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2001 DIGILAW 73 (MAD)

Pondicherry Co-operative Milk Producers, Union Ltd. v. Registrar Of Co-operative Societies, Pondicherry

2001-01-22

E.PADMANABHAN

body2001
Judgment :- The above two contempt applications are complaint and counter-complaints of contempt and in both the contempt applications, this Court had ordered notice to the respondents on 4-1-2000 returnable by eight weeks. As per orders of My Lord, The Hon'ble Chief Justice along with the contempt applications, the above two writ petitions and the connected miscellaneous petitions also were taken up for hearing, besides W.M.P. Nos. 23143 and 23144 of 2000 in W.P. No. 18210 of 1999 filed by the Registrar of Co-operative Societies, Pondicherry, for directions. W.P. No. 18210 of 1999 was filed by G. Navaneetha Kannan praying for the issue of a writ of mandamus to call for the proceedings of the first respondent, the Registrar of Co-operative Societies, Pondicherry in the proceedings No. 5/7/1/31/RCS/DAIRY/99/415 dated 9-11-1999 and quash the same and consequently appoint the respondents to select and appoint the petitioner as Managing Director of the second respondent-Society without reference to the impugned order of the first respondent made in his reference dated 9-11-1999. The said W.P. 18210 of 1999 and W.P. No. 4785 of 1999 filed by M/s. Pondicherry Co-operative Milk Producers' Union represented by its Chairman to call for and quash the orders of the Registrar of Co-operative Societies, Pondicherry, in No. 5/7/1/9/RCS/DAIRY/95/96, dated 4-3-1999 were taken up together. After a detailed hearing this Court by a common order dated 5-5-2000, while dismissing W.P. No. 4785 of 1999, allowed W.P. No. 18210 of 1999 in part, filed by G. Navaneetha Kannan and passed the following orders :- "41. Insofar as the Writ Petition No. 18210/99, this Court while quashing the impugned communication dated 9-11-1999 directs the Pondicherry Co-operative Milk Producers' Union to fill up the office of Managing Director by forming an expert panel as provided in the bye-laws and fill up the same after holding a selection from among the suitable candidates, who apply for the post and it is for the Registrar of Co-operative Societies to issue suitable directions in this respect. It is needless to add that the expert panel has to consider each applicant on merits and according to their qualifications. Necessary applications called for should be forwarded by proper channel. 42. It is needless to add that the expert panel has to consider each applicant on merits and according to their qualifications. Necessary applications called for should be forwarded by proper channel. 42. With the above directions, the Writ Petition No. 18210/99 is allowed in part and it is needless to add that the second respondent-Society shall proceed further to fill up the office of the Managing Director without any further delay. If the second respondent-Society persists in delaying the matter, it is needless to add that the Registrar could take suitable action including an action under Chapter-VIII of the Act, as the Co-operative Union had been successfully avoiding to fill up the office of the Managing Director, despite earlier orders under some pretext or other. The first respondent-Registrar may also issue further directions for the constitution of the expert panel to select and to appoint the Managing Director according to the bye-laws read with the provisions of the Act. 43. The petitioner-Society in W.P. No. 4785/99 is also directed to fill up the office of Managing Director within a period of three months from the date of communication of this order, as per the existing bye-laws. Consequently, the connected WMPs are closed. No costs." This Court had made it clear that the petitioner G. Navaneetha Kannan is not in the feeder category and the post of Managing Director is not a promotional post also and in that view of the matter dismissed the Writ Petition No. 4785 of 1999. Complaining violations of the directions issued by this Court in W.P. No. 18210 of 1999, the writ petitioner therein had filed Contempt Application No. 497 of 2000 to punish the Registrar of Co-operative Societies, Pondicherry as according to the petitioner the said Registrar had committed contempt of the order passed by this Court in W.P. No. 4785 of 1999 dated 5-5-2000. The very same Registrar filed Contempt Application No. 631 of 2000 in W.P. No. 18210 of 1999 to punish P. Damodara Gounder, Chairman of the Pondicherry Co-operative Milk Producers' Union alleging disobedience of the order passed by this Court in W.P. No. 18210 of 1999, dated 5-5-2000. In both the contempt applications this Court had already ordered notice to the respective respondents returnable by eight weeks. In both the contempt applications this Court had already ordered notice to the respective respondents returnable by eight weeks. W.P. No. 12976 of 2000 has been filed by the said Pondicherry Co-operative Milk Producers' Union represented by its Chairman to issue a writ of certiorari calling for the records of the Registrar of the Co-operative Societies, Pondicherry in his office direction under Reference No. 5/7/1/31/RCS/Dairy/99, dated 21-7-2000 and to quash the same. The very same Pondicherry Co-operative Milk Producers' Union had filed W.P. No. 16084 of 2000 praying this Court to issue a writ of certiorari to call for the records of the Registrar of Co-operative Societies, Pondicherry made in his office direction No. 5/7/1/31/RCS/Dairy/99-99 dated 15-9-2000. Pending the W.P. No. 12976 of 2000, the said Pondicherry Co-operative Milk Producers' Union filed W.M.P. No. 18717 of 2000 to stay the directions issued by the Registrar of Co-operative Societies, Pondicherry dated 21-7-2000 which is being challenged in W.P. No. 12976 of 2000. On 31-10-2000, interim stay of the said direction was granted until further orders. In W.M.P. No. 23318 of 2000, the very same Pondicherry Co-operative Milk Producers' Union had prayed for stay of the proceedings of the Registrar of Co-operative Societies, Pondicherry dated 15-9-2000, which is being challenged in W.P. No. 16984 of 2000. W.P. No. 16084 of 2000 had not been admitted so far and today by a separate order this Court admitted the writ petition and ordered issue of rule nisi. In the meanwhile, the Registrar of Co-operative Societies, Pondicherry had taken out W.M.P. Nos. 23143 and 23144 of 2000 in W.P. No. 18210 of 1999 praying this Court to issue direction to the Chairman, Pondicherry Co-operative Milk Producers' Union to constitute an expert panel as provided in the bye-laws afresh and then call for applications for filling up the post of Managing Director of the second respondent-Society in consultation with all the Members of Expert Panel by releasing the advertisement in six newspapers as was done during 1984-85 so as to secure a good response and to act according to the statutory directions issued by the Registrar on 14-8-2000 in the matter of filling up the office of the Managing Director after holding the selection from among the suitable candidates who apply for the post as ordered in terms of para 41 of the order passed by this Court on 5-5-2000 in W.P. No. 18210 of 1999. The very same Registrar of Co-operative Societies, Pondicherry has also filed W.M.P. No. 23144 of 2000 in W.P. No. 18210 of 1999 seeking for a direction to the second respondent-Society, namely the Pondicherry Co-operative Milk Producers' Union to with-hold any selection process scheduled by the second respondent on 18-9-2000 pending further orders of this Court. Heard Mr. G. Rajan for the writ petitioner and Mr. T. Murugesan, Senior Counsel and Mr. Natarajan, Addl. Govt. Pleader for the respondents in W.M.P. Nos. 23318 and 18717 of 2000. Heard Mr. T. Murugesan, learned Senior Counsel and Mr. Natarajan for the petitioner and Mr. Ramajegadeesan for the first respondent and Mr. G. Rajan for the second respondent in W.M.P. Nos. 23143 and 23144 of 2000. On 4-1-2001 forenoon, after hearing the counsel for either side in all the applications and while taking note of the conduct of the Chairman of the Society, Mr. G. Navaneetha Kannan, Managing Director In-charge, and the Registrar of the Co-operative Societies, Pondicherry, this Court with the consent of counsel for either side after apprising respective counsel appearing for either side passed the following order : "Mr. B. Navaneetha Kannan, Managing Director In-charge and the Chairman, Pondicherry Co-operative Milk Producers' Union are restrained by an order of injunction/direction from acting in their respective capacity with respect to the management of the Pondicherry Co-operative Milk Producers' Union. 2. However, Mr. G. Rajan, learned Counsel appearing for the said two, represented that the said B. Navaneetha Kannan, Managing Director In-charge will proceed on leave until further orders and the P. Damodara Gounder, Chairman of the Pondicherry Co-operative Milk Producers' Union shall disassociate himself until further orders with the affairs of the said Union. 3. This Court further direct that a Class-I Officer of the Pondicherry State Service is appointed as Administrator to take over and manage the affairs of the said Co-operative Milk Society and the Board of Directors until further orders to give quietus to all the controversy and see that the office of the Managing Director is filled up according to the rules as it stood as on 5-5-2000, on which date W.P. Nos. 4785 of 1999 and 18210 of 1999 were disposed of. 4785 of 1999 and 18210 of 1999 were disposed of. This Court also directs the said Administrator to act in the place of Board of Directors of the Pondicherry Co-operative Milk Producers' Union and the Administrator shall initiate fresh action to call for applications to fill up the post of Managing Director afresh by giving due publicity and the selection of the Managing Director shall be completed as per the existing bye-laws of the Co-operative Milk Producers' Union as on 5-5-2000 and the elected Board of Directors of the said Co-operative Milk Producers' Union if any shall keep themselves away from the affairs of the said Society till a Managing Director is selected and appointed in terms of the existing bye-laws that was in force as on 5-5-2000 and without reference to the directions issued by the Registrar of Co-operative Societies, Pondicherry or the subsequent directions, if any, ordered by the Registrar of Co-operative Societies, Pondicherry." This Court passed over the applications to get the name of Class-I Officers in the service of the Union Territory of Pondicherry and directed the matter to be taken up at 2.15 p.m., on 4-1-2000. At 2.15 p.m., when the matter was taken up, Mr. T. Murugesan, learned Senior Counsel and Mr. Natarajan, learned Additional Govt. Pleader appearing for the Registrar of Co-operative Societies, Pondicherry were present. They stood by the representation already made in the forenoon. However, Mr. G. Rajan, learned Counsel represented that his clients namely Mr. B. Navaneetha Kannan and the Chairman of the Pondicherry Co-operative Milk Producers' Union have reservations for passing the said order and the same has now been informed to him over phone and, therefore, the earlier consent given by him may be taken as withdrawn. To avoid the unpleasant situation, which Mr. G. Rajan, the learned Counsel may have to face, this Court is passing the following orders on merits and the above are set out only to place on record as to how the earlier hearing proceeded before the Court. Though the above order was dictated, has not been signed. As set out in the order passed in W.P. Nos. 4785 and 18210 of 1999 and as disclosed by the subsequent proceedings of the respondents which are impugned in W.P. Nos. Though the above order was dictated, has not been signed. As set out in the order passed in W.P. Nos. 4785 and 18210 of 1999 and as disclosed by the subsequent proceedings of the respondents which are impugned in W.P. Nos. 12976 of 2000 and 16084 of 2000, it is clear that either parties have contributed for the delay in filling up the post of Managing Director of the Pondicherry Co-operative Milk Producers' Union. The said post is the principal post. The Managing Director is the Principal Officer of the Pondicherry Co-operative Milk Producers' Union and a full time post. For several years the post had not been filled up and the petitioner as well as the Managing Director In-charge G. Navaneetha Kannan from time to time have been taking extreme stand or initiating some proceedings or other for their convenience and own benefit and have successfully delayed the calling for application, selection and appointment to the post of Managing Director. It is unfortunate that the in-charge arrangement is going on for the past several years and much could be said against the petitioner-Union as well as Mr. G. Navaneetha Kannan, the Managing Director In-charge on one side and the Registrar of Co-operative Societies, Pondicherry as well. The conduct of either parties has contributed for a dead-lock and this has also affected not only the day-to-day functions of the said society but also in its election. It is an attempt to avoid the filling up of the key post and the usurper or in-charge arranged plays a key role in the periodical election, which changes the election result and pattern of election of Committee members. Either side is blaming the other and all is not well with either parties. The less said is better. The post of Managing Director should not be kept vacant and a person who had not been appointed regularly shall not be allowed to officiate for years together, nor it is proper for the said in-charge person to manage office and avoid selection and appointment. At the risk of repetition, it has to be pointed out that both the parties have contributed for the said position and as a result of which the interest of the Pondicherry Co-operative Milk Producers' Union and its members have been prejudicially affected. There has been complaints and counter-complaints not only by either side but also by others. At the risk of repetition, it has to be pointed out that both the parties have contributed for the said position and as a result of which the interest of the Pondicherry Co-operative Milk Producers' Union and its members have been prejudicially affected. There has been complaints and counter-complaints not only by either side but also by others. The Registrar also had contributed his mite in delaying proceedings by issuing directions even after the earlier order passed by this Court directing that the post of Managing Director shall be filled up as indicated therein. Vested interest as seen from the proceedings have so far managed and enabled them to cling themselves to the post of Managing Director or control the affairs of the said Pondicherry Co-operative Milk Producers' Union in one capacity or other and this has also reflected in the elections which is impermissible. It is unfortunate that the respondent had also allowed such a course to be adopted and the infight is rather too much to be believed. At any rate the present position is not in the interest of the Pondicherry Co-operative Milk Producers' Union or its Members or shareholders as the case may be. Despite the earlier directions issued by this Court in the W.P. Nos. 4785 and 18210 of 1999, as seen from the facts set out in the affidavit as well as the counter-affidavit filed in the contempt applications, the contribution is more on the part of the petitioner as well as the said Navaneetha Kannan and it is not as if the Registrar of Co-operative Societies also had acted bona fide. In respect of the contempt applications filed by either side, namely the petitioner-Union as well as the Registrar which is a case and counter-case of contempt, this Court has already ordered notice to either side and it will be decided on merits. If the same position is allowed to continue, the interest of the Pondicherry Co-operative Milk Producers' Union, its shareholders, or Members and interest of public will be prejudiced and the deadlock will continue. This will result in further indefinite delay in filling up the post of Managing Director, the key post in the Union, besides this would enable Navaneetha Kannan to continue as the Managing Director In-charge. The counsel for the respondent-Registrar and Administration of Union Territory have accepted the said course, while Mr. This will result in further indefinite delay in filling up the post of Managing Director, the key post in the Union, besides this would enable Navaneetha Kannan to continue as the Managing Director In-charge. The counsel for the respondent-Registrar and Administration of Union Territory have accepted the said course, while Mr. Rajan, the learned Counsel merely represented that the order shall not be based on consent of the petitioners. Hence this order is passed on merits taking into consideration of the Milk Producers' Union, its administration and its members. Normally this Court would not be justified in replacing an elected body. But the conduct of the elected body as well as the Managing Director In-charge for the post is continuing for several years and that of the Registrar are the compelling reasons which prevails with this Court in issuing the present directions at least a full time Managing Director could be selected and appointed as per the existing bye-laws instead of allowing the controversy being continued indefinitely and to the detriment of the Co-operative Milk Producers' Union. In the circumstances, considering the larger interest of the Pondicherry Co-operative Milk Producers' Union, its Members and shareholders, its committee and the larger interest of the Society, this Court is issuing the following directions :- "(i) Mr. Navaneetha Kannan, Managing Director In-charge shall keep himself away from the activities of the Pondicherry Co-operative Milk Producers' Union in any capacity by proceeding on leave until further orders and shall not in any manner interfere whatsoever with the affairs of the Union or the management of the Union by the Administrator appointed by this Court. However, full salary alone shall be paid to him in the substantive post until further order without any other benefit or facility. (ii) The writ petitioner namely the Chairman of the Pondicherry Co-operative Milk Producers' Union and the newly elected Chairman or Board of Director if any, shall also not act in their respective capacity until further orders of this Court and the Administrator appointed by this Court shall act in the place of the Board or Committee or Committees as well as the Managing Director to manage the affairs of the Society and exercise full control, supervision over the affairs of the Pondicherry Co-operative Milk Producers' Union until further orders and the Administrator, shall take all such actions as may be required in the interest of the Society. (iii) The Chief Secretary to the Government of Union Territory of Pondicherry is suo motu impleaded as party to the present writ proceedings so that orders of this Court could be communicated to the Chief Secretary to the Government of Union Territory of Pondicherry and implemented without delay. (iv) Mr. Uddipt Ray, I.A.S., Joint Secretary (Revenue) in the services of the Union Territory of Pondicherry is appointed as the Administrator to manage and administer, control and supervise every affairs of the Pondicherry Co-operative Milk Producers' Union and also exercise all the powers of the Chairman, Board of Directors and Managing Director of the said Union or Committee or Committees or of the Co-operative Union and shall be the sole repository exercising powers until further orders and every employee of the said Union shall be subject to his control and supervision and carry out his orders without any demur, until further orders. The Administrator shall forthwith assume charge and act in terms of this order. (v) Mr. Uddipt Ray, I.A.S., Administrator shall initiate immediate action to fill up the post of Managing Director by inviting fresh applications in terms and as per the bye-laws that existed as on 5-5-2000, the date of order passed by this Court in W.P. Nos. 4785 and 18210 of 1999 and without reference to subsequent alteration or amendment to bye-laws and directions issued by the Registrar of Co-operative Societies, Pondicherry. (vi) On the communication received from the said Administrator appointed by this Court, the National Dairy Development Board, the Government of Pondicherry shall in the level as prescribed in the bye-laws nominate their representatives respectively to be the Committee members and select the Managing Director of the Pondicherry Co-operative Milk Producers' Union without delay and take all steps to fill up the said post. (vii) On behalf of the Society, the Administrator himself shall be one of the Selection Committee member as representing the said Co-operative Milk Producers' Union as its Chairman or Committee and the Administrator shall be the coordinator and the representative of the National Dairy Development Corporation shall be the Chairman of the Selection Committee. (vii) On behalf of the Society, the Administrator himself shall be one of the Selection Committee member as representing the said Co-operative Milk Producers' Union as its Chairman or Committee and the Administrator shall be the coordinator and the representative of the National Dairy Development Corporation shall be the Chairman of the Selection Committee. The majority decision of the Selection Committee shall be final and on the majority decision the candidate selected shall be appointed as Managing Director by the Administrator and the said appointment shall be deemed to have been made as per bye-laws and as one made by the competent authority as per statutory provisions of the Pondicherry Co-operative Societies Act, 1972, its Rules, bye-laws of the Society and Rules governing the post of Managing Director and the Administrator shall hand over charge to the new incumbent within outer limit of four months from the date of communication of this order. (viii) The Registrar of Co-operative Societies, Union Territory of Pondicherry shall not in any manner interfere with the functions of the Administrator or in the selection process and the Chief Secretary to Government of Pondicherry shall render all assistance to the Administrator." It is made clear that this Court will allow the newly elected Board or Committee or its Chairman to assume office only after the completion of selection and appointment of Managing Director and till then, they shall not in any manner interfere with the Administrator or take part or discharge any of the function in that capacity. It is made clear that it is open to the Administrator to seek for further directions, if any, from this Court. Order accordingly.