Prabhavatiben Nileshbhai Patel v. State Of Gujarat
2023-01-03
BHARGAV D.KARIA
body2023
DigiLaw.ai
JUDGMENT : 1. Heard learned advocate Mr.Zubin Bharda for the petitioners and learned AGP Ms.Krushita Dave for the respondent State. 2. Having regard to the controversy involved in this matter which is in a narrow compass, with the consent of learned advocates for the respective parties, the matter is taken up for hearing. 3. Rule returnable forthwith. Learned AGP Ms.Krushita Dave waives service of notice of rule on behalf of respondent State. 4. By this petition under Article 226 and 227 of the Constitution of India, the petitioners have prayed for the following reliefs:- “To quash and set aside the order dated 09.09.2019 bearing outward No. FDCH/NDHNN/01/Gh-2/378- 386/2019 passed by the District Registrar, Navsari ordering winding up of the Shree Machhad Vibhag, Jinga Uchhed Sahakari Mandali Limited, Post Machhad, Taluka Jalalpore, District Navsari and further quash the order appointing District Registrar, Cooperative Societies, Navsari Shri C. A. Grade - 2 (Liquidation) as the liquidator with a further direction to liquidate the society within a period of five years.” 5. The brief facts of the petition are as under:- 5.1. The petitioners are the President, Secretary, Office bearers and Member of Shree Machhad Vibhag, Jinga Uchhed Sahakari Mandali Limited, which came to be registered in the office of District Registrar, Cooperative Societies vide Registration No. U- 15948 dated 18.12.2014. 5.2. The principal object of the society was to promote aquaculture and produce highest quality fish. All the members of the society are fishermen and have obtained training in aquaculture. 5.3. The society after coming into existence made an application to the Collector, Navsari on 05.02.2015 and requested for being allotted land bearing Block No. 589 admeasuring 50 Hectares situated in Village Machhad, Taluka Jalalpore, District Navsari on lease for the purpose of carrying out aquaculture activity. 5.4. The Collector, Navsari vide order dated 17.04.2017 allotted the land bearing Block No. 589 admeasuring 50 Hectares situated in Village Machhad, Taluka Jalalpore, District Navsari on lease for a period of 20 years to Machhad Vibhag, Jinga Uchhed Sahakari Mandali Limited. 5.5. In the new promulgation that came to be made of the lands, the aforesaid land which was allotted has been given a new Block No.787 bearing Plot No 2. The society was thereafter put into the possession of the land. 5.6.
5.5. In the new promulgation that came to be made of the lands, the aforesaid land which was allotted has been given a new Block No.787 bearing Plot No 2. The society was thereafter put into the possession of the land. 5.6. The society after passing the resolutions in the meeting of members of the society obtained financial assistance from two companies which are already into the business of aquaculture namely N.R. Sea Foods and Go Aquaculture. As per the understanding arrived at with these companies, to provide financial assistance as well as technical knowhow and also to provide seeds to be cultivated and turned into prawns. In the meeting held on 20.10.2016, vide Resolution No.6 it was resolved by the Society to obtain the assistance from the above mentioned two companies for the purpose of cultivating prawns. The society thereafter started developing the aforesaid land and in a period of two years from the date of allotment of the land the barren land was turned into a perfect aqua farm for cultivating prawns. The first input of seeds in the aqua farm was made only in July and August, 2019 and thus the cultivation activities commenced in the month of July and August 2019. According to the petitioners, the cycle of cultivation is of five months and therefore, the final product of the required count was expected only in December, 2019. 5.7. A complaint was made to the District Registrar on 30.10.2018 by the members alleging that though the society came to be incorporated for the purpose of providing employment to the needy members, the management of the society was being carried out illegally and contrary to the rules and that no members have been benefited and that neither any meeting of the members of the Managing Committee of the society or the Annual General meeting of the society was being convened and as a result of which, the functioning of the society, income, expenditure and profit or loss incurred by the society was not known and therefore, it was requested to get an inquiry initiated through a competent officer. 5.8. The District Registrar on 05.11.2018 issued notice to the society calling upon the petitioners to explain the allegations levelled in the complaint dated 30.10.2018. 5.9. The petitioners on behalf of the society submitted detailed justification against the allegations levelled by some of the members and refuted those allegations.
5.8. The District Registrar on 05.11.2018 issued notice to the society calling upon the petitioners to explain the allegations levelled in the complaint dated 30.10.2018. 5.9. The petitioners on behalf of the society submitted detailed justification against the allegations levelled by some of the members and refuted those allegations. 5.10. The District Registrar thereafter issued various notices calling upon the society to file a detailed explanation against the allegations levelled in the complaint by some of the members. The petitioners on behalf of the society submitted a detailed reply and explained that the allegations levelled in the complaint made by some of the members was false and devoid of merit and that the same should be filed and not entertained. 5.11. It was pointed out that though the decision was taken by the society in its meetings held in the year 2016 after incorporation of the society to start aquaculture activity by obtaining government land on lease, after the Collector, Navsari allotted the land sought for by the society in the year 2017, it took approximately two years' time to develop the barren land into a aquaculture farm as the area of land allotted by way of lease was 50 hectares and the society was also dependent upon other organizations for its financial resources. 5.12. It was pointed out to the District Registrar that the cultivation of the prawns was yet to be commenced and therefore there being no activity of aquaculture undertaken by the society on the date of the complaint made by the members, there being no production nor cultivation of the aqua products, there was no question of either providing employment as claimed by those members nor there was any question of providing the accounts of profit and loss although, according to the petitioners, periodical and regular meetings of the committee members of the society were convened and statements of accounts were also produced and circulated amongst the members.
It is the case of the petitioners that majority of the members of the society objected to the complaint made by some of the members which according to the majority of the members was a false and misguided complaint and the society also through its advocate issued a notice to the District Registrar calling upon the District Registrar to withdraw the notice issued against the society as the basis on which the notice was issued was absolutely false and unsustainable. 5.13. It is the case of the petitioners that the members who had made complaint against the petitioners, submitted an application on 06.06.2019 to the District Registrar to terminate the proceedings of inquiry initiated against the society. 5.14. The District Registrar therefore called upon the Auditor to make an inquiry and furnish report with regard to functioning of the society. The Auditor submitted its report on 09.05.2019 followed by another report dated 16.05.2019 proposing that the society should be wound up. According to the petitioner the report submitted by the Auditor was not provided by the District Registrar to the Society. 5.15. Thereafter, the District Registrar fixed hearing on 31.07.2019 and the petitioner on behalf of the Society remained present and submitted written explanation in detail and also made oral representation, requesting the District Registrar to close the inquiry as the complaint made by the members against the petitioner and the Society was withdrawn. 5.16. The District Registrar by order dated 09.09.2019, however, passed an order of liquidation of the society and appointed respondent no.3 as liquidator for carrying out the process of winding up of society within a period of five years. The petitioners being affected persons as the members of the society were making the final output of prawns which have been reared and cultivated prawn in the prawn farm since July 2019, have challenged the order passed by the District Registrar dated 09.09.2019 in this petition. 6. Learned advocate Mr.Bharda at the outset submitted that the respondent authority has passed the impugned order dated 09.09.2019 without assigning any reason and contrary to the facts on record to the effect that though the reply was submitted by the petitioners on 31.07.2019 the same was not considered by the District Registrar while passing the final order of liquidation of the society of the petitioners.
It was further submitted that the District Registrar has passed the order without assigning any reason as to why the society of the petitioner is required to be liquidated under Section 107 of the Gujarat Co-operative Societies Act, 1961. 7. The above submission was not controverted by the learned AGP. 8. In view of the fact that the impugned order is without any reason whatsoever, without entering into the merits of the matter, the impugned order dated 09.09.2019 is hereby quashed and set aside and the matter is remanded back to the District Registrar, Navsari, to pass a fresh order in accordance with law after giving an opportunity of hearing to the petitioners by recording reasons in the order. Such exercise shall be completed within a period of 12 weeks from the date of receipt of this order. 9. Rule is made absolute to the aforesaid extent. No order as to cost. Direct service is permitted.