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1987 DIGILAW 135 (ORI)

BOARD OF MANAGEMENT, ODAGAON WEAVERS CO-OPERATIVE, SOCIETY LTD. v. S. K. LALLA

1987-04-15

D.P.MOHAPATRA, R.C.PATNAIK

body1987
JUDGMENT : R.C. Patnaik, J. - The extra-ordinary jurisdiction of this Court has been invoked for the quashing of the order of suspension dated 15-11-1984 (Annexure-4) passed u/s 32 (7) of the Orissa Co-operative Societies Act, 1962, by the Deputy Director of Textiles-cum-Deputy Registrar of Cooperative Societies (opposite party No. 1). Though arguments and counter arguments were advanced against a larger canvas, in our opinion, the controversy can be resolved on the short question: Whether having regard to the scheme and clear language of Section 32 (7) and Section 32 (1), there can be any dichotomy in the exercise of powers, that is to say, if different authorities can be invested with powers to exercise jurisdiction u/s 32 (1) and 32 (7) ? To simplify, whether the Deputy Registrar of Co-operative Societies can be invested with power to exercise jurisdiction u/s 32 (7) when power to exercise jurisdiction u/s 32 (1) has been invested with an Assistant Registrar of Co-operative Societies. 3. The Petitioners are the Board of Management and the president of Odagaon Weavers Co-operative Society, a primary society. Election of members of the Committee was held on 4-3-1984 and Petitioner No. 2 was elected as its president. Certain alleged irregularities, illegalities and violation of the provisions of the Act, Rules etc., were brought to the notice of the society and it submitted explanation. However, it is not necessary having regard to the question formulated above, to lengthen this judgment by adverting to the allegations and counter allegations. Suffice it to say that opposite party No. I, the Deputy Director of Textiles-cum-Deputy Registrar of Co-operative Societies being of the opinion on reports submitted by the Assistant Director of Textiles-cum-Assistant Registrar of Co-operative Societies and the Deputy Director of Textiles that the Board of Management was found negligent in performance of its duties and, therefore, should not be allowed to continue further in public interest, suspended the committee of management u/s 32 (7) of the Act exercising powers conferred on him by notification No. Legal 123/81-23648/ AC (C) dated 4-11-1982. 4. It has been contended that having regard to the scheme of Section 32 and the express provision contained therein, two different authorities cannot be invested with powers to exercise powers u/s 32 (1) and Section 32 (7). 4. It has been contended that having regard to the scheme of Section 32 and the express provision contained therein, two different authorities cannot be invested with powers to exercise powers u/s 32 (1) and Section 32 (7). It is contended that the very same authority which contemplates or initiates action under Sub-section (1) of Section 32 can alone exercise powers under Sub-section (7) of Section 32. From the standpoint of logic and commonsense, this argument appears to be attractive. But we have to see if the aforesaid contention is countenanced by law. What is the scheme u/s 32 ? Before we analyse this position, we quote the notification dated 4-11-1932: Government of Orissa, Agriculture & Co-operation (Co-op.) Department. ORDER No. Legal-123/81-23646/AC (C), dated 4-11-1982. In exercise of the powers conferred by Sub-section (2) of Section 3 of the Orissa Co-operative Societies Act, 1962 (Orissa Act 2 of 1963) the State Government do hereby confer on the officers specified in column (2) of the Schedule given below who are appointed as officers to assist the Registrar by notification of the Government of Orissa in Agriculture and Co-operation (Co-operation) Department No. 23631/ AC (C) dated 3-11-1982 the powers of the Registrar specified respectively against each in column (3) thereof to be exercised within such local limits as may be assigned by the Registrar. SCHEDULES S1. No. Designation of Officers. Name of the sections and Rules under the Orissa Co-operative Societies Act 1962 (Orissa Act 2 of 1963) and Rules made thereunder. Remarks 1 2 3 4 xx xx xx xx 11. Deputy Director of Textiles. (a) (i) Sections 6 (1) 7, 8, 10 (2), 12, 14, 28 30, 33, 35 (3), 63, 64 65,66,67,68, 70, 72 73, 75, 76, 77, 102, 103,104,105,106 (1) (b), 108, 114,116 (2) 120, 121 (2), 127 (ii) Section 32 provided that the powers under sub-section (7) is con- ferred in respect of societies other than Apex and Central Societies within his administrative control. (b) Rules-7, 9,10,13, 14-A 16 (2) (i),17, 18, 25,31, 32,33 (d), 35,42, 49, 54 (l) (b),67, 70, 81, 84, 86, 87, 90, 91, 93, 139 (3),139 (6) 144.156. (b) Rules-7, 9,10,13, 14-A 16 (2) (i),17, 18, 25,31, 32,33 (d), 35,42, 49, 54 (l) (b),67, 70, 81, 84, 86, 87, 90, 91, 93, 139 (3),139 (6) 144.156. In cases the matter relates to society with his administrative control provided that where the matter concer two or more societies or which one is not within his administrative control, the powers under these section and Rules sha be exercised b the officers of the regular of operative 12. Assistant Director of Textiles (a) Sections-6 (l), 7, 8, 10 (2), 12,14, 28, 30, 32, (except sub-section (7), 33, 35 (3), -63, 64, 65, 66, 67, 68, 70, 72, 73, 75, 76, 77, 102, 103, 104, 105, 106 (b) 108, 114, 116 (2),120, 127. (b) Rules-7, 9, 10, 13, 14, 14 (A), 15 (2) (i), 17, 18, 25, 31, 32, 35, 41, 42, 54 (1), (b), 67, 70, 81,84, 85,87,90, 91. 93, 139 (3), 139 (6), 144, 156. In cases where the matter relates to a society within his administra- tive control provided that where the matter concern to two or more societies of which one is not within his administrative control, the power under these sections and rules shall be exercised by the officers of the regular co- operative Department. xx xx xx xx By notification dated 3-11-1982 of the Co-operative Department, Deputy Directors of Co-operative Societies were appointed as Deputy Registrars and Assistant Registrars of Co-operative Societies respectively. By notification dated 4-11-1982, referred to above, the following powers amongst others were cenferred on the Deputy Directors and Assistant Directors of Textiles; (a) Deputy Director of Textiles: (a) (ii) Section 32 (Provided that the powers under Sub-section (7) is conferred in respect of societies other than Apex and Central Societies within his administrative control. (b) Assistant Director of Textiles: (a).......32 (except Sub-section (7). That is to say by virtue of the notification all matters relating to supersession including power to initiate supersession proceeding under Sub-section (1) of Section 32 can be taken by the Assistant Director of Textiles but the power of suspension was expressly conferred on the Deputy Director of Textiles. This is also the stand of the opposite parties in the counter affidavit, vide paragraph-10. This is also the stand of the opposite parties in the counter affidavit, vide paragraph-10. S. Section 32 reads as under: 32, Supersession of Committee and power to disqualify officers of the society (1) If in the opinion of the Registrar, the Committee of any society persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or the by-laws, or commit any act which is prejudicial to the interest of the society or its members, or is otherwise not functioning properly the Registrar may, after giving the Committee an opportunity to state its objections, if any, within twenty-one days from the date of service of the notice issued in that behalf, by order in writing stating reasons therefor remove the Committee, and appoint (a) a new Committee consisting of not less than three and not more than five members of the society in its place, (b) one or more Administrators who, need not be members of the society, or (c) any other society with its consent, to manage the affairs of the society for a period not exceeding two years as may be specified in the order and the said period may, at the discretion of the Registrar, be extended from time to time, so however that the aggregate period does not exceed four years: Provided that, for any sufficient cause to be recorded, the Registrar may, in any case extend the aforesaid period of twenty one days so however that the total period does not exceed thirty days from the date of service of the notice. (2) The Committee or the Administrator or Administrators, or the society so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the committee or of any office or the society and take all such actions as may be expedient in the interests of the society and shall be deemed for all purposes of this Act and the rules and byelaws to be the Committee M such society. (3) The Committee or Administrators or the society shall, at the expiry of its or their term of office, arrange for the constitution of a new Committee in accordance with the byelaws of the society. (3) The Committee or Administrators or the society shall, at the expiry of its or their term of office, arrange for the constitution of a new Committee in accordance with the byelaws of the society. (4) Before taking any action under Sub-section (1) in respect of a society, the Registrar shall consult the financing Bank to which it is indebted and consider the opinion received from such Bank; . Provided that where no opinion is received from such Bank within a period of thirty days from the date of reference by the Registrar it shall be deemed that such Bank has agreed to the action proposed to be taken by the Registrar under Sub-section (1). (5) If the Registrar while making an order under Sub-section (1), is of the opinion that any past or present officer of the society has been party to or responsible for the mismanagement thereof or has failed to perform any duty lawfully assigned to him, he may, by order in writing after giving such officer an opportunity to state his objection disqualify him from being a member of a Committee in respect of the society for a period not exceeding three years to be specified in the order and every order made under this Sub-section shall state the reasons for which it is made and shall be communicated to the society and in the officer concerned. (6) In cases where the Registrar makes an appointment under Clause (b) or (c) of Sub-section (1) he may, by the order made under that Sub-section fix the remuneration to be paid to the Administrator or the society, as the case may be, and the remuneration so fixed shall be paid from out of the funds of the society whose affairs are managed by such Administrator or society. (7) Notwithstanding anything contained in this section, if, in the opinion of the Registrar, the Committee of any society is acting in a manner prejudicial to the interests of the society or its members, or has committed such serious irregularities or illegalities that further continuance of the Committee would be detrimental to the interests of the Society, the Registrar may, at any time before or after giving opportunity to such Committee to state objections as required under Sub-section (1), suspend the Committee and make such arrangements as he thinks proper for the management of the affairs of the society during the period of suspension of the Committee; Provided that if the Committee so suspended is reinstated the period of suspension shall count towards its term. (8) Notwithstanding anything contained in this section, if, in the opinion of the Registrar any member of the Committee of a society, delegated or entrusted with any of the powers or responsibilities of such Committee, persist ently makes default or is negligent in exercise of powers or in discharge of responsibilities, or commits any act prejudicial to the interests of the society or its members, the Registrar, may,after giving an opportunity to state his objections if any by order in writing stating reasons therefor, remove him from office. Though there is a Registrar of the Co-operative Societies for the State as provided in Section 3, any other officer may be invested with the powers of Registrar. So when Section 32 says ?Registrar? it would mean ?the Registrar? or such officer who has been invested with the powers of the Registrar. Having regard to the language used in Sub-sections (1), (4), (5) and (6), the ?Registrar? in the said Sub-sections means ?the Registrar? or the very officer or person who has been invested with the powers under Sub-section (1) and no other. Reference may be made to the following: Section 32. Sub-section (4) - ?Before taking any action under Sub-section (1) in respect of a society the Registrar?. Sub-section (5) - ?If the Registrar while making an order under Sub-section (1)? Sub-section (6) - ?In cases where the Registrar makes an appointment under Clause (b) or (c) of Sub-section (1)..... So far there can be no controversy that the very authority who has initiated the action under Sub-section (1) is the authority for the purpose of Sub-sections (4). (5) and (6). Sub-section (6) - ?In cases where the Registrar makes an appointment under Clause (b) or (c) of Sub-section (1)..... So far there can be no controversy that the very authority who has initiated the action under Sub-section (1) is the authority for the purpose of Sub-sections (4). (5) and (6). Now let us consider if the language used in Sub-section (7) can confer authority to suspend an officer different from the one conferred with authority to take action under Sub-section (1). The pivotal expression is ?the Registrar may, at any time before or after giving opportunity to such committee to state objection as required under Sub-section (1), suspend the committee?. When it is the Registrar of Co-operative Societies, there is no difficulty because it is the same authority under Sub-section (1) as well as Sub-section (7). But where the power has been vested in other officers, the language of Sub-section (7) does not permit vesting power in different authorities. From the language used in Sub-section (7) it follows that Registrar, i.e., the officer invested with powers to exercise power under Sub-section (1) who is enjoined to give notice as the authority empowered under Sub-section (1) to form opinion and to suspend the committee. Any other interpretation would bring about dischotomy. Any other view would require re-drafting of Sub-section (7) to read as ?....the Registrar may at any time before or after opportunity is given to such committee.....? 6. If the contention of the learned Additional Government Advocate is accepted, there might result anomalous situations, for example, in a particular case an officer invested with powers of Registrar under Sub-section (7) might suspend the committee but another authority exercising powers of the Registrar under Sub-section (1) may not be satisfied on those facts and circumstances to initiate action under Sub-section (1). We, therefore, have no hesitation in negativing the contention urged on behalf of the opposite parties that powers under Sub-section (1) and Sub-section (7) can be invested with different persons and authorities. In our view, the person or authority exercising powers under Sub-section (1) or Sub-section (7) has to be the same. We, therefore, have no hesitation in negativing the contention urged on behalf of the opposite parties that powers under Sub-section (1) and Sub-section (7) can be invested with different persons and authorities. In our view, the person or authority exercising powers under Sub-section (1) or Sub-section (7) has to be the same. It, therefore, follows that conferment of authority under Sub-section (7) on the Deputy Director of Textiles-cum-Deputy Registrar Co-operative Societies by notification dated 4-11-1982 (Annexure-B/1) when power under Sub-section (1) is invested with the Assistant Director of Textiles-cum-Assistant Registrar Co-operative Societies is contrary to Sub-section (7) of Section 32 and ultra vires and inoperative. We, therefore, quash the order of suspension dated 5-11-1984 (Annexure-4) as invalid, inoperative and without jurisdiction. The writ application accordingly allowed. There would be no order as to costs. D.P. Mohapatra, J. 7. I agree. Final Result : Allowed