- (1.) The main point involved in the writ petition is whether to an insured co-operative bank., 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 Co-operative 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 Co-operative Bank, Ltd., Panchkula, District Amabala, which is an insured co-operative bank (hereinafter called the insured bank), was being governed by the Board of Directors. The Deputy Registrar, exercising the powers of the Registrar, Co-operative Societies, vide order dated 23 6-1989, copy Annexure, Pl, placed under suspension the Board of Directors under Section 34 of the Act, and appointed the Assistant Registrar, Co-operative 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 7.7.1989, 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 15-12-1989, 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, Co-operative 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 Directors of the bank are held, whichever is earlier.
(3.) The order of removal of the members of the Board of Directors and the suspension has been challenged in this writ petition filed in January, 1990.;