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2013 DIGILAW 740 (JK)

Katra House Building Cooperative Society Ltd. v. Registrar, Cooperative Societies, J&K Jammu

2013-12-23

Madan Lal

body2013
ORDER 1. Learned counsel for the petitioner has preferred the instant revision petition on the grounds that order impugned in the revision is against law and facts of the case. Copy of the impugned order annexed at annexure-A. Petitioner's society was registered under the provision of J&K Society Act under No. JE/House/67 dated 13.11.1986, Society was constituted and registered for the purpose of providing housing loan facility to its member through J&K Cooperative Housing Corporation Ltd. After the registration of the society various members of the society were enrolled and society started transacting its business in accordance with the rules. List of the members of the society enclosed as Annexure-B. Further stated that respondent on his own accord framed a list of cooperation Society which according to the respondents are non-functional and existence on papers only and in this list petitioner's society was also included vide order no. RCS/SS/84 dated 29.11.2008 . Registration of the society has been cancelled and the name of the society is falling at S. No. 10. Impugned order has been challenged on the ground that respondent authority on its own has arrived at a conclusion that petitioner's society is a Sham Society and has not transacted in the business since the date of registration. Further submitted while conducting the survey neither petitioner's society was associated with any such survey nor the petitioner was ever made known of the process being initiated in this regard, yet the conclusions have been arrived at. Further stated that order impugned is otherwise against the principles of natural justice because the petitioner has neither been served any notice nor afforded a reasonable opportunity to explain on its stand u/s 74 of J&K Cooperative Societies Act of 1989 is invoked very sparingly when some complaint is made against particular society in this regard to its functioning but in the instant case there is no such contingency, Yet the registration of the petitioner's society has been cancelled. 2. Further stated that the impugned order has launched the society and its registered members in the ocean of civil consequences against the society can not transact any business and loan advanced to the members can not be recovered. 3. 2. Further stated that the impugned order has launched the society and its registered members in the ocean of civil consequences against the society can not transact any business and loan advanced to the members can not be recovered. 3. Learned counsel for the petitioner has argued that impugned order is bad in the eyes of law because petitioner's society has been not afforded an opportunity of being heard and the impugned order has been passed in contravention of the provision of the section 67 of the Cooperative Society Act. 4. Learned counsel of the petitioner has further argued that even the opening winding up of Section 74 Cooperative Society that if the Registrar, after enquiry has been held under section 67 or an inspection has been made under section 66 or on receipt of an application made by not less than three-fourth of members of a Cooperative Society, is of opinion that the society ought to be wound up, he may issue an order directing it to be wound up. Before issuing such an order the Registrar shall consult the concerned federal society. 5. Learned counsel for the petitioner has also argued that for winding up the Cooperative Societies provision of section 67 for ready reference is reproduced hereunder; 6. The Registrar may of his own motion and shall on the application of a majority of the committee or of not less than one third of the members hold an enquiry, or direct some person authorized by him by order in writing in this behalf to hold enquiry in to the constitution, working and financial condition of a Co-operative Society. 7. I have heard and perused the file as well as record file submitted by the respondent, impugned order does not reveal that before winding up of the petitioner's society has been given a show cause notice of winding up of the society and have been afforded a request or an opportunity of being heard. It is submitted that no body can be condemned unheard even the written reply filed on behalf of the respondent does not mentioned about issuance of show cause notice of purposed action being taken against petitioner herein. It is submitted that no body can be condemned unheard even the written reply filed on behalf of the respondent does not mentioned about issuance of show cause notice of purposed action being taken against petitioner herein. No doubt u/s 74 of the Cooperative Society Act 1989 the Registrar has enfettered powers for opening up of cooperative societies but powers have to be exercised fairly and reasonably before passing the impugned order, it was the duty of the Registrar to satisfy itself about the functioning of the society failure to do so as resulted in miscarriage of justice. 8. Keeping in view the facts of the case and law of the land, revision petition of the petitioner is allowed and order impugned is asset aside with a direction to the Registrar to heard a the petitioner and then pass an appropriate order under law. Petitioner is directed to cause his appearance before Registrar Cooperative Societies at 10.30 AM on _______ . File be consigned to record after due completion and record of the respondent be remitted back with the concerned alongwith a copy of this order.