JAGDISH SINGH WALIA Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS petition filed under Article 226 prays for issuance of a writ in the nature of certiorari by quashing resolution dated 12.12.2003 passed by the Punjab State Co-operative Supply & Marketing Federation Limited (for brevity, 'Markfed'), inter alia, authorising Chairman of Markfed either to represent himself or to nominate the Managing Director, Markfed or any other Director on any of the State/National level institutions. In this regard, agenda item No. 3 in the meeting held on 12.12.2003 has been approved. The principal ground for challenging the resolution dated 12.12.2003 is that the petitioner, who was earlier Chairman of Markfed, was authorised to represent Markfed for his whole tenure of five years and it was not confined to just one meeting of the State/National level institutions. In that regard, primary reliance has been placed on Bye-law 23(g) (as amended in pursuance to power conferred by Section 10-A of the Punjab Co-operative Societies Act, 1961) (for brevity, 'the Act'). Another ground of challenge is that no notice of the meeting along with agenda was issued which has resulted into violation of Rule 80 of the Punjab Co-operative Societies Rules, 1963 (for brevity, 'the Rules').

(2.) BRIEF facts of the case are that the petitioner was elected as a Director in the Board of Directors in January/February 2001 and thereafter he was elected as Chairman of the Board of Directors unanimously vide resolution dated 2.3.2001. On 19.3.2001, the petitioner was also nominated to represent Markfed on General Council of National Co-operative Development Corporation, New Delhi (for brevity, 'NCDC'), Indian Farmers Fertilizer Co-operative Limited (for brevity, 'IFFCO'), Krishak Bharati Co-operative Limited (for brevity, 'Kribhco'), National Agricultural Co-operative Marketing Federation of India Limited (for brevity, 'NAFED'), Warehousing Corporation, New Delhi, National Co-operative Union of India and Indian Potash Limited, Chennai (for brevity, 'IPL'). However, on 22.8.2003, respondent-State passed a composite order nominating Shri Harminder Singh Jassi-respondent No. 4 as a member of the Board of Directors and also appointed him as Chairman of Markfed in exercise of powers under Section 26(2)(a) of the Act. The composite order dated 22.8.2003 was challenged by the petitioner in CWP No. 13316 of 2003, titled as Jagdish Singh Walia and others v. State of Punjab and others, which was dismissed by a Division Bench on 25.5.2004. In the instant petition, however, the challenge is confined to resolution (Annexure P-3) dated 12.12.2003 authorising respondent No. 4 to represent Markfed on the State/National level institutions or to nominate Managing Director or any other Director for the aforesaid purpose. According to the averments made by the petitioner, the management of Markfed is vested in its Board of Directors which consists of 12 Directors, who are representatives of the member societies. Three Directors are nominated by the Government. One Director is nominated by the Apex Co-operative Wing. Then it has a Managing Director along with Registrar, Co-operative Societies or his nominee. It is claimed that the election was held in January/February 2001 and all the elected Directors belonged to the Akali party, who have unanimously elected the petitioner as Chairman, Markfed, vide resolution dated 2.3.2001.

(3.) IT has also been averred that a Director nominated under Bye-law 23(g) as amended under Section 10-A of the Act is to represent Markfed in the General Body/Special General Body/Board of Directors of National/State level institutions and he is not to hold his office during the pleasure of Markfed/Board of Directors but he has to continue as long as the Board of Directors is to continue. It is also claimed by citing the judgment of the Supreme Court in Ramana Daya Ram Shetty v. International Airport Authority of India, AIR 1979 SC 1628, that the principles of natural justice were also required to be followed before withdrawing the authorization given to the petitioner on 19.3.2001 to represent Markfed on various National/State level institutions.