MARKETING UNION LTD.(BISCOMAUN) THROUGH ITS CHAIRMAN (PETITIONER NO.1) Vs. STATE OF BIHAR THROUGH ITS SECRETARY, CO-OPERATIVE DEPARTMENT

JUDGEMENT

(1.) BOTH the writ applications raise common issues pertaining to the suspension of the Managing Committee/Board of Directors of the Bihar State Co -operative Marketing Union Ltd. (BISCOMAUN) by order dated 12.1.2009 passed by the Registrar, Co -operative Societies, Bihar and accordingly they have been heard together and are being disposed of by this common order.

(2.) The petitioners seek quashing of the aforesaid order dated 12.1.2009 by which the Managing Committee/Board of Directors of BISCOMAUN has been suspended for a period of six months by the Registrar, Co -operative Societies, Bihar in exercise of the powers under Section 41(1) of the Bihar Co -operative Societies Act, 1935 and the District Magistrate, Patna has been appointed as the Special Officer for carrying on the functions of the Board of Directors. 18/4/2014 Page 153 S.N.Pathak Versus State Of Bihar

(3.) THE facts of the case lie in a narrow compass. On 16.10.2008, the intervenor, respondent No. 8, Vishal Singh, a representative of the BISCOMAUN from Udwant Nagar Vyapar Mandal, Ara filed a petition before the Registrar, Co -operative Societies, respondent No. 3 making allegations under 14. heads against the Board of Directors of BISCOMAUN and its Chairman alleging mismanagement and negligence in the performance of duties by them and requesting that the Board should be suspended in terms of Section 41(1) of the Act. A copy of the said petition was also sent to the Minister, Co -operative Department, Government of Bihar who also put up a note in lieu of buff -sheet before the Registrar, Co -operative Societies referring to the aforesaid letter stating that the facts mentioned in the letter should be examined and immediate necessary action should be taken in accordance with law and he should also be informed about the action taken through the concerned file. Pursuant to the said petition by order dated 20.10.2008 (Annexure -5), the Registrar appointed a three -member Committee headed by the Additional Registrar, Co - operative Societies to look into the allegations and submit its enquiry report within fifteen days. The report of the three -member Committee was submitted to the Registrar on 4.12.2008 in which most of the allegations were found true. On the basis of the same an order bearing memo No. 7566 dated 5.12.2008 was issued by the Registrar enclosing the allegation petition and the report of the three -member Enquiry Committee directing the Board of Directors of BISCOMAUN to show cause within 21 days as to why the Board of Directors be not suspended in exercise of powers under Section 41(1) of the Act. A copy of the said show cause was sent to the Managing Director, BISCOMAUN with a request to serve the copy of the order upon all the members of the Board of Directors along with photo copy of complaint petition and enquiry report.