LPA-871-2021

1

IN THE HIGH COURT OF PUNJAB AND HARYANA AT

CHANDIGARH

LPA-871-2021

Date of decision:- 01.08.2022

Rajbir Singh Ahlawat

....Appellant

vs.

Registrar, Co-op Societies, Haryana and ors.

...Respondents

CORAM: HON'BLE MS. JUSTICE RITU BAHRI

HON'BLE MR. JUSTICE ASHOK KUMAR VERMA

Present:

Mr. Ravinder Hooda, Advocate

for the appellant.

***

Ritu Bahri, J. (Oral)

This Letters Patent Appeal filed under clause X of Letters

Patent, has been directed against judgment dated 09.04.2021 passed by the

learned Single Judge in CWP No. 14713 of 2019 whereby the writ petition

filed by petitioner/appellant (hereinafter to be referred as 'appellant') herein

seeking quashing of order dated 18.05.2019 passed by respondent No. 3,

vide which the appellant was ceased to be Chairman of respondent No. 3-

Society w.e.f 18.05.2019 (A.N), was dismissed.

The appellant is a member of the Gochi Milk Producers Co-

operative Society Limited (hereinafter referred to as 'the Society'). By virtue

of having been elected as the Chairman of 'the Society', the appellant

became a member of the Board of Directors of respondent no.3 i.e. 'the

Union' . Thereafter, he was elected on 19.02.2018 as the Chairman of the

Board of Directors of the Union by the Board itself. However, he was

removed from the post of Chairman.

At the very outset, learned counsel for the appellant has argued

that the impugned order dated 18.05.2019 passed by respondent No. 3, has

been passed in violation of Section 28 of Haryana Co-op Societies Act,1984

GAURAV ARORA

2022.12.12 15:03

I attest to the accuracy and

integrity of this document

LPA-871-2021

2

(for short 'Act 1894).

However, a bare perusal of the judgment dated 09.04.2021

passed by the learned Single Judge shows that respondent Nos. 2 and 3 took

a stand that the provisions of Section 28 of Act 1894 is not applicable in

the case of the appellant. It was pointed out that the appellant has ceased to

be the member of the Board of Directors of the Union (respondent no.3) as

he ceased to be the Chairman of the Society. It is further contended that the

tenure of office bearers is governed by Section 30 and not by Section 28. It

was further asserted that the appellant has also earned disqualification as per

Rule 28 of the Haryana Cooperative Societies Rules, 1989 and Clause 17

and 17.1 of the Bye-laws being a chronic defaulter to the tune of

Rs.21,47,028/- of the Jhajjar Central Co-operative Bank Limited, Branch

Dighal, Jhajjar.

The argument of learned counsel for the appellant that as per

Section 28 (4) of the Act 1894, the appellant was entitled to continue as

Chairman for a period of 05 years was discarded, as respondent No. 3 which

is a central society has notified and adopted its Bye-Laws. Under by-law 2

(e), the Union has been defined. Bye-law 7 provides for membership of the

Union. It provides that primary Milk Producers Co-operative Societies

would be entitled to become the member of the Union. By-law 7.4 provides

that a registered Milk Producers Co-operative Society in the area of

operation of the union shall apply in writing alongwith a copy of the

resolution of their Managing Committee seeking admission as a member of

'the Union'. By-law 12 provides for organization and management of the

Union. By-law 16 defines the Board of Directors, which is extracted as

under:-

GAURAV ARORA

2022.12.12 15:03

I attest to the accuracy and

integrity of this document

LPA-871-2021

3

“16. Board of Directors.

16.1 The Board of Directors of the Union shall consist

of:-

a) Nine elected Chairman of the affiliated Societies

b) One nominee of the National Dairy Development

Board so long as loan or interest of the above Board if

not fully repaid.

c) One nominee of the Federation.

d) Chief Executive Officers of the Milk Union

e) Other members to be nominated/coopted as per

provisions of the Act.”

From the reading of Clause 16.1, the Board of the directors of

the Union shall co