Special Civil Application No. 1344 of 2011. Case: Ambardi Seva Sahkari Mandali Ltd. and Anr. Vs State of Gujarat Through Secretary and Anr.. High Court of Gujarat (India)

Case NumberSpecial Civil Application No. 1344 of 2011
CounselFor Appellant: Saurabh G. Amin, Adv. And For Respondents: P.K. Jani,M.S. Jirga Jhaveri, A.G.P.
JudgesS.R. Brahmbhatt, J.
IssueGujarat Cooperative Societies Act, 1961 - Sections 81, 81(A), 84, 84(10) and 85; Constitution of India - Article 226
Judgement DateJune 23, 2011
CourtHigh Court of Gujarat (India)

Judgment:

S.R. Brahmbhatt, J., (At Ahmedabad)

  1. Heard learned advocates for the parties.

  2. Rule. Mr. Prakash Jani, learned Government Pleaded with Ms. Jhaveri, learned AGP waives service of notice of Rule on behalf of Respondents. By consent, rule is fixed forthwith.

  3. The Petitioners, a Cooperative Society classified as a primary level Agriculture Credit Cooperative Society and Chairman and Member respectively have approached this Court under Article 226 of the Constitution of India challenging the show cause notice dated 17.1.2011issued by District Registrar, Cooperative Society, Amreli - the Respondent No. 2 herein in exercise of powers under Section 81(A) of the Gujarat Cooperative Societies Act, 1961 (hereinafter referred to as 'the Act' for short), calling upon the Society to show cause as to why the Managing Committee, who has been opined to be responsible for incurring continues losses for three years and other misconduct, shall not be superseded.

  4. This Court (Coram: M.D. Shah, J.) vide order dated 7.2.2011 issued notice and granted ad-interim relief in terms of Para 9(c), which was time and again extended and today the matter was heard finally at the request of learned advocates for the parties.

  5. Facts in brief leading to filing this petition deserve to be set out as under.

  6. The Petitioner No. 1 is a Cooperative society classified as a primary level Agriculture Credit Cooperative Society and Petitioner No. 2 is the Chairman and member of said Society. The society is said to have been incorporated in the year 1950. The society has around 803 members, who are agriculturists of village Ambardi and society is in business of dispensing agricultural credit to its members. The society's accounts are audited regularly and it is stated in the memo of petition that society has not defaulted in repaying of the loan to the District Central Bank. The existing Managing Committee came into charge of the affairs of the society from 26.6.2010. There is allegations made in paras 3.4 and 3.5 that on account of extraneous consideration mentioned thereunder, the society was subjected to the show cause notice impugned in this petition on the premise that the competent authority formed an opinion that the Managing Committee of the society did not act in accordance with provisions of the Act, Rules and bye-laws and as the society incurred losses consecutively for three years, under the provisions of Section 81A of the Act, the Managing Committee...

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