BHAGIRATHI BADAJENA Vs. STATE OF ORISSA

JUDGEMENT

(1.) Petitioner was the elected Chairman of the Orissa State Co-operative Marketing Federation, Bhbaneswar (hereinafter referred to as 'the Federation') and assumed office with effect from 11-4-1998 for a term of four years. Prior to such election, petitioner was nominated President of the said Federation along with two other Government officials as the members of the Committee of Management as per office order of the Registrar of Co-operative Societies. The petitioner was then at the helm of administration of the Society since February, 1996. When the petitioner was continuing in the said office holding the post by virtue of his election, the Registrar by virtue of power conferred under sub-section (7) of Section 32 of the Orissa Co-operative Societies Act, 1962 (hereinafter referred to as 'the Act') by order dated 21-7-1999 (Annexure-3) suspended the Committee of Management headed by the petitioner. Petitioner challenges the said order in Annexure-3 on the ground that the opp. party No. 2 has passed the order to pave way for the party in power to use the personnel and vehicle of the Federation for election of Co-operation Minister. It is alleged that the said order has been passed mechanically without application of mind which is illegal, arbitrary, unreasonable and unsustainable in the eye of law. It is further submitted that order in Annexure-3 runs contrary to several judicial pronouncements of this Court and Apex Court, particularly judgment of this Court in the case of the Charan Binei v. State (OJC Nos. 3488 and 3760 of 1990, disposed of on 27-7-1991).

(2.) In Annexure-3 it has been alleged by the Registrar that from various allegations and enquiries, it reveals that the Committee of Management of the Federation has committed serious irregularities, omissions and commissions like,(i) illegal appointment of staff and their continuance;(ii) entering into a loss making oil deal, imprudent purchase of fertiliser and huge stock maintenance causing heavy financial loss;(iii) improper business deal of E.A.P.;(iv) lack of supervision and control over the staff leading to heavy misappropriation of fertiliser stock;(v) irregular leasing out of S.C. plant and failure to recover the outstanding dues; and(vi) unauthorised and illegal invitation of tender for joint venture building complex etc.From the aforesaid allegations and enquiries, it was concluded by the Registrar that continuance of the Committee of Management is detrimental and prejudicial to the interest of the Federation, its members and Government.

(3.) Petitioner submitted that no allegation petition has ever been submitted to the Registrar nor enquiry to that effect has been conducted by him and if at all any enquiry was conducted by the Registrar, it has been done at the behest of Co-operation Minister without giving an opportunity of hearing to petitioner and on the basis of such enquiry conducted at the behest of Co-operation Minister, the Registrar has exercised his power while passing the impugned order. It is further submitted that verbatim reproduction of the language used in the statute clearly indicates that the impugned order in Annexure-3 has been passed mechanically without due application of mind for coming to the conclusion that the omission or any serious irregularities for further continuance of the Committee of Management would be detrimental to the interest of the Federation. It is further submitted that it is an affiliated society who is directly affected because of commission, omission or any serious irregularities by the Committee of Management. Supersession of the Committee of Management has not only been done in the case of petitioner but also a number of other societies due to political vengeance and differences. It is further submitted that in view of election notification by Election Commission of India for holding election to the Lok Sabha, the State Government cannot make any new appointment or take any action etc. after declaration of election as per guidelines formulated by Election Commission of India and as such, suspension of the elected Committee of Management and appointment of new Committee of Management being contrary to such guidelines, is not tenable in law and the Committee of Management will enable political party in power to use vehicles, personnel and other equipments of the Federation to the advantage of the party in power as action is taken after four days from the date of issuance of model Code of Conduct. It is further alleged that as has been admitted by the Registrar in paragraph-6 of the counter-affidavit in the connected matter being OJC No. 8898/99 that the State Government has directed the Registrar under Section 123-A of the Act to take necessary action. The same ground has also been taken in challenging notice issued under Section 32(1) of the Act which was issued on 16-9-1999 (Annexure-5).