ADMINISTRATOR Vs. RAMADHAR SHARMA

JUDGEMENT

(1.) Bihar State Co-operative Union Limited (BISCOMAUN) is a registered society under the Bihar Co- operative Societies Act, 1935. It is one of the largest society of its kind in east India, the Court is given to understand by State Counsel and the Secretary, Co-operative Societies, State of Bihar. It was established with assets of approximately 300 crores of rupees. No sooner it was established it was virtually grinding itself to a halt in its activities. The massive buildings which are its headquarters in Patna stand there as concrete structures but with no activity. It has employees on its rolls exceeding 2000. The society does not have the money to pay salary to its employees nor their post retirement benefits. BISCOMAUN is enveloped it litigation which the Court is given to understand is about 500 in number pending in different Courts. Of these, on a list given to the Court the number of cases pending at the High Court is mentioned in the appendix to the order dated 14 May, 2002. At that time 88 cases of BISCOMAUN were pending at the High Court in writ petitions, another 80 cases were pending as contempt actions against the officers of this Society and another 21 Letters Patent Appeals in addition. Clearly, a corporate body has got enveloped in the cancer of litigation.

(2.) When this Letters Patent Appeal was presented, the Court inquired why it was being maintained when the only order on it was that the Registrar Co-operative Societies shall hear both the parties and give a reasoned order. Such an prder should not harm any one. But, as its filing was insisted upon the Court inquired as to who may have instructed on the filing of this appeal. BISCOMAUN is a superseded society and is functionally defunct for two decades. The High Court was told that the BISCOMAUN was without and Administrator. A gigantic Co-operative Society having assets of BISCOMAUN being left without an Administrator was in itself a matter of concern.

(3.) The matter was drawn to the attention of the Secretary, Co- operative Societies. He confirmed the apprehension of the Court that BISCOMAUN was without an Administrator. He reiterated the circumstances that BISCOMAUN was involved very badly in litigation. He further reiterated the circumstances that the activities of BISCOMAUN have virtually come to a grinding halt. He further brought to the notice of the High Court that the affairs of BISCOMAUN are such that the last audited balances sheet is of the year 1990-91, and income tax returns had not been filed on audited accounts. This was a strange case that accounts of BISCOMAUN had not been audited. The balance sheet had not been prepared for the last 12 years. Yet, the Registrar, Co-operative Societies was quietly taking the seat of a spectator in a match without players and was not moving to discharge his statutory obligation whatever it might be under the Act.