirpura Branch and therefore, an inspection was carried out on 02.10.2024, however, no irregularities were found.

4.2 That, subsequently, between 03.10.2024 and 08.10.2024 stock inspection at the Olpad Centre was carried out, during which, certain irregularities were discovered and it was found that the ex-Manager had misappropriated the funds of the Society and accordingly, on 10.10.2024, the Society decided to initiate legal proceedings against the said individual. That, on 01.01.2025, the Society issued communications to its members, directing them to deposit the outstanding dues reflected against their names in the Society's records and in response thereto, certain members approached the Society and submitted that they had not taken any loans or advances from the Society and therefore, no dues were outstanding against them. That, these communications were received around the end of the first week of January, 2025.

4.3 That, on 09.01.2025, the In-charge Manager of the Society, Shri Sukhdev Bhai Gangaram Bhai Patel, submitted an application before the Police Inspector, Olpad Police Station, Surat, against t