JAYANTIBHAI DAHYABHAI PATEL Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Both the petitions, Special Civil Application No. 10110 of 2006 and Special Civil Application No. 25997 of 2006, arise out of common issue, viz.,whether the petitioner (who is also common in both the petitions) can be held to be liable under the provisions of Section 93 of the Gujarat Cooperative Societies Act, 1961. As the facts in both the petitions overlap and are common, the learned Advocates appearing for the respective parties have addressed the Court in relation to both the petitions simultaneously and the petitions are therefore heard together and are being disposed of by this common judgment. The third petition, Special Civil Application No. 1039 of 2007, is consequential to the earlier two petitions, as accepted by the learned Counsel.

(2.) It is the say of the petitioner that : "The petitioner is a social worker and leader in the cooperative sector since three decades. The petitioner is director in respondent no.5 Union as well as director in respondent no.7 Federation. The petitioner also is Chairman in respondent no.6 Union." In Special Civil Application No.10110 of 2006 order dated 21.3.2006 made by the Gujarat State Cooperative Tribunal (the Tribunal) in Appeal Nos. 356 and 647 of 2002 has been challenged. In Special Civil Application No. 25997 of 2006 order dated 29.11.2006 made by the Tribunal in Appeal No. 535 of 2002 has been challenged. However, admittedly all the Appeals arise out of common order dated 17.9.2001 made by the Inquiry Officer appointed by the Registrar under Section 93 of the Act in the following circumstances :

(3.) The petitioner and six other Directors of the Managing Committee of Kheda District Cooperative Union (the Union) undertook a tour to New Delhi at the invitation of National Centre for Cooperative Education. A special audit was conducted at the behest of the Registrar because of which certain facts came to light. Hence, on 19.6.2001 one Shri Trilochan M.Dave was appointed as an Inquiry Officer. The Inquiry Officer issued a show cause notice to the petitioner as well as other persons in relation to the following issues : Donation of a sum of Rs.1,51,000/- under resolution No.10 dated 1.10.1997; Member Directors of the Managing Committee were to participate in the Leadership Development Programme between 22.4.1998 to 24.4.1998 and hence, considering the days required for travelling to and fro, against programme of total number of 8 days the Directors travelled for 16 days along with their family members and incurred expenses of Rs.73,500/- paid to Patel Travels, thus incurring additional expenses of Rs.50,531.25 ps. which was recoverable from the responsible officers; Permitting leave encashment to one Shri Manubhai M.Patel, Executive Officer, thus causing loss to the extent of Rs.94,736/- to the Union.