RAGHUNATH GOVIND SATARKAR Vs. STATE OF M P

JUDGEMENT

(1.) This is a petition for issuance of a writ of ctrtiorari and/or any other writ, order or direction in the nature of a writ under Articles 226/227 of the Constitution of India, for quashing the notice dated 10.11.1981 (Annexure-C) and the order of supersession dated 20.1.1981 (Annexure-G) issued and passed by the Joint Registrar, Co-operative Societies (respondent No. 3 herein) respectively.

(2.) Briefly stated the facts giving rise to this petition are as under: The Hindu Nagarik Sahakari Bank, Indore (for short, the Society) is a co-operative society duly registered under the Madhya Pradesh Co-operative Societies Act, 1960 (for short, the principal Act). There is a Board of Directors (Sanchalak Mandal) which manages the affairs of the society. The Board of Directors functioning at the relevant time was elected on 16.7.1979 for a period of three years ending 54.7.1982. It can function inspite of expiry of the period till the new Board of Directors is elected. The Joint Registrar, Co-operative Societies (Respondent No. 3) gave a notice (Annexure C) dated 11.10.1980 to the Board of Directors through the Chairman, the petitioner herein, to show cause as to why the Board of Directors the Executive Committee and the sub-committee, if any of the society, be not superseded under Section 53 (1) of the Principal Act. By order contained in penultimate paragraph of the notice the Board of Directors, Executive Committee and the sub-committees were suspended and an Administrator was appointed to manage the affairs of the society. A copy of the show-cause notice (Annexure-C) was also sent to the Deputy Chief Officer of the Reserve Bank of India, 6 Manoramaganj, Indore, for information. On behalf of the society reply to the show-cause notice dated 25.11.1980 (Annexure-F) and supplementary reply (Annexure-F-1) dated 22.12.1980 were submitted. Ultimately by order dated 20th January, 1981 (Annexure-G), the respondent No. 3 ordered supersession of the society.

(3.) The petitioner seeks to quash the aforesaid show-cause notice and the order of supersession on the grounds that prior to passing of the order of supersession, there was no consultation with the Reserve Bank of India, as required by virtue of the first proviso to Section 53 (1); that the charges levelled are vague, irrelevant and are even otherwise not in nature which may warrant taking of drastic action by way of supersession ; that there have been no persistent defaults or negligence in performance of duties nor any act prejudicial to the interests of the society or its members have been ever done by the Committee ; nor the functioning of the society has been improper ; that the impugned action is mala fide. Details of these grounds are contained in the petition, but are not being given as burdening of this order by the details do not appear to be necessary for deciding it.