CHANDRASHEKHAR M. GHULE PATIL Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Civil Application No.2670 of 2017 is taken out by the Applicant in Writ Petition No.9550 of 2017 for impleadment and in the alternative for intervention. We allow the Civil Application to the extent of intervention by permitting the learned Counsel for the Applicant to canvass submissions.

(2.) The Writ Petitions are filed under Article 226 of the Constitution seeking a declaration that the amendment to Section 88 of the Maharashtra Co-operative Societies Act, 1960 ("MCS Act" for short) vide the Maharashtra Co-operative Societies (Amendment) Act, 2017 (Maharashtra Act XXXIII of 2017) (hereinafter referred to as 'the Amendment Act') is ultravires and unconstitutional. By the Amendment Act, two provisos i.e. 3rd and 4th provisos are inserted to section 88(1) of the MCS Act providing for extension of the time by the Government on a report of the Registrar or suo moto, for completion of the inquiry proceedings by the Authorised Officer under the said section 88(1). The Writ Petitions also challenge the Government order dated 13.06.2017 granting extension of time to complete the inquiry which was being conducted by the Respondent No.4 (Authorized Officer) under Section 88(1) of the MCS Act and the communication dated 15-06-2017 of Respondent No.4 fixing the date of hearing for further inquiry. According to the Petitioners, the inquiry proceedings under section 88(1) had lapsed on 21-11-2016 and cannot be revived by the Amendment Act which came into force on 26-04-2017.

(3.) The Petitioners in both the Petitions were former Directors of the Maharashtra State Co-operative Bank (hereinafter referred to as 'the Respondent Bank'). The Respondent Bank is the Apex Co-operative Bank in the State of Maharashtra and it caters mainly to the need of agricultural sector. It is an Apex body for about 31 District Central Co-operative Banks in the State and also provides financial assistance to the said Banks. On 07.01.2013 an order was passed by the Commissioner for Co-operation and Registrar of Co-operative Societies (hereinafter referred to as "the Registrar") under Section 83 of the MCS Act appointing Additional Registrar Co-operative Societies, for conducting an inquiry with regard to the working and financial condition of the Respondent Bank for the period 2007-08 to 2010-11 and submit a Report. Upon the Report being submitted by the Additional Registrar, the Registrar passed an order on 22-05-2014 appointing the Respondent No.4 as Authorized Officer to conduct an inquiry under Section 88(1) of the MCS Act for the purposes of fixing responsibility for the monetary loss caused to the Respondent Bank by the delinquent office bearers (including the Petitioners herein). Pursuant to the show cause notices and replies, the Respondent No. 4 framed charges and issued charge-sheet on 10.09.2015. Pleadings came to be filed and the witness of the Respondent Bank was being cross-examined, when on 29.11.2016 an Application came to be filed by the Petitioner in Writ Petition No. 9550 of 2017 pointing out that the term of inquiry has expired as contemplated under the 1st and 2nd provisos of Section 88(1) of the MCS Act, and therefore, the inquiry proceedings stood abated as on 21.11.2016 (i.e. 21/2 years from the order dated 22.05.2014 of the Registrar appointing an Authorized Officer to conduct the inquiry). The Amendment Act, came into force w.e.f. 26.04.2017 and the MCS Act stood amended by insertion of the 3 rd and 4th provisos to Section 88(1) of the MCS Act. On 13.06.2017, upon the recommendation of the Registrar, the State Government exercising powers under the 4th proviso to section 88(1) of the MCS Act (as amended) extended the time period for completing the inquiry proceedings under Section 88(1) upto 30.06.2018. On 15.06.2017, Respondent No. 4 (Authorized Officer) communicated to the Petitioners that the inquiry is fixed on 30.06.2017 when further cross-examination of the witness of the Respondent Bank would commence. Aggrieved thereby, the Petitioners have filed the present Writ Petitions.