SHIVRAM CHOUDHARY Vs. JOINT REGISTRAR

JUDGEMENT

(1.) BEING aggrieved of the show cause notice issued by the Joint Registrar, Coop. Societies, Gwalior dated 8.8.96, the petitioner has filed this revision petition under the following circumstances.

(2.) PETITIONER is a member of a Multipurpose Cooperative Society, Pratappura. Dist. Bhind. This society elected the petitioner as its representative in the District Cooperative Central Bank, Bhind and so also elected as Director of the said bank. Joint Registrar, Gwalior was informed by Bank Manager that the Multipurpose Cooperative Society, Pratappura is defaulter of bank debt of more than Rs.10 lakhs for a period of more than12 months. Matter was got inquired and bank was directed to disqualify such directors being representative of defaulter cooperative society to remove them from their office under section 19(A) of the act and bank having failed to do so, the Joint Registrar issued the present show cause notice to the petitioner calling upon him to show cause as to why he should not be removed from the post of Director under rule 45(3) of the rules framed under the Act. Petitioner filed his reply before the Joint Registrar and submitted that Pratappura society is not defaulter and has initiated action against all the debtors under section 64, 84, 85 of the Act. Some of such cases have been dismissed in default of appearance and restoration proceedings are pending which can be verified from the record. No final orders have been passed by the Joint Registrar in this matter. After filing that reply on 20.8.96 the petitioner has also filed this revision challenging the validity of show cause notice on the ground that the notice in question is contrary to the provisions of section 48(b) of the Act. Provisions of rule 45(3) have also been mis-construed by Joint Registrar. If the Pratappura society is defaulter for more than 12 months this fact will not disqualify the petitioner from holding the post of Director. Joint Registrar has no authority to issue any show cause notice directing the bank to take action under section 19AA of the Act, against the petitioner. Petitioner has not been furnished with the enquiry report and letter of the branch manager dated 9.5.1996 and has been deprived of the opportunity of hearing.

(3.) PROVISO to this section further provides that, if a member suffers from any of the disqualifications prescribed under this section - (i) it shall be lawful for the committee of the society to disqualify such member where he is elected as a director being a member of that society, after giving him a reasonable opportunity of being heard, within two months from the date of coming to the notice of the society from holding the post,(ii) If the member incurs a disqualification, in the higher level society, for his actions as a representative, such higher level society shall take action to disqualify him for holding the post in the higher level society. If the society fails to take action, the Registrar shall disqualify such members from holding such post by an order in writing after giving him reasonable opportunity of being heard.