RAM NARESH Vs. JOINT REGISTRAR COOPERATIVE SOCIETIES JABALPUR

JUDGEMENT

(1.) CHALLENGING the order dated 17.06.2014 (Annexure P -8) passed by the Madhya Pradesh State Co -operative Tribunal, Bhopal in Review Petition No.02/2014 exercising its powers of review and recalling an earlier order passed on 25.02.2014, this writ petition has been filed under Articles 226 and 227 of the Constitution of India.

(2.) FACTS in brief which are necessary for decision of the writ petition goes to show that the petitioners are the members of the Co -operative Societies which are in turn members of the District Co -operative Central Bank Limited, Jabalpur, Central Society. The petitioners were elected to the post of Directors and formed the Board of Management of the District Central Co -operative Bank, Jabalpur. By order dated 3.7.2010 the Board of Directors of District Co -operative Central Bank, Jabalpur was superseded under Section 53(1) of the M.P Co -operative Societies Act, 1960 and, therefore, a . dispute was raised and the matter went before the M.P. State Co -operative Tribunal, Bhopal in F.A. No.82/2010. This first appeal was decided by the Cooperative Tribunal and vide order Annexure P -1 dated 25.02.2014 the Tribunal found that the action of the Joint Registrar in superseding the Board of Directors is absolutely illegal and is contrary to the provisions of the Act. It is further observed that the Board of Directors are also entitled to the benefits of the provisions of Section 49(7 -A)(i) of the Act. The Tribunal while doing so, took note of provisions of Section 49(7 -A) of the Act of 1960 and permitted the Board of Directors to function and discharge the duties for the remaining period of their term which has been spent by them under super -session.

(3.) IT seems that after such an order was passed in Annexure P -1, the Joint Registrar filed a review application seeking review of the earlier order dated 25.02.2014 and brought to the notice that the petitioners are not entitled to the benefit of Section 49(7 -A) and they cannot be permitted to reoccupy the post of Directors. It was alleged that most of the Members of the erstwhile Board are representatives of Co -operation Societies who have already been declared as defaulters and such members of the Co -operatives Societies are disqualified to hold the post of Directors. The proceedings against them are pending under Section 50 -A(2) of the Co -operative Societies Act and pending decision on the same the Board of Directors cannot function under Section 49(7 -A). Allowing this application the impugned order has been passed on 17.06.2014 and, therefore, petitioners challenge the same in these proceedings.