Siwani Cooperative House Building Society Ltd. Siwani District Bhiwani v. State of Haryana
2001-05-11
MEHTAB S.GILL
body2001
DigiLaw.ai
JUDGMENT Mehtab S. Gill, J. - The petitioner, in this Civil Writ Petition filed under Articles 226/227 of the Constitution of India, clamours for a writ in the nature of Certiorari for quashing order dated 16.9.1999 passed by the Assistant Registrar, Co-operative Societies, Bhiwani (Annexure P4). 2. The brief facts on which this writ petition is founded are epitomized as under :- There are about 10 Co-operative House Building Societies at Siwani registered under the Haryana Co-operative Societies Act, 1984 (hereinafter referred to as the Act), the main object of which is to give loans to their members to build houses. The Societies are further members of the Haryana State Co-operative Housing Federation Limited (hereinafter referred to as the Federation). The loanee at the time of taking loan mortgages his plot in favour of the Society which further mortgages the said plot in favour of the Federation. 3. The Assistant Registrar, Co-operative Societies, Bhiwani, respondent No. 3, issued notice to the petitioner-Society under Section 14 of the Act proposing to amalgamate the same in the Haryana Co-operative Housing Building Society Limited, Siwani (hereinafter referred to as the Society). The petitioner-Society filed objections. The respondent No. 3, without considering and discussing the reply of the petitioner-Society ordered the amalgamation of the petitioner-Society in the Society vide order dated 16.9.1999, primarily in view of the instructions of the Registrar, Co-operative Societies, Haryana dated 16.6.1997. The petitioner has averred that according to provisions contained in Section 14 of the Act, a Society can be amalgamated if the same is in the interest of Co-operative Societies and that, too, after consulting the financial institutions, whereas in the instant case, there was no consultation. It has been further averred that the Assistant Registrar, respondent No. 3 was required to pass the order independently if at all he had thought proper to pass the impugned order and not in view of the instructions of the Registrar. Further, Section 14(2) provides that no order shall be made unless a copy of the proposed order is sent to the Society or each of the concerned societies requiring them to file objections. No such proposed order was served by the respondent No. 3 on the petitioner-Society. The petitioner has also reproduced Sections 13 and 14 of the Act in the writ petition. Sections 11(1)(2)(3) and 14(2) which have a direct bearing on this case are reproduced hereunder :- "13.
No such proposed order was served by the respondent No. 3 on the petitioner-Society. The petitioner has also reproduced Sections 13 and 14 of the Act in the writ petition. Sections 11(1)(2)(3) and 14(2) which have a direct bearing on this case are reproduced hereunder :- "13. Amalgamation, transfer of assets and liabilities and division of cooperative societies :- (1) a Co-operative Societies may with the previous approval of the Registrar and by a resolution passed by a two-third majority of the members present and voting at a general meeting of the Society., ------ (a) transfer its assets and liabilities in whole or in part to any other co- operative societies. (b) divide itself into two or more co-operative societies. (2) Any two or more cooperative societies may, with the previous approval of the Registrar and by a resolution passed by a two-third majority of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new cooperative society. (3) The resolution of a cooperative society under sub-section (1) or sub- section (2) shall contain all particulars of transfer, division or amalgamation, as the case may be. (4) XX XXX XXX (5) XX XXX XXX (6) XX XXX XXX (7) XX XXX XXX 14. Compulsory amalgamation :- (1) XX XXX XXX (2) No order shall be made under this section, unless- (i) a copy of the proposed order has been sent to the society or each of the concerned societies requiring them to file objections or suggestions on the proposed order within 15 days from the date of its receipt; (ii) The Registrar has considered all objections or suggestions received from such societies or members or creditors thereof, and has made such modifications in the proposed order as he may deem proper; (iii) every member or creditor of each of the societies to be amalgamated, who has objected to the scheme of amalgamation, shall be entitled to receive within the period specified in the order of amalgamation his share or interest if he be a member, and the amount in satisfaction of his dues if he be a creditor; (iv) the order referred to in sub-section (1) may contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation." 5. The respondent Nos.
The respondent Nos. 1 to 3 filed their written statement opposing the claim of the petitioner. It has been averred that the procedure for the amalgamation of the House Building Society was adopted at State level under Section 14 of the Act in the light of direction of departmental policy framed vide letter dated 16.6.1997. The necessity for framing policy was felt when it was noticed that so many Societies for the similar purpose in a single town were not functioning according to the norms, procedures and objectives framed by the department from time to time. The working of the Societies was irregular and faulty. The Managing Committees of the Societies are often dominated by a group of property dealers which is against the principles and philosophy of the Co-operative Societies according to which all middle men are to be removed and the welfare of the individual members is to be safeguarded collectively. The Societies were working against the provisions of Sections 47, 48 and 49 of the Act. The proposed order was sent to the petitioner- Society which filed objections against amalgamation and the same were rejected after due and careful consideration. It has been further pleaded that the order of amalgamation passed by respondent No. 1 is according to Act which provides that if the Registrar is satisfied that it is essential and desirable in the interest of Co-operative Society, one or more Co-operative Societies can be amalgamated in any other Co-operative Society. 6. I have heard Mr. G.S. Sandhu, Advocate for the petitioner and Mr. Sanjiv Dahiya, AAG Haryana for respondent Nos. 1 to 3 and carefully perused the entire paper book. 7. At the very outset, the counsel for the petitioner has drawn my attention to the decision rendered in Civil Writ Petition No. 6812 of 2000 in which the same facts and interpretation of provisions of Section 13 and 14 were involved. This court, after elaborate discussion of facts and the law on the point quashed the impugned order in that writ petition, vide order dated 20.3.2001. 8. I have carefully perused the judgment in Civil Writ Petition No. 6812 of 2000. The learned APP appearing for respondent Nos. 1 to 3 was asked to highlight any distinction between the two cases but he has not been able to differentiate the facts of both the cases. The facts in the two cases are akin.
8. I have carefully perused the judgment in Civil Writ Petition No. 6812 of 2000. The learned APP appearing for respondent Nos. 1 to 3 was asked to highlight any distinction between the two cases but he has not been able to differentiate the facts of both the cases. The facts in the two cases are akin. I find no reason to take a view different than the one already taken in Civil Writ petition No. 6812 of 2000. 9. In the light of above discussion, this writ petition is allowed. The impugned order dated 16.9.1999 (Annexure P4), passed by the Assistant Registrar, Co-operative Societies, Bhiwani (respondent No. 3) qua the petitioner-Society is quashed. The Assistant Registrar Co-operative Societies is at liberty to start the proceedings de-novo, according to the provisions laid down in the Haryana Co-operative Societies Act, 1984. However, parties are left to bear their own costs. Petition allowed.