PRAJA SAHKARI UDYOG BHARATPUR LTD Vs. JOINT REGISTRAR CO OP SOC
LAWS(RAJ)-1981-7-28
HIGH COURT OF RAJASTHAN (AT: JAIPUR)
Decided on July 29,1981

PRAJA SABKARI UDYOG BHARATPAR LTD. Appellant
VERSUS
JOINT REGISTRAR, CO-OPERATIVE SOCIETIES, BHARATPUR ZONE, BHARATPUR Respondents

JUDGEMENT

N.M.Kasliwal, J. - (1.) According to the allegations made in the writ petition, the petitioner M/s. Praja Sahkari Udyog Bharatpur Ltd., (hereinafter referred to as the Society) Is a Multi-Unit Co-operative Society which is governed under the Multi-Unit Co operative Societies Act, 1942 (hereinafter refrred to as the Central Act). It was originally registered under the Rajasthan Cooperative Societies Act, 1965 (hereinafter referred to as the Rajasthan Act) on 3-11-1971 vide registration No. 2079 and lateron sought an amendment vide resolutions passed in the general body meeting held on 29-11-1971, notice of which was served upon the Registrar of Co-operative Societies, Ra jastban vide registry receipt No. 678, dated 7-12-1971 for seeking amendment for the adoption of Uttar Pradesh Co-operative Societies Act, 1965 and rules made thereunder on the ground that the proposed principal place of business of the petitioner stands shifted from Bbaratpur to Launi (U. P.). An order dated 3-5-1972 was issued for making an inquiry and thereafter liquidation order was issued on 6-6-1972. The petitioner filed a writ petition, which was decided in favour of the petitioner and whereby both the aforesaid orders were quashed and charge of the society was taken over by the then Chairman of the society from the so called liquidator. According to the petitioner the so called liquidator Shri K. S. Mathur, Inspector, Co-operative Department falsified the accounts and realised certain amount unlawfully and complaints to this effect were filed by the petitioner and in result thereof Shri K. S. Mathur was arrested by the Police and due to this reason the officers of the Co-operative Dept. were bent upon to take over the said falsified and forged accounts from the elected members of the Board of Management of the society in order to correct the wrongs. The respondent No. 7 Punjab National Bank, Branch Bharatpur also embezzled a sum of Rs. 551.30 out of the cuirent account of the society in June. 1972 by making false entries and a complaint to this effect was also filed by the society, due to which the said respondent No. 7 also tried to avoid payments to the society for one reason or the other and did not obey the lawful instructions of the petitioner-society for the transfer of its account from Bharatpur Branch to Delhi Branch. The society also filed civil suit for damages amounting to Rs. 6.80 crores in the Civil Court at Jaipur as the working of the society was unlawfully stopped by the State of Rajasthan through is police and Co-operative Department and inspite of decision of the writ petition in favour of the society, by the High Court on 25-1-1974. The S. H. O. Police Station Kotwali, Bbaratpur arranged once again to stop working of the society by order dated 1-2-1974 in the name of respondent No. 7 and directing the bankers of the society not to release money out of its own accounts. On account of such illegal action of the State of Rajasthan through its police department, the petitioner society has been put in such an embarrassing position that it could not pay the salary to its employees and also could not lefund the money to the members. The society as such filed another suit for damages amounting to Rs. 10 crores against the State of Rajasthan and the respondent No. 7 in the Civil Court at Jaipur. The society also moved a petition under Section 482, Cr. P. C. against the orders of the S. H. O. Kotwali, Bharatpur dated 1-2-1974 and this Hon'ble Court quashed the orders of the S. H. O. on 10-1-1979.
(2.) On 9-1-1979 the State of Rajasthan through Joint Registrar, Co-operative Societies, Bharatpur Zone, Bharatpur issued an illegal order purported to have been passed by the said Joint Registrar under the powers of the Central Registrar, Co-operative Societies, New Delhi conferred upon him under the Central Act and the same was handed over to Shri H. C. Kumar, the moment he came out of the court room on 10-1-1979. by this order dated 9th January, 1979 the Joint Registrar by virtue of powers vested in him under Multi Unit Co-operative Societies Act, 1952 read with Section 36 of the Rajasthan Co-operative Societies Act has removed the Board of Management of the society and appointed the Assistant Registrar, Co-operative Societies, Bharatpur as its administrator. The Joint Registrar later passed an order on 11-9-1979 appointing technical Assistant to Joint Registrar, Co-operative Societies, Bbaratpur Zone, Bharatpur as administrator of the society in place of the Assistant Registrar. The petitioner-society by this writ petition has challenged the aforesaid orders dated 9-1-1979 and 11-9-1979 passed by the Joint Registrar, Co-operative Societies, Bbaratpur Zone, Bharatpur. The main grounds of challenge are : that no prior notice was given to the society or its duly elected members of the Board of Management before passing the aforesaid orders as required under Section 36 of the Rajasthan Act. No consultation was ever made to the financing bank of the society as required under Section 36 of the Rajasthan Act. The petitioner-society being an International level Multi-Unit Co-operative Society and to which Uttar Pradesh Cooperative Societies Act, 1965 is applicable along with the Central Act, no order under Section 36 of the Rajastban Act could be passed in respect of the petitioner society. The impugned order dated 9-1-1979 relates to some Praja Sahkari Udyog Bbaratpur Ltd., Bbaratpur and not Praja Sahkari Udyog Ltd., Delhi and thus the order is bad in law. The earlier orders issued under the Rajasthan Act were quashed by the High Court in the earlier writ petition on 25-1-1974 and orders of the S. H O. Police Station, Kotwali, Bharatpur dated 1-2-1974 were quashed by the High Court on 10-1-1979 has inspite of that the impugned order dated 9-1-1979 has been issued, which is in violation of the aforesaid order of the High Court dated 25-1-1974.
(3.) Respondent Nos. 1, 4, 5 and 6 submitted reply to the writ petition. According to the stand taken by the aforesaid respondents, though learned Single Judge of this Court in S. B. Civil Writ Petition No. 1080/72 decided on 25th January, 1974 held that the society was a Multi-Unit Co-operative Society, but this fact is under challerge in Special Appeal No. 67/74 pending against the decision of the learned Single Judge. The society was registered as an Industrial Society under the Rajasthan Co-operative Societies Act, 1965 and it was registered subject to the conditions laid down in the bye-laws as registered with the certificate of registration. The bye-laws registered with registration certificate were never amended nor any certificate for the amendment of bye-laws were ever issued. The amendments sought by the petitioner society were not registered by the statutory authority under the Rajasthan Act for which a detailed procedure is contained under Section 13 of the Rajasthan Act. The action for the adoption of the Uttar Pradesh Co-operative Societies Act, 1965 and the rules made thereunder and shifting of its principal place of business from Bharatpur to Launi (U. P.) is in contravention of the Act and Rules and is denied. The proposed amendment as averred by the petitioner in para No. 2 of the writ petition was received by the Registrar, Cooperative Societies, Rajasthan and the same were sent for comments to Assistant Registrar, Co-operative Societies, Bharatpur and as the Assistant Registrar, Bharatpur returned the papers by hand, to Shri H. C. Kumar who never produced the same to the Registrar, Co-operative Societies, Rajasthan, no furthur action could be taken for the amendment of the bye-laws. It has been further averred that a case under Sections 420 and 468, I. P. C. was registered against Shri H. C. Kumar in which he was challenged. The charges have been framed in that case and trial is pending against Shri H. C. Kumar in a criminal court at Bharatpur. Shri H. C. Kumar filed a Criminal Revision No. 252/79, against the order dated 1-8-1979 passed by the learned Additional Munsiff and Judicial Magistrate No. 1, Bharatpur, but the same was rejected by the High Court on 5-11-1979 vide Annexure R/2.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.