The writ petitioner challenged the revival of a banking society where the Board of Directors delegated selection power to the Chairman. The bench held that such abdication undermined democratic constitution and dismissed the writ.
The writ petition was dismissed; no interference with the impugned order.
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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.6607 of 2011
====================================================== 1. Parth Kumar Yadav Son of Late Ram Janam Rai, Resident of Village Lodipur Chiraut, P.S. Doriganj, District Saran at Chapra
.... .... Petitioner/s Versus 1. The State of Bihar 2. The Principal Secretary, Department of Co-operative, New Secretariat, Bihar, Patna 3. The Registrar, Co-operative Societies, Vikash Bhawan, Bihar, Patna 4. The Joint Registrar, Co-operative Societies, Bihar, Patna 5. The Joint Registrar, Co-operative Societies, Saran Division at Chapra 6. The District Co-operative Officer, Saran at Chapra
.... .... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Sanjay Kumar For the Respondent/s : Mr. Yogendra Pd. Sinha AAG15 ====================================================== CORAM: HONOURABLE MR. JUSTICE AJAY KUMAR TRIPATHI ORAL ORDER 4 21-06-2013 The objection raised by the Joint Registrar in the order impugned contained in Annexure-4 dated 28.3.2011 is a valid objection. The bank in question cannot be revived or re-registered or constituted at the whims and fancies of the Chairman of the Bank in matters of constitution of Board of Directors. No doubt, as per the record, the Chairman was allegedly selected by secret voting but the Board of Directors instead of being elected by the Aam Sabha, surprisingly have abdicated their power in favour of the Chairman to pick and choose. This will be an ominous trend to a democratic constitution of a co-operative society or body, having serious consequences in future in running its affairs as yes men of
Patna High Court CWJC No.6607 of 2011 (4) dt.21-06-2013
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the Chairman can never act as a watch body or as an effective Board of Governors on the working of the bank in question.
In view of the above no interference is warranted with Annexure-4.
If the petitioner can satisfy the authorities that there is semblance of democratic constitution of Board of Directors, then surely the authorities will have no objection. But a beginning of this kind for a co-operative body which is sought to be revived has
ominous signs at the ends of the rainbow.
Writ is dismissed.
(Ajay Kumar Tripathi, J)
R.K.Pathak/-
2 issues framed by the court
Whether the writ petition seeking revival of a banking society can be allowed when the Board of Directors abdicated its power to the Chairman for selection.
Whether the objection raised by the Joint Registrar in the impugned order is valid in light of the democratic constitution of the Board.
Parth Kumar Yadav
The State of Bihar
The Principal Secretary, Department of Co-operative
The Registrar, Co-operative Societies
The Joint Registrar, Co-operative Societies, Bihar
The Joint Registrar, Co-operative Societies, Saran Division
Ajay Kumar Tripathi
As recorded by the court registry
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