MECHANICAL DEPARTMENT PRIMARY CO OPERATIVE BANK LIMITED Vs. JT SECRETARY MINISTRY OF AGRICULTURE AND CO OPERATION NEW DELHI

JUDGEMENT

(1.) The petitioner No. 1-Mechanical Department, Primary Co-operative Bank Limited, New Railway Gorakhpur(hereinafter referred to as 'the Bank') is a Multi-State Co-operative Society governed by the provisions of the Multi-State Co-operative Societies Act, 1984 (hereinafter referred to as 'the Act') and the rules framed thereunder. It is admittedly a non-notified society and is run and managed by a Board of Directors who are elected by the delegates. There is, therefore, two tier system of election, i.e., firstly, the delegates are elected to represent their respective branches of the society and then the Board of Directors of the Bank are elected. The term of the Board of Directors is three years. The Chief Mechanical Engineer of North Eastern Railway is the ex officio President of the Bank. Deputy Chief Mechanical Engineer or for that matter, any other person, nominated by the Chief Mechanical Engineer is to act as ex-officio Vice-Chairman.

(2.) A Board of Director was duly elected on 18-1-1993 and on the expiry of the period of three years, its term came to an end on 17-1-1996. It appears that no steps were taken by the outgoing Board to hold fresh elections in spite of the fact that the Registrar of the U.P. Co-operative Societies, who also acts as the Central Registrar, has insisted for fresh elections. Since the elections were not in offing, the Central Registrar by his order dated 10-4-1997 superseded the outgoing Board of Directors by invoking the provisions of S. 48 of the Act of 1984. By the same order, a committee of three members was constituted comprising of Smt. Manju Singh-respondent No. 4 as the Chairman and S/Sri Sita Ram and Durga Prasad as its members. The compendious name of this committee is 'Board of Administrators.' Subsequently, by order dated 21-4-1997, Smt. Manju Singh, the chair-person of the Board of Administrator was replaced by one Sadhu Saran. The two other members were also substituted by S/Sri Ram Adhar Prasad and Ram Pyare by order dated 17-5-1997. Both these order were challenged by Smt. Manju Singh, Sita Ram and Durga Prasad by means of Civil Misc. Writ No. 19308 of 1997 in this Court. An interim order dated 30-5-1997 was passed, staying the operation of the aforesaid two orders. The said writ petition, in which an application for vacating the stay order was moved is still pending.

(3.) The case took a sharp turn when election programme was published on 3-6-1997 by one B. K. Trivedi who was the Vice-President in the superseded Board of Directors. It was challenged by filing Civil Misc. Writ No. 20099 of 1997, which was dismissed on 17-6-1997, i.e., a day before the election was to be held. On 18-6-1997, a new Board of Directors was elected and is said to have taken charge on the same day. The Central Registrar recognised the election on 10-7-1997. No sooner recognition was granted to the newly elected Directors of the Board, a writ petition No. 24199 of 1997 was filed by Smt. Manju Singh. A Division Bench of this Court dismissed the writ petition on the ground that in view of the provisions of Ss. 74 and 75, there was an alternative remedy available by making a reference to the competent authority. Consequently, Smt. Manju Singh and others approached the Central Registrar by making a reference. The said reference was rejected by the Central Registrar on 18-7-1998. Against the order of the Central Registrar, an appeal was filed by Smt. Manju Singh with two other members of the Administrative Board under the provisions of S. 90(1) of the Act of 1984. The Joint Secretary, Government of India-respondent No. 1, exercising power of appellate authority, allowed the appeal on 18-9-1998. The election of the Board of Directors held on 18-6-1997 and the order passed by the Central Registrar dated 18-7-1998 have been set aside with the following further direction :-