SHIVNARAYAN PATIDAR Vs. STATE OF M.P.

JUDGEMENT

(1.) Shri K.P.Singh, Advocate for the petitioner has adopted the arguments raised by Shri A.K. Sethi, learned Senior Advocate appearing on behalf of the petitioners in W.P.No.5033/2019.

(2.) Petitioners have approached this Court by way of this writ petition being aggrieved by the Order dated 21.02.2019, passed under Section 53(12) of the Madhya Pradesh Co-operative Societies Act, 1960 ( in short 'Act of 1960') by which in place of "Board of Director", "Deputy Registrar, Co-operative Societies" has been appointed as Administrator temporarily. Before passing the said order the post of Directors which the petitioners are occupying have been declared vacant by Order No.287, 288, 289, 290, 291 & 292/2019, Ujjain dated 20.02.2019 as their Society have committed default in payment of loan. The petitioners are not challenging the order dated 20.02.2019 and only challenging the order dated 21.02.2019 again which is nothing but a consequential order.

(3.) The District Co-operative Central Bank Limited, Shajapur is a society registered under the Act of 1960 having registration No.03 dated 19.07.1918. There are total 16 Directors in the Board of Directors of the bank and out of which, 8 are representative from the Primary Agricultural Credit Co-operative Societies. The term of Board of Director is 5 years from the date of its first meeting of the Board under the provisions of Section 49(7- A) of the Act of 1960. The last election was held on 30.09.2014 and the 5 years term would be completed on 30.12.2019. The petitioners are the members of Primary Agricultural Credit Society and they are elected as a representative from their respective societies to become members of the Board of Directors of the District Co- operative Central Bank Limited, Shajapur. According to the petitioners they are not personally or individual defaulter of the banks or the Societies for the period extending 12 months, but their societies have committed a default for period of exceeding 12 months or taken advance for the period of exceeding 3 months. The respondent No.3 has passed the various orders on 21.02.2019 declaring them disqualified to hold the post of Director in exercise of power under Section 50-A(2) . Out of 16 elected members, 8 have been declared disqualified, which is 50%, but not more than 50% of the total strength, therefore, in exercise of power under Section 53(12) the Joint Registrar vide order dated 21.02.2019 has appointed as an Administrator temporarily till the new elections are held and the new committee takes the charge. The petitioners have assailed the impugned order mainly on the ground that before passing the impugned orders they were not given any reasonable opportunity of hearing.