KULDEEP SINGH MANGEWAL Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Whether a person who is ineligible but is elected as a member of the governing body of a co-operative Society could cease to hold his office under Clause (f) of Rule 26 of the Punjab Co-operative Societies Rules, 1963 (hereinafter called the Rules) is the question of law which arises for decision in this writ petition.

(2.) Petitioner is a member of the Mangewal Co-operative Milk Producers Society Limited (for short the Society) which is a primary Society registered under the Punjab Co-operative Societies Act, 1961 (hereinafter referred to as the Act). He was elected its President on 26.7.1995 for a term of five years. Even prior to 26.7.1995 he was its President. He is also a member of the Nizampur Co-Operative Agricultural Service Society Limited (for short the Nizampur Society) from which he took a loan of Rs. 7,500/- on 3.6.1991. The loan was not repaid within time and he thus became a defaulter since 31.1.1992. It is common case of the parties that the loan was paid back on 6.6.1997. The Society is a member of the Ludhiana District Co-operative Milk Producers Union (hereinafter called the Milk Union) which is a central Society registered under the Act. Elections to the Board of Directors of the Milk Union were held on 30.8.1994 in which 12 Directors were elected for a term of five years including the petitioner who represented the Society. Office bearers of the Milk Union were subsequently elected on 5.9.1997 and the petitioner was elected its Chairman. The Assistant Registrar, Co-operative Societies, Samrala made a report on April 25, 1997 to the Deputy Registrar along with his recommendation forwarded the report to the Joint Registrar, Co -operative Societies, Patiala Division who, while exercising the powers of the Registrar, by his notice dated August 7, 1997 called upon the petitioner to show cause why he should not cease to be a Director of the Milk Union under Rule 26(f) read with Rule 25 (a) of the Rules. Petitioner submitted his reply and took the plea that he was not a defaulter either of the Society or of the Milk Union and, therefore, the provisions of Rule 26 read with Rule 25 of the Rules were not attracted. It was also pleaded that he had been elected President of the Society and Chairman of the Milk Union on 26.7.1995 and 30.8.1994, respectively when he was already a defaulter, on the date of his election and that Rule 26 of the Rules was not applicable as that Rule, according to the petitioner, would apply only where the disqualification is incurred after the election. It was further pleaded that the entire amount of the outstanding loan of Rs. 16,090/- had been cleared much prior to the issuance of the show cause notice and, therefore, the petitioner was not in default when the show cause notice was issued and, thus, no action could be taken against him. The Joint Registrar considered the reply filed by the petitioner and after affording an opportunity of personal hearing to him held that since he (petitioner) was a defaulter of the Nizampur Society with effect from 31.1.1992 and repaid the loan only on 6.6.1997, he could not remain as Chairman of the Milk Union nor as President of the Society. Accordingly, by his order dated 29.9.1997, the Joint Registrar declared that the petitioner ceased to be President of the Society and Chairman of the Milk Union under Rule 26(f) read with Rule 25(a) of the Rules. It is against this order that the present writ petition has been filed under Article 226 of the Constitution.

(3.) Counsel for the parties have been heard.