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| HC stays removal of Board of Directors of CC Bank | | | Early Times Report
Jammu, Nov 17: State High Court today stayed the order of removal of Board of Directors of citizen cooperative Bank.
This significant direction has been passed by Justice Bansi Lal Bhat after hearing Adv Abhinav sharma in the petition filed by Board of Directors, Citizens Cooperative Bank and its Chairman Dinesh Gupta challenging the Order No.29-B&F of 2015 dated 17-09-2015 passed by Registrar Cooperative Societies, J and K, Srinagar by virtue whereof Shri Inder Jeet Joint Registrar (Banking and Finance) Cooperative Societies J&K has been appointed as the Administrator to manage the affairs of the Citizens Cooperative Bank Ltd. in absence of elected Board of Directors with direction to make arrangements for constitution of new Committee/Board of Directors through the process of elections.
Justice Bansi Lal Bhat of J&K High Court Jammu Wing after hearing Adv Abhinav sharma appearing for the Board of Directors, observed that J&K Cooperative Societies Act, 1989 (hereinafter referred to as the Act) consolidates and amends the law relating to cooperative societies in the State.
On a plain reading of relevant provisions, it emerges that the final authority in a cooperative society vests in the general body of its members and not the Registrar of Cooperative Societies or the State Government. No doubt cooperative societies including the petitioner Bank are subject to the control of statutory authorities like the Registrar and the government but it cannot be said that the State exercises direct or indirect control over the affairs of the society which is all pervading. The statutory authorities do exercise some powers to regulate and supervise the affairs of a cooperative society but exercise of such powers does not render the cooperative society as an instrumentality of the State. Law laid down by the Hon'ble Apex Court.
Section 29 of the Act speaks of no ambiguity in so far as constitution of a new committee is concerned. It is the statutory obligation of an elected committee enjoying a statutory term of three years to make arrangements for constitution of a new committee by holding elections within 90 days before the expiry of its term. In the instant case, it is not disputed that the previous election was conducted and result was declared by Returning Officer on 18.09.2012 and since the election result is said to have been received by the managing director of the Bank only on 19.09.2012, the elected committee was to continue till 19.09.2015 and it was under statutory obligation to set in motion the electoral process for constitution of a new committee within 90 days before expiry of its term i.e. on or before 19th of June, 2015.
Petitioner claims to have held a board meeting on 16.06.2015 before expiry of its term and resolved to approach the Registrar for holding of elections. Communication dated 16.06.2015 is said to have been addressed to Registrar in this regard. According to petitioner, it was on 25.08.2015 that the Registrar addressed a communication to petitioner conveying that SRO 236 of 2013 had been stayed, steps were being taken for vacation of interim orders and action shall be taken accordingly.
On 16.09.2015, Registrar Cooperatives appears to have addressed a communication to petitioner informing that the management of Bank cannot conduct the elections itself. Thus, Registrar Cooperatives neither permitted the management of Bank to hold elections in terms of mandate of Section 29 of the Act nor did he himself set the electoral process in motion. Instead he passed the impugned order dated 17.09.2015 invoking provision engrafted in Section 29(4) of the Act appointing Administrator of Board of Directors which is assailed through the medium of instant petition on the grounds enumerated therein.
After hearing in length, Justice BL Bhat issued notice to the respondents and in the meanwhile ordered that the operation of impugned order No.29-B&F of 2015 dated 17.09.2015 passed by Registrar Cooperatives shall stay |
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