LAXMIDAS KURJIBHAI Vs. DISTRICT REGISTRAR

JUDGEMENT

(1.) Petitioners 1 to 8 as well as one Karamshibhai Gordhanbhai (since deceased), represented by his heirs and legal representatives, were the members of Vanthli Seva Sahkari Mandli Limited, Vanthli, Junagadh.

(2.) Respondent No.1 instituted an enquiry against the petitioners under the provisions of Section 93 of the Gujarat Cooperative Societies Act, 1961 and appointed respondent No.2 as Enquiry Officer for the purpose of making report in respect of the charges levelled against the petitioners. The petitioners were subjected to enquiry on the ground that the petitioners gave to the members, Bonus, called "Sabhasad Maal Bonus", whereby the society suffered financial loss for which the petitioners were prima facie held to be liable.

(3.) The petitioners were subjected to show cause notice under the provisions of Section 93 of the Act. The petitioners denied the charges by pointing out that on the basis of the Resolution passed in the General Body, it was decided to distribute "Sabhasad Maal Bonus", to all the members and, there was no intention to misappropriate or misapply any fund of the society and that the said distribution is by way of incentives under Section 66 of the Act and that the entire action is approved by the General Body in its Annual General Meeting.