Chhattisgarh Chemist and Druggist Association, Raipur v. State of Chhattisgarh
2012-11-29
SATISH K.AGNIHOTRI
body2012
DigiLaw.ai
ORDER 1. Challenge in this petition is to the order dated 5-4-2010 (Annexure P/1) whereby the appeal against the order dated 7-8-2009, passed by the Registrar, Firms & Societies, has been affirmed and the appeal of the petitioner has been dismissed, and further, the order dated 7-8-2009 (Annexure P/5), passed by the Registrar, Firms & Societies whereby it had directed to inspect the functioning, establishment and financial condition of the petitioner’s association. 2. The facts, in brief, are that the petitioner is a society registered under the provisions of Chhattisgarh Society Registrikarn Adhiniyam, 1973 (for short, ‘the Act, 1973’) having 332 members out of which 7 have been elected for the purpose of Executive Committee. The election of the society was held under the provisions of clause 12 of the bye-laws of the Society and thereafter, an information was sent on 24-7-2009 to the Deputy Registrar, Firms & Societies, in prescribed form with relevant fees, for approval of the election held on 19-7-2009 under Section 27 of the Act, 1973 with a list of the members of Executive Committee. Instead of granting approval, the respondent No.2 passed the impugned order dated 7-8-2009, whereby enquiry officer was appointed under Section 32(1) of the Act, 1973 on the basis of complaints made by Hiranand Bhagwani, Devraj Gurnani, Amar Panjwani, respectively, who were not the member of the petitioner society. Being aggrieved with the said order, the petitioner preferred an appeal before the respondent No. 1 under Section 40 of the Act, 1973, alongwith an application for grant of stay till the final decision of the appeal. The effect and operation of the order dated 7-8-2009 (Annexure P-5) was stayed on 11-11-2009. Subsequently, the appeal was dismissed vide order dated 5-4-2010 (Annexure P/1). 3. Shri Kesharwani, learned counsel appearing for the petitioner would submit that the order dated 7-8-2009 for enquiry under Section 32(1) of the Act, 1973 is contrary to the provisions of the Act, 1973, as the same has been passed without application of mind. The order for enquiry has been passed on the basis of some complaints, therefore, the petitioner ought to have been issued show cause notice or granted opportunity of hearing to put forward its case.
The order for enquiry has been passed on the basis of some complaints, therefore, the petitioner ought to have been issued show cause notice or granted opportunity of hearing to put forward its case. The Deputy Registrar is empowered to exercise the jurisdiction under the relevant provisions and as per the allocation of the business, the Deputy Registrar is the authority to consider the information sent by the society and if any enquiry was to be ordered, it ought to have been done by the Deputy Registrar, and not the Registrar itself. 4. On the other hand, Shri Moorthy, learned Dy. Advocate General, would submit that in the preliminary enquiry held in respect of election held on 19-7-2009, it was found that the period of earlier election has been curtailed and the election was held prior to completion of period. It was also found that the association has not complied with the provisions of section 28 of the Act, 1973, by sending a statement of income and expenditure with full particulars duly audited by its Auditor, audit report and balance sheet of the previous year along with details of all financial activities together with such fees as may be prescribed within ninety days from the date of annual general meeting of the society or from 30th day of April every year where the regulation do not provide for an annual general meeting, before the Registrar after a year 2002. 5. Shri Moorthy, would further submit that the respondent No.2 was not satisfied with the functioning of the petitioner association, therefore, a suo moto action under Section 32(1) of the Act, 1973 was initiated. In the course of enquiry, the petitioner would have full opportunity to put forward its case. Thus, at this stage, the writ petition may be dismissed having no merit. 6. Heard learned counsel appearing for the parties, perused the pleadings and documents appended thereto. 7. The impugned order dated 5-4-2010 (Annexure P-1) was passed by the Special Secretary to the Government, Commerce and Industries Department, in appeal, upholding the order dated 7-8-2009 (Annexure P-5) passed by the Registrar. The respondent No.2, exercising power under Section 32(1) of the Act, 1973, directed initiation of an enquiry under Section 32(3) of the Act, 1973 having taken action suo motu under Section 32(1) of the Act, 1973. 8.
The respondent No.2, exercising power under Section 32(1) of the Act, 1973, directed initiation of an enquiry under Section 32(3) of the Act, 1973 having taken action suo motu under Section 32(1) of the Act, 1973. 8. The contention of the petitioner that no enquiry would have been initiated on the basis of complaint made by Shri Heeranand Bhojwani, Deoraj Gurunani and Amar Panjwani, who were not the members of the petitioner society is not factually correct, as the order dated 7-8-2009, passed by the respondent No.2 clearly indicates that the Registrar, in exercise of his power under Section 32(1) initiated an enquiry suo motu against the petitioner society, under the provisions of Section 32 (3) of the Act, 1973. It is true that the material which was available before the Registrar was on the basis of complaint made by the above-stated persons. However, the decision was not taken on the basis of complaint, but suo motu, on his satisfaction based on the material supplied by them. 9. The impugned order dated 5-4-2010 has been passed after examining all the aspects in detail and the appellate authority has come to the conclusion that the Registrar has initiated action suo motu under provisions of Section 32(1) of the Act, 1973. 10. For ready reference Section 32 is quoted below : 32. Enquiry and settlement of disputes- (1) The Registrar may, on his own motion or on an application made under sub-section (2) either by himself or by a person authorised by him, by order in writing, hold an enquiry into the constitution working and financial conditions of a Society. (2) An enquiry of the nature referred to in sub-section (1) shall be held on the application together with an affidavit in support of its contents of (a) a majority of the members of the governing body of the society; or (b) not less than one-third of the total number of members of the society.
(2) An enquiry of the nature referred to in sub-section (1) shall be held on the application together with an affidavit in support of its contents of (a) a majority of the members of the governing body of the society; or (b) not less than one-third of the total number of members of the society. (3) The Registrar or the person authorised by him under sub-section (1) shall for the purpose of an enquiry under this section have the following powers, namely : (a) he shall at all times have free access to the books, accounts, documents, securities, cash and other properties belonging to, or in the custody of the society and may summon any person in possession, or responsible for the custody of any such books, accounts, documents, securities, cash or other properties to produce the same, if they relate to the head office of the society at any place at the head quarter thereof and if they relate to any branch of the society, at any place in the town wherein such branch thereof is located or in his own office. (b) he may summon any person whom he has reason to believe has knowledge of any of the affairs of the society to appear before him at any place at the head-quarters of the society or any branch thereof or in his own office and may examine such person on oath; and (c) (i) he may notwithstanding any regulation or bye-law specifying the period of notice for a general meeting of the society, require the officers of the society to call a general meeting of the society at such time at the head office of the society or at any other place at the headquarter of the society and to determine such matters as may be directed by him and where the officers of the society refuse or fail to call such a meeting, he shall have power to call it himself; (ii) any meeting called under sub-clause (i) shall have all the powers of a general meeting called under the regulations or byelaws of the society and its proceedings shall be regulated by such bye-laws. (4) when an inquiry is made under this section the Registrar shall communicate the result of the enquiry to the society and may issue appropriate directions to the society which shall be binding on all parties concerned. 11.
(4) when an inquiry is made under this section the Registrar shall communicate the result of the enquiry to the society and may issue appropriate directions to the society which shall be binding on all parties concerned. 11. So far as the opportunity of hearing before directing enquiry into the affairs of the society is concerned, it cannot be held that affording opportunity of hearing is necessary. Even otherwise, it is a defect as submitted by the petitioner. The same can be raised in the course of enquiry and, as such, there is no reason to take a contrary view that no opportunity of hearing would be afforded to the petitioner in enquiry. The presumptions are that enquiry will be held in transparent, objective and legal manner. Thus, there is no merit in the case at this stage. 12. As an upshot, the writ petition, being devoid of merit, is liable to be and is hereby dismissed. No order as to costs. Petition dismissed.