WP(C) 3854/2009 BEFORE HON’BLE MR. JUSTICE H.N. SARMA The subject matter of challenge in this petition is an order dated 5(7)- 9-09 passed by the Joint Registrar of Co-operative Societies, Assam thereby susp ending the function of the petitioner Society with immediate effect and appointi ng the senior Inspector of Co-operative Societies Tinsukia as one- man- committe e managing the day-to-day affairs of the society with further direction to hold the AGM/election of the society within ninety days. Heard Mr. G.N. Sahewalla, learned Sr. Counsel for the petitioner and M r. P. Roy, learned Advocate and Mr. S.S. Dey, learned counsel appearing for the respondent Nos. 10 to 31 and Mr. A. Sarma, learned counsel appearing for the res pondent No. 7. The petitioner is the managing committee of AOD-OIL Co-operative Socie ty registered under the Cooperative Societies Act. As per the bye-law of the So ciety the object of the Society are as follows - (a) to encourage thrift and co-operation among the members ; (b) to encourage the members to save by receiving deposits of money from the m and allowing interest there on ; (c) to grant loans to members at easy interest ; (d) to help members and families of deceased members in distress ; (e) to do all such other acts as are incidental or conducive to the attainme nt of the above objects in particular through an agency/agencies of other recog nized financial institutions such as Life Insurance Corporation of India ; (f) to obtain and sale its members in particulars and public in general arti cles or daily necessities (consumer goods) through the stores, branches at Digbo i and Duliajan as may be determined within the area of operation of the society time to time and subsidies (Govt.) shall be distributed only to society members. (g) Subject to the discretion of the Managing Committee members are eligible to get discount rebates on purchases made from the stores. The rate of discount s/rebates will be determined from time to time by the Managing Committee ; (h) To procure wholesale and retail sale dealership/distributorship/agency of c onsumers goods/subsidies like paper, cement, petroleum product electronic goods and auto mobile motor vehicles and spares etc. including to let society’s own bu ilding, shop etc., constructed for the purpose of rent to Govt. private and busi ness establishment and to deal any other business as will deem fit by the Managi ng Committee from time to time. The funds of the society are raised through shares, deposits, loan, int erest from loan etc. The present managing committee of the society was elected in the an nual general meeting of the society held in the year 19-9-2007 and accordingly a s per the provisions of S. 32 of the Assam Co-operative Societies Act, the perio d is over by the end of the co-operative year i.e 31-3-2010. The provisi on of S. 32(2) of the Assam Co-operative Societies Act the annual general meeting of the Society is to be held within 60 days from the date of expiry of the preceding co-operative year. In the instant proceeding, the pr eceding year having ended on 31-3-2010 the annual general meeting of the society is due by this time. In the annual general meeting apart from other things the general body is to elect the members to the administrative council, managing body, office chairman and other office bearers as provided under the bye-law. Alleging the mis-management of the society at the instance of certain me mbers of the managing committee, the Chairman of the society made allegations t o the Registrar of Co-operative Societies vide Communication dated 26-8-2009. Th e aforesaid communication dated 26-8-2009 would indicate the irregularities both administrative and financial as pointed out by the Chairman of the Society. On the basis of the said communication an enquiry was conducted by the Deputy Regis trar of Co-operative Society, Dibrugarh, providing opportunity to the society by issuing notice. In the enquiry which culminated into the report dated 2-3-2009 it reveals inter alia that there was no discipline among the members of the mana ging committee which affects adversely in the functioning of the society. The Re gistrar of Co-operative Society alleged that without prior approval the Asst. Ge neral Secretary withdrawing huge amount of money from the account of the society illegally and criminal activities were going on tarnishing the reputation of t he society’s image in the public . Upon received of the said report the Registra r of Co-operative Society vide impugned order on 5(7). 9.09 suspended the manag ing committee and appointed an officer to manage the affairs of the society in t erms of the provision contain u/s 36 of the Act. It is also submitted that after submission of the allegations against the society for causing enquiry and suspe nsion of the Assistant General Secretary of the Society and alleging criminal ca se against the said Asst. General Secretary, the Chairman of the Society for the respondent No. 1 was also suspended. It is contended that against the Asst. Gen eral Secretary a criminal case being Digboi P.S. Case No. 176/2009 u/s 120(B)/42 0/468 IPC read with S. 63/68 of the Copy Right Act, has been filed against him. Though the accused prayed for pre-arrest bail the same was rejected. While issuing notice of motion on 8-9-09 the impugned order was also su spended giving liberty for modification/vacation of the impugned order by the re spondent. The respondent No. 10 to 13 out of which the respondent Nos. 10,11,12, 13 are themselves the members of the managing committee got themselves impleade d in the proceeding by filing M.C. No. 2496/2009 and filing application for vac ation/modification of the interim order. The interim order was modified to the e xtent that till hearing of the writ petition the writ petitioner would not withd raw the fund of the society other than the day-to-day expenditure and major poli cy decision of the society would be taken on the prayer of the writ petitioner w ho approached the court by filing Misc. Case No. 87/10. The petitioners were per mitted to incur expenses of pay and salaries of the employees of the societies a nd also make the payment for supply of LPG cylinders to their agencies. In terms of the liberty granted, the petitioners have also filed an additional affidavi t requiring the expenses to be incurred in running the affairs of the society fo r which necessary permission from the Court was sought for which was strictly re sisted by the respondents. The learned counsel appearing for the respective parties made liberal arguments in support of their respective cas es. From the facts that has come up from the pleadings of the parties as well as from the arguments of the learned counsel it appears that there has been some m ismanagement more particularly the irregularities of the society, even going to the extent of alleging criminal case as indicated above against the Asst. Genera l Secretary of the Society. As noticed above the period of the society is over by the end of the co- operative year i.e 31-3-2010 and the term erstwhile managing committee is over b y now. The annual general meeting of the society is required to be held with in 60 days in terms of S. 36 (2) of the Act. Mr. Sahewalla submits that in fact the petitioners had already resolved t o hold the AGM of the Society on 23-5-2010. Considering the rival submissions made by the learned counsel for the p arties as well as the necessary facts as disclosed from the pleadings and submis sions of the learned counsel I am of the considered view that the ensuing genera l meeting of the society should be held as early as possible so that the managem ent of the society is taken over by a newly elected body. Accordingly, it is dir ected to hold the annual general meeting of the society on 2-5-10. It shall be t he responsibility of the petitioner as well as the respondent Nos. 2,4 and 6 for smooth running of the AGM of the society on the aforesaid date. For that purpos e notice be issued by the petitioner forthwith and the voter list of the society would be updated at least 12 days prior to the meeting. Interested members of t he society would be entitled to inspect the said voter list and the respondent Nos. 3 and 6 would see that the voter list is duly prepared in accordance with the bye-law, and is duly updated. The Registrar of Co-operate Society would depute the competent departmen tal official to be present at the time of the AGM of the society which is fixed on 2-5-10. After holding the AGM wherein the election of the agenda which is req uired to be prepared in terms of the bye-law and S. 32 of the Act, the same woul d be forwarded to the appropriate authority for necessary approval. Till the holding of the AGM the earlier interim order with necessary re striction would continue. With this order this writ petition stands finally closed.