RAMPAL AGARWAL Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) The petitioner has challenged Annexure-5 an order of the State Government Department of Co-operative, dated June 12/13, 1985, under which in supersession of the order dated April 10, 1985, by which the Board of Directors of Gangapur Sahakari Spinning Mills Ltd. Gangapur District Bhilwara was constituted. A new Board of Directors was constituted. Earlier the petitioner was a nominated member of the Board of Directors and was also appointed as Chairman of the Board of Directors. Lastly, the term of the nominated Board of Directors was extended under order dated December 1, 1984 (Annr. 3) up to August 31, 1986. Though, there is no order for removal of the petitioner either as a Director of the Board of Directors or as Chairman of the Board of Directors, but as a result of re-constitution of the Board of Directors aad appointment of Shri Badri Tiwari, as Chairman, under order dated June 12/13,1985, the earlier Board of Directors including its Chairman, the petitioner, stands removed.

(2.) Gangapur Sahakari Spinning Mills Ltd, Gangapur (for short, the Mills) was established under the bye-laws dated March 10, 1981. A Board of Directors was nominated under the bye-law 35 of those bye-laws for a period of 3 years vide notification 4 (22) Sah/Krishi 4/81 dated August 31, 1981. The petitioner was nominated as its Director and the name of the petitioner appears at No. 7 in that order (Annr. 1). The Registrar, Co-operative Societies Rajasthan Jaipur was Chairman of the nominated Board of Directors. Later on under the notification dated December 24/27, 1982, the petitioner was appointed as Chairman of the Mills and as the Chairman of the Board of Directors in place of the Registrar, Co-operative Societies by the State Government. The term of the Board of Directors so constituted by the State Government was extended from time to time and the petitioner also continued as such in the capacity of Chairman of the Board of Directors. As stated earlier, vide order dated December 1, 1974 the term of the Board of Directors was further extended for two years till August 31, 1986 by the State Government and the term of the petitioner also ipso facto became up to August 31, 1986 to be continued as Chairman of the Mills.

(3.) The petitioner has challenged the order of re-consti'ution of the Board of Directors and his implied removal from the office of the Director as well as Chairman of the Board of Directors of the Mills inter alia on the ground that the same is violative of the principles of Tatural justice as it came to be made without affording an opportunity of hearing to the petitioner ; re-constitution of the Board of Directors under Annexure-5 is nothing but the dismissal of the petitioner or his removal from the office of Director/Chairman of the Board of Directors and is in contravention of Section 36 of the Rajasthan Co-operative Societies Act, 1965 (for short, the Act) and the Rules made thereunder ; that the order was made at the instance of Shri Rampal Upadhyaya, Education Minister, respondent No. 4 to the petition and suffers from lack of bona fides. The petitioner does not belong to the group to which Shri Upadhyaya subscribes and that is the reason he has been removed from the office by reconstituting the Board of Directors. The State Government has no power in the bye-laws to remove any member of the Board of Directors.