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1995 DIGILAW 128 (GAU)

Chariduar Brahmaputra Kholoibil Fishery Co-operative Society Limited, Tezpur v. State of Assam and others

1995-06-22

J.N.SARMA

body1995
Judgement This matter is taken up for disposal at the stage of admission itself as agreed to by both the parties. 2. This application has been filed challenging the legality and validity of the U. T. Message dated 1-4-95 sent by the Department of Co-operation, Government of Assam dissolving/removing the Managing Committee headed by Sri Nandeswar Hazarika, Chairman of the Committee without giving any hearing. The U. T. Message is Annexure-D to the Writ Application and is quoted below. " ANNEXURE-D. FROM-- .---- COOP ASSAM DISPUR AAA TO---- THE ZONAL JOINT REGISTRAR OF COOP SOCIETIES, TZP AAA INFO--.-DEPCOM SONITPUR TZP AAA/ARCOOP TZP AAA NO. COOP 337/77/ PT-1/204 ORDERED ISSUED BY YOUR LETTER NO. ZCTFPP/ 3 /92/71.DT.2/1/ 95 IN RESPECT OF THE CONSTITUTION OF ADHOC MANAGING COMMITTEE HEADED BY SRI NANDESWAR HAZARIKA FOR CHARIDUAR BRAHMAPUTRA ARU KHALOIBILL FISHERY COOP SOCIETY IT IS HEREBY SET ASIDE AND THE MANAGING COMMITTEE CONSTITUTED IN THE GENERAL ASSEMBLY ON 22/5/94 AS APPROVED VIDE ARCS, TEZPUR LETTER NO. COTP /92/512 DT 15/6/94 HEADED BY SRI ANIL DAS IS ALLOWED TO CONTINUE. KLY TAKE IMMEDIATE STEPS ACCORDINGLY AND REPORT COMPLIANCE AAA FOR DEPUTY COMMISSIONER, SONITPUR ONLY AAA REQUEST TO ENSURE PROPER EXAMINATION OF THIS ORDER AAA" 3. On 2/l/95 an Ad Hoc Managing Committee was constituted with Shri Nandeswar Hazarika, that order is quoted below. " Annexure C O R D E R The withdrawal order communicated vide this office letter No. ZCTF/2/3/92/50 dated 29-11-94 is hereby vacated and consequent upon the setting aside of the order of the Asstt. Registrar of Co-op. Societies, Tezpur approving the proceeding of Annual General Meeting of Chariduar Brahmaputra Aru Khaloibeel Fishery Coop. Society Ltd., held on 22/5/94. I, Shri D. K. Sarma, Zonal Joint Registrar, Co-operative Societies, Tezpur in exercising the power Under Section 32(5) of the Assam Co-op. Society Act, 1949 do hereby constitute an ad hoc committee with the following persons to manage the affairs of the society till a new body is elected or formed. The committee will hold the Annual General Meeting of the Society within 90 days from the date of issue of this order. This supersedes the office order No. ZCTF/P/3/ 92/18 dt. 10/11/94; 1. Shri Nandeswar Hazarika - Chairman. 2. Shri Santosh Rajbangshi - Vice-Chairman. 3. Shri Bogiram Das - Member. 4. Shri Rangnunath Das - " 5. Shri Lahiram Hazarika - " 6. Shri Kamal Das - " 7. This supersedes the office order No. ZCTF/P/3/ 92/18 dt. 10/11/94; 1. Shri Nandeswar Hazarika - Chairman. 2. Shri Santosh Rajbangshi - Vice-Chairman. 3. Shri Bogiram Das - Member. 4. Shri Rangnunath Das - " 5. Shri Lahiram Hazarika - " 6. Shri Kamal Das - " 7. Shri Bedal Barman - " This order will come into force with immediate effect. This order is made consequent upon the stay issued by the Honble Asstt. Dist. Judge, Tezpur vide order as intimated by the Government Pleader, Tezpur Court vide letter No. 140/CP/T/94 dated 2nd Jan. 95. Sd/- D. K. Sarmah, Zonal Joint Registrar of Co-op. Societies, Tezpur Zone, Tezpur." 4. On 23/9/94 the following order was passed by the Minister, Co-operation, Assam which is quoted below. "No.Co-op. 337/77/Pt-1/180 dt.23-9-94. Matter relating the affairs of holding of AGM. on 22-5-94 of Chariduar Brahmaputra Khalaibil Min S.S. Ltd., Tezpur, petition submitted by Sri Nandeswar Hazarika and other shareholders. Heard: Registrar of Co-operative Societies Gauhati, Assam, Jt. Registrar (HQ) Guwahati. ORDER Perused petition filed by Sri Nandeswar Hazarika and other shareholders of Brahmaputra Khaloibil Fishery Co-operative S. S. Ltd. Gone through records and report of Zonal JRCS, Tezpur and Honble Guwahati High Court dated 14/9/94 relating to holding of AGM on 22/5/95 and approval of proceeding on 15/16/94 by A.R.C.S. Tezpur. The petitioner present. Petitioner has alleged that the A.G.M. of the Chariduar Brahmaputra Khalibeel Min S. S. Ltd., was held on 22-5-94 and was not conducted according to the spirit of Co-op. Societies Acts and Rules. It is stated that the Agenda item No. 2 was transferred and fixed at eight (8) and agenda item No. 8 was taken up at nine (9) for discussion. Moreover many of the shareholders did not receive notice in time. Petitioners has alleged that some influential persons of the locality with supporters who were not shareholders were also present at the time of Election. Gone through report of JRCS, Tezpur No. ZCTF 3/92/199 dt. 31-8-94. It is clear that Election agenda fixed as second item of agenda was transacted in the 7th item of agenda. It may be mentioned that as per notice 2nd agenda item was election of new Managing Committee member and 7th agenda was for fixing of "maximum credit limit for the Society". 31-8-94. It is clear that Election agenda fixed as second item of agenda was transacted in the 7th item of agenda. It may be mentioned that as per notice 2nd agenda item was election of new Managing Committee member and 7th agenda was for fixing of "maximum credit limit for the Society". Under the above circumstances it is clear beyond reasonable doubt that the A.G.M. and its agenda items were not taken up as per notice issued on 3-5-94 by the Chairman and Secretary of Chariduar Brahmaputra Khaloibeel Min S. S. Ltd., Tezpur, and hence not in the spirit of Co-op. Movement Act/ Rules and other instructions issued from time to time by Government. Therefore, the approval given by A.R.C.S. Tezpur vide his letter No.CDTF 1/92/512 dt. 15-6-94 is not in accordance with the spirit of Co-op. Acts and rules and bad in law; hence rejected and cancelled. The present committee is dissolved forthwith. Zonal JRCS, will depute one Officer to be posed as Executive Officer to manage the affairs of the Society until further order. This disposed of the petition dt. 23-8-94. Sd/- Illegible. 23-8-94" 5. On 22/5/94 the so-called annual general meeting was held for electing the Managing Body of the petitioners Society in which he alleged that large scale of illegalities and irregularities took place. In the said order the earlier Ad hoc Body was shown to have been elected. On 15/6/94 the Assistant Registrar Co-operative Societies approved the said proceeding of the meeting. On 25/7/94 the present Chairman of the Petitioners Society along with other members of the society filed appeal before the Registrar of Co-operative Societies Under Section 80 of the Assam Cooperative Societies Act, 1949. On 3/11/94 both the parties were heard in the appeal. On 7/11/94 the Joint Registrar in exercise of his power delegated by the Registrar, Co-operative Societies passed order setting aside the earlier order dated 15/6/94 of the Assistant Registrar of Co-operative Societies. On 22/ 12/94, the Respondent No. 4 claiming to be the Chairman of the said Society filed a suit in the Court of Sadar Munsiff, Tezpur, being Title Suit No.72/94. The learned Sadar Munsiff passed ad interim injunction. On 2/1/95 an appeal was preferred before the Assistant District Judge being Misc. Appeal No.1/95. The learned Judge admitted the appeal and stayed the order dated 22/12/94 passed by the Sadar Munsiff. The learned Sadar Munsiff passed ad interim injunction. On 2/1/95 an appeal was preferred before the Assistant District Judge being Misc. Appeal No.1/95. The learned Judge admitted the appeal and stayed the order dated 22/12/94 passed by the Sadar Munsiff. On 3/1/95 the present Respondent No. 4 and plaintiff of the aforesaid Title Suit filed a Revision Petition before this Court being Civil Revision No. 4/95. The Civil Revision was disposed of by this Court by remitting the matter to the Appellate Court and fixed it for further hearing. On 6/1/95 the learned Appellate court dismissed the appeal holding that the Trial Court has jurisdiction to pass the order of injunction. A Revision being Civil Revision No. 25/95 was filed by the Zonal Joint Registrar before this Court and this Court quashed both the orders dated 22/12/94 and 11/1/95 and remanded the matter to the trial Court to decide the auction of injunction afresh. The learned Trial Court on 16/2/95 after hearing the parties dismissed the Title Suit No.72/94. Thereafter on 1/14/95 the Respondent No. 1 passed the impugned order by W. T. Message dissolving the Ad hoc Managing Committee and restoring the order dated 15/6/94 which was earlier set aside by the Superior authority on 7/11/94. The prayer to restore the order dated 15/6/94 was rejected by the Civil Court. 6. On 10th of November, 1994 Sri T. C. Khewtri wrote a letter to the Zonal Joint Registrar of Co-operative Society in the matter. That letter is Annexure-10 to the additional affidavit filed on behalf of the petitioner. That letter is quoted below:- "TO : The Zonal Joint Registrar of Co-op. Societies, Tezpur Zone, Tezpur. Dear Sir, With reference to your Memo No. ZCTF 3/92/224 dated 31-10-94 and objections submitted by my clients M/s. Chariduar Brahmaputra Aru Khaloibeel Fishery Co-op. Society Ltd. thereto on 3-11-94, I have to inform you that the matter was reported to the Honble Gauhati High Court by submitting, an application in Civil Rule No. 3927/94 and the Honble High Court has been pleased to make orders on 9-11-94 impleading the Registrar, Co-operative Societies, yourself as also the so-called appellants before you being represented by Sri R. P. Sharma, Advocate as respondents along with State of Assam and it has been directed that the respondents Nos. 2 and 3 i.e. the Registrar and yourself shall not precipitate the matter by making any orders against the petitioner society. The entire matter has been posted to be heard by the Honble High Court on 14-11-94 i.e. the next Monday. A certified copy of the orders of the Honble High Court has been applied for and shall be produced before you in due course. As the Government Advocate, Assam appearing in the case has received notice of the orders of the case as also notice on behalf of the respondents Nos. 2 and 3 i.e. the Registrar and yourself yesterday itself, you may not be pleased to make any orders against my clients and/or implement any orders as might have been passed by you yesterday by making any further orders to give effect to any such order/s as might have been passed against my clients yesterday. Please take notice that the matter being subjudice before the Honble High Court since 26-9-94, no orders contrary to the orders dated 26-9-94 can or could be passed by any authority under the State of Assam inasmuch as order of the State Government quashing the order of Assistant Registrar approving proceedings of annual general meeting dated 22-5-94 has already been stayed. Such order made by the State Government as stayed by the Honble High Court has not yet been passed yesterday against my clients prejudicially affecting the Annual General Meeting proceedings of 22-5-94 as approved by the Assistant Registrar cannot have any effect contrary to the stay orders of the Honble High Court in case any authority under the State Government wants to act in any manner against the orders of the Honble High Court by making similar orders shall be answerable to contempt action for tampering with course of justice. Yours faithfully, Sd/- T. C. Khatri, (T. C. Khatri, Advocate):" 7. On receipt of this letter the Zonal Joint Registrar, Co-operative Society, Tezpur Zone, Tezpur wrote a letter to the Secretary of the Societies. That letter is quoted below:- " Annexure-X2 Sir, I have perused the letter under reference of your pleader, Sri T. C. Khatri, B.A.LL.B., Advocate, and to request you to let me know within what time you will be able to furnish the certified copy of the order of the Honourable High Court, Guwahati, dt. That letter is quoted below:- " Annexure-X2 Sir, I have perused the letter under reference of your pleader, Sri T. C. Khatri, B.A.LL.B., Advocate, and to request you to let me know within what time you will be able to furnish the certified copy of the order of the Honourable High Court, Guwahati, dt. 9-11-94, as stated vide notice of your Advocate Sri T. C. Khatri, B.A.LL.B. kindly furnish your reply at the earliest. Till receipt of the order of the Honourable High Court, Guwahati within the period to be mentioned by you the order passed vide letter No. ZCTF/P/3/92/17 dt. 9-11-94 and ZCTF/ P/3/92/18 dt. 10-11-94 setting aside the order of approval of the Asstt. Registrar of Co-op. Societies, Tezpur and appointment of Deptt. Officer is stayed. Yours faithfully, Sd/- Illegible, 10/11 Zonal Joint Registrar of Co-op. Societies, Tezpur Zone, Tezpur." 8. On 29h November, 1994 the following order was passed which is Annexure-I(ii) to the Affidavit-in-opposition on behalf of Respondent No. 6. "In view of the order of the Honourable Gauhati High Court dated 1511-94 the order passed on 9-11-94 is hereby by withdrawn with immediate effect. " Thereafter on 2-1-95 the following order was passed which is Annexure-II to the Affidavit-in-opposition is quoted below:- " Annexure-II ORDER The withdrawal order communicated vide this office letter No.ZCTF/P/3/92/50 dt.29-11-94 is hereby vacated and consequent upon the setting aside of the order of the Asstt. Registrar of Co-op. Societies, Tezpur approving the proceeding of Annual General Meeting of Chariduar Brahmaputra Aru Khaloibeel Fishery Co-op. Society held on 22-5-94, I Shri D. K. Sarma, Zonal Joint Registrar of Co-op. Societies, Tezpur in exercising the power under Section 32(5) of the Assam Co-op. Society Act, 1949 do hereby constitute an ad hoc Committee with the following persons to manage the affairs of the Society till a new body is elected or formed. The Committee will hold the Annual General Meeting of the Society within 90 days from the date of issue of this order. This supersedes the office order No.ZCTF/P/3/92/18, dt. 10-11-94. 1. Shri Nandeswar Hazarika - Chairman. 2. Shri Santosh Rajbangshi - Vice Chairman. 3. Shri Bogiram Das - Member. 4. Shri Raghunath Das - Member. 5. Shri Lahiram Hazarika - Member. 6. Shri Kamal Das - Member. 7. Shri Badal Barman - Member. This order will come into force with immediate effect. This supersedes the office order No.ZCTF/P/3/92/18, dt. 10-11-94. 1. Shri Nandeswar Hazarika - Chairman. 2. Shri Santosh Rajbangshi - Vice Chairman. 3. Shri Bogiram Das - Member. 4. Shri Raghunath Das - Member. 5. Shri Lahiram Hazarika - Member. 6. Shri Kamal Das - Member. 7. Shri Badal Barman - Member. This order will come into force with immediate effect. This order is made consequent upon the stay issued by the Honble Asstt. Dist. Judge, Tezpur vide order as intimated by the Govt. Pleader, Tezpur Court vide letter No. 140/GP(T)/94. Dated 2nd Jan 95- Sd/- D. K. Sarmah, Zonal Joint Registrar of Co-op: Societies, Tezpur Zone, Tezpur." 7. It was this ad hoc managing committee which was dissolved by the impugned order. 8. I have heard Sri A. M. Mazumdar, learned Advocate for the petitioner and Sri D.N. Choudhury, the Govt, produced the records in its entirety. Learned Advocate for the Respondents. Sri Mazumdar submits as follows:- That the order dated 1-4-95 setting aside the judgment and order passed by the Zonal Joint Registrar is without authority of law, that order amounts to scrutinizing the judgment of the Civil Court, that the order dated 1-4-95 was passed without giving a hearing to the petitioner. On the other hand Sri Choudhury submits that the order passed on 1-4-95 is legal and proper. I have perused the records produced. 9. The power to constitute an ad hoc Body is exercised by the authority under Section 32(5) of the Assam Co-operative Society Act, 1949. The settled position of law is that when the authority has the power to appoint an ad hoc Managing Committee, it has also the power to remove such an ad hoc Managing Committee. On that ground the order passed on 1-4-95 cannot be assailed. The order dated 1-4-95 is an order by the State Government. The State Government cannot exercise this power under Section 80(3) of the Act. That section is quoted below:- "Section 80(3):- Save as provided in this Act or rules no appeal shall lie to the (State) Government against any order of the Registrar, except on a question of law, and provided such appeal is preferred within two months of the communication of such order." 10. On 14-2-95 an application was filed before the Honble Minister of Assam, Cooperation and this is not by way of appeal. On 14-2-95 an application was filed before the Honble Minister of Assam, Cooperation and this is not by way of appeal. But any way that application was considered by the State Government in passing the impugned order dated 1-4-95. But a bare perusal of the application which is available at Annexure-5 to the Affidavit in opposition of Respondent No. 6 will show that no question of law what-so-ever was raised in that application. The State Government will get the jurisdiction only when a question of law is raised. It is settled law that if the appeal does not involve any question of law or is preferred from 2 months of the communication of the impugned order, the appeal is incompetent. A pure question of fact considered or to be considered by the Registrar is not available for consideration in an appeal under Section 80(3) of the Act 1974 AIR 327 - Abdul Karim v. Abdul Latif (sic). Further the admitted position is that at the time of disposal of the appeal and at the time of passing the impugned order no hearing was given to the petitioner. So this order is also in flagrant violation of the principle of natural justice. 11. Rules and provisions of the Act for management of the Co-operative Society are made for the proper, smooth and efficient management of the Co-operative Societies. They cannot be utilised as a bee line to come to the Court or approach the Appellate Forum Against each and every decision of the authority. To show that in the so-called appeal dated 14-2-93 no question of law was raised will be evident from the whole of the petition by one Sri Anil Das which is quoted below:- "Sir, Most respectfully it is submitted that- 1. On 22-5-94 the Annual General Meeting of the Society was held and the Meeting elected a Managing Committee for 1994-95 year. The said Committee was approved by the Assistant Registrar as per his letter No.VDTR. 1/92/812 dated 15-6-94. 2. On 23-9-94 the Honble Co-operation Minister dissolved the managing committee. However, the Honble Gauhati High Court by its order dated 26-9-94 stayed the dissolution order until further orders. 3. The said Committee was approved by the Assistant Registrar as per his letter No.VDTR. 1/92/812 dated 15-6-94. 2. On 23-9-94 the Honble Co-operation Minister dissolved the managing committee. However, the Honble Gauhati High Court by its order dated 26-9-94 stayed the dissolution order until further orders. 3. While the case was pending before the Honble High Court, order dated 23-9-94 of the Honble Co-operation Minister was withdrawn by order dated 29-10-94 and the Honble Gauhati High Court by its order dated 19-12-94 on the basis of order dated 29-10-94 disposed of the case pending before it. 4. That while the case was pending before the Honble High Court, the Honble Minister forwarded an application submitted to him for disposal by the Registrar. Though no appeal petition was found by the office of the Registrar to have been filed earlier as claimed by the applicants, the Registrar by his letter No. GP63/79/Pt-III/77 dated 25-10-94 sent the matter for disposal to the Zonal Joint Registrar, Tezpur. Thus on the basis of an imaginary appeal petition in spite of the time for appeal having already expired and though the case on the same subject matter was pending before the Honble High Court, the Zonal Joint Registrar look hearing on 7-11-94 and made order dated 9-11-94, that was communicated to the Society on 10-11-94, thereby cancelling and setting aside approval of the election of Managing Committee and on 10-11-94 an Officer of the Government was appointed to act as one-man Managing Committee. 5. This matter having been brought to the notice of the Honble High Court, the Zonal Joint Registrar by letter No. XCTF/P/3/ 92/20 dated 10-11-94 kept in abeyance orders contained in Memo Nos. ZCTF/ P/ 3/92/17 dated 9-11-92 and No. ZCTF/ P/3/92/18 dated 10-11-94. Thereafter by an order dated 29-11-94 by Memo No. SZTF/P/3/92 in accordance with the orders of the Honble High Court dated 15-11-94, the orders contained in Memo No. ZCTF/P/3/ 92/17 dated 9-11-94 was withdrawn. 6. Subsequent thereafter during the pendency of Civil Suit at Subordinate Court, on the basis of an ex parte stay order obtained by the Zonal Joint Registrar from Appellate Court of Asstt. District Judge, the said authority on the same day made order contained in Memo No. ZCTF/ P/3/92/71 constituting a seven-men ad hoc Committee. 6. Subsequent thereafter during the pendency of Civil Suit at Subordinate Court, on the basis of an ex parte stay order obtained by the Zonal Joint Registrar from Appellate Court of Asstt. District Judge, the said authority on the same day made order contained in Memo No. ZCTF/ P/3/92/71 constituting a seven-men ad hoc Committee. This Committee on the same day after the office staff of the Society left the office, after close of working hours locked the office premises, thus completely stopping the working of the society. On 19-1-95 after getting orders of the Court only it could be possible to start work of the society after complete closure of 17 days. 7. While these matters are subject matter of litigation before the Subordinate Courts and the Honble High Court, the ad hoc Committee men and their associates and musclemen have been collecting and converting the revenue of the society contrary to the terms of Fishery Mahal. They have been engaged in looting at ghats. Most unfortunately the local administration and the police are aiding and abetting the offensive acts of the ad hoc committee men which is for what peace and tranquillity has been disturbed to an unbearable extent. As a result of this, there has been heavy loss of Government revenue. An established co-operative society has thus been led to the path of distruction. 8. Though the Annual General Meeting of the Society was held on 22-5-94 in the presence of independent departmental observers in accordance with the rules and bye-laws and though the Managing Committee of the Society was duly elected in democratic manner and though the managing committee so elected has been managing the affairs of the society so long, while only a few days are left of the co-operative year, the small group of vested persons who have been rejected by the shareholders of the society at elections in the past and who do not have the support of the majority of the share-holders of the society, have been constituted an ad hoc managing committee in a most illegal and unjustified manner overlooking wider interest of the society and the co-operative movement. When the situation is such that the cooperative movement and a Fishery Co-operative Society have been breathing their last to die, justice from your High Office has become all the more necessary and expedient. When the situation is such that the cooperative movement and a Fishery Co-operative Society have been breathing their last to die, justice from your High Office has become all the more necessary and expedient. Therefore, when the co-operative year is going to expire and a new managing committee is due to be constituted by election at the Annual General Meeting of the Society, I most humbly request and pray to you that the order contained in Memo No. ZCTF/P/3/ 92/71 dated 2-1-95 of the Zonal Joint Registrar, Co-operative Societies, Tezpur, constituting the ad hoc committee may kindly be set aside and/or cancelled looking to the wider public interest and the duly elected Managing Committee having been democratically managing the affairs of the society so far may be permitted to convene and hold the Annual General Meeting of the Society in accordance with law. And for this act of grace duty bound as in we shall ever pray. Yours faithfully, Sd/- Anil Das, dt. 14-2-95, Chairman, Charidhuar Brahmaputra Aru Khaloi bil Fishery Co-op. Society Ltd., Tezpur. 12. It was the finding of the Minister, Cooperation, Assam in the order dated 23-3-94 inter alia, as follows: "Under the above circumstances it is clear beyond reasonable doubt that the A.G.M. and its agenda items were not taken-up as per notice issued on 3-5-94 by the Chairman and Secretary of Chariduar Brahmaputra Khaloibil Min S. S. Ltd., Tezpur, and hence not in the sprit of Co-op. Movement Act/Rules and other instructions issued from time to time by Government. Therefore, the approval given by A.R.C.S. Tezpur vide his letter No. CDTP. 1/92/512, dt. 15-6-94 is not in accordance with the spirit of Co-op. Acts and Rules and bad in law; hence rejected and cancelled. The present committee is dessolved forthwith." 13. On the face of this finding by the Minister, it is not understood how the order dated 1-4-95 can be passed by the Government again. There is no power of review nor it has been provided in the Act and the earlier order which was holding the field cannot be reviewed by the Government. The power of review has been given only to the Registrar by Section 80(2) of the Act and that power has not been vested on the State Government. So, it has no power to review the earlier order passed by it. The power of review has been given only to the Registrar by Section 80(2) of the Act and that power has not been vested on the State Government. So, it has no power to review the earlier order passed by it. Accordingly I find as follows:- (i) The appeal dated 14-2-95 filed before the Minister Co-operation by Respondent No. 6 was incompetent as it did not involve any question of law as required under Section 80(3) of the Act. (ii) The order dated 1-4-95 was passed without giving a hearing to the petitioner and as such violative of the principle of natural justice. (iii)The State Government had no authority and or power to review its earlier order as the State Government has not been conferred any power to review its earlier order. Accordingly this Writ Application is allowed. The order dated 1-4-95 (Annexure-D to the Writ Application) quoted above shall stand quashed. 14. I leave the parties to bear their own costs. Application allowed.