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[Cites 12, Cited by 4]

Gujarat High Court

Jakhora Group Telibiya Utpadak ... vs State Of Gujarat on 4 October, 2018

Author: Bela M. Trivedi

Bench: Bela M. Trivedi

       C/SCA/14267/2018                                       CAV JUDGMENT




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

             R/SPECIAL CIVIL APPLICATION NO. 14267 of 2018

                                      With

             R/SPECIAL CIVIL APPLICATION NO. 14268 of 2018

FOR APPROVAL AND SIGNATURE:


HONOURABLE MS.JUSTICE BELA M. TRIVEDI                           Sd/-

==========================================================

1     Whether Reporters of Local Papers may be allowed to
      see the judgment ?                                               NO

2     To be referred to the Reporter or not ?
                                                                       YES
3     Whether their Lordships wish to see the fair copy of the
      judgment ?                                                       NO

4     Whether this case involves a substantial question of law
      as to the interpretation of the Constitution of India or any     NO
      order made thereunder ?

==========================================================
      JAKHORA GROUP TELIBIYA UTPADAK SAHAKARI MANDALI LTD
                             Versus
                      STATE OF GUJARAT
==========================================================
Appearance:
MR BHARAT T RAO(697) for the PETITIONER(s) No. 1
MR KV SHELAT(834) for the RESPONDENT(s) No. 5
MR. SHAIVAL K SHELAT(9912) for the RESPONDENT(s) No. 5
NOTICE SERVED BY DS(5) for the RESPONDENT(s) No. 1,2,3,4
MR TIRTHRAJ PANDYA, AGP for the Respondent No.1
==========================================================

    CORAM: HONOURABLE MS.JUSTICE BELA M. TRIVEDI

                               Date : 04/10/2018

                                CAV JUDGMENT
Page 1 of 26 C/SCA/14267/2018 CAV JUDGMENT

1. Both the petitions involving similar questions of facts and law, have been heard finally at the admission stage with the consent of the learned Advocates for the parties, and this common judgement is being passed.

2. Both the petitioner Societies are the Cooperative Societies registered under the provisions contained in the Gujarat Cooperative Societies Act, 1961 (hereinafter referred to as "the Cooperative Societies Act"), engaged in the business of sales and purchase of oil seeds/Telibiya and other agricultural produce in the market area of Gandhinagar. The term of APMC, Gandhinagar was going to be over, and therefore, the respondent No.2 - Director has declared the election programme for the election of the Managing Committee of the said APMC under the provisions contained in the Gujarat Agricultural Produce Markets Act, 1963 (hereinafter referred to as "the APM Act"). The respondent No.2 - Director, has also designated Assistant Cooperative Officer, serving in the Page 2 of 26 C/SCA/14267/2018 CAV JUDGMENT office of the District Registrar, Gandhinagar (Cooperative Societies) as the authorized officer to perform the functions as such, under the Gujarat Agricultural Produce Markets Rules, 1965 (hereinafter referred to as "the said Rules"). As per the said programme, the provisional voters' list was published on 23.8.2018, wherein the names of the members of the Managing Committee of both the petitioner Societies were included. The respondent No.5 thereafter submitted his objections against both the Societies on 7.9.2018 contending inter alia that the petitioner Societies though registered under the Cooperative Societies Act, were not engaged in the business of buying or selling the agricultural produce or processing of agricultural produce, and that the said Societies were registered only for the purpose of including the names of their members in the voters' list. The petitioner Societies responded to the said objections by filing their respective replies, and also produced the relevant documents like last audited accounts and last years' accounts before the respondent Page 3 of 26 C/SCA/14267/2018 CAV JUDGMENT No.2. It was stated inter alia in their replies that the name of the respondent No.5 was not included in the voters' list, and therefore, he had no right to raise any objection. It was also stated that the income of the petitioners was not taxable, and therefore, the income tax returns were not submitted and the turn over of the petitioner Societies being less than Rs.20 lac, the petitioners were exempted from obtaining the GST number by the Government. The petitioners had also submitted the licences issued to them under the APM Act. The respondent No.4 authorized officer, however, accepted the objections raised by the respondent No.5 and directed to delete the names of the members of the petitioner Societies from the provisional voters' list vide the impugned order dated 10.9.2018 (Annexure-I). Being aggrieved by the said order, the present petitions have been filed.

3. The respondent No.5 has resisted the petitions by fling affidavit-in-reply contending inter alia that he was included in the voters' list of Page 4 of 26 C/SCA/14267/2018 CAV JUDGMENT agricultural constituency, and therefore, had right to raise objections. It was further contended that both the Societies were not engaged in the business of agricultural produce and were registered for the purpose of election only. It has also been contended that the petitioner Societies were not acting as per the objects shown in their respective bye-laws and their last accounts were also not audited in Class-A, B, or C as required under Section 11(1)

(iii) of APM Act.

4. Learned Advocate Mr.B.T. Rao for the petitioners vehemently submitted that the impugned order passed by the respondent No.4 at the instance of the respondent No.5 is arbitrary exercise of powers, inasmuch as the respondent No.4 had not taken into consideration the requisite material produced by the petitioners to show that they were classified in Class-B in the last accounts audited by the auditor and that they were carrying on their business in conformity with their respective objects. He further submitted that the term "last accounts audited" contained Page 5 of 26 C/SCA/14267/2018 CAV JUDGMENT in Section 11(i)(iii) did not mean "last audited accounts of the financial year previous to the year in which elections were to be held". He also drew the attention of the Court to the relevant provisions of the Cooperative Societies Act to submit that it was incumbent on the part of the Registrar or the officer nominated by him to audit the accounts of the Cooperative Societies every year, and if the same was not done, no fault could be found with the Cooperative Societies, nor any adverse inferences could be drawn against the Cooperative Societies. He also submitted that both the Societies hold general licences, and therefore, were duly qualified to be the voters for the Cooperative Marketing Societies Constituencies as contemplated under Section 11(1)(iii) of the APM Act.

5. However, learned Advocate Mr.K.V. Shelat appearing for the respondent No.5, supporting the impugned order passed by the respondent No.4, submitted that inclusion or exclusion of the names in the voters' list is part of the Page 6 of 26 C/SCA/14267/2018 CAV JUDGMENT election process and the same having already been commenced, this Court should not interfere with the same as per the settled legal position. Mr.Shelat, relying upon the audited reports of the auditors carried out by them in respect of the accounts of the petitioner Societies, submitted that though the Societies were given Class-B in the last audited accounts, the auditors had pointed out that the petitioner Societies were not carrying on their activities in consonance with their objects as per their respective bye-laws. According to Mr.Shelat, the petitioners were also required to have their last accounts audited in Class-A, B, and C for the year 2017-18, which they had failed to produce before the respondent No.4, and therefore, the respondent No.4 had rightly deleted their names from the provisional voters' list.

6. At the outset, it may be stated that the legal position, as regards the scope of interference by the High Court in the election process once it is started, is well settled. The Division Page 7 of 26 C/SCA/14267/2018 CAV JUDGMENT Bench in case of Dolatbhai Prabhubhai Dumaniya Vs. Director - Agricultural Marketing and Rural Finance and Ors., reported in 2013(2) GLH 157 after considering various judgements of the Supreme Court and the Full Bench of this Court, held as under in paragraphs 24 and 25 thereof:-

"24.   The   attempt   was   made   by   the   learned  counsel   appearing   for   the   respondent   to  contend   that   once   the   process   of   election  has begun, this Court in exercise of powers  under   Section   226   of   the   Constitution   may  not   interfere   with   the   election   and   the  petitioners   may   have   the   remedy,   if  available, after the election is over as per  Rule 28 of the Rules. In our view, the said  contention   is   answered   in   the   decision   of  this Court in the case of Kalubhai Ranabhai  Akbari   (supra)   and   more   particularly,   the  observations   made   in   paragraph   32   of   the  said decision. We may also refer to another  decision   of   this   Court   in   the   case   of  Shrutbandhu H. Popat v. State of Gujarat and  others,   reported   in   2007   (3)   GLR   1942  and  the   observations   made   at   paragraphs   27   to  29, which read as under :
"27. We may now deal with the decision  of   the   Full   Bench   heavily   relied   upon  by   Mr.   B.   S.   Patel   for   the   APMC   in  Daheda   Group   Seva   Sahakari   Mandali  Limited  (supra)   decided   on   27.4.2005.  The   following   questions   were   referred  to   the   Full   Bench   in   the   context   of  elections to the APMCs and the scope of  Rule 28 of the APMC Rules constituting  the   Election   Tribunal   for   deciding  disputes   relating   to   elections   to  APMCs: 
Page 8 of 26 C/SCA/14267/2018 CAV JUDGMENT
I.   Whether   a  person   whose   name   is   not  included in the Voters' List can avail  provisions   of   Rule   28   of   the   rules   by  filing election petition?
II.   Whether   the   remedy   under   Rule   28  can be termed to be efficacious remedy?
III.   Whether   a   petition   under   Article  226   of   the   Constitution   of   India   is  maintainable   in   an   election   process  challenging   an   order   issued   by   the  Election   Officers   i.e.   inclusion   or  deletion of the names of the voters in  the Voters' List?
After   considering   various   decisions   of  the   Apex   Court   and   also   the   decisions  of   various   Benches   of   this   Court,   the  Full   Bench   answered   the   Reference   as  under:
I. A person whose name is not included  in   the   voters'   list   can   avail   benefit  of   provisions   of   Rule   28   of   the   Rules  by filing Election Petition.
II. As the authority under Rule 28 has  wide power to cancel, confirm and amend  the   election   and   to   direct   to   hold  fresh election in case the election is  set   aside,   remedy   under   Rule   28   is   an  efficacious remedy.
III.   Even   though   a   petition   under  Article   226   of   the   Constitution   of  India   is   maintainable   though  alternative   remedy   is   available,   the  powers   are   to   be   exercised   in   case   of  extraordinary   or   special   circumstances  such as where the order is ultra vires  or   nullity   and   /   or   ex   facie   without  jurisdiction.   The   exclusion   or  inclusion of names in the voters' list  cannot   be   termed   as   extraordinary  circumstances   warranting   interference  Page 9 of 26 C/SCA/14267/2018 CAV JUDGMENT by this Court under Article 226 of the  Constitution   of   India   and   such  questions   are   to   be   decided   in   an  Election Petition under Rule 28 of the  Rules.
28. Reading the entire decision of the  Full Bench reveals that the question in  the context of which the Full Bench was  called upon to consider the controversy  about   maintainability   of   the   petition  was   whether   a   member   of   the   Managing  Committee   of   a   particular   cooperative  society   was   entitled   to   vote   in   his  capacity   as   a   member   of   the   managing  committee   of   such   cooperative   society  and   not   merely   by   virtue   of   inclusion  or   deletion   of   his   name   in/from   the  voters   list.   The   contention   of   the  authorities   in   the   said   case   was   that  the   election   petition   under   Rule   28  provides   remedy   for   resolution   of   all  facets of the dispute as to whether the  name   of   a   person   being   the   member   of  the Managing Committee of a particular  cooperative society should be permitted  to   participate   in   the   election   if   he  ceases to hold the post on the date of  the   election   program.   Similarly   the  question   whether   a   particular  cooperative   society   is   dispensing  agricultural   credit   or   not   would   be  ordinarily   be   a   disputed   question   of  fact.   There   cannot,   therefore,   be   any  dispute   with   the   proposition   that  ordinarily   the   exclusion   or   inclusion  of   names   from/in   the   voters'   list   can  be   challenged   in   an   election   petition  under   Rule   28   of   the   Rules,   after   the  elections are held. But the Full Bench  also held that the powers of this Court  under   Article   226   of   the   Constitution  may   be   exercised   in   case   of  extraordinary   or   special   circumstance  such as where the order is ultra vires  or   nullity   and/or   ex   facie   without  Page 10 of 26 C/SCA/14267/2018 CAV JUDGMENT jurisdiction.   The   Full   Bench   also  followed   the   principles   laid   down   by  the   Apex   Court   in   Election   Commission  of India vs. Ashok Kumar, 2000 (8) SCC  216 and Manda Jaganath vs. K S Rathnam,  AIR   2004   SC   3600   laying   down   that   any  decision   in   the   election   process   is  open   to   judicial   review   on   the   ground  of   mala   fide   or   arbitrary   exercise   of  powers   and   that   special   situation  justifying   exercise   of   writ  jurisdiction   would   mean   correcting   an  error having the effect of interfering  in   the   free   flow   of   the   scheduled  election or error having the effect of  hindering the progress of election.
29.   After   the   above   decision   of   the  Full   Bench   rendered   on   27.4.2005,   in  Pundlik   vs.   State   of   Maharashtra,  decided   on   25.8.2005   and   reported   at  2005   (7)   SCC   181,   the   Apex   Court   held  that   though   preparation   of   list   of  voters is one of the stages of election  and that normally the High Court would  not   interfere   in   exercise   of   powers  under   Article   226   of   the   Constitution  at the stage of preparation of list of  voters,   but   such   action   must   be   in  accordance   with   law.   In   the   said  decision,   the   Apex   Court   distinguished  their   decision   in   Shri   Sant   Sadguru  Janardan   Swami   (Moingiri   Maharaj)  Sahakari   Dugdha   Utpadak   Santha   vs.  State of Maharashtra, 2001 (8) SCC 509.  In Shri Sant Sadguru's case objections  against   publication   of   provisional  electoral   roll   of   the   Society   were  filed   which   were   considered   by   the  Collector   and   disposed   of.   The   final  electoral   roll   was   published   on  2.7.1999. Election program was drawn by  him   on   21.10.1999.   Thereafter   the  petitioner filed a writ petition in the  High   Court   for   quashing   the   election  program   and   the   Apex   Court   held   that  Page 11 of 26 C/SCA/14267/2018 CAV JUDGMENT the   High   Court   should   not   stay  continuation   of   the   election   process  even   though   there   may   be   some   alleged  irregularity   or   breach   of   the   Rules  while   preparing   the   electoral   roll.  However,   in   the   Pundlik   case,   the  original petitioner had taken immediate  action   on   receiving   the   fax   message  from the Collector." 

25. Hence, when the action is  ultra vires  to  the   power   or   nullity   or   ex­facie   without  jurisdiction,  which  is  in  the  present  case  as that of Authorised Officer, we find that  it   would   be   an   extraordinary   or   special  circumstance   which   would   call   for  interference   in   exercise   of   powers   under  Section 226 of the Constitution to maintain  sanctity   of   the   election   and   more  particularly, for maintenance of sanctity of  the   election   to   be   held,   by   upholding   the  democratic   principles   in   a   free   and   fair  manner."

7. In view of the above settled legal position, let us examine as to whether the interference of this Court is warranted in the facts of these petitions. The respondent No.4 has deleted the names of the petitioner Societies from the voters' list on the ground that they were not carrying on any activity for the production of the oil seeds or for selling the oil seeds of its members through the oil seeds manufacturing Cooperative Union as contemplated in their objects. It may be noted that though the Page 12 of 26 C/SCA/14267/2018 CAV JUDGMENT respondent No.5 objector had not raised the contention in his objections before the respondent No.4 that the petitioners did not have their last accounts audited in Class-A, B, or C for the year 2017-18, the respondent No.5 in his affidavit-in-reply filed to the present petition, has raised the said contention, and therefore, it would be necessary to deal with the relevant provisions contained in the APM Act, and the said Rules, as also of the Cooperative Societies Act.

8. Since the election in question pertains to the APMC, Gandhinagar, the relevant part of Section 11(1) of the APM Act is reproduced as under:-

"11. Constitution of market  committee.­  (1)  Every market committee shall consist of the  following members, namely:­
(i) eight   agriculturists,   whose   names   are  enlisted   in   the   voters'   list   published   by  the   Election   Commission   of   India   for   such  market area, shall be elected by the members  of   managing   committee   of   the   Primary  Agricultural   Credit   Cooperative   Societies  dispensing agricultural credit in the market  area;
(ii) four   members   to   be   elected   in   the  prescribed manner from amongst themselves by  the   traders   holding   general   licences   who  have   traded   in   full   conformity   with   the  Page 13 of 26 C/SCA/14267/2018 CAV JUDGMENT terms and conditions of the licence in the  previous financial year and the fees payable  by them has not remained unpaid;
(iii) two representatives of the co­operative  marketing   societies   situate   in   the   market  area,   holding   general   licences,   engaged   in  the   business   in   conformity   with   their  respective   objects   and   have   their   last  accounts audited in class A, B or C, as the  case may be, to be elected from amongst the  members   (other   than   nominal,   associate   or  sympathiser   members)   of   such   societies   by  the   members   of   the   managing   committees   of  such societies: 
Provided   that   where   the   number   of   co­ operative   marketing   societies   so   situate  does not exceed two, only one representative  shall be so elected;"

9. From the bare reading of Section 11(1)(iii), it appears that for being included in the voters' list of the Cooperative Societies constituency for the election of a market committee, the Cooperative Marketing Society situated in the market area, has to hold the general licence, should have been engaged in the business in conformity with its objects, and should have its last accounts audited in Class-A, B, or C, as the case may be. The Cooperative Marketing Society as defined in Section 2(v) means a Society registered or deemed to be registered as such under the Gujarat Co-operative Societies Page 14 of 26 C/SCA/14267/2018 CAV JUDGMENT Act, 1961 and engaged in the business of buying or selling of agricultural produce or of processing of agricultural produce and holding a licence. The agricultural produce defined in Section 2(i) means all produce, whether processed or not, of agriculture and horticulture, specified in the Schedule.

10. Section 27 of the APM Act, deals with the licences, their issue, renewal, suspension or cancellation etc. It inter alia provides that on the establishment of a market, the market committee may, subject to the Rules made in that behalf, grant or renew a general licence or a special licence for the purpose of any specific transaction or transactions to a trader to operate in the market area or part thereof. Sub-section (3) of Section 27 provides that the market committee may, for reasons to be recorded in writing, suspend or cancel a licence, on the grounds mentioned in the clauses thereof. Clause (v) of the said Clauses provides that the Market Committee may suspend or cancel the licence, if the licensee has not carried out the Page 15 of 26 C/SCA/14267/2018 CAV JUDGMENT sale or purchase of agricultural produce for which the licence has been granted or renewed in conformity with the terms and conditions of the licence for the entire previous financial year.

11. So far as the provisions contained in the said Rules are concerned, as per Rule 7 thereof, for the preparation of voters' list of the general election of the market committee, the Cooperative Marketing Society for the purpose of Section 11(1)(iii) of the APM Act, has to communicate the full names of the members of its managing committee together with the place of residence of each of such member to the authorized officer before such date as the Director may fix in that behalf. The authorized officer has to prepare the list of voters as required by Rule 5 on the basis of the information received under Sub-rule (1) of Rule 7, and if necessary, after making such inquiry as he may deem fit. Rule 8, being relevant for the purpose of deciding the locus standi of the respondent No.5 to raise the objection before the authorised officer, the same is reproduced Page 16 of 26 C/SCA/14267/2018 CAV JUDGMENT as under:-

"8. Provisional and final publication of lists  of voters.­ (1) As soon as a list of voters  is   prepared   under   rule   5,   it   shall   be  published   by   the   authorised   officer   by  affixing a copy thereof at the office of the  market   committee   and   at   some   conspicuous  place   in   the   principal   market   yard   in   the  market area along with a notice stating that  any person whose name is not entered in the  list of voters and who claims that his name  should be entered therein or any person who  thinks   that   his   name   or   the   name   of   some  other   person   has   been   wrongly   entered  therein  or  has  not  been  correctly  entered,  may, within fourteen days from the date of  the publication of the notice, apply to the  authorised  officer  for  an  amendment  of  the  list of voters.
(1­A) After   receiving   applications,   if   any,  under sub­rule (1) a revised draft list of  voters shall be published by the authorised  officer   by   affixing   a   copy   thereof   on   the  notice board of Agricultural Produce Market  Committee  and  at  some  conspicuous  place  in  the   principal   market   yard   of   the   market  area, along with a notice stating that any  person   who   wishes   to   raise   any   objecting  against any new name entered in this list,  may apply within seven days from the date of  publication of this notice to the authorised  officer   for   an   amendment   in   the   revised  draft list of voters.
(2) If   any   application   is   received   under  sub­rule (1­A), the authorised officer shall  decide   the   same   and   shall   cause   to   be  prepared   and   published   the   final   list   of  voters, after making such amendments therein  as   may   be   necessary   in   pursuance   of   the  decision   given   by   him   on   the   application. 

The   final   list   shall   be   prepared   at   least  thirty   days   before   the   date   fixed   for   the  Page 17 of 26 C/SCA/14267/2018 CAV JUDGMENT nomination of candidates for the election."

12. Since the issue as regards the 'last accounts audited' contained in Section 11(1)

(iii) of APM Act has been raised by Mr.Shelat for the respondent No.5, it would be beneficial to deal with some of the provisions of the Cooperative Societies Act. Section 84 of the said Act deals with the audit of the accounts of the Cooperative Societies. As per Sub-section (1) of Section 84, the Registrar is required to audit, or cause to be audited by a person possessing prescribed qualification and authorized by the Registrar by general or special order in writing in this behalf, the accounts of every society at least once in each year. It is pertinent to note that Rule 38B of the Gujarat Cooperative Societies Rules, 1965 (hereinafter referred to as "the Societies Rules") reads as under:-

"38B. Auditors   to   award   audit  classification.­ (1) The Registrar may, from  time to time, keeping in view the efficiency  of   management,   financial   position   and   such  other   factors,   prepare   the   guidelines   for  determining the status of a society. (2) Every   auditor   shall,   after   completing  Page 18 of 26 C/SCA/14267/2018 CAV JUDGMENT the audit of a society determine and award  the  audit  classification   to the  society  in  accordance   with   the   guidelines   prepared   by  the Registrar, from time to time, under sub­ rule (1)."

13. Mr.Bharat Rao for the petitioners, at the first instance, submitted that the respondent No.5 being not in the voters' list of Cooperative Marketing Societies Constituency, he had no locus standi to file objections, and the respondent No.4 should not have considered his objections. In the opinion of the Court, the said submission could not be accepted in view of the provision contained in Rule 8(1) of the Rules to the effect that after the publication of the list of voters by the authorised officer at the office of the Market Committee and at some conspicuous place in the principal market yard in the market area along with a notice stating that any person whose name is not entered in the list of voters and who claims that his name should be entered therein or any person who thinks that his name or the name of some other person has been wrongly entered therein or has not been correctly entered, may apply to the authorised officer for an amendment Page 19 of 26 C/SCA/14267/2018 CAV JUDGMENT of the list of voters. There being specific provision made in the Sub-rule permitting any person, who thinks that the name of some other person has been wrongly entered in the voters' list, such person though not included in the voters' list can make an application to the authorised officer for an amendment in the voters' list. In the instant case, though the name of the respondent No.5 was not there in the list of voters of Cooperative Market Societies Constituency, he was entitled to raise objections, if he thought that the names of the petitioner Societies were wrongly entered in the said list.

14. So far as the facts of the petitions are concerned, it appears that it is not disputed that both the petitioner Societies were holding valid general licences issued under Section 27 of the APM Act for the year 2017-18 as well as for the year 2018-19 for carrying on the business in grains, cereals, telibiya, and cotton in the market area. It is also not disputed that both the Societies had their last accounts audited in Class-B. The last accounts Page 20 of 26 C/SCA/14267/2018 CAV JUDGMENT of the petitioner the Jakhora Group Telibiya Utpadak Sahakari Mandali Limited were audited in April 2018 for the period from 1.4.2016 to 31.3.2017 and the petitioner Society was classified in Class-B by the auditor. The last accounts of the petitioner, Adalaj Telibiya Utpadak Sahakari Mandali Limited were audited in May 2015 for the period from 1.4.2014 to 31.3.2015, and the petitioner Society was classified in Class-B by the auditor. The bone of contention raised by Mr.Shelat is that the petitioner Societies had to produce the last year's audited accounts i.e. of the year 2017-18 and that they should have been classified in Class-A, B, or C in such audited accounts for the year 2017-18. It is difficult to accept the said submission. Apart from the fact that the legislature has incorporated the words "have their last accounts audited in Class-A, B, or C", and not incorporated the words "have their accounts of the previous financial year audited in Clause-A, B. or C", in Section 11(1)(iii) of the APM Act, it is required to be noted that as per Section 84(1) of the Cooperative Societies Page 21 of 26 C/SCA/14267/2018 CAV JUDGMENT Act, the duty is cast upon the Registrar to audit or cause to be audited by person possessing prescribed qualification, the accounts of every Society at least once in each year. Hence, if the accounts of the Society are not audited by the Registrar or the authorised officer of the Registrar every year, no fault could be found with the Societies, if the Societies fail to produce their audited accounts of the previous year to the year of election i.e. in the instant case, of the year 2017-18. It is stated at the Bar that no such audit work as contemplated in Section 84(1) is being done regularly every year by the office of the Registrar. Both the Societies have produced their last accounts audited for the respective years, in which they have been classified in Class-B as per Rule 38B of the Societies Rules. Such production of the last audited accounts showing classification of the petitioner Societies in Class-B, would be due compliance of the requirement under Section 11(1)(iii) of the APM Act.

Page 22 of 26 C/SCA/14267/2018 CAV JUDGMENT

15. This takes the Court to the next contention raised by Mr.Shelat for the respondent No.5 that both the petitioner Societies are not engaged in the business in conformity with their respective objects as held by the authorised officer - the respondent No.4 in the impugned order. However, Mr.Rao for the petitioner would contend that the impugned order has been passed without considering the material placed by the petitioner Societies to show that they were engaged in the business in conformity with their respective objects. According to him, the respondent No.4 has ignored the books of accounts and other documents produced by the Societies of the year 2017-18, and passed the impugned order, without assigning any reason holding that the petitioners were not engaged in the business of oil seeds.

16. The Court finds substance in the said submission made by Mr.Rao. The impugned order lacks reasons justifying the conclusion. The respondent No.4 in the impugned order has merely reproduced the submissions made by both the Page 23 of 26 C/SCA/14267/2018 CAV JUDGMENT parties, however, has failed to discuss and deal with the materials/documents on record. He has also not recorded any conclusion that the petitioners have not engaged themselves in the business in conformity with their respective objects. The only conclusion recorded is that the petitioners have not carried on the activity of manufacturing oil seeds or of selling the oil seeds of their members through the oil seeds manufacturing Union, without recording any reason for arriving at such conclusion. It is trite to say that the quasi judicial authority, or the administrative authority is expected to give reasons for discarding the material on record and coming to a particular conclusion in a quasi judicial proceedings. Though the authorized officers like the respondent No.4 are not supposed to pass detailed orders as are being passed by the judicial authorities, nonetheless absence of reasons in support of the conclusion would make their orders vulnerable. The reasons in support of the order must pass the test of scrutiny when the legality and validity of such order is being considered by Page 24 of 26 C/SCA/14267/2018 CAV JUDGMENT the higher forum. Though the learned Advocate Mr.Rao for the petitioners had tried to show by relying upon the copies of the books of accounts of the petitioners that they had undertaken the activities in conformity with their objects, such questions being disputed questions of facts and the documents being not part of the present petitions, it is difficult to appreciate the same by this Court, more particularly when it is not clear from the impugned order whether such material was produced by the petitioners before the respondent No.4.

17. Under the circumstances, while concluding on the other issues that the petitioners held valid general licences and had their last accounts audited in Class-B, the Court deems it proper to remand the matter to the respondent No.4 for a limited purpose of examining afresh the issue as to whether the petitioner Societies were engaged in the business in conformity with their objects as contemplated under Section 11(1)(iii) of the APM Act or not.

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18. In that view of the matter, the impugned order is set aside. The respondent No.4 is directed to decide the aforesaid issue afresh in accordance with law, on the basis of the material already on record, after granting an opportunity of hearing to the petitioners and the respondent No.5. The respondent No.4 shall decide the said issue as expeditiously as possible and not later than 10.10.2018.

19. The petition stands allowed to the aforesaid extent.

Sd/-

(BELA M. TRIVEDI, J) V.V.P. PODUVAL Page 26 of 26