CW 2147/2004 – Narendra Kumar Kachhwaha Vs. State & Anr. : Order dt. 27.02.08 1/4 S.B. CIVIL WRIT PETITION NO.2147/2004. (Narendra Kumar Kachhwaha Vs. State & Anr.) Date : 27.02.2008 HON'BLE DR. JUSTICE VINEET KOTHARI Mr. Pankaj Sharma for the petitioner. Mrs. Pratishtha Dave, Additional Government Counsel. Mr. Shyam Toshniwal } Mr. Sunil Mehta } for the respondents. 1. The petitioner is challenging order Annexure 3 passed by Assistant Registrar, Co-operative Society, Nagaur, whereby the petitioner was held to be disqualified to be a Director of the respondent Nagaur Urban Co-operative Bank Ltd. on the ground that on account of default in repayment of loan of the said bank by the firm M/s. Kachhawaha & Co. in which the petitioner was having interest in the said firm, was a defaulter and, therefore, he was disqualified to be a Director in term of Section 28(3) of the Cooperative Societies Act. 2. The respondents bank in its reply has submitted that the petitioner Narendra Kumar had no interest in the said firm M/s. Kachhawaha & Co. in which his brother Ramniwas Kachhawaha and his wife Mrs. Sushila Kachhawaha were the partners and the CW 2147/2004 – Narendra Kumar Kachhwaha Vs. State & Anr. : Order dt. 27.02.08 2/4 petitioner Narendra Kumar was neither a partner nor proprietor in the said firm, thus, the disqualification under Section 28(3) did not get attracted to the petitioner. 3. It was also contended on behalf of the petitioner that the said order was passed without giving an opportunity of hearing to the petitioner and the same was also motivated as the respondent – bank had requested the Registrar of the Co-operative Societies to remove the Assistant Registrar from the post of General Manager of the respondent-bank, who was holding a dual charge and the work of the respondent -bank was adversely affected and, therefore, being unhappy with such request of the respondent-bank the respondent Assistant Registrar has passed this order. 4. Learned counsel for the respondent-bank by filing an additional affidavit in the connected writ petition No.2515/2004 (Nagaur Urban Co-operative Bank Ltd. vs. State of Rajasthan) has submitted that the Registrar, Co-operative Societies has permitted the bank vide his letter dated 12.09.2007 to appoint its own whole time General Manager and pursuant to that General Manager has been appointed who is presently working as such. He has, therefore, prayed that the connected writ petition has become infructuous in CW 2147/2004 – Narendra Kumar Kachhwaha Vs. State & Anr. : Order dt. 27.02.08 3/4 view of the said development, but the impugned order of this disqualification of the petitioner vide Annexure 3 dated 12.05.2004 is also not sustainable. Learned Dy. Government Advocate supported the impugned order. 5. Having heard learned counsels, this Court is of the opinion that the impugned order Annexure 3 dated 12.05.2004 cannot be sustained. The respondent Assistant Registrar, Co-operative Societies had not shown in the impugned order as to how the petitioner had any interest in the said firm M/s. Kachhawaha & Co. On the contrary, in reply to para 9 of the writ petition, the respondents have admitted that the loan in question was advanced to the said firm in which brother and brother's wife of the petitioner were the partners. Obviously, the petitioner's identity cannot be mixed with that of his brother or his brother's wife and unless the petitioner is shown to have any substantial interest financially, managerial or otherwise in the said firm, the disqualification under Section 28(3) of the Act cannot be attributed to the petitioner. Therefore, without going into other grounds for challenge to that said order, this Court is of the opinion that the said order cannot hold the field and deserves to be quashed. CW 2147/2004 – Narendra Kumar Kachhwaha Vs. State & Anr. : Order dt. 27.02.08 4/4 6. Accordingly, this writ petition is allowed and the impugned order Annexure 3 dated 12.05.2004 is quashed and set aside. The petitioner shall thus continue to be a Director of the respondent Bank as if Annexure 3 was never passed by the respondent No.2 Assistant Registrar, Co-operative Societies. No order to cost. [ DR. VINEET KOTHARI ], J. item No.38 Anil/-