DHANVANTARI SEVA SAHAKARI MANDALI LIMITED,gadu v. STATE
2002-04-16
J.N.PATEL
body2002
DigiLaw.ai
JAYANT PATEL, J. ( 1 ) ). RULE. Mr. Amit Kotak, learned AGP appears and waives service of rule on behalf of the respondents. ( 2 ) WITH the consent of the parties, the matter is taken up for for final hearing. Heard Mr. Champaneri, learned advocate for the petitioner. ( 3 ) ). The present petition is preferred by the petitioner against the order dated 28/08/2001 passed by the Additional Registrar (Appeal), Cooperative Societies, Gujarat State, Gandhinagar whereby the appeal preferred by the petitioner has been rejected on the ground that no prejudice is caused to the petitioner. Mr. Champaneri, learned advocate for the petitioner submitted that as per Section 109 of the Gujarat Cooperative Societies Act, the members have a right to prefer an appeal. He has further relied upon the judgments of this Court in the case of Apexa Co. Op. Bank Ltd. vs. District Registrar and Ors. [1993 (2) G. L. H. 861] and in the case of Mahasukhlal Nandlal Doshi and Ors. vs. State of Gujarat and Ors. [1993 (2) G. L. H. . 421]. Mr. Champaneri, therefore, submitted that the appeal could not have been dismissed only on the ground that the petitioners are not prejudiced and, hence, the appeal is incompetent. On behalf of the respondents, Mr. Kotak, learned AGP has supported the order passed by the Additional Registrar (Appeal ). ( 4 ) ). Considering the rival submissions of the parties, I am of the view that the law is already settled on this point. In a question of winding up or liquidation of the society, the members cannot be said to be non affected persons. In the decisions of this Court in the case of Apexa Co. Op. Bank Ltd. (Supra) and in the case of Mahasukhlal Nandlal Doshi (Supra), it has been held that the members of the society, whose liquidation is to take place, have a right to be heard. If the members have right to be heard before passing the order, it is certain that they have a right to prefer an appeal. The said aspect is coupled with the provisions of Section 109 of the Gujarat Cooperative Societies Act.
If the members have right to be heard before passing the order, it is certain that they have a right to prefer an appeal. The said aspect is coupled with the provisions of Section 109 of the Gujarat Cooperative Societies Act. This Court is not expressing any opinion as to what should be the meaning of the word `member as contemplated in Section 109 of the Act, more particularly because whether member means the means the members of the managing committee or the member of the society. The said question is kept open. But, suffice it to say that when hearing is read as per the above decisions to the members of the society, there is no reason as to why deprive the members from their right to prefer an appeal. ( 5 ) ). Under the circumstances, the order passed by the appellate authority deserves to be quashed and set aside only on that ground and since the matter is not decided on merits, it will have to be decided by the Appellate Authority on merits. ( 6 ) ). In the result, the impugned order dated 28/08/2001, Annexure-C, passed by the Additional Registrar [appeal] is quashed and set aside with a further direction that the Additional Registrar [appeal] shall take up the appeal for hearing and shall decide the same on merits within a period of three months from the date of copy of receipt of this order after giving an opportunity of hearing to all the concerned. The petition is disposed of accordingly. Rule is made absolute accordingly with no order as to costs. .