AJIT SINGH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) The Registrar, Co-operative Societies, issued a notice under Section 27 of the Punjab Co-operative Societies Act, 1961 (hereinafter called the Act) on 19th of September, 1963, to the President of the Ferozepur Central Co-operative Bank Ltd., to show cause why its directors should not be removed. The reply of the directors was sent through the President on 25th of October, 1963. The Registrar, Co-operative Societies, on November 20, 1963, made an order that the directors should be removed under Section 27(1)(b) of the Act. Ten, out of the fourteen, directors, who had been so removed, have moved this Court under Article 226 of the Constitution of India to challenge the validity of the order of removal.

(2.) According to the petitioners, Mohinder Singh, respondent 4, having been removed from the position of the President of the Central Co-operative Bank, Ferozepur, has been instrumental in getting the show cause notice issued and their eventual removal from the Board. According to the petitioners, Mohinder Singh is a relation of a Member of Parliament (Shri Iqbal Singh) and through his influence the Registrar has been persuaded to issue this notice. Apart from a bare assertion nothing has been made out to show any mala fides on the part of Mohinder Singh and there is no material to reach the conclusion that the Registrar had been actuated to issue the notice through his influence.

(3.) The second objection which has been raised by the petitioners relates to the legality of the notice issued under Section 27. Sub-section (1) of Section 27 is to this effect :