HASTIMAL BHEROOLAL Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) THIS reference has been made by a Division Bench and the question referred to is

(2.) THE relevant facts giving rise to this reference are that the Slate Pencil producers' Marketing Co-operative Society Ltd. , Mandsaur, which is a co-operative society registered under the Madhya Pradesh Co-operative Societies Act. 1960, (hereinafter called the Act), was served on 3rd December 1966 with a notice of supersession under Section 53 (2) of the Act by the Registrar of Co-operative societies. An order was made on the same day under Section 53 (10) of the Act directing that no order or resolution passed by the Working Committee of the society would be effective unless it was approved by the Senior Co-operative inspector attached to the office of the Assistant Registrar, Co-operative Societies, mandsaur. The Society was ultimately superseded on 24th May 1967. In between 3rd December 1966 and 24th May 1967 the Working Committee of the Society passed a resolution (Resolution No. 33) deciding to raise the capital of the Society, and allotting shares to the members of the Working Committee. The respondents nos. 7 and 8. Shri Mohammad Rafiq and Shri Hussain Khan, were also allotted shares by this resolution. The Society filed an appeal against the order of its supersession. But that appeal was rejected. Shri G. P. Tiwari was made the officer-in-charge of the Society, and he was managing the Society after its supersession. By an order dated the 27th March 1968, Shri Tiwari cancelled the allotment of shares made by the Committee of the Society in favour of its members. In its place, the Officer-in-charge allotted one share each to the present petitioner and nineteen other persons who were members of the Slate Pencil mazdoor Karkhana -- a unit of the Society. The respondents Nos. 7 and 8 thereupon raised a dispute under Section 64 of the Act challenging allotment of shares to the petitioner and nineteen other persons by the Officer-in-charge of the society.

(3.) WHILE this dispute was pending, the respondents Nos. 7 and 8 moved the assistant Registrar for suspension of the aforesaid order of the Officer-in-charge. The Assistant Registrar granted an ex parte stay of the operation of the order of the Officer-in-charge dated the 27th March 1968. This order was passed by the assistant Registrar on 30th April 1968. Being aggrieved by this interim order, the petitioner filed an appeal before the Joint Registrar, Co-operative Societies, bhopal. who, by his order dated the 5th February 1969, set aside the order of the assistant Registrar. The respondents Nos. 7 and 8 then went up in revision before the State Government under Section 80 of the Act. By its order dated the 28th march 1969 the State Government stayed the operation of the order of the Joint registrar dated the 5th February 1969. This order of the State Government was challenged before this Court in M. P. No. 38 of 1969. The High Court allowed the petition and the order passed by the State Government was quashed. It was also found in its decision by the High Court that the order of the Joint Registrar was not justified as before passing these orders the State Government and the Joint registrar had not noticed the persons interested in the matter and the order was obtained behind their back. The High Court, therefore, quashed the orders of the joint Registrar and the State Government and sent back the matter to the Assistant Registrar to hear and decide the matter afresh after notice to all the parties concerned.