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2016 Supreme(Online)(RAJ) 33
IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JAIPUR BENCH
M.N. BHANDARI, J
Nand Lal Kalal – Appellant
Versus
State of Rajasthan – Respondent
S.B. Civil Writ Petition No. 20295 of 2013
Mr. R.M. Jain, for petitioner; Mr. Bhuvnesh Sharma, Dy. Govt. Counsel, for State; Mr. Ganesh Meena, for respondent-Central Cooperative Bank
The Registrar lacks authority to intervene in financial matters of Short Term Cooperative Credit Structure Societies as per Section 30B of the Rajasthan Cooperative Societies Act, 2001.
Headnote:(A) Rajasthan Cooperative Societies Act, 2001 - Sections 30B and 125(1) - Writ petition challenging orders of Deputy Registrar regarding financial autonomy of cooperative societies - The Registrar lacks authority to intervene in financial matters of Short Term Cooperative Credit Structure Societies as per Section 30B - The impugned orders were quashed for being beyond jurisdiction. (Paras 1, 3, 4, 5, 6, 7, 8)
(B) Jurisdiction of Registrar - The Registrar's powers are limited by the provisions of the Act, particularly in relation to the autonomy granted to cooperative societies in financial matters. (Paras 6, 7)
Facts of the case:
The petitioner challenged the orders of the Deputy Registrar which were issued under Section 125(1) of the Act, claiming that the Registrar overstepped his authority regarding a resolution passed by the cooperative society concerning employee compensation.
Findings of Court:
The court found that the Registrar had no authority to invoke Section 125(1) against the cooperative society, as it violated the autonomy granted under Section 30B of the Act.
Issues: The main issue was whether the Registrar could invoke Section 125(1) against the structure society, given the autonomy provided under Section 30B.
Ratio Decidendi: The court ruled that the autonomy granted to cooperative societies under Section 30B limits the Registrar's powers under Section 125(1), thus the orders were quashed for lack of jurisdiction.
Result: Writ petition allowed.
M.N. BHANDARI, J.
By this writ petition, a challenge is made to the order dated 17th October, 2013 issued by the Deputy Register, Cooperative Societies, Jhalawar. It is by invoking Section 125(1) of the Rajasthan Cooperative Societies Act, 2001 (in short "the Act of 2001"). A challenge to the orders dated 4th June, 2013 and 30th August, 2013 has also been made.
2. Learned counsel for petitioner submits that in view of provisio to Section 125 of the Act of 2001, the Registrar is not having authority to pass order against a resolution taken by the Short Term Cooperative Credit Structure Society (in short "the Structure Society"). The impugned orders have been passed by invoking Section 125 of the Act of 2001, whereas the automany has been given to the structure society for financial & internal administrative matters under Section 30B of the Act of 2001. In view of above, impugned orders deserve to be quashed having been passed in ignorance of Section 30B and provisio to Section 125 of the Act of 2001. The issue raised herein has already been determined by the Division Bench of this court in the case of Tej Singh Vs. Hanumangarh Central Co-operative Bank Ltd. & Ors., D.B. Civil Special Appeal No.52/2013, decided on 21.01.2013. In view of above, writ petition deserves to be allowed.
3. Learned counsel appearing for the State Government so as Central Cooperative Bank have opposed the petition.
4. Shri Ganesh Meena appearing for the Central Cooperative Bank submits that cooperative society took a resolution contrary to the circular issued by the Registrar. They were under an obligation not to give pay scale or any benefit to the employees without approval of the Registrar and without applying the provisions of the circular. They have violated terms and conditions of the circular while applying it for the benefit of salary to the employees. In pursuance to the order under Section 125 of the Act of 2001, the matter is now pending before the Rajasthan State Cooperative Tribunal where the society has already put in appearance. In the light of the aforesaid, this court may not interfere in the order passed by the Deputy Registrar.
5. I have considered the rival submissions made by learned counsel for the parties and perused the record.
6. The respondent - cooperative society passed a resolution to give benefit of pay scale to the petitioner. The Joint Registrar thereupon passed an order on 4th June, 2013 to initiate action against the society under Section 30 of the Act of 2001 and even by invoking Section 125 of the Act of 2001. It directed for revokation of the resolution. The letter dated 30th August, 2013 gives the same directions. The impugned order dated 17th October, 2013 has been passed by invoking Section 125(1) of the Act of 2001. The resolution of the cooperative society has been stayed and the matter is referred to the Tribunal.
7. The question for my consideration is as to whether Section 125(1) of the Act of 2001 can be invoked against the structure society. Sections 30B and 125 of the Act of 2001 are relevant thus quoted hereunder:
"30B- Autonomy in all financial and internal administrative matters.- Notwithstanding anything contained in this Act or any other law for the time being in force, a short term cooperative credit structure society shall have autonomy in all the financial and internal administrative matters including the following areas, namely-
(a) personal policy, staffing, recruitment, posting and compensation to staff;
(b) issues relating to affiliation and disaffiliation with any federal structure of its choice including entry and exit at any level.
(c) area of operation according to its business requirements;
and (d) internal control systems."
"125. Power of Registrar to rescind certain resolutions :
(1) If in the opinion of the Registrar, any resolution passed at the meeting of any cooperative society or committee thereof is opposed to the objects of the society or is prejudicial to the interests of the society or its me
