Research › Search › Judgment

Madras High Court · body

2014 DIGILAW 556 (MAD)

Tamil Nadu Circle Postal Co-operative Bank v. Central Registrar of Co-operative Societies

2014-02-28

S.MANIKUMAR

body2014
JUDGMENT 1. Being aggrieved by the proceedings in No.L.11014/20/2013-L&M, dated 02.12.2013 of the Joint Secretary to the Government of India and Central Registrar of Co-operative Societies, passed under Sub-Section (4) of Section 84 of the Multi-State Co-operative Societies Act, 2002, Mr.C.Jankiraman, claiming himself to be the elected President of the Board of Directors of the Tamil Nadu Circle Postal Co-operative Bank Limited, the petitioner herein, has filed this Writ Petition, for a Writ of Certiorarified Mandamus, to quash the above said proceedings and consequently, prayed for a direction to the Central Registrar of Co-operative Societies, Department of Agriculture and Co-operation, Ministry of Agriculture, Government of India, Krishi Bhawan, New Delhi, to initiate statutory proceedings under Section 43(1)(m) r/w Section 47 of the Multi-State Co-operative Societies Act, 2002, for removal of the respondents No.3 to 11, based on the proposal/complaint, dated 23.08.2013, submitted by the petitioner Bank. 2. Among other grounds, the petitioner has contended that under Sub-Section (4) of the Section 84 of the Multi-State Co-operative Societies Act, 2002, the Central Registrar of Co-operative Societies, Department of Agriculture and Co-operation, Ministry of Agriculture, Government of India, New Delhi, respondent No.1, has no jurisdiction to order for Arbitral proceedings, as there is no dispute between the members of the Society. It is the further contention that such an Arbitral proceeding can be ordered only if there is any dispute in connection with the election of any officer of any Multi-State Co-operative Societies. It is also the contention of the petitioner that a complaint, dated 23.08.2013, has been made to the respondent No.1, to initiate statutory proceedings under Section 43(1)(m) r/w Section 47 of the Multi-State Co-operative Societies Act, against the respondents No.3 to 11, for their consequential removal, but no action has been taken. 3. Reiterating the averments, learned counsel for the petitioner has made his submissions. He further submitted that the alleged removal of the petitioner from the post of President, has not been recognised by the Central Registrar of Co-operative Societies, New Delhi. 4. Heard the learned counsel for the petitioner and perused the material on record. 5. 3. Reiterating the averments, learned counsel for the petitioner has made his submissions. He further submitted that the alleged removal of the petitioner from the post of President, has not been recognised by the Central Registrar of Co-operative Societies, New Delhi. 4. Heard the learned counsel for the petitioner and perused the material on record. 5. Material on record discloses that on the representation, dated nil., received from 9 Directors of the Bank, leveling serious allegations against the action taken/proposed to be taken by the President, the Deputy Director of Co-operative Societies, Office of the Central Registrar of Co-operative Societies, New Delhi, has sent a letter No.11017/33/2012-L&M, dated 25.09.2013, which reads as hereunder: No.11017/33/2012-L&M Government of India Ministry of Agriculture (Department of Agriculture & Co-operation) Krishi Bhavan, New Delhi, 25 September, 2013. To Shri. C. Janaki Raman, President, Tamil Nadu Circle Postal Co-operative Bank Limited, Post Bag No.5026, 18/19, Jehangir Street,(II line Beach) Chennai-600 001. Subject: Dispute among members of Board of Directors in the Tamil Nadu Circle Postal Co-operative Bank – reg. Sir, I am directed to enclose the representation dated nil received from 9 Directors of the Bank leveling serious allegations against the action taken/proposed to be taken by the President regarding membership of the 9 Directors. The Registrar of Co-operative Societies (RCS) has been requested to submit a report to this office regarding dispute among the members of the Board. Since the report of this office regarding dispute among the members of the Board. Since the report of RCS is awaited, you are advised to run the affairs of the Bank including convening of Annual General Body Meeting strictly in accordance with the provisions of the Multi-State Co-operative Societies Act, 2002, Rules framed thereunder and Bye-laws of the Bank. Yours faithfully, (KAMNA R. SHARMA) Deputy Director (Coop) Encl. As above Copy to: (i) Registrar of Co-operative Societies, Government of Tamil Nadu, NVN Maligai, 170-Periyar EVR High Road, Kilpauk, Chennai-600 010 with a request to furnish the report expeditiously. (ii) Mrs.Ezhil Rosaline, Tamil Nadu Circle Postal Cooperative Bank, G.P.O., Chennai-600 001. 6. Yours faithfully, (KAMNA R. SHARMA) Deputy Director (Coop) Encl. As above Copy to: (i) Registrar of Co-operative Societies, Government of Tamil Nadu, NVN Maligai, 170-Periyar EVR High Road, Kilpauk, Chennai-600 010 with a request to furnish the report expeditiously. (ii) Mrs.Ezhil Rosaline, Tamil Nadu Circle Postal Cooperative Bank, G.P.O., Chennai-600 001. 6. Subsequently, in exercise of powers conferred under Sub-Section (4) of the Section 84 of the Multi-State Co-operative Societies Act, 2002, the Joint Secretary to the Government of India and Central Registrar of Co-operative Societies, New Delhi, has issued the impugned proceedings in Letter No.L.11014/20/2013-L&M, dated 02.12.2013, appointing Shri. Nirmal Singh, former Secretary to the Government of India as Arbitrator, to settle the dispute among the members of the Board of Directors of Tamil Nadu Circle Postal Co-operative Bank Limited, Chennai. The impugned proceeding is extracted hereunder: No.11017/20/2013-L&M Government of India Ministry of Agriculture (Department of Agriculture & Co-operation) Krishi Bhavan, New Delhi, 02 December, 2013. Office of the Central Registrar of Co-operative Societies (Under Sub-section (4) of Section 84 of the MSCS Act, 2002) 1. In exercise of powers conferred under Sub-Section (4) of the Section 84 of the Multi-State Co-operative Societies Act, 2002, I, Ashish Kumar Bhutani, Central Registrar of Co-operative Societies, hereby appoint Shri Nirmal Singh, former Secretary to the Government of India as Arbitrator to settle the dispute among the members of the Board of Directors of Tamil Nadu Circle Postal Co-operative Bank Limited, Chennai. 2. It is also pointed out that as per sub-section (5) of the section 84 of the MSCS Act, 2002, save as otherwise provided under this Act, the provisions of the Arbitration and Conciliation Act, 1996, shall apply to all arbitration under this Act as if the proceedings for arbitration were referred for settlement or decision under the provisions of the Arbitration & Conciliation Act, 1996. The fee and other expenses of Arbitrators shall be governed by the provisions of the Arbitration & Conciliation Act, 1996. The amount of fee fixed by the Arbitrator shall however be intimated to this authority. (Dr. Ashish Kumar Bhutani) Joint Secretary to the Government of India & Central Registrar of Co-operative Societies Distribution: 1. Shri. Nirmal Singh, Former Secretary to GOI, A-81, Sector – 46, Noida. The copy of following documents are enclosed for necessary action: (a) Letter dated "Nil" (received by CRCS on 19.07.2013) signed by 9 directors of the bank. (Dr. Ashish Kumar Bhutani) Joint Secretary to the Government of India & Central Registrar of Co-operative Societies Distribution: 1. Shri. Nirmal Singh, Former Secretary to GOI, A-81, Sector – 46, Noida. The copy of following documents are enclosed for necessary action: (a) Letter dated "Nil" (received by CRCS on 19.07.2013) signed by 9 directors of the bank. (b) Letter dated 20.08.2013 received from Shri.C.Janakiraman, President of the Bank. 2. Registrar of Co-operative Societies, Chennai. 3. Shri.C.Janakiraman, President, Tamil Nadu Circle Postal Co-op. Bank Ltd., Post Bag No.5026, 18/19, Jehangir Street, Chennai-600 001. 4. Mrs.Ezhil Roseline, Tamil Nadu Circle Postal Co-op. Bank, G.P.O., Chennai-600 001." 7. Chapter 9 of the Multi-State Co-operative Societies Act, 2002, speaks about settlement of disputes. Section 84 deals with the reference of disputes and it is extracted hereunder: "84. Reference of disputes:-(1)Notwithstanding anything contained in any other law for the time being in force, if any dispute[other than a dispute regarding disciplinary action taken by a multi- State co- operative society against its paid employee or an industrial dispute as defined in clause (k) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947 )] touching the constitution, management or business of a multi- State co- operative society arises- (a) among members, past members and persons claiming through members, past members and deceased members, or (b) between a member, past members and persons claiming through a member, past member or deceased member and the multi- State co- operative society, its board or any officer, agent or employee of the multi- State co- operative society or liquidator, past or resent, or (c) between the multi- State co- operative society or its board and any past board, any officer, agent or employee, or any past officer, past agent or past employee, heirs or legalrepresentatives of any deceased officer, deceased agent or deceased employe of the multi- State co- operative society, or (d) between the multi- State co- operative society and any other multi- State co- operative society, between a multi- State co- operative society and liquidator of another multi- State co- operative society or between the liquidator of one multi- State co- operative society and the liquidator of another multi- State co- operative society, such dispute shall be referred to arbitration. (2) For the purposes of sub- section (1), the following shall be deemed to be disputes touching the constitution, management or business of a multi- State co- operative society, namely:- (a) a claim by the multi- State co- operative society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not; (b) a claim by a surety against the principal debtor where the multi- State co- operative society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor as a result of the default of the principal debt r, whether such debt or demand is admitted or not; (c) any dispute arising in connection with the election of any officer of a multi- State co- operative society. (3) If any question arises whether a dispute referred to arbitration under this section is or is not a dispute touching the constitution, management or business of a multi- State co- operative society, the decision thereon of the arbitrator shall be final nd shall not be called in question in any court. (4) Where a dispute has been referred to arbitration under sub- section (1), the same shall besettled or decided by the arbitrator to be appointed by the Central Registrar. (5) Save as otherwise provided under this Act, the provisions of the Arbitration and Conciliation Act, 1996 shall apply to all arbitration under this Act as if the proceedings for arbitration were referred for settlement or decision under the provisions f the Arbitration and Conciliation Act, 1996 (26 of 1996 )." 8. Mr. R. Krishnamoorthy, learned counsel for the petitioner submitted that the subject matter referred in the complaints made against the petitioner, does not fall within the ambit of dispute, empowering the Central Registrar of Co-operative Societies, New Delhi, to initiate any arbitral proceedings. At this juncture, it is relevant to consider Sub-section (3) of Section 84 of the Act which states that "if any question arises whether a dispute referred to arbitration under this section is or is not a dispute touching the constitution, management or business of a multi-state co-operative Society, the decision thereon of the arbitrator shall be final and shall not be called in question in any Court". 9. 9. Though the learned counsel for the petitioner further submitted that the Central Registrar of Co-operative Societies, New Delhi, has not considered the explanation submitted by the petitioner still, it is open to the petitioner to bring it to the notice of the arbitrator. The arbitrator has a statutory duty bound to render a decision as to whether the subject matter falls within the ambit of dispute touching the constitution, management or business of the multi-state co-operative society. 10. On the facts and circumstances of the case and in the light of the abovesaid discussion, this Court is not inclined to entertain the Writ Petition. According to the learned counsel for the petitioner, proceedings have been scheduled, to take place today. It is open to the petitioner to approach the Arbitrator and make submissions as to whether, the subject matter, in the Arbitral proceedings would fall within the ambit of a dispute or not. For the reasons stated supra, the Writ Petition is dismissed. No costs. Consequently, connected Miscellaneous Petition is closed.