p— r ^ J: C'^ 1'a-iS2_ IN THE HON'BLE HIGH COURT OF CHHATTISGARH AT BILASPUR (C.G.) WRIT PETITION (Cl N0. ^-z>&^/ 2010 ...v^ ,»<vv^ \^"^>"y (^' ^«°' ^o^ ^^•L\/9--' .^y' %'^.' ^y ^ey ^' PETITIONER RESPONDENTS IN THE MATTER OF ARTICLE 226 OF THE CONSTITUTION OF INDIA ; AND IN THE MATTER OF CHHATTISGARH CO-OPERATIVE SOCIETIES ACT, 1960; AND IN THE MATTER OF CHHATTISGARH CO-OPERATIVE SOCIETIES RULES, 1962; AND IN THE MATTER OF CHHATTISGARH RAJYA SAHAKARI, KRISHI AUR GRAMIN VIKAS BANK MARYADIT BY- LAWS; AND BETWEEN : Radheyshyam Sharma, son of Late Shri Rameshwar Prasad Sharma, aged about 65 years, Director, Chhattisgarh Rajya Sahakari, KrishiAur Gramin Vikas Bank Maryadit Raipur, resident of C-1, Samta Colony, Raipur, District Raipur, Chhattisgarh VERSUS ^•" 1. State of Chhattisgarh, Through Secretary, Cooperation, DKS Bhawan, Mantralaya, Raipur, Chhattisgarh 2. Registrar, Co-operative Sodeties, Teli Bana.Chowk, Jethi Bhawan, Raipur, Chhattisgarh 3. Chhattisgarh Raj'ya Sahakari, Krishi Aur Gramin Vikas Bank Maryadit, through the Managing Director, B-Block, First Floor, ^mritb .^€""?%... W'^' '^'fte^. ^>^";."'x>.% 'fs^y*! ^(-~^/ i%£:aSie^i 8. •K^^.^^ 9. RDA Building, Sharda Chowk, Raipur, Chhattisgarh Jila Sahakari Krishi Evam Gramin Bank Maryadit Dhamtari, through the Chief Executive Officer, Sahubada, Rambagh, Dhamtari, Chhattisgarh Jila Sahakari Krishi Evam Gramin Bank Maryadit Mahasamundh, through the Chief Executive Officer, Near Lohiya Chowk, Station Road, Mahasamundh, Ghhattisgarh Jila Sahakari Krishi Evam Gramin Bank Maryadit Rajnandgaon, through the Chief Executive Officer, 6 Anupam Nagar, Rajnandgaon, Chhattisgarh Jila Sahakari Krishi Evam Gramin Bank Maryadit Kawardha, through the Chief Executive Officer, Kawardha, District Kabirdham, Chhattisgarh Jila Sahakari Krishi Evam Gramin Bank Maryadit Kanker, through the Chief Executive Officer, Uday Nagar Colony, Kanker, Chhattisgarh Jila Sahakari Krishi Evam Gramin Bank Maryadit Janjgir, through the Chief Executive Officer, Opposite Bhima Tatab, Janjgir, District Janjgir Champa, Chhattisgarh WRIT PETITION UNDER ARTICLE 226J3F THE CONSTITUTION OF INDIA FQR ISSUANCE 6F APPROPRIATE AND SUITABLE WRITS. DIRECTION OR DIRECTIONS.ORDER OR ORDERS L_ B8 ^- HIGH COURT OF CHHATTISGARH AT BILASPUR WRIT PETITION fC) No. 3387 of2010 PETITIONER : Radheshyam Sharma. VERSUS RESPONDENTS : State ofChhattisgarh& Others. WRIT PETITION UNDERARTICLE 226 OF THE CONSTITUTION OF INDIA SB: Hon'ble Shri Satish K. Asnihotri, J. Present: Shri Amrito Das, Advocate for the petitioner. Shri M.P.S.Bhatia, Deputy Govemment Advocate for the State/ Respondent No. 1 and2. Shri Amn Sao^ Advocate for the respondent No. 3, 5 to9. Shri Vinay Pandey, Advocate for the respondent No. 4. ORDERfORAL) (Passed on 19th day of November, 2010) 1. By this petition, the petitioner seeks a direction to the respondent No. 2, Registrar, Co-operative Societies to take action against the representatives/Directors of the various District Co-operative Banks, which had become defaulter for more than 12 months. 2. The facts, in nutshell/ as projected by the petitioner are that after the Board of Director was constituted for the Central co-operative Bank, the District Co-operative Banks have failed to discharge their obligation under the Chhattisgarh Co-operative Societies Act, 1960 and under the Chhattisgarh Sahakari Krishi Aur Gramin Vikas Bank Adhiniyam, 1999. Out of 12 District Co-operative Banks, only two of the said banks do not suffer the disqualification whereas the rest ofthe bank suffer the said disqualification. 3. The Managing Director ofthe Chhattisgarh Rajya Sahakari Krishi Aur Gramin Vikas Bank Maryadit, i.e. the respondent No. 3 5 by letter dated 18.12.2009 informed to the Chief Executive Officers of the •"^^. ^ lvA il i'<^^^^""1^ I ,1;?: .7 respondent-Banks that their banks have suffered disqualification under the provisions of section 23(b) of the Madhya Pradesh Co- operative Societies Rules, 1962. A copy ofthe same was endorsed to the Registrar, Cooperative Societies, Chhattisgarh, for information and necessary action. Thereafter, the petitioner, by letter dated 27.02.2010 requested the respondent No. 2 to take appropriate steps against the disqualified banks so that the functioning of the respondent No. 3, suffered on account of discontinuation of representation of the defaulting banks, may not be affected. It appears that after notice dated 18.12.2009, no action has been taken till date. 4. Shri Das, leamed counsel appearing for the petitioner points out that the disqualification of the bank or its representative are governed under the provisions ofsection 19-AA and 19-B ofthe Chhattisgarh Cooperative Societies Act, 1960. Inordinate delay in taking action speaks volumes of the conduct of the Registrar. Thus, this petition seeking extraordinary jurisdiction of this Court to intervene in the matter where every action is illegal and arbitrary. 5. Shri Das further points out that after issue ofthe notice by this Court to the respondents on 12.07.2010, the respondent No. 2/Registrar woke up from slumber and issued show cause notice on 10.08.2010 to the defaulter banks. 6. On the other hand, Shri Bhatia, learned counsel for the State/respondent No. 1 and 2 submits that in response to the letter dated 21.12.2009 (Annexure P/5) issued by the respondent No. 3, the Registrar has issued a notice to the concemed banks and their Directors on 10.08.2010 under section 53(13) of the Act, 1960. "^ 't. 01,1 ^ However, there is no explanation in the reply asto why for about 8 months, no action months have been taken by the Registrar. 7. Shri Pandey and Shri Sao, leamed Counsel appearing for the respondent No. 4 and respondent No. 3 to 5 &9, respectively, submit ft that no fault can be found with 'the private respondents. 8. Having considered the submissions of leamed counsel appearing for the parties, perusal of the pleadings and documents appended thereto, it appears that the respondent No. 2, Registrar has no explanation for sitting over the file for about 8 months, as the Registrar has issued a show cause notice to the defaulter banks after issuance ofnotice by this Court. The Registrar has been unnecessarily permitting the defaulting banks or their members to continue with their business and further, after they have been noticed by the Managing Director, Chhattisgarh Rajya Sahkari Krishi & Gramin Vikas Bank Maryadit i.e. respondent No. 3, for default committed by the banks^before 30.06.2009. 9. Without going into the further details asto whether some action should be taken against the Registrar or not, since show cause notice has been issued, it is expected that the Registrar shall conclude the proceedings, as early as possible, preferably within a period of six weeks from the date ofreceipt ofacopy ofthis order. lO.With the aforesaid observation and direction, the writ petition is disposedof. Sd/- Satish K. Agnihotri Judge Amit