MOHINDER PAL SINGH SAMUNDARI Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Petitioner in this writ petition has prayed for the issuance of a writ of certiorari for quashing the order, dated January 19, 1993 of the Addl Registrar (Admn.) Cooperative Societies, Punjab, whereby the election of the Chairman and the Vice-Chairman of the Punjab State Federation of Co-operative Societies Ltd. (for short 'the Housefed') held on September 23, 1992 was set a side and also the order dated April 26, 1993 passed by the Registrar Cooperative Societies whereby appeal against the order dated January 19, 1993 of the Additional Registrar was dismissed. The petitioner also seeks quashing of the order dated April 27,1993, Annexure P-8, whereby Shri K. K. Bawa, respondent No. 5 was nominated as Director and appointed Chairman of the Housefed.

(2.) Housefed is a Cooperative Society registered under the provisions of the Punjab Cooperative Societies Act, 1961 (for short 'the Act') Election to the Board of Directors of the Housefed was held on July 22, 1992. The petitioner as also respondent No. 5 were elected to the Board of Directors besides six other elected Directors. By-law 33 of the Registered Byelaws of the House fed provides for the constitution of a Board of Directors cf the Housefed. The Board consists of eight elected representatives from the affiliated rural and urban Co-operative House Building Societies, three members nominated by the Government, one nominee each of the financing institutions and a Managing Director. The State Government in exercise of its powers tinder Section 26 of the Act nominated three Directors on the Board of Directors of the Housefed. It also nominated another Director on the Board of Directors in exercise of its powers under clause (b) of the first proviso to clause (a) of sub-section (2) of Section 26 of the Act The Punjab State Cooperative Bank Limited which has provided finances to the Houscfed also nominated Shri Bhagat Singh as a Director on the Board of Directors of the Houscfed Resolution nominating Shri Bhagat Singh on the Board of Directors is Annexure P-I to this petition. Bye-law 38 of the Bye-laws provides that the housefed shall have a Chairman and a Vice-Chairman who will be elected by the members of the Board from amongst themselves. Rule 80-A of the Punjab Cooperative Societies Rules (for short 'the Rules') provides a bar on the members on the Board of Directors nominated by the Government under clause (a) of subsection (2) of Section 26 to vote in the election of the office bearers of the Housefed Clause (b) of sub section (2) of Section 26 provides that where the Industrial Finance Corporation, the State Financial Corporation or any other financial institution notified in this behalf by the Government, has provided finance to the Cooperative Society, shall have the right to nominate one person on the Committee i e. the Board of Directors of the Housefed.

(3.) Meeting of the Board of Directors was convened on September 23,1992 for electing Chairman as also Vice-Chairman of the Housefed. In the said meeting, the petitioner was elected as Chairman and Bant Singh respondent No. 14 as Vice-chairman. For the election of Chairman, five votes were polled in favour of the petitioner and four votes were polled in favour of respondent No. 5 Shri K. K Bawa. It is necessary to notice at this stage that five votes polled in favour of the petitioner included the vote of Shri Bhagat Singh, a member nominated on the Board of Directors of the Housefed by the Punjab State Cooperative Bank Ltd. Undisputedly all the eight elected members on the Board of Directors took part in the election and the only other member who took part in the election was Shri Bhagat Singh was had been nominated by the Punjab State Cooperative Bank Ltd. Election of the Vice-Chairman was, however, unanimous.