Research › Search › Judgment

Andhra High Court · body

2022 DIGILAW 1202 (AP)

Y. Nageswar Rao v. State of Andhra Pradesh

2022-11-04

M.GANGA RAO

body2022
ORDER : 1. The Ex-Chairman of Andhra Pradesh Sheep and Goat Development Cooperative Federation Limited, Guntur, Guntur District filed this writ petition to issue writ of mandamus declaring the action of the 2nd respondent in passing the impugned order dated 09.05.2022, wherein and whereby the 2nd respondent has superseded the Managing Committee of the Federation under section 34 (1) of the Andhra Pradesh Cooperative Societies Act, 1964 with effect from 09.05.2022 as illegal, arbitrary, without jurisdiction and contrary to the provisions of Andhra Pradesh Cooperative Societies Act, 1964 and violative of principles of natural justice. 2. The case of the petitioner is that in the elections conducted on 08.03.2019 for electing the Managing Committee of the Andhra Pradesh Sheep and Goat Development Cooperative Federation Limited (for brevity called as “Federation”), the petitioner was elected as Chairman for a period of five years. The Federation is a registered body under the provisions of Andhra Pradesh Cooperative Societies Act, 1964 (in short “the Act, 1964”). All the Presidents of the Primary Societies who are forming the members of the District Committee in turn elect the President and other managing committee members of the District Committees. All the District Union Presidents being members of the Federation will in turn elect the Chairman, Vice Chairman and Directors of the Federation. All the District Presidents who are members of the Federation are Directors of the Federation among them, they will elect Chairman and Vice Chairman, the remaining to be Directors of the Federation. Like that there are 13 Directors, one Director from each district units from all 13 Districts. From among them they elected the petitioner as Chairman, Vice Chairman and remaining as Directors of the Federation. The nine Board of Directors/members of the Federation have issued notice of “Motion of No Confidence” against the petitioner, Chairman under Rule 6-A (1) in Form AAA as per the provisions of Andhra Pradesh Cooperative Societies Rules, 1964 (hereinafter called as ‘the rules’) to the Managing Director and Registrar of the Federation. By virtue of the powers vested, the Director, Animal Husbandry Department as a Functional Registrar authorized the Managing Director under the provisions of Section 34-A (1to 14) of the Act, 1964 for taking necessary action. By virtue of the powers vested, the Director, Animal Husbandry Department as a Functional Registrar authorized the Managing Director under the provisions of Section 34-A (1to 14) of the Act, 1964 for taking necessary action. On 07.04.2022, a notice was issued to all the 13 Board of Directors, including Chairman and Vice Chairman informing the date and time of Special Board meeting scheduled to be held on 25.4.2022 as per the provisions of Section 34-A of the Act, 1964 and Rule 24-A. However, the same could not be taken place due to resignation of the eight (8) Board of Directors and two (2) Directors term expired on completion of their term as President of the District Units. There are only three (3) members in the Federation, including the petitioner as a Chairman and another Director as Vice Chairman. The eight (8) Board of Directors had submitted their resignation stating that they were not satisfied with the functioning of the Board as it is acting detrimental to the interest of the members of the Federation and submitted their resignation letter to the Managing Director, Chairman and Director of Animal Husbandry/Functional Registrar on 22.4.2022. The resignations were accepted. Then, the 2nd respondent issued show cause notice dated 25.4.2022 under Section 34 (1) of the Act as to why the Managing Committee should not be superseded on account of short fall in the Board of Directors in the Federation. As the petitioner submitted explanation stating that the acceptance of the resignation of the eight (8) Directors/members of the Federation is contrary to the Bye-law No. 20 of the Federation and show cause notice of superseding the Managing Committee is contrary to the provisions of Section 34(1) of the Act, 1964. Considering the same, the 2nd respondent passed the impugned order dated 09.05.2022 superseding the Managing Committee of the Federation stating that the Registrar had formed an opinion that the Committee could not function properly to manage the affairs of the Federation without full-fledged Board and ordered for superseding the Managing Committee of the Federation under Section 34(1) of the Act, 1964, superseding the Board with effect from 09.05.2022. This order is being challenged before this Court as illegal, arbitrary and contrary to the provisions of the Act, 1964. 3. This order is being challenged before this Court as illegal, arbitrary and contrary to the provisions of the Act, 1964. 3. Smt K. Sesharajyam, learned Senior Counsel appearing for Smt V. Hima Bindu, Advocate on Record for the petitioner would contend that the impugned order superseding the Managing Committee of the Federation is without forming an opinion by the Registrar basing on the evidence on record. A reading of the provisions of Section 34 (1) of the Act, 1964 says that the Registrar before initiating action for superseding the Committee should form an opinion that the Committee could not function properly or willfully disobeys any lawful orders or orders or failed to comply with any lawful order. On mere forming of an opinion that the Committee could not function properly in view of resignation of the eight (8) Directors/members of the federation, the impugned order could not be passed. She placed reliance on the decision of the Apex Court in the case of Joint Registrar of Cooperative Societies, Madras vs. P.S. Rajagopal Naidu, 1970 (1) SCC 753 and she would further contend that against the notice of no confidence motion on 06.04.2022, the petitioner approached this Court by filing the writ petition No. 11486 of 2022 and this Court, by its order dated 22.4.2022, while adjourning the case to 20.6.2022 directed the respondents not to announce the results of no confidence motion scheduled to be held on 25.4.2022, till then. Only to circumvent the court order, eight (8) Directors/members of the Federation submitted their resignations on 22.4.2022. The Registrar without placing the resignation letters before the Board of management of the Federation accepted the same contrary to By-Law No. 22 of the Federation and issued show cause notice on 25.4.2022 served on the petitioner on 4.5.2022 to which, the petitioner submitted explanation on 6.5.2022. The Registrar without considering the explanation in its proper perspective contrary to the provisions of the Section 34(1) of the Act, 1964 passed the impugned order superseding the Managing Committee. She would further contend that provision of Section 34(1) of the Act, 1964 are not applicable as the petitioner is directly elected from the general members of the Federation and that the provisions of Section 34(1) are not applicable in respect of Chairman of the Cooperative Societies elected by the members of the general body from among themselves as per Section 34-A(14) of the Act, 1964. Hence, the impugned order superseding the Managing Committee of the Federation is illegal and arbitrary. 4. Learned Government Pleader for Animal Husbandry while reiterating the averments of the counter filed by the 2nd respondent would contend that the Federation is the Apex Body for the Primary Sheep and Goat Breeder Cooperative Societies at village level. The President of the Primary Societies will become members of the District units and President of the District Units will become Directors and members of the Federation. The members of the Federation having felt that the functioning of the Board is not satisfactory and acting detrimental to the interest of the members of the Federation and the members of the Board have decided to move a no confidence motion against the Chairman of the Federation. Accordingly, no confidence notices were issued. Before convening no confidence motion meeting on 25.4.2022, eight (8) members of the Board submitted their resignations on 24.4.2022. The resignations were accepted by the Functional Registrar/ Director of Animal Husbandry to take appropriate action on the resignation as per the provisions under Section 34-A of the Act, 1964. The resignations were accepted. The impugned notice of superseding the Managing Committee of the Federation was issued and appointed a Managing Committee with Sri G. Prakasam Yadav from DSBCU, Chittoor, Sri D.V. Krishna Rao from DSCBCU, Krishna and Sri D.V.V. Satynarayana Murthy from DSBCU, East Godavari as members. Hence, the contra contentions of the counsel for the petitioners that the provisions of Section 34(1) of the Act, 1964 are not applicable to the Managing Committee of the Federation as the Chairman of the Federation is directly elected by the members of the general body of the Federation. Federation has no general members, only there are Directors and members of the general body who are not directly elected by the general body. Federation has no general members, only there are Directors and members of the general body who are not directly elected by the general body. He would further state that the writ petition is not maintainable as no vested rights of the petitioner are infringed to enforce the rights by issuing writ of mandamus and relied on the decision of the Apex Court between Mani Subrat Jain vs. State of Haryana, 1997 (1) SCC 486 wherein it is held that when the High Court recommended the appointment of the District Judges under Article 233 of the Constitution of India to the Government, the Government rejected the recommendation, when that is being challenged before the High Court, the writ petition is dismissed stating that they have no vested right to be enforced by issuing writ of mandamus under Article 226 of the Constitution of India. The decision of the Apex Court is not applicable to the present case. 5. Having considered the facts and circumstances and submissions of the counsel and on perusal of the record, this Court found that the impugned order superseding the Managing Committee is passed by the 2nd respondent-Functional Registrar of the Federation/Director, Animal Husbandry Department passed the impugned order under Section 34 (1) of the Act, having found that the eight (8) Directors resigned from the Directorship and membership of the Federation and two (2) Directors term is expired. When the show cause notice of motion of no confidence was issued to the petitioners, they have submitted explanation and having considered the same, the Registrar found that the Committee could not function properly to manage the affairs of the A.P. Sheep and Goat Development Cooperative Federation Limited without full-fledged Board and ordered for superseding the Managing Committee of the Federation exercising the power under Section 34(1) of the Act, 1964 and appointed a new Managing Committee for a period of two years or till the elections are conducted, whichever is earlier to manage of affairs of the Federation. Thus, the impugned order does not suffer from any legal infirmities. The opinion formed by the 2nd respondent that the Federation could not function properly without full members is based on the evidence available on record that the eight (8) members resigned and their resignations were accepted and two (2) Directors terms is expired. Thus, the impugned order does not suffer from any legal infirmities. The opinion formed by the 2nd respondent that the Federation could not function properly without full members is based on the evidence available on record that the eight (8) members resigned and their resignations were accepted and two (2) Directors terms is expired. The acceptance of their resignation could not be challenged in this writ petition as collateral proceedings to the impugned order of superseding the Managing Committee, which is under challenge in the writ petition. Initiation of no confidence motion could not be materialized, in view of resignation of the eight (8) members of the Federation, before holding no confidence motion meeting scheduled to be held on 25.4.2022 and it won’t prohibit the 2nd respondent to take action under Section 34 (1) of the Act, 1964 to supersede the Managing Committee of the Federation. The contention of the learned counsel for the petitioner that the provisions of Section 34-A of the Act, 1964 are not applicable in respect of Chairman of the cooperative society elected by the members of the general body from among themselves is untenable, as the petitioner was selected as Chairman of the Federation not by any general body of the Cooperative Society. The A.P. Sheep and Goat Development Cooperative Federation Limited is a Federation consisting of President of the District units as Directors and members of the Board and hence, the said contention holds no water. The decision of the Apex Court in the case of Joint Registrar of Cooperative Societies, Madras vs. P.S. Rajagopal Naidu supra relied upon by the learned counsel for the petitioner is of no help to the petitioner as the said observations of the High Court that the Registrar before exercising the power to supersede the committee, the members should be given an opportunity to rectify the defects pointed out by the audit, have not been accepted by the Apex Court. 6. In view of the above discussion, the Writ Petition is devoid of merits and is liable to be dismissed and is accordingly dismissed. There shall be no order as to costs. 7. As a sequel thereto, miscellaneous petitions, if any, pending shall stand closed.