{"id":145523,"date":"2008-08-18T00:00:00","date_gmt":"2008-08-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/j-s-ahlawat-vs-special-secretary-to-government-on-18-august-2008"},"modified":"2018-01-01T12:09:56","modified_gmt":"2018-01-01T06:39:56","slug":"j-s-ahlawat-vs-special-secretary-to-government-on-18-august-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/j-s-ahlawat-vs-special-secretary-to-government-on-18-august-2008","title":{"rendered":"J.S. Ahlawat vs Special Secretary To Government … on 18 August, 2008"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
J.S. Ahlawat vs Special Secretary To Government … on 18 August, 2008<\/div>\n
      IN THE HIGH COURT OF PUNJAB AND HARYANA AT\n                     CHANDIGARH.\n\n                                                 C.W.P. No. 14459 of 2008\n                                        DATE OF DECISION : 18.08.2008\n\nJ.S. Ahlawat\n                                                             .... PETITIONER\n                                  Versus\n\nSpecial Secretary to Government of Haryana and others\n\n                                                      ..... RESPONDENTS\n\nCORAM :- HON'BLE MR. JUSTICE SATISH KUMAR MITTAL\n            HON'BLE MRS. JUSTICE DAYA CHAUDHARY\n\n\nPresent:    Mr. S.S. Dalal, Advocate,\n            for the petitioner.\n\n                  ***\n\nSATISH KUMAR MITTAL , J.\n<\/pre>\n
            The petitioner has filed this petition under Articles 226\/227 of<\/p>\n
the Constitution of India for quashing the order dated 11.4.2008, passed by<\/p>\n
the Assistant Registrar, Cooperative Societies, Gurgaon, whereby a show<\/p>\n
cause notice was given and further in exercise of the power under sub-<\/p>\n
section (2) of Section 34 of the Haryana Co-operative Societies Act, 1984<\/p>\n
(hereinafter referred to as `the Act’), the Managing Committee of the<\/p>\n
Engineers Cooperative Group Housing Society Ltd., Gurgaon (hereinafter<\/p>\n
referred to as `the Housing Society’) has been placed under suspension, and<\/p>\n
for smooth running of the society, the Board of Administrators has been<\/p>\n
appointed under Section 33 (1) of the Act, for six months.<\/p>\n
            In this case, a complaint was received by the Assistant
\n CWP No. 14459 of 2008                                                 -2-<\/span><\/p>\n
Registrar, Cooperative Societies from certain members of the Housing<\/p>\n
Society. On the said complaint, notices were issued to the complainant as<\/p>\n
well as the Housing Society. In spite of the notice, neither any<\/p>\n
representative of the Housing Society came present nor record of the<\/p>\n
Housing Society was produced. Again, a notice was issued to the petitioner,<\/p>\n
who is the President of the Housing Society, to produce the entire record,<\/p>\n
but on that also, no record was produced before the Assistant Registrar for<\/p>\n
his inspection. In light of all these facts, the Assistant Registrar issued<\/p>\n
notice under sub-section (1) of Section 34 of the Act to show cause as to<\/p>\n
why the Managing Committee of the Housing Society be not removed, as<\/p>\n
the Managing committee was persistently making defaults in the<\/p>\n
performance of duties imposed on it by the Act. While proceeding to take<\/p>\n
action under sub-section (1), the Assistant Registrar also passed the order of<\/p>\n
suspension of the Managing Committee, after framing opinion that in the<\/p>\n
interest of the Society, the Managing Committee is to be suspended. The<\/p>\n
petitioner, who is the President of the Managing Committee of the Housing<\/p>\n
Society, has filed the instant petition.\n<\/p>\n
             Learned counsel for the petitioner submits that the Assistant<\/p>\n
Registrar can suspend the Managing Committee only after giving a show<\/p>\n
cause notice and after receiving reply thereof, and hearing the petitioner.<\/p>\n
Therefore, in the instant case, he has acted without jurisdiction, while<\/p>\n
straight way suspending the Managing Committee without waiting for reply<\/p>\n
to the show cause notice issued under sub-section (1) of Section 34 of the<\/p>\n
Act. In support of his contention, learned counsel has relied upon decisions
\n CWP No. 14459 of 2008                                               -3-<\/span><\/p>\n
of this Court in S.R. Goyal v. Mehtab Singh, Deputy Registrar,<\/a> 1994 PLJ<\/p>\n
219 and Bharat Singh v. Deputy Registrar, Co-op. Societies, Haryana,<\/p>\n
Rohtak,<\/a> 1995 PLJ 283.\n<\/p>\n
            After hearing counsel for the petitioner and going through the<\/p>\n
impugned order, we do not find any force in the contention of learned<\/p>\n
counsel for the petitioner. Section 34 of the Act provides for removal of<\/p>\n
Committee and this provision reads as under :\n<\/p>\n
            “34. Removal of Committee – (1) If in the opinion of the<\/p>\n
            Registrar, a committee persistently makes default or is<\/p>\n
            negligent in the performance of duties imposed on it by this Act<\/p>\n
            or the rules or the bye-laws or commits any act which is<\/p>\n
            prejudicial to the interest of the society or its members, the<\/p>\n
            Registrar may after giving the committee an opportunity to state<\/p>\n
            its objections, if any, by order in writing, remove the<\/p>\n
            committee, and order fresh election of the committee or appoint<\/p>\n
            administrators in accordance with the provisions of Section 33.<\/p>\n<\/blockquote>\n
                  Provided that the appointment of administrators shall be<\/p>\n
            for a period of one year which may be extended, from time to<\/p>\n
            time, up to three years.\n<\/p><\/blockquote>\n
            (2)   Where the Registrar, while proceeding to take action<\/p>\n
            under sub-section (1), is of the opinion that suspension of the<\/p>\n
            committee during the period of proceedings is necessary in the<\/p>\n
            interest of the co-operative society, he may suspend the<\/p>\n
            committee and make such arrangement as he thinks proper for
\n CWP No. 14459 of 2008                                                 -4-<\/span><\/p>\n
            the management of the affairs of the society till the proceedings<\/p>\n
            are completed;\n<\/p><\/blockquote>\n
                   Provided that if the committee so suspended is not<\/p>\n
            removed, it shall be re-instated and the period of suspension<\/p>\n
            shall count towards its tenure;\n<\/p><\/blockquote>\n
                   Provided further that the period of suspension shall not<\/p>\n
            exceed six months.\n<\/p><\/blockquote>\n
            (3)    The administrators appointed under sub-section (1) shall<\/p>\n
            arrange, for the election of a committee in accordance with the<\/p>\n
            bye-laws of the society failing which the Registrar shall arrange<\/p>\n
            to hold the election.\n<\/p><\/blockquote>\n
            (4)    Before taking any action under sub-section (1) in respect<\/p>\n
            of a co-operative society, the Registrar shall consult the<\/p>\n
            financing institution to which it is indebted.”<\/p>\n<\/blockquote>\n
Section 35 of the Act provides for similar provisions for removal of<\/p>\n
Committee members.\n<\/p>\n
            A reading of the aforesaid provisions shows that the Registrar is<\/p>\n
empowered to remove the Managing Committee who is guilty of persistent<\/p>\n
default or is negligent in the performance of duties imposed on it by the Act<\/p>\n
or the Rules. Sub-section (2) further empowers the Registrar to suspend the<\/p>\n
Committee, while proceeding to take action under sub-section (1), during<\/p>\n
the period of those proceedings, if in his opinion it is necessary to do so in<\/p>\n
the interest of the co-operative society and he may make such arrangement<\/p>\n
as he thinks proper for the management of the affairs of the society till the
\n CWP No. 14459 of 2008                                                  -5-<\/span><\/p>\n
proceedings are completed. The provision to this sub-section further<\/p>\n
provides that if the committee so suspended is not removed, it shall be re-<\/p>\n
instated and the period of suspension shall count towards its tenure. The<\/p>\n
second provision further provides that the period of suspension shall not<\/p>\n
exceed six months. From the reading of the aforesaid provisions, it cannot<\/p>\n
be inferred that it is imperative for the Registrar to issue show cause notice<\/p>\n
and provide an opportunity of hearing, before passing order of suspension<\/p>\n
under sub-section (2) of Section 34 of the Act. A show cause notice and<\/p>\n
opportunity of hearing is required only before passing order of removal of<\/p>\n
the committee. Sub-section (2) clearly empowers the Registrar to suspend<\/p>\n
the Committee, while proceeding to take action under sub-section (1), if he<\/p>\n
is of the opinion that, during the period of proceedings, it is necessary in the<\/p>\n
interest of the co-operative society.\n<\/p>\n
             The aforesaid decisions of this Court, relied upon by learned<\/p>\n
counsel for the petitioner, do not support the case of the petitioner. In S.R.<\/p>\n
Goyal’s case (supra), it was held as under :\n<\/p>\n
             “A plain reading of sub-section (2) of Section 34 of the Act<\/p>\n
             makes it clear that powers under Section 34 (2) to suspend the<\/p>\n
             Managing Committee of the society can be exercised by the<\/p>\n
             Registrar only during the pendency of the proceedings under<\/p>\n
             sub-section (1) of section 34. Registrar can suspend the<\/p>\n
             Committee during the period of proceedings only if he forms an<\/p>\n
             opinion that it is necessary so to do in the interest of the Co-<\/p>\n
             operative Society. Pendency of proceedings under sub-section
\n CWP No. 14459 of 2008                                               -6-<\/span><\/p>\n
            (1) of Section 34, is a condition precedent for invoking the<\/p>\n
            powers to suspend the committee, if no proceedings are<\/p>\n
            pending for removal of the committee under Section 34 (1) then<\/p>\n
            orders suspending the committee cannot be passed because the<\/p>\n
            order of suspension can be operative only during the period of<\/p>\n
            proceedings. In the absence of pendency of any proceedings,<\/p>\n
            the question of suspension of the committee thus cannot arise.<\/p>\n
            It is an admitted case before us that no proceedings under<\/p>\n
            section 34 (1) of the Act for removal of the Committee have<\/p>\n
            either been initiated or pending.”\n<\/p><\/blockquote>\n
This judgment is not applicable to the facts and circumstances of this case,<\/p>\n
because in the instant case, undisputedly, the proceedings for removal have<\/p>\n
been initiated under sub-section (1) of Section 34 of the Act and when the<\/p>\n
order of suspension was passed in exercise of power under sub-section (2),<\/p>\n
the proceedings were pending.\n<\/p>\n
            Similarly, in Bharat Singh’s case (supra), this Court held as<\/p>\n
under :-\n<\/p>\n
            “4.   A conjoint reading of the above quoted provisions of the<\/p>\n
            Act shows that the Registrar is empowered to remove any<\/p>\n
            member of the Committee who is guilty of persistent default or<\/p>\n
            is negligent in the performance of duties imposed on him by<\/p>\n
            Act or the rules or bye-laws or is guilty of committing any act<\/p>\n
            prejudicial to the interest of the society or its members.<\/p>\n
            However, what is imperative for the Registrar before he passes
\n CWP No. 14459 of 2008                                                  -7-<\/span><\/p>\n
          an order under Section 35 (1) of the Act is that he must give<\/p>\n
          such member an opportunity to submit his objection to the<\/p>\n
          proposed action and then to pass a reasoned order for removing<\/p>\n
          such member from the office. The language used in Section 35<\/p>\n
          (1) clearly shows that the Legislature has thought it proper to<\/p>\n
          engraft the basic principles of natural justice in the statute<\/p>\n
          itself. It can, thus, be said that before the Registrar passes an<\/p>\n
          order, he is required to give Show Cause Notice to the member<\/p>\n
          concerned,        consider   his   representation   and   then     pass<\/p>\n
          appropriate order. Issuance of Show Cause Notice under<\/p>\n
          Section 35 (1) can appropriately be equated with initiation of<\/p>\n
          enquiry. Logically it has to be held that till a Show Cause<\/p>\n
          Notice is issued with proposal to take action against the erring<\/p>\n
          member under Section 35 (1), the proceedings cannot be treated<\/p>\n
          as having been initiated.\n<\/p><\/blockquote>\n
          5.    Section 35 (2) of the Act empowers the Registrar to<\/p>\n
          suspend such member during the period of proceedings, if the<\/p>\n
          Registrar considers it necessary to do so in the interest of the<\/p>\n
          cooperative society. The expression “during the period of<\/p>\n
          proceedings” contemplates the pendency of proceedings as a<\/p>\n
          condition-precedent for taking action under Section 35 (2) and<\/p>\n
          if the proceedings have not been initiated under Section 35 (1),<\/p>\n
          the same cannot be treated as pending. In that situation, the<\/p>\n
          Registrar    is     not empowered to place a member under
\n CWP No. 14459 of 2008                                                 -8-<\/span><\/p>\n
            suspension.\n<\/p><\/blockquote>\n
             6.    A look at the impugned order shows that the Registrar<\/p>\n
             has suspended the petitioner even without issuing a notice<\/p>\n
             under Section 35 (1). Therefore, it has to be held that the<\/p>\n
             Registrar has exercised the power of suspending the petitioner<\/p>\n
             in contravention of the provisions of Section 35 (2) of the Act.”<\/p><\/blockquote>\n
            This judgment is also not applicable to the facts and<\/p>\n
circumstances of this case, because in that case, it was held that the<\/p>\n
pendency of proceedings for removal is a condition precedent for taking<\/p>\n
action under Section 35 (2) of the Act and if proceedings have not been<\/p>\n
initiated under Section 35 (1), the same cannot be treated as pending. In the<\/p>\n
instant case, since the proceedings for removal of the Managing Committee<\/p>\n
were initiated under Section 34 (1) of the Act, therefore, the Registrar was<\/p>\n
within his power to suspend the Managing Committee after framing the<\/p>\n
opinion that the suspension of the committee is in the interest of the Society.<\/p>\n
            In view of the above, there is no merit in the instant writ<\/p>\n
petition and the same is, hereby, dismissed.<\/p>\n
\n\n\n\n                                        ( SATISH KUMAR MITTAL )\n                                                 JUDGE\n\n\nAugust 18, 2008                            ( DAYA CHAUDHARY )\nndj                                               JUDGE\n\n                             Refer to Reporter\n <\/pre>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court J.S. Ahlawat vs Special Secretary To Government … on 18 August, 2008 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. C.W.P. No. 14459 of 2008 DATE OF DECISION : 18.08.2008 J.S. Ahlawat …. PETITIONER Versus Special Secretary to Government of Haryana and others ….. RESPONDENTS CORAM :- HON’BLE MR. JUSTICE […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-145523","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nJ.S. 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