BIHAR STATE CO OPERATIVE MARKETING UNION LTD Vs. DEPUTY REGISTRAR CO OPERATIVE SOCIETY JUDICIAL

JUDGEMENT

(1.) The petitioner, Bihar State Co-operative Marketing Union. Limited, under Articles 226 and 227 of the Constitution of India, has challenged the validity of the order passed by the Deputy Registrar, Co-operative Societies (Judicial), in Dispute No. 4 of 1969, between Mangal Prasad Verma, (respondent No. 2) and the Marketing Union.

(2.) The petitioner is a Society registered under the Bihar and Orissa Cooperative Societies Act (Bihar Act 6 of 1935), hereinafter to be called "the Act". Mangal Prasad Verma (respondent No. 2) was appointed a Depot Manager under the Bihar State Co-operative Bank Limited in 1949. In 1958 the trading activities of the Co-operative Bank were transferred to the Marketing Union, Consequently the services of respondent No. 2 were transferred to the Marketing Union along with other employees of the Co-operative Bank who were engaged in trading activities. Thereafter respondent No. 2 was posted at Jehanabad as Depot Manager and in the year 1967 he was suspended in terms of the resolution passed by the Board of Directors of the Marketing Union. The suspension order was served on him on the 16th August, 1967, under the signature of the Managing Director of the Marketing Union. The detailed charge relating to heavy shortage in the stock of chemical fertilisers at Jehanabad depot was served upon respondent No. 2 on the 20th of November, 1967. A copy of the chargesheet along with Appendices A to D is Annexure '1' to the writ application. The Managing Director of the Marketing Union by his order dated the 20th of November, 1967, directed respondent No. 2 to submit written statement of his defence to the Enquiring Officer and also asked him to write whether he desired to be heard in person. Respondent No. 2 submitted his explanation in the aforesaid departmental proceedings. The enquiry was conducted by Sri K.K. Ambasth, Chief of Administration and Business of the Union. Sri K. K. Ambasth submitted his enquiry report dated the 23rd September, 1968, to the Managing Director. The Managing Director of the Marketing Union submitted his memorandum dated the 25th March, 1969, to the Board of Directors in which he held that the charges relating to shortage in the years 1961, 1962 and 1964 were not tenable but regarding the shortage of 49,200 Kg of Ammonium Sulphate he held that the Depot Manager clearly committed irregularity and the cost of 22,400 Kg. of Ammonium Sulphate should be recovered from him. The Managing Director recommended that respondent No. 2 should be removed from suspension Subject to the punishment, namely, recovery of the value of 22,400 Kg. of Ammonium Sulphate and severe warning in his personal Character Roll. A copy of the memorandum submitted by the Managing Director to the Board of Directors is Annexure '2' to the writ application. The Managing Director after considering the show cause and the enquiry report passed the impugned order, a copy of which is Annexure '3' to the writ application.

(3.) In order to appreciate the points raised in the case, it is better to quote the whole of the impugned order passed by the Managing Director, which is as follows: