HAZUR SINGH Vs. STATE OF HARYANA

JUDGEMENT

(1.) INSTANT writ petition has been filed under Articles 226/227 of the Constitution of India for issuance of a writ in the nature of certiorari for quashing order dated 07.12.1999 passed by Financial Commissioner and Secretary to Government of Haryana, Cooperation Department, under Section 29(3) of the Haryana Cooperative Societies Act, 1984 (hereinafter referred to as the "Act").

(2.) BRIEF facts of the case are that petitioners are members of the Shahabad Cooperative Sugar Mills Ltd., Shahabad Markanda, District Kurukshetra (hereinafter referred to as the "Sugar Mill) and the elected Board of the Sugar Mill is not working because its tenure has already elapsed and no elections have been held so far. For this purpose, instant writ petition has been filed by the shareholders of the Sugar Mill. The Sugar Mill had its elected Board of Directors in the year 1997. Agenda Item No.6 was put up before the Board of Directors for decision. The Directors of the Sugar Mill unanimously passed a resolution to the effect that loan amount given to the Kaithal Cooperative Sugar Mills Ltd., Kaithal should not be converted into equity share. Sh. R.S. Saluja, Technical Advisor, Sugarfed, Chandigarh had given a dissenting note (Annexure P/2), as a result of which the matter was referred to the Financial Commissioner and Secretary to Govt. of Haryana, Department of Cooperation. Vide order dated 07.12.1999 (Annexure P/3), the Financial Commissioner and Secretary to Govt. of Haryana, exercising his powers under Section 29(3) of the Act held that decision of the Government nominees in respect of resolution no. 6 of the meeting of the Sugar Mill held on 16.12.1997 shall be considered as decision of the Board of Directors, which is impugned in the present writ petition specifically on the ground that the same has been passed in an arbitrary manner and is a non -speaking order. It is further alleged that there are number of shareholders of the Sugar Mill and the share of the public is Rs.14,60,00,000/ - and the share of the Government is only to the extent of Rs.1,47,00,000/ - The Government is compelling the Sugar Mill to give this huge amount of Rs. 3,00,00,000/ - (Rs. Three crores) for purchasing the share from the Kaithal Cooperative Sugar Mills Ltd., Kaithal, which is against the interest of the Sugar Mill in question.

(3.) IN pursuance of notice of motion, respondents no. 1 and 2 and 3 and 4 have filed separate written statements. In the written statement filed by respondent nos. 1 and 2, it is averred that the Financial Commissioner under Section 29(3) of the Act has taken a decision which is legal and valid and he has rightly affirmed the dissenting Note given by Sh. R.S. Saluja, Technical Advisor (Engineering) of Sugarfed, in the interest of the Sugar Mill and the amount of Rs.2,66,28,200/ - has already been converted into share capital of Kaithal Sugar Mills and share certificates from Kaithal Sugar Mills have already been received by respondent no.4. Respondent nos. 3 and 4 filed separate written statement on the similar line as filed by respondent nos. 1 and 2 and supported the order passed by the Financial Commissioner and Secretary to Government of Haryana.