VISHAL SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) ISSUE notice. Mr. B.V. Niren, learned counsel accepts notice on behalf of respondents. He prays for and is granted six weeks to file a counter affidavit. Rejoinder affidavit, if any, be filed before the next date of hearing. List the matter on 07th August, 2014. Present writ petition has been filed challenging the orders dated 24 th February, 2014, 18th March, 2014 and 16th May, 2014 issued by the respondents whereby not only certain directions have been issued by the respondents, but also the Board of Directors of the petitioners -Multi State Cooperative Society have been removed. CM Appl. No. 6734/2014 has been filed for stay of operation of impugned orders dated 24 th February, 2014, 18th March, 2014 and 16th May, 2014.

(2.) MR . Harish Malhotra, learned senior counsel for petitioners states that petitioners' Board has been superseded without giving any opportunity of hearing in violation of Section 123 of the Multi -State Cooperative Societies Act, 2002 (hereinafter referred to as 'Act, 2002'). Mr. Malhotra further states that prior orders and directions had been issued to the Chairman in his personal capacity, whereas by virtue of Section 122 of the Act, 2002, Central Government had to give directions to the Board.

(3.) ON the other hand, Mr. B.V. Niren, learned counsel for respondents states that the Government despite holding 78% shareholding had been a victim of a proxy war going on between the Chairman and the previous Managing Director. Mr. Niren points out that the Central Bureau of Investigation has confirmed irregularities at various stages while deciding the work of award of contract for supply of six lac metric tonnes of imported coal and had recommended action against the Chairman of the Board. Mr. Niren also points out that the Chairman of the Board had refused to cooperate with the inquiry and the Board Members despite being intimated of the directions dated 24th February, 2014 and 18th March, 2014 had not taken any action against the Chairman.