- (1.) Opposite parties 2 to 12 are members of the Committee of Management of the District Co-operative Bank Limited, Meerut a society registered under the U. P. Co-operative Societies Act, 1965 (now on to be referred to as the Act) and the petitioner No. l un-disputably was at the relevant time Chairman of that Committee. At a meeting of the Committee of Management held on 24th December, 1979, it passed a resolution purporting to act in exercise of powers under Rule 454 of the U. P. Cooperative Societies Rules 1968 (hereinafter referred to as the Rules) removing petitioner No. 1 from the membership of the Committee. Aggrieved by the action of the Committee of Management, petitioner No. 1 applied to the registrar under Section 70 of the Act, raising a dispute regarding the validity of the aforesaid resolution removing him from the membership of the Committee of Management. The District Magistrate exercising the powers of Registrar of Co-operative Societies referred the dispute raised by the petitioner for decision to the Additional District Magistrate (Finance) appointed as an Arbitrator under the Act. By means of an Award dated 11th Aug. 1980, the Arbitrator held that the resolution removing the petitioner No. 1 from the membership of the Committee of the Management was illegal and set aside the resolution of the Committee. The Arbitrator went on to direct the members of the Committee of Management who figured as opposite parties in the arbitration proceedings "to consider the issue of the discontinuing the membership of Sri Madan Pal Singh in a meeting to be called for the purpose after issuing the agenda (including this item) and after compliance of the rules and the law laid down." The Award dated 11th August, 1980, directed the members of the Committee of Management to call a meeting within a fortnight. The Arbitrator went on to direct that till the decision of the said meeting Sri Yasmin Qureshi, who, it appears, had started functioning as officiating Chairman, shall continue to act as such. In pursuance of the directions issued by the Arbitrator in the Award a second meeting of the Committee was held on the 23rd August, 1980. The only item on the agenda for this meeting was consideration of the question of removal of the petitioner from the membership of the Committee of Management under Rule 454 of the Rules in accordance with the directions of the Arbitrator.
(2.) A resolution was passed at the meeting by the Committee of the Management that after due consideration the Committee had come to the conclusion that in the conduct of the affairs of the Bank the petitioner had not exercised the prudence and diligence of an ordinary man of business had thus acted in disregard of Rule 115 and consequently was disqualified under Rule 453 from continuing as a member of the Committee. The resolution went on to state that in consequence of the conclusion arrived at Sri Madan Pal Singh (the petitioner) was removed from the membership of the Committee. The resolution further was to the effect that since Sri Madan Pal Singh had ceased to be a member of the Committee he stood automatically removed from the Office of Chairman of the Society and steps should be taken immediately to elect another Chairman. By means of this petition the petitioner Madan Pal Singh as well as the Meerut District Co-operative Bank Limited through him pray for a writ, order or direction in the nature of certiorari quashing the resolution dated 23-8-1980, passed by the Committee of Management as well as that part of the award of the Arbitrator dated 11th August, 1980 which directed the Bank to convene a second meeting and to treat in the meanwhile Shri Yasmin Qureshi as Officiating Chairman. There is a further prayer for issue of a writ, order or direction in the nature of mandamus directing the Arbitrator who has been impleaded as respondent No. 1 not to give effect to his order dated 11-8-1980 and restraining the respondents from interfering with the functioning of the petitioner No. 1 as Chairman of the Committee of Management of the Bank.
(3.) Sri S. S. Bhatnagar and Sri A. K. Sharma, Advocates before the admission of the petition put in appearance on behalf of the opposite parties 2 to 12 while the Standing Counsel has represented respondent No. 1.;