- (1.) This judgment will dispose of Civil Writ Nos. 3590, 4104 and 4221 of 1974, because common questions of law and fact arise in all these three cases.
(2.) The Punjab State Co-operative Land Mortgage Bank Limited, Chandigarh, is a Co-operative Society (hereinafter referred to as the Apex Society) under the Punjab Co-operative Societies Act, 1961 , (hereinafter called the Act). It is an Apex Society within the meaning of explanation (c) to Section 15(a) of the Act inasmuch as its membership consists of Central Societies. One of such members is the Patiala Primary Co-operative Land Mortgage Bank Limited Patiala. This institution shall hereinafter be referred to as the Member Society One of such.
(3.) On January 5, 1973, Shri Gurcharan Singh, Joint Registrar, Co-operative Societies was appointed as the Administrator of the Apex Society. Subsequently, Shri Hardial Singh Brar replaced him in March, 1973. The term of the Administrator expired on July 5, 1973. The authority of similarly appointed Administrators to function beyond the period of six months was challenged in some writ petitions and it was held that it was not within the power of the Registrar to allow any person to act as an Administrator beyond this period. The Legislature intervened and the Punjab Co-operative Societies Amendment Ordinance No. 9 of 1973 was promulgated on November 29, 1973. By virtue of this Ordinance, the Registrar was entitled to appoint an Administrator for a period of 18 months in all and because of a validation clause the appointments of the Administrators which had been declared illegal earlier were declared to be valid and effective as if they had been made under the amended provision. This Ordinance was replaced by the Punjab Co-operative Societies (Amendment) Act, 1974 , which was brought on the statute book on March 31, 1974. Even the extended term of the Administrator had to come to an end on July 5, 1974. Shri Hardial Singh Brar, the Administrator of the Apex Society, passed an order on July 4, 1974, wherein he noticed that his tenure was coming to an end, the Society had a working capital running into crores of rupees and if no arrangements for its management were made, it would result in great loss to the institution. He relied upon bye-law 38(vii) of the Bye-Laws of the Apx Society, which reads as under :- "38 (vii) To delegate any of its powers and duties to the Executive Committee, or the Administrative Committee or any other Officer of the State Bank, the Board may constitute sub-committee of not more than three Directors of whom shall be M.D." Under this provision, he appointed a Sub-Committee and the operative portion of the order reads as under :- "This Sub-Committee will exercise all the powers of the Board as well as the Committees created in the Bye-Laws and apart from the above powers, this Committee will be competent to sanction T.A., pay, allowances etc., payable to the employees of the Bank :- (1) Shri Kehar Singh, Assistant Secretary (Accounts). (2) Shri Charan Singh, Development Officer, (3) Shri Gamdoor Singh, Development Officer. (4) Shri Hardial Singh Brar, Joint Registrar, Co-operative Societies, Punjab, on deputation with the Punjab State Co-operative Land Mortgage Bank Ltd., Chandigarh. Any three members of the Committee will constitute the quorum. This will be considered as a resolution passed by the Administrator of the Punjab Co-operative Land Mortgage Bank Ltd., Chandigarh in the afternoon of 4th July, 1974.";