Manash Nath Roy, J. - (1.) The writ petitioners having lost before the Trial Court in Civil Rule No. 10218(W) of 1981, have preferred this appeal on 27th April, 1984, against the concerned judgment and order dated 18th April 1984. The appeal was once dismissed for want of appearance of the appellants at the time of the hearing of the same and on an appeal taken from such determination in Civil Appeal No. 2073 of 1985, the Hon'ble Supreme Court of India, by their order dated 23rd April, 1985, allowed the appeal and directed the setting aside of the concerned determination and after restoring the writ appeal, have not only directed status quo in regard to the Management of the Eastern and North East Frontier Railway Co-operative Bank Ltd. (hereinafter referred to as the said Co-operative Bank), as on that date to continue, but have also requested this court to dispose of the appeal in question as early as possible and preferably within three months from the date of their order. Apart from that, an order of stay has been made against discharge of dismissal of the workman employed by the Special Officer, pending disposal of the Appeal in this court.
(2.) The appellants were and are the two shareholders of the said Co-operative Bank. They have challenged the notification dated 1st March, 1977 (hereinafter referred to as the said notification), as issued by the Governor of West Bengal in exercise of his powers conferred by proviso to sub-section (1) of section 26 of the West Bengal Co-operative Societies, Act 1973 (hereinafter referred to as the said Act). By the said Notification, the Managing Committee of the said Co-operative Bank was dissolved and Administrator was appointed to manage the affairs of the same. The said Notification has been disclosed as Annexure "A" to the writ petition and therein, it has been alleged that the Managing Committee of the said Co-operative Bank have (a) failed to take due care in making payment of the bills of suppliers, (b) indulged in financial indiscipline by way of drawing huge amounts from the Bank's funds as advance T. A., without any urge for its re-adjustment, (c) been guilty of financial impropriety in the matter of repair of the Bank's Building, (d) incurred infructuous expenditure for office accommodation, (e) made payment for repairs in excess of the tender. It has been alleged that the said Managing Committee have further indulged in negligence, mis-management and corrupt practices resulting in loss to the tune of Rs. 1.40 lakhs for the year 1974-75. It would appear from a reference to the said Notification that on receipt of a report from the Registrar of Co-operative Societies, West Bengal, the Governor was of the opinion that in view of the circumstances as disclosed therein, immediate dissolution of the Managing Committee of the said Co-operative Bank was necessary and essential in the interest of the said Co-operative Bank and of Co-operative movement in general. The circumstances were indicated as (1) that the members of the Managing Committee of the said Society have (a) persistently made defaults and been grossly negligent in the performance of the duties imposed of them by the West Bengal Co-operative Societies Act, 1973 and Rules & Bye-laws thereunder, and (b) committed acts which are prejudicial to the interest of the said Bank and the Co-operative movement as a whole and (2) that the affairs and business at the said Bank have due to persistent default and negligence in the performance of duties on the part of the members of its Managing Committee come to a stand still.
(3.) It has been stated that the First Annual General Meeting of the said Co-operative Bank was held on 14th August, 1974 and then on 23rd February, 1976, notice for the election of delegates was issued fixing the date of election on 12th March, 1976 and according to such notice, the concerned election was completed on 13th March, 1976 and in such election Sri Dilip Kumar Sen Sharma, Appellant No. 2 was elected as a delegate. The said Co-operative Bank as also stated to be one of the Multi Unit Co-operative Societies functioning in this State as also in the States of Assam and Bihar and such being the position, it was also claimed that the working and functions of the said Co-operative Bank would be governed by the Multi Unit Co operative Societies Act, 1942 (hereinafter referred to as the said 1942 Act). It was then pointed out that under section 4(2) of the said Act, 1942 Act, the Central Registrar of Co-operative Societies of the State in which the Society is actually registered and as such, the Registrar of Co-operative Societies, West Bengal had no authority and power to exercise powers and function under the said Act, in respect of the said Co-operative Bark.;