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| Tribunal set-aside order of RCS, directs restoration of status to Board of Directors prior to impugn | | |
EARLY TIMES REPORT
Jammu, Apr 5: Judicial Member of J&K Special Tribunal A K Shan in a landmark judgment set-aside the order of Registrar Cooperative Societies (RCS) issued on December 21, 2009 superseding Board of Directors of Citizens Cooperative Bank Limited, declared illegal and void as the petitioners have been removed illegally so their status as the Board of Directors of Citizen Cooperative Bank limited existing prior to the impugned order is restored and ordered that the Administrator shall forthwith handover the charge to the petitioner.
Landmark judgment passed in a revision petition filed by Advocate Abhinav Sharma for the Board of Directors Citizen Cooperative Bank Limited through its chairman Dinesh Gupta Vs Registrar Cooperative Societies J&K, Jammu and Managing Director/CEO CC Bank Ltd. In the appeal challenging the order issued by the Registrar Cooperative Society on December 21, 2009 for calling and examining the record of proceedings held by the Registrar Cooperative Societies against the management of Citizen Cooperative Bank Ltd and inspection made under the Cooperative Societies Act 1989 and prayed to allow the present appeal, quashed and set-aside by annulling and revising all the proceedings conducted by the Registrar Cooperative Societies u/s 67 of Cooperative Societies Act 1989, including the impugned dated December 21, 2009. In the appeal it has been submitted that the respondents passed impugned order dated December 21, 2009 purported to be a show cause notice but in essence has all the trappings of an order /s 30 Cooperative Societies Act 1989 in as much as before considering the reply of the petitioner, the Registrar Cooperative Societies virtually disclosed his mind and incorporated a potential threat to supersede the management of the bank headed by its chairman.
Special Tribunal A K Shan while quashing the order of superseding of Board took serious note of the functioning of the Registrar Cooperative Societies and further observed that the conduct of Registrar Cooperative Societies speaks volume about his biased attitude towards the petitioners. He failed to charge one of the enquiry members when malafides were attributed against him by the petitioners. He has even never applied his mind to the effects of his case it is his staff who has been advising him to do this thing and that thing. All the important letters and show cause notice had been drafted by his staff. He has been just putting signatures and approving the proposals of his subordinates. In fact he had to himself from an independent opinion after taking the fact and the law into consideration. The J&K Tribunal questions that had Registrar Cooperative Societies an occasion to go him self through the record and read the relevant provisions of law, he would have reacted differently. So far the objection to the maintainability of petition having been filed by alone by Dinesh Gupta Chairman of dissolved management is concerned it is sufficient to say that as per Section 160 of the Act, Tribunal can Suo-Moto exercise the powers of revision.
The purpose behind this rule of law is to ensure as to whether a legal order has been passed by Registrar Cooperative Societies or any person acting under his authority or not. So the revision petition filed by the Dinesh Gupta alone cannot be said to be non-maintainable. According to the enquires referred, the order superseding the petitioners and the order appointing Divisional Commissioner as Administrator of the Bank are declared illegal and void abinito and set-aside. The petitioners have been removed illegally so there status as the Board of Directors existing prior to the impugned order is restored and the Administrator shall forthwith handover the charge to the petitioners. Advocates DS Chouhan, Abhinav Sharma appeared for the appellant whereas Adv DK Khajuria & AAG AH Qazi appeared for Registrar Cooperative Societies, Law Officer for the Managing Director CC Bank Ltd and Adv Sunil Malhotra appeared for the intervener. --JNF
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