- (1.) THE main point involved in the writ petition is whether to an insured Cooperativebank, for removal of members of the Managing Committee or Board of Directors, action has to be taken in accordance with the provisions of Section 94 of the Haryana Cooperative Societies Act, 1984 (for short 'the Act'), or in accordance with the provisions of Section 34 of the Act. Our answer is that Section 94 of the Act would be applicable.
(2.) THE Panchkula Urban Cooperative Bank , Ltd. Panchkula, District Ambala, which is an insured Cooperative Bank (hereinafter called 'the insured bank'), was being governed by the Board of Directors. The Deputy Registrar, exercising the powers of the Registrar Cooperative Societies, - -vide order dated 23rd June, 1989, copy Annexure P1, placed under suspension the Board of Directors under Section 34 of the Act, and appointed the Assistant Registrar, Cooperative Societies, Ambala, as an Administrator for the management of the affairs of the bank till the proceedings under Section 34 of the Act, which were to be initiated separately were completed. Vide Annexure P4, dated 7th July, 1989, the Deputy Registrar served a show cause notice on the Board of Directors detailing the allegations levelled against their way of working. Annexure P5 is the reply, and, - -vide order Annexure P6, dated 15th December, 1989, in exercise of the powers under Section 34 of the Act, the Deputy Registrar removed the members of the Board of Directors, after giving a finding that all the allegations were proved. By the same order, the Deputy Registrar allowed the Assistant Registrar, Cooperative Societies, Ambala, to continue to act as Administrator of the insured bank for a period of one year or till the elections of the Board of Director of the bank are held, whichever is earlier. The order of removal of the members of the Board of Director and the suspension has been challenged in this writ petition filed in January, 1990.
(3.) WHILE under Section 34 of the Act, the Registrar has the authority to order the removal of such persons on being satisfied about their persistent defaults or negligent in the performance of their duties, under Section 94 of the Act the Registrar can do so if so required by the Reserve Bank in public interest or for prevention of the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the bank.;