NATVARLAL PITAMBERDAS PATEL Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Rule. Mr. R. P. Solanki waives service of rule on behalf of the respondents. In the facts of the case, the petition is ordered to be heard today.

(2.) The petitioner is ex-Chairman of Gujarat State Co-operative Marketing Federation Ltd. He has been served, with a summons (wrongly described as order in the petition) dated 8/07/1989 issued by respondent No. 3 herein, who is the Inquiry Officer appointed by the Registrar, Co-operative Societies. By this summons, the petitioner is directed to remain present before the Inquiry Officer and answer the questions mentioned in the questionnaire attached to the summons. The petitioner has challenged the legality and validity of the summons and has also prayed for declaration that the provisions of Sec. 86(3) of the Gujarat Co-operative Societies Act, 1961 (for short 'the Act') be declared as ultra vires the Constitution of India.

(3.) It is an undisputed position that the petitioner was, in past, the Chairman of the Gujarat State Co-operative Marketing Federation Ltd. Simply because he was not a paid employee or that he held the position as an elected person it cannot be said that he was not an officer of the Society. The term 'officer' has been defined in Sec. 2(14) of the Act. As per the definition, officer means a person elected or appointed by a Society to any office of such society according to its bye-laws. The definition of the term 'officer' specifically mentions that it includes the Chairman and other persons elected or appointed under the Act, the Rules or the bye-laws to give directions in regard to the business of such society. .Therefore, the petitioner is covered by the provisions of Sec. 86(3) of the Act. 3A. Section 86 occurs in Chapter VIII of the Act which deals with inquiry, inspection and supervision. It provides for inquiry by Registrar. As provided under Sec. 86(1), the Registrar is empowered to hold inquiry into the constitution, working and financial conditions of a society. This he can do suo motu. He can inquire himself or by a person duly authorised by him in writing in that behalf. Section 86(2) of the Act enjoins duty upon the Registrar to hold inquiry on the requisition of a society duly authorised by Rules made in that behalf. Such inquiry may be in respect of its member, such member being itself a society. The Registrar is enjoined with a duty to make an inquiry on the application of a majority of the members of the Committee of the society or on the application of one-third of the members of the Society. 3B. Section 86(3), vires of which have been challenged in this petition reads as follows :