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[Cites 28, Cited by 1]

Himachal Pradesh High Court

Yagyapal Singh vs State Of Himachal Pradesh And Others on 3 August, 2018

Bench: Tarlok Singh Chauhan, Chander Bhusan Barowalia

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA.

       CWP No. 166 of 2018  .

                                                                  Decided on: 03.08.2018





                 Yagyapal Singh                                                 ...Petitioner.
                                               Versus 





            State of Himachal Pradesh and others       ...Respondents.

___________________________________________________________________ Coram:

Hon'ble Mr. Justice Tarlok Singh Chauhan, Judge.
Hon'ble Mr. Justice Chander Bhusan Barowalia, Judge.
Whether approved for reporting? 1 No For the Petitioner   :    Mr. Surinder Saklani, Advocate.
For the Respondents:    Mr. Ashok Sharma, Advocate General, with Mr.   Vinod   Thakur   and   Mr.   Sudhir Bhatnagar,   Addl.   Advocate   Generals,   and Mr.   Bhupinder   Thakur,   Dy.   Advocate General, for respondents No. 1 to 3.
Mr.   Tara   Singh   Chauhan,   Advocate,   for respondent No.5.
_________________________________________________________ Justice Tarlok Singh Chauhan, J.(Oral)  The  very  object  of Constitution of adjudicatory authorities   under the H.P.Co­operative Societies Act, 1968 (for short the 'Act') in the scheme of administration of justice was   to   provide   an   additional   and   speedy   forum   of adjudication. Has that object really been achieved is one of the   questions   that   will   require   consideration   before   this Bench. However, before dealing with the said issue, it would be necessary to advert to the facts of the case.
1
Whether reporters of the local papers may be allowed to see the judgment? yes ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 2

2. A   petition   under   Section   72   of   the   Act   for recovery   of   maintenance   charges   was   filed   by   respondent .

No.5   ­Society   before   the   Assistant   Registrar,   Co­operative Society, Una, who vide his award dated 31.10.2015 held the petitioner   liable   to   pay   an   amount   of   Rs.34,820/­   to   the respondent­Society.

3. The   petitioner   assailed   the   award   by   filing   an appeal   before   the   Ld.   Additional   Registrar,   Cooperative Societies, Dharamshala, who vide his order dated 19.4.2016 allowed   the   appeal   and   modified   the   order   passed   by   the Assistant   Registrar,   Cooperative   Society   and   held   the petitioner liable to pay the principal amount of Rs.26,222/­ in place of Rs.34820/­. However, the petitioner was still not satisfied   and   filed   an   appeal   before   the   Registrar, Cooperative   Societies,   who   dismissed   the   same   vide   order dated 29.7.2016 by holding that there was no provision of second appeal under the Act.

4. The petitioner then filed revision petition before respondent   No.2,   who   dismissed   the   same   vide   his   order dated 26.12.2016. However, the petitioner then approached respondent   No.1,   who   vide   his   order   dated   3.5.2017 disposed of the appeal by observing as under:

"I have heard the ld. Counsels for both parties and have considered the contents of the revision petition as well as ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 3 the orders passed by the Courts below. During the course of arguments, the ld. Counsel for the petitioner agreed to pay the maintenance charges without interest calculated .
and   approved/resolved   in   the   General   House   of   the Society. The ld. Counsel for the society has objected the same and stated that the interest may not be waived of completely.   After   considering   the   averments   adduced   by the ld. Counsels for both the parties and keeping in view the   facts   and   circumstances   of   the   case,   it   is   deemed proper to reduce the rate of interest from 7% per annum to 4%   without   going   into   the   merit   of   the   case   and   the petitioner as well as the Secretary Society, who were also personally  present   expressed  their   consent  to   the  same. As such, the impugned orders dated 26.12.2016 passed by the respondent No.1, are hereby modified to the extent that   the   rate   of   interest   will   be   chargeable   @   4%   per annum.   The   respondent   No.4   Society   is   at   liberty   to consider and take appropriate decision on the request if any, made by the petitioner for further reduction or waiver of   the   interest   payable   by   the   petitioner.   The   revision petition stands disposed off accordingly." 

5. The   petitioner   appears   to   have   been   aggrieved by   the   aforesaid   observations   and   accordingly   filed   an application   for   recalling/modification   of   the   order   dated 3.5.2017  wherein he pointed out that though in the order dated   3.5.2017   it   has  come   that   during   the  course   of  the arguments the learned counsel for the petitioner had agreed to pay maintenance charges without interest calculated and approved/resolved, however, no such consent was given by the counsel to pay maintenance charges and in fact it was ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 4 the applicant/petitioner who was himself present before the Court  and had consented  to the said  order,  therefore,  the .

order dated 3.5.2017 be modified /recalled to the extent that the counsel  for   the  applicant/petitioner   had  not agreed  to pay the maintenance charges with interest  as is otherwise mentioned in the order.

6. Even though the prayer made by the petitioner was rather innocuous and also limited one, however, we are not surprised but also shocked  to note the manner in which respondent   No.1   vide   his   order   dated   28.10.2017   recalled the earlier order dated 3.5.2017 by taking a contrary view than   the   one   taken   by   his   predecessor,   that   too,   in   the review petition that had been filed by the petitioner, as if it was an appellate authority. Whether such a course, that too, in the application for review filed by the petitioner could not have been  adopted by respondent  No.1, the answer to the question is clearly 'No'. To say the least, the impugned order is   against   all   canons   of   judicial   discipline,   propriety   and reflects lack of judicial decorum and legal propriety.

7. The   reviewing   authority   cannot   alter   the decision   to   the   disadvantage   of   the   person   or   authority seeking   review.   It   can   either   accept   the   review   petition   or dismiss   the   same,   but   under   no   circumstance,   it   can ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 5 overrule   the   decision   that   was   in   favour   of   the   person seeking review petition. This legal position is unassailable. 

.

8. It   is   more   than   settled   by   now   that   judicial decorum, not less than the legal propriety, forms the basis of judicial procedure. The manner in which the decision has been   rendered   by   respondent   No.1   is   wholly   subvertive   to the   judicial   decorum   and   propriety   and,   therefore,   clearly not sustainable in the eyes of law.

9. One   of   us   (Justice   Tarlok   Singh   Chauhan,   J.) while   adjudicating   CMPMO   No.   259   of   2016   titled  Balak Ram   Sharma   vs.   The   Ex­Committee   of   Bhagal   Land Loosers Transport Co­operative Society Darlaghat and others, decided on 17.5.2017 and dealing with the role of the adjudicatory authorities under the provisions of the Act, observed as  under:

"19. It  will be naive to mention that deciding the question of   right,   title   and   interest   even   in   matter   relating   to   co­ operative   societies   involve   complicated   question,   but nonetheless   such   power   has   been   vested   with   the authorities under the Act. It has, therefore, to be accepted that such officers/ authorities would be well equipped in law to factually adjudicate such question. Therefore, those entrusted or required to adjudicate such disputes should have   studied   law   or   at   least   trained   in   law.   A   litigant entering   into   the   precincts   of   the   Court   should   have   the trust and confidence that the person who sit on the chair as   an  adjudicator/Judge   is  competent  to  appreciate   and ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 6 understand   matter   having   regard   to   his   knowledge   and capability and is adequately equipped to decide. For such litigants high sounding designation is not of much worth, .
and it is only his confidence and trust what matters. For often   one   comes   across   instances   where   orders   patently show lack of rudimentary and fundamental knowledge of law. It has to be remembered that people who go before the authority, go there with feeling that they are going to get substantive and effective justice and they should not come back   with   the   feeling   that   the   adjudicating   machinery prosecuted under the act is a mockery.
20. At this juncture, it shall be apt to refer to a Division Bench   Judgment   of   Hon'ble   High   Court   of   Orissa   in Raghunath   Mukhi   v.   Chakrapani   Mukhi   (Dead)   and after him Musa Bewa, 1992 (1) Orissa LR 191, wherein it was observed as under:­ [3]   Under   the   scheme   of   the   Act,   the   revisional authority being the highest forum in the hierarchy adjudicating questions of facts and law should be a substitute in reality and not theoretically. Law is respected and obeyed when the people have trust and   faith   in   it.   Law   is   made   for   the   weal   of   the people. Hence, if the well being of the people is the object of the law, they should have trust not only in the   contents   of   the   law   but   also   in   its implementation by the agency entrusted therewith.
If   implementation   is   not   commensurate   with   the object   and   purpose   of   the   law,   it   fails   to   create confidence   in   the   minds   of   the   people   and   loses their trust. The result is disenchantment and chaos. It   therefore   behaves   the   implementing   agency   to implement   the   law   not   only   in   letter   but   also   in spirit.
[4]   This   prologue   is   considered   warranted having   regard   to   our   perception   of   the implementation   of   the   scheme   of   the Consolidation Act by the Government. [5]   The   consolidation   authorities   by   the   very nature   of   the   jurisdiction   vested   in   them   are required   to   adjudicate   civil   right   involving personal law and relating to immovable property and   other   civil   rights.   Even   the   questions   that crop up and posed are of complicated nature. It, therefore, obligates the authorities to know the law   before   they   assume   and   exercise jurisdiction to adjudicate in accordance with law ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 7 and   for   the   litigants,   an   ignorant   judge   is   a devil's representative putting on the mask of an adjudicator.   It   is   no   doubt   true   that   ail adjudicators and Judges are not learned in law .
in all its branches. Law is a vast ocean. Study for a lifetime even would not be enough to make it. But those who are required to adjudicate civil rights   including   personal   and   properly   rights should have studied law or are trained in law. It is   a   trite   saying   that   justice   must   not   only   be done, but seem manifestly to have been done. Hence a person involved in a civil dispute before he enters the precincts of the Court should have the   trust   and   confidence   that   the   person   who sits   on   the   chair   as   an   adjudicator.   Judge   is competent   to   appreciate   and   understand matters   having   regard   to   his   knowledge   and capability and is adequately equipped to decide. For   him   high   sounding   designation   is   not   of much worth, his confidence and trust are what matters.   When   the   people   make   laws   through their   representatives   for   their   happiness   and well­being,   they   intend   that   the   authorities under the Act who are being made substitutes of the Presiding Officers in the Civil Courts and the High Court should also be competent by virtue of their   ability   to   function   truly   as   substitutes.
Otherwise,   it   will   be   a   fraud   on   the   peoples' intention.   Therefore,   as   we   have   said,   the psychological factor in the mind of the litigant is more important than how a is lis decided by the adjudicating   authority.   A   person   ignorant   and innocent of law cannot create that trust nor is he capable   of   adjudicating   by   hearing   both   the sides. It is the duty of the Judge to utilise his own   insight   into   law   even   where   the   parties have tumbled or failed. For adjudicating the lis in   accordance   with   law   to   the   best   of   his Judgment is his responsibility and obligation. To decide to the best of his Judgment, he must be properly   equipped   in   law   to   understand, appreciate and decide.
[6] Can one think of a highly eminent engineer or erudits Judge ignorant of human anatomy or surgery conducting operation on human body.  It is unthinkable ; it is preposterous for someone not   versed   in   surnery   or   anatomy   of   the   body making an attempt. That is why specialities and super specialities abound. So also in the matter of administration of law, the person concerned should   have   the   knowledge   of   law   howsoever gathered­either   by   courses   in   college   or otherwise or should be trained in law.
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[7]   To   call   upon   an   administrative   officer howsoever eminent or competent he might be in his   own   field   but   who   does   not   have   the knowledge   of   law   or   is   not   trained   in   law   or .
does not have the judicial aptitude and acumen, is akin to a Judge being called upon to conduct a surgical operation. Hence it follows that as a Judge or an engineer cannot be appointed as a Professor of Surgery or even as a surgeon so too a   person   unversed   in   law;   ignorant   in   law should not be entrusted with the responsibility of adjudicating questions of law for, that would amount   to   breach   of   trust   that   the   people imposed   on   the   implementing   agency.   They intended   that   competent   and   worthy   persons capable   of   adjudicating   civil   rights   involving questions of law­simple and complicated­should be appointed as adjudicators.
[8] So far as the Assistant Consolidation Officer is concerned, it is a different matter. Matters in which   parties   come   to   an   amicable   settlement are disposed of by him. But where the parties differ and are out for a fight, do not the people expect   that   the   referee,   the   Judge,   the adjudicator should be competent ? Now coming to the  question of  referee if  a person  does not know the rules of the game of football, can he be a competent referee ? Should such a 'person be appointed as a referee ? So also in matters of adjudication under the Consolidation Act.
[9]   We   are   constrained   to   dilate   at   length because of our experience in the High Court day after   day,   month   after   month   and   year   after year   in   regard   to   matters   arising   under   the Consolidation   Act.   Very   often   we   find   persons adjudicating know not even the rudiments of the laws and procedures. To appreciate questions of law   presented   by   both   the   parties,   it   is necessary to appreciate, comprehend and then adjudicate.   Therefore,   to   appreciate   and comprehend,   the   adjudicator   should   know   the fundamentals,   the   rudiments   of   law   or   must have been trained in law or must to have been involved   in   adjudication   of   legal   matters   for   a number   of   years   so   as   to   clothe   him   with competence.   We   do   not   want   to   generalize because some Officers in the lower rung as well as  at   the  highest   level  have   displayed  a   good comprehension   of   the   law   and   its   application, and   have   brought   to   bear   a   judicial   mind   on matters   in   dispute   but,   as   we   said,   the   chair does not confer competence. It is the competence ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 9 of the parson that confers dignity and trust on the chair.
[10] From our experience we can boldly say that .
while   appointing   the   Commissioner   or   the revisional authority, the implementing agency, i. e., the Government, has not always kept this in mind.  Law   was  not   framed  for   the  purpose   of statistics.   It   was   framed   for   the   object   and purposes   depicted   in   the   objects   and   reasons and the Preamble to the Act.
[11]   The   law   may   be   inter   vires   but   if   it   is implemented in a manner inconsistent with the objects and purpose, action could be challenged as ultra vires, as a fraudulent imposition. Hence appointment   of   an   incompetent   person   to adjudicate   legal   matters   can   be   challenged   as r ultra vires being contrary to the intendment.
[12] No doubt jurisdiction is vested in this Court under Arts. 226 and 227 of the Constitution to set right injustice, mistakes in proceeding before the   consolidation   authorities.   But   it   should   be borne   in   mind   that   such   jurisdiction   is discretionary and is not a matter of right and is otherwise also circumscribed. Besides the more important   question   is   ;   Why   should   not   the people   have   faith   in   the   adjudication   by   the consolidation authorities but have to rush to this Court   with   their   grievances.   Faith   and   faith alone   in   the   adjudicator   is   the   paramount consideration.
26. Conducting   judicial   business   does   require   certain amount of acumen and judicial discipline, the order sheets have to be maintained and must be self speaking, the files have to be properly indexed and paged and it is only then that credence is lent to such adjudicatory process, which are lacking in the instant case.
27. Notably, it is respondent No. 3, who in another case titled  Manoj   Kumar   vs.   ARCS,   Dharamshala  had   on 4.8.2015, passed the following order:­ "4.8.2015 Present:   Ms.     Ashima   Sharma,   Advocate,   vice   for   Rahul     Mahajan for respondents No. 2 to 4.
(2). Sh. Subhash Chand, Inspector for respondent No. 1.
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(3). Sh. Surinder Saklani, Counsel for the petitioner.

II am satisfied with the orders passed by the Hon'ble High Court of H.P. while allowing the period spent in .

pursuing   the   writ   petition   and   condoning   the   same.

Hence application under Sec. 5 of the Limitation Act is allowed.   The   case   will   come   up   for   hearing   on   the issue   of   maintainability/argument   as   24.09.2015   at 3:00 P.M."

29. In   the   case   of  Satya   Pal   Anand   v.   State   of Madhya   Pradesh   and   another,   reported   in   (2014)   7 SCC   244,   Hon'ble   Supreme   Court   has   held   that   the Registrars,   Joint   Registrars   of   the   Co­operative   Societies and other officials discharging quasi­judicial functions are supposed to be conscious of competing rights and decide issues justly, fairly and by legally sustainable orders. The State Government was directed to appoint suitable persons as Registrars, Joint Registrars, etc. commensurate with the functions   exercised   under   scheme   of   State   Cooperative Societies Act and it was observed as under:­

20. Having determined the question raised, we would   like   to   emphasize   the   need   for appointment   of   suitable   persons   not   only   as Registrar, Joint Registrar etc. but as Chairman and   members   of   the   tribunal   as   well.   While discharging   quasi­judicial   functions   Registrar, Joint Registrars etc. have to keep in mind that they   have   to   be   independent   in   their functioning. They are also expected to acquire necessary expertise to effectively deal with the disputes   coming   before   them.   They   are supposed to be conscious of competing rights in order to decide the case justly and fairly and to pass the orders which are legally sustainable.

21.   In   this   behalf,   we   would   like   to   refer   to judgment   dated   3.9.2013   passed   in   the Review   Petition   (C)   No.2309/2012   (Namit Sharma case). In that case, one unfortunate feature   that   was   noted   was   that   experience over   the   years   has   shown   that   the   orders passed by Information Commissions have, at times, gone beyond the provisions of the Right to   Information   Act   and   that   Information ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 11 Commissions have not been able to harmonise the   conflicting   interests   indicated   in   the preamble and other provisions of the Act. The reasons   for   this   experience   about   the .

functioning   of   the   Information   Commissions could   be   either   that   the   persons   who   do   not answer the criteria mentioned in Sections 12(5) and   15(5)   have   been   appointed   as   Chief Information Commissioner or that the persons appointed   even   when   they   answer   the aforesaid   criteria,   they   do   not   have   the required   mind   to   balance   the   interests indicated in the Act. It was therefore insisted that   experienced   suitable   persons   should   be appointed   who   are   able   to   perform   their functions   efficiently   and   effectively.   In   this behalf certain directions were given and one of the   directions   was   that   while   making recommendation   for   appointment   of   CIC   and Information   Commissioners   the   Selection Committee must mention against name of each candidate  recommended  the  facts  to  indicate his   eminence   in   public   life   (   which   is   the requirement   of   the   provision   of   that   Act),   his knowledge   and   experience   in   the   particular field and these facts must be accessible to the citizens   as   part   of   their   right   to   information under that Act, after the appointment is made. 

22. Taking clue from the aforesaid directions, and   having   gone   through   the   similar   dismal state of affairs expressed by the petitioner in the instant petition about the functioning of the cooperative societies, we direct that the State Government   shall,   keeping   in   mind   the objective   of   the   Act,   the   functions   which   the Registrar,  Joint  Registrar  etc.  are  required  to perform   and   commensurate   with   those, appointment   of   suitable   persons   shall   be made. Likewise, having regard to the fact that the Chairman of the Tribunal is to be a judicial person,   namely,   Former   Judge   of   the   High Court   or   the   District   Judge,   we   are   of   the opinion that for appointment of the Chairman and   the   Members   of   the   Tribunal,   the respondent­State   is   duty   bound   to   keep   in mind   and   follow   the   mandate   of   the Constitution   Bench   judgment   of   this   Court   in R.Gandhi   (supra).   Thus,   for   appointment   of the   Chairman   and   Members   of   the   Tribunal, the selection to these posts should preferably be made by the Public Service Commission in consultation with the High Court." 

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30. The   aforesaid   judgment   alongwith   host   of   other judgments was taken note of by a Co­ordinate Bench of this .

Court (Justice Rajiv Sharma,J.) in CMPMO No. 421 of 2014, titled  Tara Chand & Ors. v. Virender Singh   & Anr., 2015(149)   All   India   Cases   823,  decided   on   19.3.2015 and it was observed as under:­ "13.   This Court is of the considered view that the   Assistant   Collector     or   Collector, Commissioner   and   Financial   Commissioner (Appeals),   must     have   the   requisite   legal background to adjudicate the matters under the H.P.  Land Revenue Act, 1953. They determine the   valuable   rights   of   the   parties.     The   quasi judicial   authorities   are   also   required   to   take notice of the facts   and thereafter to apply the law.   The     adjudication   by   the   revenue r authorities   has certain trappings of the Court as well. 

14.     Their   lordships   of   the   Hon'ble   Supreme Court in the case of   Thakur Jugal   Kishore Sinha   vrs.   The   Sitamarhi   Central   Co­ operative  Bank Ltd. and another, reported in   AIR   1967   SC   1494,   have   held   that   the Assistant   Registrar   discharging   functions   of Registrar under S. 48 read with S. 6 (2) of Bihar and   Orissa   Co­operative   Societies   Act   is   a Court. Their lordships have held a under: 

"11. It will be noted from the above that the   jurisdiction   of   the   ordinary   civil   and revenue courts of the land is ousted under s. 57 L4 Sup. Cl/67­12 of the Act in case of   disputes   which   fell   under   S.   48.   A Registrar   exercising   powers   under   S.   48 must   therefore   be   held   to   discharge   the duties which would otherwise have fallen on the ordinary civil and revenue courts of the land. The Registrar has not merely the trappings of a court but in many respects he is given the same powers as are given to ordinary civil courts of the land by the Code   of   Civil   Procedure   including   the power   to   summon   and;   examine witnesses   on   oath,   the   power   to   order inspection   of   documents,   to   hear   the parties after framing issues, to review his own ,order and even exercise the inherent jurisdiction of courts mentioned in s. 151 of the Code of Civil Procedure. In such ­a ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 13 case, there is no difficulty in holding that in   adjudicating   upon   a   dispute   referred under s. 48 of the Act, the Registrar is to all   intents   and   purposes   a   court .
discharging   the   same   functions   and ,duties in the same manner as a court of law is expected to do. 
20. It was sought to be argued that a reference of a dispute had to be filed before the Registrar and   under   sub­s.   2(b)   of   s.   48   the   Registrar transferred   it   for   disposal   to   the   Assistant Registrar   and   therefore   his   position   was   the same as that of a nominee under the Bombay Co­operative Societies Act. We do not think that contention   is   sound   merely   because   sub­s.   (2)
(c) of s. 48 authorises the Registrar to refer a dispute   for   disposal   of   an   arbitrator   or arbitrators.   This   procedure   was   however   not adopted in this case and we need not pause to consider what would have been the effect if the matter had been so transferred. The Assistant Registrar had all the powers of a Registrar in this case as noted in the delegation and he was competent to dispose of it in the same manner as   the   Registrar   would   have   done.   It   is interesting to note that under r. 68 sub­r. (10) of the   Bihar   and   Orissa   Cooperative   Societies Rules, 1959 : 
"In   proceedings   before   the   Registrar   or arbitrator   a   party   may   be   represented   by   a legal practitioner." 

In conclusion, therefore, we must hold that the Assistant Registrar was functioning as a court in deciding the dispute between the bank and the appellant and Jagannath Jha." 

15.     Their   lordships   of   the   Hon'ble   Supreme Court   in   the   case   of    Union   of   India   vs.   R. Gandhi President, Madras Bar Association & connected matter, reported in (2010) 11 SCC   1,   have   held   that   so   far   as   technical members are concerned, mere experience in civil service,   is   not   enough   and   to   be   technical members   of   tribunals,   persons   concerned should be persons with expertise in the area of law   concerned   or   allied   subjects   and   mere experience in civil service cannot be treated as technical expertise in the area of law concerned. Their lordships have further held that the rule of law   can   be   meaningful   only   if   there   is   an ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 14 independent   and   impartial   judiciary   to   render justice. An independent judiciary can exist only when   persons   with   competence,   ability   and independence   with   impeccable   character   man .

the   judicial   institutions.   Their   lordships   have held a under: 

"106. We may summarize the position as follows: 
(a)   A   legislature   can   enact   a   law transferring   the   jurisdiction   exercised   by courts   in   regard   to   any   specified   subject (other   than   those   which   are   vested   in courts   by   express   provisions   of   the Constitution) to any tribunal. 
(b) All courts are tribunals. Any tribunal to which any existing jurisdiction of courts is transferred   should   also   be   a   Judicial Tribunal.   This   means   that   such   Tribunal r should   have   as   members,   persons   of   a rank,   capacity   and   status   as   nearly   as possible   equal   to   the   rank,   status   and capacity  of the  court which  was till  then dealing   with   such   matters   and   the members of the Tribunal should have the independence   and   security   of   tenure associated with Judicial Tribunals. 
(c) Whenever there is need for `Tribunals', there is no presumption that there should be   technical   members   in   the   Tribunals.

When   any   jurisdiction   is   shifted   from courts   to   Tribunals,   on   the   ground   of pendency   and   delay   in   courts,   and   the jurisdiction so transferred does not involve any   technical   aspects   requiring   the assistance   of   experts,   the   Tribunals should   normally   have   only   judicial members.   Only   where   the   exercise   of jurisdiction involves inquiry and decisions into   technical   or   special   aspects,   where presence   of   technical   members   will   be useful   and   necessary,   Tribunals   should have   technical   members.     Indiscriminate appointment   of   technical   members   in   all Tribunals will dilute and adversely affect the independence of the Judiciary. 

(d)   The   Legislature   can   re­organize   the jurisdictions   of   Judicial   Tribunals.   For example,   it   can   provide   that   a   specified category of cases tried by a higher court ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 15 can be tried by a lower court or vice versa (A   standard   example   is   the   variation   of pecuniary limits of courts). Similarly while constituting Tribunals, the Legislature can .

prescribe   the   qualifications/eligibility criteria.   The   same   is   however   subject   to Judicial Review. If the court in exercise of judicial   review   is   of   the   view   that   such tribunalisation would adversely affect the independence   of   judiciary   or   the standards   of   judiciary,   the   court   may interfere to preserve the independence and standards   of   judiciary.   Such   an   exercise will   be   part   of   the   checks   and   balances measures   to   maintain   the   separation   of powers and to prevent any encroachment, intentional or unintentional, by either the legislature or by the executive. 

108.   The   Legislature   is   presumed   not   to legislate   contrary  to   rule  of   law  and   therefore know that where disputes are to be adjudicated by   a   Judicial   Body   other   than   Courts,   its standards   should   approximately   be   the   same as   to   what   is   expected   of   main   stream Judiciary. Rule of law can be meaningful only if there is an independent and impartial judiciary to render justice. An independent judiciary can exist   only   when   persons   with   competence, ability   and   independence   with   impeccable character   man   the   judicial   institutions.   When the legislature proposes to substitute a Tribunal in   place   of   the   High   Court   to   exercise   the jurisdiction which the High Court is exercising, it   goes   without   saying   that   the   standards expected   from   the   Judicial   Members   of   the Tribunal and standards applied for appointing such members, should be as nearly as possible as applicable to High Court Judges, which are apart   from   a   basic   degree   in   law,   rich experience in the practice of law, independent outlook,   integrity,   character   and   good reputation.  It is  also implied  that only  men of standing who have special expertise in the field to which the Tribunal relates, will be eligible for appointment as Technical members." 

16.  In   the  case   of  State   of  Gujarat   and  another vrs.   Gujarat   Revenue   Tribunal   Bar   Association and another, reported in (2012) 10 SCC 353 , their lordships of the Hon'ble  Supreme Court have held that   where   there   is   a   lis   between   the   two contesting   parties   and   a   statutory   authority   is required   to   decide   such   dispute   between   them, ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 16 such   an   authority   may   be   called   as   a   quasi­ judicial   authority   i.e.   a   situation   where,   (a)   a statutory authority is empowered under a statute to   do   any   act;   (b)   the   order   of   such   authority .

would   adversely   affect   the   subject;   and   (c) although there is no lis or two contending parties, and the contest is between the authority and the subject; and (d) the statutory authority is required to act judicially under the statute, the decision of the   such   authority   is   a   quasi­judicial   decision. Their lordships have held as under: 

"18.   Tribunals   have   primarily   be   en constituted   to   deal   with   cases   under special   laws   and   to   hence   provide   for specialised   adjudication   alongside   the courts.  Therefore,  a  particular  Act/set  of Rules   will   determine   whether   the functions of a particular Tribunal are akin to those of the courts, which provide for r the basic administration of justice. Where there   is   a   lis   between   two   contesting parties   and   a   statutory   authority   is required to decide such dispute between them, such an authority may be called as a quasi­judicial authority, i.e., a situation where,   (a)   a   statutory   authority   is empowered under a statute to do any act
(b)   the   order   of   such   authority   would adversely   affect   the   subject   and   (c) although there is no lis or two contending parties,   and   the   contest   is   between   the authority   and   the   subject   and   (d)   the statutory   authority   is   required   to   act judicially under  the statute,  the decision of   the   said   authority   is   a   quasi   judicial decision. An authority may be described as   a   quasi­judicial   authority   when   it possesses certain attributes or trappings of   a   'court',   but   not   all.   In   case   certain powers under C.P.C. or Cr.P.C. have been conferred   upon   an   authority,   but   it   has not   been   entrusted   with   the   judicial powers of the State, it cannot be held to be a court. 

21.   The   present   case   is   also   required   to   be examined   in   the   context   of   Article   227   of   the Constitution of India, with specific reference to the 42nd Constitutional Amendment Act 1976, where the expression 'court' stood by itself, and not in juxtaposition   with   the   other   expression   used therein, namely, 'Tribunal'. The power of the High ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 17 Court   of   judicial   superintendence   over   the Tribunals,  under   the  amended   Article  227   stood obliterated. By way of the amendment in the sub­ article, the words, "and Tribunals" stood deleted .

and   the   words   "subject   to   its   appellate jurisdiction"   have   been   substituted   after   the words,   "all   courts".   In   other   words,   this amendment   purports   to   take   away   the   High Court's power of superintendence over Tribunals.

Moreover,   the   High   Court's   power   has   been restricted   to   have   judicial   superintendence   only over judgments of inferior courts, i.e. judgments in cases where against the same, appeal or revision lies with the High Court. A question does arise as regards   whether   the   expression   'courts'   as   it appears in the amended Article 227, is confined only   to   the   regular   civil   or   criminal   courts   that have   been   constituted   under   the   hierarchy   of courts and whether all Tribunals have in fact been excluded   from   the   purview   of   the   High   Court's superintendence.   Undoubtedly,   all   courts   are Tribunals but all Tribunals are not courts. 

22.   The   High   Court's   power   of   judicial superintendence,   even   under   the   amended provisions   of   Article   227   is   applicable,   provided that   two   conditions   are   fulfilled;   firstly,   such Tribunal, body or authority must perform judicial functions of rendering definitive judgments having finality, which bind the parties in respect of their rights,   in   the   exercise   of   the   sovereign   judicial power transferred to it by the State, and secondly such   Tribunal,   body   or   authority   should   be   the subject to the High Court's appellate or revisional jurisdiction. 

23. In S.P. Sampath Kumar v. Union of India, AIR 1987 SC 346, this Court held that, in the Central   Administrative   Tribunal   (hereinafter referred to as the 'CAT'), the presence of a judicial member   was   in   fact   a   requirement   of   fair procedure   of   law,   and   that   the   administrative Tribunal must be presided over in such a manner, so   as   to   inspire   confidence   in   the   minds   of   the people,   to   the   effect   that   it   is   highly   competent and an expert body, with judicial approach and objectivity   and,   thus,   this   Court   held   that   the persons   who   preside   over   the   CAT,   which   is intended  to supplant  the High  Court must  have adequate   legal   training   and   experience.   This Court further observed that it was desirable that a high­ powered committee, headed by a sitting Judge   of   the   Supreme   Court   who   has   been ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 18 nominated by the Chief Justice of India to be its Chairman, should select the persons who preside over   the   CAT,   to   ensure   the   selection   of   proper and   competent   people   to   the   office   of   trust   and .

help to build up its reputation and accountability.

The   Tribunal   should   consist   of   one   Judicial Member and one Administrative Member on any Bench. 

24. In L. Chandra Kumar v. Union of India & Ors., AIR 1997 SC 1125, this Court held that the   power   of   judicial   review   of   the   High   Court under   Article   226   of   the   Constitution   of   India, being a basic feature of the Constitution cannot be excluded. In this context, the Court held: 

r to   "88....It must not be forgotten that what is   permissible   to   be   supplanted   by another   equally   effective   and   efficacious institutional   mechanism   is   the   High Courts   and   not   the   judicial   review itself......." The Court further observed that the creation of this Tribunal is founded on the   premise   that,   specialised   bodies comprising   of   both,   well   trained administrative   members   and   those   with judicial   experience,   would   by   virtue   of their   specialised     knowledge,   be   better equipped to dispense speedy and efficient justice.   The   contention   that   the   said Tribunal should consist only of a judicial member   was   rejected,   and   it   was   held that   such   a   direction   would   attack   the primary grounds of the theory, pursuant to which such Tribunals were constituted.

25.  In V.K. Majotra & Ors. v. Union of India & Ors., AIR 2003 SC 3909, this Court reversed the   judgment   of   the   Allahabad   High   Court wherein, direction had been issued that the Vice­ Chairman   of   the   CAT   could   be   only   a   retired Judge of the High Court, i.e., a Judicial Member and   that   such   a   post   could   not   be   held   by   a Member of the Administrative Service, observing that   such   a   direction   had   put   at naught/obliterated from the statute book, certain provisions without striking them down. 

26.   A   Constitution   Bench   of   this   Court   in Statesman (Private) Ltd. v. H.R. Deb & Ors., AIR 1968 SC 1495, examined the provisions of Sections 7(3)(d) and g(1) of the Industrial Disputes ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 19 Act, 1947, which contain the expression 'judicial office',   and     held   that   a   person   holds   'judicial office' if he is performing judicial functions. The scheme of Chapters V and VI of the Constitution .

deal   with   judicial   office   and   judicial   service.

Judicial   service   means   a   separation   of   the judiciary   from   the   executive   in   public   services. The   functions   of   the   labour   court   are   of   great public   importance   and   are   quasi­judicial   in nature, therefore, a man having experience of the civil side of the law is more suitable to preside over it, as compared to a person working on the criminal   side.   Persons   employed   performing multifarious   duties   and,   in   addition,   performing some   judicial   functions,   may   not   truly   fulfil   the requirement   of   the   statute.   Judicial   office   thus means,   a   fixed   position   for   the   performance   of duties, which are primarily judicial in nature. 

27. In Kumar Padma Prasad v. Union of India & Ors., (1992) 2 SCC 428, this Court held that the   expression,   `judicial   office'   in   the   generic sense,   may   include   a   wide   variety   of   offices which   are   connected   with   the   administration   of justice   in   one   way   or   another.   The   holder   of   a judicial   office   under   Article   217(2)(a),   means   a person   who   exercises   only   judicial   functions, determines   cases   inter­   se   parties   and   renders decisions   in   purely   judicial   capacity.   He   must belong to the judicial services disciplined to hold the   dignity,   integrity   and   independence   of   the judiciary.   The   Court   held   that   `judicial   office' means   a   subsisting   office   with   a   substantive position,   which   has   an   existence   independence from its holder. 

........ 

33.   During   the   course   of   arguments   before   the High Court, learned Additional Advocate General had   conceded   that   the     judgments   and   orders passed by the Tribunal can be challenged under Article 227 of the Constitution. Thus, it has been conceded   before   the   High   Court   that   the   High Court has supervisory control over the Tribunal, to   the   extent   that   it   can   revise   and   correct   the judgments   and   orders   passed   by   it.   In   such   a fact­situation, the consultation/concurrence of the High   Court,   in   the   matter   of   making   the appointment   of   the   President   of   the   Tribunal   is required. 

34.   The   object   of   consultation   is   to   render   the consultation   meaningful   to   serve   the   intended ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 20 purpose. It requires the meeting of minds between the parties involved in the process of consultation on   the   basis   of   material   facts   and   points,   to evolve a correct or at least satisfactory solution. If .

the   power   can   be   exercised   only   after consultation,   consultation   must   be     conscious, effective,   meaningful   and   purposeful.   It   means that the party must disclose all the facts to other party   for   due     deliberation.   The   consultee   must express his opinion after full consideration of the matter upon the relevant facts and quintessence."

31. The   very   object   of   Constitution   of   adjudicatory authorities under the Act in the scheme of administrative justice was to provide an additional and speedy forum of adjudication.   It   is,   therefore,   of   utmost   importance   to ensure  that  these  authorities  work  in  a  proper,  effective and   efficacious   manner   while   exercising   their   powers   to hear and dispose of quasi­judicial matters, which require some   basic   knowledge   of   law.   While   making   decisions, such authorities must not lack judicious approach. 

32. The adjudicatory authorities under the Act make   decisions   about   fundamental   issues,   which   affect the rights of the parties and are treated as final unless challenged.   It   is,   therefore,   very   critical   that   these authorities   make   fair   decisions   and   must   possess   some basic knowledge of law as they have a sacrosanct duty to administer justice. 

33. The   adjudicatory   authorities   are   conferred with   the   discretion   to   adjudicate   upon   quasi­judicial matters   and   such   discretion   is   governed   by   the   maxim "discretio   est   discerner   per   lagan   quid   sit   justum"

(discretion   consists   in   knowing   what   is   just   in   law). Discretion in general is the discernment of what is right and   proper.   It   denotes   knowledge   and   prudence   that discernment which enables a person to judge critically of what is correct and proper, united with caution, to discern between   falsity   and   truth,   between   shadow   and substance,   between   equity   and   colourable   glosses   and pretences   and   not   to   do   according   to   will   and   private ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 21 affections or ill­will. It has to be done according to rules of reasons   and   justice,   not   according   to   private   opinion.   It has to be done according to law and not humour. It is not .
be arbitrary, vague and fanciful but legal and regular.

34. Understandably,   the   State   could   come   up   with   a defence   that   it   does   not   have   the   requisite   number   of officers who are well equipped in the field of law or have legal   training  and   legal   acumen,   however,   that   by   itself cannot be an excuse for playing havoc with the valuable rights of the litigants. 

35. Incidentally,   this   Court   was   faced   with somewhat   identical   situation   in  Cr.MMO   No.   277   of 2016,  titled Pankaj Mahajan vs. State of Himachal Pradesh,   decided   on   26.4.2017,   regarding   the implementation   of   the   Food   Safety   and   Standards   Act, 2006,   wherein   also   the   authorities   were   totally   ill­ equipped and lacked of basic knowledge of the provisions of the Act, constraining this Court to direct the authorities responsible   for   the   enforcement   of   the   Act   to   undergo training at the H.P. Judicial Academy. 

36. As the position in the instant case is no better or different, therefore, the Secretary, Cooperative Societies to the State is directed to take up the issue of training with the Director, H.P. Judicial Academy and thereafter draw up a calendar  for imparting regular training to the officers vested with the adjudicatory powers and authority under the   Act.   Let,   a   copy   of   this   order   be   supplied   to   the Secretary, Cooperative Societies for the State and to the Director, H.P. Judicial Academy, for compliance. 

37. It is established that respondent No. 3 is not alone in the band­wagon amongst the authorities conferred with   the   adjudicatory   powers   who   has   exhibited   lack   of judicial   approach   and   necessary   expertise   to   effectively deal with the dispute coming before him and at the same time has been totally unconscious of the competing rights in order to decide the case justly and fairly and to pass the ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 22 order which are legally sustainable. Therefore, in the given circumstances,   it   will   neither   be   fair   or   even   prudent   to accede   to   the   request   of   the   petitioner   to   restrain .

respondent No. 3 from discharging quasi­judicial function.

At the same time, the Secretary (Cooperative Societies) as also the Registrar of Cooperative Societies have to ensure that the judgment rendered by the Hon'ble Supreme Court in Satya Pal Anand case (supra), is complied with in its letter as also spirit."

10. Apart from the above, one of us (Justice Tarlok Singh Chauhan, J.) was again seized of the matter relating to a Cooperative Society in CWP No. 8619 of 2014 titled as Ashok   Kumar   vs.   State  of   H.P.   and   others,  decided   on 23.5.2017 wherein this Court was constrained to direct the State   Government   to   constitute   a   robust   Cooperative Appellate Tribunal as per Section 108 of the Act read with Rule   132   of   the   H.P.   Cooperative   Societies   Rules,   1971, capable of effectively and expeditiously deciding disputes  so as to ensure that the adjudicatory authorities under the Act are not reduced to mere paper tigers but armed with proper teeth and claws and the efforts put by these authorities are not   wasted   and   the   orders   are   not   shelved   by   defiant Cooperative Societies.

11. It   shall   be   apposite   to   reproduce   the   relevant observations as contained in paras 14 to 17 and 21 of the judgment, which read thus:

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"14. The   conclusion   that   the   society   has   been persistently   flouting   and   disobeying   the   orders   of   the statutory authority is writ large, therefore, it is high time that there is a crack down on such blatant defiance and .
the sordid, despotic and nepotic functioning of respondent No. 4 is brought within the framework of law. The action or rather   the   inaction   of   the   managing   committee   in   not implementing and showing scant regard and respect to the solemn orders of the adjudicatory authorities only reflects upon   their   unseemingly   conduct   and   attitude   that   are goarded by a personal ego. Such irresponsible and illegal conduct   on   their   part   cannot   but   earn   frown   from   this Court, which could only be ignored at the cost of jettisoning the   dignity,   authority   and   majesty   of   the   adjudicatory authorities.
15. If at all respondent No. 4 felt aggrieved by any of the   orders   that   were   passed   against   it   by   the   various adjudicatory  authorities, then  the only  course open  for it was to have assailed the same in accordance with law. It had no business or authority to have sat upon the lawful orders   and   in   a   blatant   and   brazen   manner   defied   the same. This only reflects the scant regard the members of the managing committee of respondent No. 4 have for the law. As already observed, whoever the person or authority, however, high, powerful or rich, he/she may be, is above the law. This Court will be failing in its duty if it does not voice its protest against these brazen acts of lawlessness.
16. It is unfortunate that despite the Act having been enacted in the year, 1968, authorities conferred with the adjudicatory powers under it virtually have   no real and concrete powers to have their orders enforced and continue to   remain   paper   tigers   without   any   teeth   or   claws.   It   is probably   for  this   reason  that   the  orders   are  so   ethereal, that   they   can   be   nullified   or   eschewed   by   a   simple resolution or strong defiance.
17. It   is,   therefore,   high   time   the   State   Government constitute a robust Cooperative Appellate Tribunal as per Section   108   of   the   Act   read   with   Rule   132   of   the   H.P. Cooperative   Societies   Rules,   1971,   capable   of   effectively and expeditiously deciding disputes so as to ensure that the adjudicatory authorities under the Act are not reduced to   mere   paper   tigers   but   armed   with   proper   teeth   and claws   and   the   efforts   put   by   these   authorities   are   not wasted   and   the   orders   are   not   shelved   by   defiant Cooperative Societies like respondent No. 4.
xxx xxx  xxx
21. The   State   Government   has   further   directed   to consider the creation of a Co­operative Appellate Tribunal ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 24 in accordance with Section 108 of the Act read with Rule 132 of the H.P. Cooperative Societies Rules, 1971." 
 

12. No doubt, the order passed in CWP No. 8619 of .

2014 has been assailed before the learned Division Bench in LPA   No.   59   of   2017.   Noticeably,   the   entire   judgment   was initially   ordered   to   be   stayed   vide   order   dated   1.6.2017, however,   lateron   vide   order   dated   25.7.2018   the   aforesaid order   was   clarified   to   the   extent   that   para­21   of   the judgment (supra) had not been stayed and it shall be open to the Government to take steps  in terms thereof.

13. The manner in which the respondent No.1 has taken   decision   leaves   much   to   desire  and   strengthens  are belief and opinion that it is need of the day that a robust Cooperative Appellate Tribunal as per Section 108 of the Act read with Rule 132 of the Rules, be constituted so that the decision making under the Act is not reduced to a farce and it would otherwise also avoid unnecessary docket explosion in this Court.

14. In view of the aforesaid discussion, we have no hesitation to conclude that the order passed by respondent No.1 apart from being illegal smacks of judicial impropriety and, therefore, is clearly unsustainable in the eyes of law.

Accordingly,   the   impugned   orders   dated   3.5.2017   and 28.10.2017   passed   by   respondent   No.1   are   quashed   and ::: Downloaded on - 06/08/2018 23:01:41 :::HCHP 25 set­aside   and   he   is   directed   to   pass   a   fresh   order   in accordance with law.

.

15. The   parties   through   their   counsel(s)   to   appear before respondent No.1 on 17.8.2018.

16. The writ petition is disposed of in the aforesaid terms, so also the pending application(s), if any, leaving the parties to bear their own costs.

                      r              to      (Tarlok   Singh   Chauhan)
                                                        Judge

                                           (Chander Bhusan Barowalia)
          3  August, 2018.
         rd
                                                                   Judge
           (GR)








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