DEEPAKKUMAR KESHAVLAL PATEL Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioners herein were the members of the respondent No.4 bank and by resolution dated 11.11.2001, which is at Annexure-L to the petition, both of them were removed as the members of the respondent No.4 bank. The resolution dated 11.11.2001 passed by the bank was approved by the District Registrar and the appeal against the aforesaid order was also dismissed by the Additional Registrar (Appeals) on 2.2.2002. The petitioners, thereafter, carried the matter further before the revisional authority. The revision was also dismissed by the State Government on 6.4.2002. Being aggrieved by the said order of the revisional authority, the petitioners have approached this Court by way of this petition.

(2.) On behalf of the present petitioners, a letter was addressed to the District Registrar, Mahesana on 24.5.2001 pointing out that, in the respondent NO.4 bank, elections are not held and that the Annual General Meeting was not held within time, and, that the direction may be given to the bank to hold election to elect new directors in place of the Directors, who are going to retire and such elections may be held by 30.6.2001. It seems that, respondent No.4 bank passed a resolution for investing Rs.3 crores for a period of three days by way of investment with Madhavpura Mercantile Cooperative Bank. Subsequently some resolution was passed to that effect approving such deposit. The petitioners, thereafter, addressed a letter dated 7.6.2001 to the Chairman of the respondent No.4 bank. In the said letter, they have pointed out that, even though, the amount of Rs.3 crores was deposited with Madhavpura Bank for three days with effect from 7.3.2001, the said amount is not taken back or withdrawn. They further pointed out irregularities regarding the meeting conducted on 13.3.2001. They also pointed out that, they are objecting to the resolution dated 17.3.2001 passed in the meeting bearing No.15. The said letter is annexed at page 51 in the compilation. Copy of the said letter was submitted to the District Registrar, Mahesana, Registrar, Cooperative Societies, Gandhinagar, the Chief General Manager, Reserve Bank of India and the Public Relation Officer, District Collector, Mahesana. In the meanwhile, news item was published in a daily viz., "Sandesh", on 23.8.2001. Copy of the said news item is annexed at Annexure-F to the petition. The news item, which was published with a headline, indicates that an amount of Rs.10.25 crores of respondent No.4 bank is at stake, as the amount is deposited with the Madhavpura Bank. Since at the relevant time, the aforesaid Madhavpura Bank was going through a financial crisis, publication of the said report in the newspaper created panic amongst the depositors. It is required to be noted that, there is also a reference to both the petitioners in the aforesaid news item, which is published by the said daily in its issue, dated 23.8.2001. In the aforesaid news item, which is published by the said daily, it was mentioned that, both these petitioners, who are sitting Directors of the bank, have filed a complaint before the District Registrar in this respect, alleging impropriety of the so-called act of the bank in connection with the deposit of Rs.7.25 crores with Madhavpura Mercantile Cooperative Bank Limited as well as the deposit of Rs.3 crores as call money. Even on 25.8.2001, there was a publication of the news item in "Sandesh" daily, with the heading that, respondent No.4 bank is going on the line of Madhavpura Mercantile Cooperative Bank Limited. There is also a publication of the news item to the effect that the Directors of respondent No.4 bank have made complaint against the Chairman about illegalities committed by the said Chairman. According to respondent No.4 bank, publication of the aforesaid news item in the aforesaid newspaper created panic amongst the deposit holders and sizable number of deposit holders immediately tried to withdraw the deposits, with the result that, on a particular day, there was withdrawal of deposits to the tune of Rs.1 crore. According to respondent No.4 bank, because of the aforesaid act on the part of the petitioners, the bank suffered monetary loss and the bank was also about to face serious financial crisis in view of the news item published. The respondent No.4 bank, therefore, felt that the present petitioners were instrumental in giving this press report and, therefore, the petitioners acted in such a manner, by which the dignity of the bank was undermined, and that they have acted against the interest of the bank. It is also the say of respondent No.4 bank that the petitioners have tried to damage the reputation of the bank by their irresponsible act.

(3.) During the Annual General Meeting, which was held on 26.8.2001 the conduct of the petitioners was discussed and it was decided to take appropriate action against the petitioners in connection with their alleged act and the decision was taken to remove the petitioners as Directors and it was also resolved to take appropriate action for the purpose of removing the petitioners as members of respondent no.4. During the said meeting, opportunity was also given to the petitioners, by way of asking their explanation. The petitioners denied the allegations levelled against them. #. On behalf of the petitioners, it was submitted that, they have not published the aforesaid news item. The petitioners were asked to give explanation as to why in the said news item, names of the petitioners also figured and as to what action, the petitioners are contemplating against the aforesaid daily newspaper for publishing the said false news item, wherein the names of the petitioners were also figured. Ultimately, explanation of the petitioners was not found to be acceptable and the resolution being Resolution No.12 was passed, by which it was decided to remove both the petitioners from the Managing Committee and it was also decided to take appropriate action against the petitioners for the purpose of removing them as members. The aforesaid resolution is at page 63 at Annexure-G.