SUKHENDRA SINGH Vs. STATE OF M P

JUDGEMENT

(1.) Petitioner who has been elected as representative of District Central Cooperative Bank Limited, Rewa has filed the instant writ petition as public interest litigation seeking writ of quo-warranto for restraining Respondents 5 and 6 from participating in the management of District Central Cooperative Bank Limited, Rewa.

(2.) Facts leading to filing of the instant petition, briefly stated, are that Petitioner is a member of Sewa Sahkari Sanstha Maryadit, Banna, a primary society. Petitioner has been elected as representative of the said society in the District Central Cooperative Bank Limited, Rewa. Affairs of the aforesaid cooperative bank are governed by bye-laws. Chapter IV of the bye-laws deals with capital of the bank. Clause (a) thereof prescribes the mode of collection of share capital. Clause (b) provide that paid up capital of bank shall be Rs. 1 crore which shall be divided in five categories of shares. Shares falling in category (d) can be allotted only to members falling in categories (c), (d) and (e) of Clause 7(1) of the bye-laws. It is specifically provided that persons, holding share under category (c), (d) and (e) shall not be entitled to participate in the management of the Bank. Clause 7 of the bye-laws deals with membership of the Bank. Clause (c) provides that a public trust registered under the M.R. Public Trusts Act, 1951 can be inducted as a member of the Bank. Similarly Clauses (d) and (e) provide that a Firm, Company or other body corporate registered, established or constituted under any law for the time being or a society registered under the Societies Registration Act may be inducted as member of the Bank. It is averred in the writ petition that though power of Registrar for registration as 'cooperative' has been delegated to Joint Registrar yet Deputy Registrar, Cooperative Societies, Rewa wide orders dated 29.6.2007 and 3.7.2007 registered two cooperatives, namely, Mahima Beej Utpadak Swayatt Sakh Sahkarita Maryadit Hariharpur and Pradhan Beej Utpadak Swayatt Sakh Sahkarita Maryadit, Ajgarha. Thereafter in exercise of power under Section 53(13) of the 1960 Act, Joint Registrar constituted a committee and Respondent No. 5 was nominated as Chairman of the Bank. While acting as nominated Chairman of the Bank, Respondent No. 5 inducted three cooperatives as Member of the District Central Cooperative Bank. Decision of the Respondent No. 5 was ratified by the Managing Committee in its meeting held on 23.8.2007. Three cooperatives which were included as members of the Bank were included in category (b) along with marketing, processing and weavers industrial societies. It is the case of Petitioner that aforesaid three cooperatives could not have been kept in (b) category as they fall in category (d) as provided in Clause 7 (i) of the bye-laws. Since, aforesaid cooperatives fall under category (d) of Clause 7 (i) of the bye-laws, such category of members does not have any right to participate in the management of the Bank. Petitioner has alleged that three cooperatives were included in (b) category of membership in order to enable Respondents 5 and 6 to participate in the process of election. It is further alleged that Respondents 5 and 6 submitted their nominations as representatives of the two cooperatives included in membership category (b). One Rajendra Prasad Mishra submitted detailed objection (Annexure P-8) before the Returning Officer. However, the Returning Officer did not take cognizance of the aforesaid objection and accepted the nomination of Respondents 5 and 6. Ultimately Respondents 5 and 6 were declared elected as Directors from category (b). It is alleged by Petitioner that Respondents 5 and 6 are not entitled to participate in the management of the Bank and they have unlawfully usurped public offices of Member of Committee of District Central Cooperative Bank.

(3.) Petitioner submitted a complaint to the Returning Officer requesting him not to permit Respondents 5 and 6 to participate in the meeting of the Bank. On the basis of the complaint an enquiry was conducted by Deputy Registrar, Cooperative Societies, Rewa under the orders of Registrar. In the enquiry report it was found by enquiry officer that Respondents 5 and 6 are not entitled to participate in the management of the Bank. In the aforesaid factual scenario, Petitioner has approached this Court seeking a writ of quo-warranto restraining Respondents 5 and 6 from participating in the management of the District Central Cooperative Bank Rewa. Petitioner has also sought a direction to Respondent No. 3 to forthwith convene a meeting of duly elected members for election of the Chairman, Vice-Chairman and representative. Petitioner has further sought a direction to initiate appropriate disciplinary and criminal action against the authorities of the Cooperative Department who have unlawfully and deliberately permitted usurpation of public office by Respondents 5 and 6.