PRAKASH KUMAR MOHAPATRA v. URBAN CO-OPERATIVE BANK LTD.
2008-09-16
B.P.DAS, R.N.BISWAL
body2008
DigiLaw.ai
JUDGMENT : B.P. Das, J. - The Petitioner, who was working as Branch Manager, Planning and Development in the Urban Co-operative Bank Ltd., Cuttack, which is registered as a Society under the Orissa Cooperative Societies Act, 1962, has filed this writ petition challenging the order dated 17.12.2007 passed by the Chief Executive Officer of the Bank, O.P.l, suspending him from service and fixing his headquarters at Jajpur Town Branch during suspension on the ground that the Chief Executive Officer is not empowered to pass such an order of suspension. 2. In course of hearing, Mr. B.R.Sarangi, Learned Counsel for the Bank, submits that the Chief Executive Officer has not passed the order of suspension of the Petitioner but it is the Management of the Bank, which decided to put the Petitioner under suspension and such decision has been communicated to the Petitioner by the Chief Executive Officer under Annexure-9. 3. Mr. Mohanty, Learned Counsel for the Petitioner, submits that the Committee of Management of the Bank has been dissolved by now and it is managed by the President being nominated by the Registrar of Co-operative Societies in exercise of his power u/s 28(2)(g)(ii) of the Orissa Co-operative Societies Act, 1962 (hereinafter, 'the Act'). Mr. Mohanty further raises a question that u/s 28(2)(g)(ii) of the Act, there is No. provision to nominate one person as President to function as the Committee of Management of the Society. So when the very nomination of the Committee is illegal, all the actions taken by such Committee of Management including the suspension of the Petitioner are also illegal. In order to substantiate his stand, Learned Counsel for the Petitioner in course of hearing produces a notification dated 27.9.2006 issued by the Registrar, Co-operative Societies, which speaks as follows:- In exercise of powers conferred u/s 28 (2)(g)(ii) of the O.C.S. Act, 1962 (Orissa Act 2 of 1963) I Sri Bishnu Mohan Kar, Registrar of Co-operative Societies, Orissa, Bhunbaneswar do hereby nominate the following persons to the Co-operative Societies as noted against the concerned Society as President until further orders or till constitution of the Committee of Management as per provisions of O.C.S. Act. and Rules framed there under whichever is earlier.' By the aforesaid notification, Shri Sajjan Sharma has been nominated as the President of the Bank, i.e., the Society and his name is indicated at serial No. 26.of the list of Presidents. 4.
and Rules framed there under whichever is earlier.' By the aforesaid notification, Shri Sajjan Sharma has been nominated as the President of the Bank, i.e., the Society and his name is indicated at serial No. 26.of the list of Presidents. 4. By order dated 8.9.2008 we required the Registrar, Cooperative Societies, O.P.2, to file an affidavit indicating whether it is permissible to nominate one person as a Committee exercising power under the provision of Section 28 (2)(g)(ii) of the Act. In pursuance of the aforesaid direction, an affidavit sworn to by Shri Krishna Chandra Mohanty, Registrar of Co-operative Societies, is filed in Court today, wherein it is stated that as per Clause (c) of Section 2 of the Act, "Committee" means the Managing Committee of a society by whatever name called, to which the Management of the affairs of the Society is entrusted. It would be profitable to quote paragraph-3 of the said affidavit, which is relevant for the present purpose:- 3. That it is submitted that the Registrar of Cooperative Societies, Orissa under the provisions contained in Section 28 (2)(g)(ii) of the Act, 1962 has nominated President of the Bank vide Order dated 27.9.2006 to manage the affairs of the Bank. The committee as defined under Clause (c) of Section 2 of the Act, 1962 envisages that the committee means the "Managing Committee" of a society by whatever name called to which the management of the affairs of the society is entrusted. The Registrar in the aforesaid order has nominated the President who steps into shoes of the management to manage the affairs of the society. In the present case, the Registrar has nominated President to manage the affairs of the Bank. The provisions contained in Section 28 (2)(g)(ii) of the Act says that after dissolving the committee, the management of the society shall vest in the Registrar who shall manage the affairs of the society or nominate a committee to manage its affairs till a new committee of management is formed through democratic process. Therefore, as per the provision of the Act the Registrar may manage the affairs of the society himself or through a management nominated by him.
Therefore, as per the provision of the Act the Registrar may manage the affairs of the society himself or through a management nominated by him. The Registrar keeping in view the aforesaid provision of the Act and looking at the practical angle of the matter, in as much as the Registrar cannot handle the affairs of different societies in the state upon vesting, single handedly has nominated the President to manage the affairs of the Bank. 5. For better appreciation, we quote the provision of Section 28(2)(g)(ii) of the Act, 1962. The management of every society, the Committee of which is so dissolved or which so continues to vest in the Registrar, shall vest or, as the case may be, shall so continue to vest in the Registrar, and the Registrar or a Committee nominated by him from amongst the members of the society, or a member society affiliated to it or a society affiliated to such member society, as far as practicable representing the Scheduled Castes, Scheduled Tribes, Other Backward Classes and Women, shall manage the affairs of the society and take all or any policy decision including admission of members in relation to the society till the Committee is constituted in accordance with the provisions of this Act. A bare perusal of the aforesaid provision would show that on dissolution of a committee of the society, its management is to vest in the Registrar and the Registrar or a Committee nominated by him from amongst the members of the Society affiliated to it or a society affiliated to such member society, as indicated therein, shall manage the affairs of the Society. The nomination of the President will come only after the Committee is constituted. Here, the Registrar has not nominated any Committee but straight away nominated the President to manage the affairs of the society, which is against the spirit of Section 28(2)(g)(ii) of the Act. 6. In view of the aforesaid findings, as there is No. valid nomination of the Committee of Management in terms of Section 28 (2)(g)(ii) of the Act, any power exercised by the President purported to have been exercised on behalf of the Committee of Management including the order of suspension passed by the Management of the Bank on 17.12.2007 and communicated by the Chief Executive Officer, vide Annexure-9, is without jurisdiction. So the aforesaid order dated 17.12.2007 in Annexure-9 is quashed. 7.
So the aforesaid order dated 17.12.2007 in Annexure-9 is quashed. 7. The writ petition is accordingly allowed. R.N. Biswal, J. 8. I agree. Final Result : Allowed