Gujarat High Court
Shree Toda Seva Sahakari Mandli Limited vs State Of Gujarat & 4 on 5 December, 2014
Equivalent citations: AIR 2015 (NOC) 356 (GUJ.)
Bench: M.R. Shah, R.D.Kothari
C/SCA/7185/2014 CAV JUDGMENT
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SPECIAL CIVIL APPLICATION NO. 7185 of 2014
With
CIVIL APPLICATION NO. 11033 of 2014
In
SPECIAL CIVIL APPLICATION NO. 7185 of 2014
With
SPECIAL CIVIL APPLICATION NO. 17257 of 2014
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR.JUSTICE M.R. SHAH sd/
and
HONOURABLE MR.JUSTICE R.D.KOTHARI sd/
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1. Whether Reporters of Local Papers may be NO
allowed to see the judgment ?
2. To be referred to the Reporter or not ? NO
3. Whether their Lordships wish to see the fair copy NO
of the judgment ?
4. Whether this case involves a substantial question NO
of law as to the interpretation of the constitution
of India, 1950 or any order made thereunder ?
5. Whether it is to be circulated to the civil judge ? NO
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SHREE TODA SEVA SAHAKARI MANDLI LIMITED....Petitioner(s)
Versus
STATE OF GUJARAT & 4....Respondent(s)
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Appearance:
MR DIPEN DESAI, ADVOCATE for the Petitioner(s) No. 1
DS AFF.NOT FILED (R) for the Respondent(s) No. 1 5
MR. JAISWAL ASSIT, GOVERNMENT PLEADER for the Respondent(s) No. 1
MR. NAVIN PAHWA, LD. ADV FOR M/S THAKKAR ASSOC., ADVOCATE for the
Respondent(s) No. 5
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CORAM: HONOURABLE MR.JUSTICE M.R. SHAH
and
HONOURABLE MR.JUSTICE R.D.KOTHARI
Date : 05/12/2014
CAV JUDGMENT
(PER : HONOURABLE MR.JUSTICE M.R. SHAH) Page 1 of 17 C/SCA/7185/2014 CAV JUDGMENT 1.0. Special Civil Application No.7185 of 2014 has been preferred by the petitioner herein for an appropriate writ, direction and order directing the respondent authorities to hold the election of the members of the Managing Committee of the respondent no.5 Bank Jamnagar District Cooperative Bank Limited whose term had expired as early as back on 2.7.2013 in accordance with law, more particularly, in consonance with Rule 3A (8) and 3A (9) of the Gujarat Specified Cooperative Societies Election to Committee Rules, 1982 (hereinafter referred to as the "Rules, 1982) at the earliest and within such stipulated time as may be prescribed by this Court. It is also further prayed for an appropriate writ, direction and order restraining the office bearers of the Board of Directors of respondent no.5 Bank from taking any policy decision till next elected body comes into power. It is also further prayed for an appropriate writ, direction and order directing the respondent authorities, more particularly, respondent nos. 1 to 4 to take appropriate action for cancellation of the policy decisions taken by respondent no.5 bank after the term of the present body has expired which are taken without prior permission of the District Registrar, Cooperative Societies.
1.1. Civil Application No.11033 of 2014 in Special Civil Application No.7185 of 2014 has been preferred by the applicant herein original petitioner of Special Civil Application No.7185 of 2014 for appropriate order and / or direction directing respondent no.4 - District Registrar, Cooperative Societies, Jamnagar to cancel the decisions taken by the respondent no.5 Bank which are referred to in its report dated 2.8.2014.
1.2. Special Civil Application No.17257 of 2014 has been preferred by the petitioner of that Special Civil Application also for an appropriate writ, direction and order directing the respondent nos. 1 to Page 2 of 17 C/SCA/7185/2014 CAV JUDGMENT 4 to immediately declare the election of respondent no.5 Bank and complete within stipulated time.
2.0. That the statutory term of the office bearers of the respondent no.5 Bank had expired on 2.7.2013 and therefore the election of the office bearers of the said Bank was required to be held. However, a dispute arose because of the amendment made in the Gujarat Cooperative Societies Act and Rules therein and there were certain litigations pending interpretation of Rule 3(8) of the Rules, 1982. Therefore, the respondent no.5 Bank preferred Special Civil Application No.12264 of 2013 before this Court. At the time of hearing of the aforesaid Special Civil Application, it was submitted on behalf of the State Government that the process of election has already began in the case of Bank considering the decision of the Full Bench of this Court in Special Civil Application No.12067 of 2012 and other allied matters. However, it was apprehended that Government may appoint custodian on the ground that term of elected representative is over and the power is taken away by the executive fiat. To that, it was submitted on behalf of the State Government on the basis of communication dated 08.08.2013 that as the election could not be held, the State Government is not going to appoint custodian / administrator in any of the cooperative society on the ground that election could not be held well in time. Considering the above, the Division Bench by order dated 08.08.2013 disposed of the aforesaid Special Civil Application recording the declaration on the behalf of the State Government that as the State Government has declared that Government is not going to appoint custodian / administrator, the cause for appointment of custodian / administrator may not survive. However, as the tenure of the Managing Committee of the Bank had already expired, the Division Bench observed and directed that the Managing Committee of the Bank should function Page 3 of 17 C/SCA/7185/2014 CAV JUDGMENT as care taker. The Division Bench also observed and directed the Bank that continuation of the present body shall be as care taker and not as the Custodian / Administrator in place of the Managing Committee of the Bank and shall be on condition that they shall not take any major policy decision without the prior approval of the District Registrar of the concerned District.
2.1. That the petitioner was of the opinion that despite the aforesaid directions and order passed by the Division Bench of this Court restraining the Bank from taking any major policy decisions, number of resolutions came to be passed by the Bank and / or number of resolutions came to be passed such as appointing the General Manager, transferring shares after getting some shares back from some of the Cooperative Societies and then transferring to other cooperative societies of the members of the Managing Committee and even transferring the shares in favour of one Ileshbhai Dahyabhai Patel Director of the Bank and other policy decisions were taken/ being taken which are absolutely illegal, at that stage, the petitioner preferred present Special Civil Application No.7185 of 2014.
2.2. That after hearing the learned advocates for the respective parties and by detailed order dated 2.7.2014 the Division Bench admitted the present Special Civil Application and the Division Bench of this Court issued following directions.
"1. Rule.
2. Respondents No.2, 3 and 4 shall initiate process of election of respondent No.5 Bank, until the stage of delimitation of constituency. But it shall not pass any final order, unless interim order passed by the Apex Court in the above referred SLP is modified or vacated.Page 4 of 17 C/SCA/7185/2014 CAV JUDGMENT
3. The District Registrar shall examine the record of the minutes book of respondent No.5 Bank from 8.8.2013 till today and submit the report as to whether the Board of Directors of respondent Bank has taken any policy decision and if yes, of what type with what financial repercussions namely; for appointment of General Manager, purchase of any land, expenses for new construction or any other policy of such type. Such inquiry shall be completed within four weeks from today and report shall be submitted before this Court.
3. Until further orders, officebearers and the Manager of respondent No.5 Bank shall not permit the General Manager to draw salary of General Manager, but he shall be permitted to draw salary of Manager (Administration). Further, officebearers shall continue to do daytoday activities for running banking activities, but shall not incur any expenses (a) for purchase of any immovable property;
(b) for construction over any property;
(c) issuance of any new share to any person otherwise than required for running of its banking activities;
(d) shall not appoint or shall not undertake any recruitment process for appointment of any staff.
All the aforesaid prohibition shall be upon the officebearers of respondent No.5 Bank, but if they are desirous to incur any expense for the aforesaid purpose, which may fall in the domain of policy decision, it would be open to them to move District Registrar for prior approval and if the approval is granted, the aforesaid prohibition shall not apply.
After the report of the District Registrar is submitted, the matter shall further be considered for passing appropriate orders."
2.3. It appears that thereafter, the District Registrar, Cooperative Societies after holding necessary inquiry as directed by this Page 5 of 17 C/SCA/7185/2014 CAV JUDGMENT Court has submitted a detail report dated 02.08.2014, in which, it is specifically observed that after the order passed by the Division Bench of this Court dated 08.08.2013 in Special Civil Application No.12264 of 2013, the Bank / Board of Directors of the Bank has passed the resolutions / taken decisions illegally and has taken policy decisions illegally and contrary to the order passed by this Court dated 08.08.2013. It is also stated in the report that number of shares have been transferred in favour of certain cooperative societies which are absolutely illegal and without obtaining any prior approval of the District Registrar, Cooperative Societies. That thereafter, Civil Application No.11033 of 2014 has been preferred by the applicant herein petitioner of Special Civil Application No.7185 of 2014 directing the respondent no.4 District Registrar, Cooperative Societies to cancel the decisions taken by the respondent no.5 bank which are observed and held to be illegal as per the report dated 02.08.2014.
2.4. Thereafter, one another Special Civil Application has been preferred being No. 17257 of 2014 for an appropriate writ, direction and order directing the respondent nos. 1 to 4 to declare and hold the election of the members of the Managing Committee / Board of Directors of the respondent no.5 Bank.
3.0. Shri Dipen Desai, learned advocate for the petitioner of Special Civil Application No.7185 of 2014 and Shri V.C. Vaghela, learned advocate for the petitioner of Special Civil Application No.17257 of 2014 have submitted that as such the term of the Managing Committee of the respondent Bank has expired as back as on 02.07.2013. It is submitted that however the election could not be held and / or conducted in view of the proceedings before the Hon'ble Supreme Court against the decision of the Full Bench of this Court in Page 6 of 17 C/SCA/7185/2014 CAV JUDGMENT Special Civil Application No. 12067 of 2012 and other allied matters. It is submitted that now the Hon'ble Supreme Court has disposed of the proceedings and has confirmed the decision of the Full Bench of this Court in Special Civil Application No.12067 of 2012 and other allied matters and therefore, the election is required to be held and conducted as per Rule 3A (8) and 3A (9) of the Rules, 1982 and as per the decision of the Full Bench of this Court in Special Civil Application No.12067 of 2012 and other allied matters, which has now been confirmed by the Hon'ble Supreme Court. To the aforesaid, Shri Pahwa, learned advocate for the respondent no.5 Bank has not disputed the above and even Shri Jaiswal, learned Assistant Government Pleader appearing on behalf of the concerned respondent nos. 1 to 4 has stated at the bar that the process for election of Managing Committee / Board of Directors of the respondent no.5 Bank shall be commenced immediately and the election shall be declared at the earliest and the election shall be held considering the decision of the Full Bench of this Court in Special Civil Application No.12067 of 2012 and other allied matters. Under the circumstances, now there is no impediment in deciding and / or holding the election of the Board of Directors of the respondent no.5 Bank, which is required to be held and conducted considering the decision of the Full Bench of this Court in Special Civil Application No.12067 of 2012 and other allied matters and therefore, appropriate direction is required to be issued for the same.
3.1. Now, so far as other reliefs sought in Special Civil Application No.7185 of 2014 and Civil Application No.11033 of 2014 directing the respondent authorities, more particularly, respondent nos. 1 to 4 to take appropriate action for cancellation of the policy decisions taken by the respondent no.5 bank after the term of the present body has expired which are alleged to have been taken without prior Page 7 of 17 C/SCA/7185/2014 CAV JUDGMENT permission of the Registrar, Cooperative Societies and to direct respondent no.4, District Registrar, Cooperative Societies, Jamnagar to cancel the decisions taken by the respondent no.5 Bank which are referred to in its report dated 02.08.2014 is concerned, Shri Desai, learned advocate for the petitioner has vehemently submitted that as observed by the District Registrar, Cooperative Societies in his report dated 02.08.2014 which has been submitted by the District Registrar, Cooperative Societies after holding necessary inquiry pursuant to the order passed by this Court dated 02.07.2014, number of resolutions have been passed / decisions have taken by the present body whose term had already expired, which are illegal and without prior approval of the District Registrar, Cooperative Societies and even some of the decisions are even after the order passed by this Court dated 08.08.2013 passed in Special Civil Application No.12264 of 2013.
3.2. It is further submitted by Shri Desai, learned advocate for the petitioner that decisions are also taken permitting the bank to allot new shares and / or transfer of shares to some of the cooperative societies with a view to see that the persons who are allotted shares become eligible for contesting the election. It is submitted that for example, present Director Shri Ilesh Dahyabhai Patel is allotted additional share / shares and are transferred in his name illegally, so as to enable him to qualify to contest the election. It is submitted that while passing the resolution in the meeting held on 27.12.2013 (after the order passed by this Court dated 08.08.2013 passed in Special Civil Application No.12264 of 2013) under the guise of the directions issued by this Court in Special Civil Application Nos.17944 of 2013 and 18020 of 2013, 240 shares have been transferred in favour of said Ileshbhai Dahyabhai Patel only with a view to see that he become eligible to contest the election as a Director. It is submitted that he was having less Page 8 of 17 C/SCA/7185/2014 CAV JUDGMENT number of shares and as per the amended byelaws, he was not eligible to contest the election for the post of Director as he was holding less than minimum 800 shares (minimum share of Rs.40,000/) and therefore, by resolution dated 27.12.2013, 240 shares came to be transferred in his name, which can be said to be a major policy decision and therefore, the said decisions/ resolutions is absolutely in teeth of the order passed by this Court dated 08.08.2013 in Special Civil Application No.12264 of 2013. It is submitted that even the said resolution was also not got approved by the Registrar, Cooperative Societies.
3.3. It is further submitted that earlier and after term of present body has expired on 02.07.2013, number of resolutions have been passed illegally getting back some shares from some of the cooperative societies and thereafter allotting same to the new cooperative societies and though the societies are all the Directors and / or Managing Director of the Bank and transfers to their nearer and dearer. It is submitted that all those decisions / resolutions are absolutely illegal and without obtaining any approval of the Registrar, Cooperative Societies, as so observed by the Registrar, Cooperative Societies in its report dated 02.08.2014.
3.4. It is submitted by Shri Dipen Desai, learned advocate for the petitioner that after the order dated 08.08.2013 the Bank could not have taken any major policy decisions and Board of Directors were continued as a care taker and not even as custodian / administrator. It is submitted that therefore, as such present body who has acted contrary to the order passed by this Court dated 08.08.2013, they are required to be punished even under the Contempt of Courts Act.
3.5. Now, so far as policy decisions which are already taken by Page 9 of 17 C/SCA/7185/2014 CAV JUDGMENT the Bank after their term has expired i.e. after 02.07.2013, respondent no.4 - District Registrar, Cooperative Societies is required to take appropriate action to cancel the same and therefore, all those decisions which are taken after 02.07.2013, Registrar, Cooperative Societies is required to cancel the same.
4.0. Shri Navin Pahwa, learned advocate has appeared on behalf of respondent no.5 Bank. Now, so far as prayer of the petitioner to direct the respondent nos. 1 to 4 to declare and hold the election of the members of the Managing Committee of the respondent no.5 Bank is concerned, he has stated at the bar that respondent no.5 cannot have any objection if the appropriate directions are issued directing the respondent nos.1 to 4 to declare the election at the earliest and to hold and conduct election considering the decision of the Full Bench of this Court rendered in Special Civil Application No.12067 of 2012 and other allied matters.
4.1. However, so far as other prayers sought in the Special Civil Application No.7185 of 2014 and Civil Application No. 11033 of 2014 therein and the report of the Registrar, Cooperative Societies dated 02.08.2014, Shri Pahwa, learned advocate for the respondent no.5 Bank has stated that as such none of the decisions / resolutions either after 02.07.2013 and / or even after 08.08.2013, more particularly, appointment of the General Manager, transfer / allotment of shares in favour of some of the Cooperative Societies, transfer of shares in favour of Ilesh Dahyabhai Patel can be said to be illegal. It is submitted that all the resolutions / decisions were sent to the District Registrar for its approval. It is further submitted that even District Registrar is office bearer of the Board of Directors. It is further submitted that even none of the decisions can be said to be major policy decisions, more Page 10 of 17 C/SCA/7185/2014 CAV JUDGMENT particularly, decision of transferring share in favour of Ileshbhai Dahyabhai Patel cannot be said to be in teeth of the order passed by this Court dated 08.08.2013.
4.2. It is further submitted by Shri Pahwa, learned advocate for the respondent no.5 Bank that as such District Registrar by order dated 02.07.2014 was directed to examine the record of the minutes book of respondent No.5 Bank from 8.8.2013 till today and submit the report as to whether the Board of Directors of respondent Bank has taken any policy decision and if yes, of what type with what financial repercussions namely; for appointment of General Manager, purchase of any land, expenses for new construction or any other policy of such type. It is submitted that therefore, report dated 02.08.2014 is required to be confined to the aforesaid inquiry only and not with respect to any decision taken prior to 08.08.2013. Relying upon the averments in the affidavit in reply, more particularly, explanation with regard to the transfer of share in favour of Ileshbhyai Dahyabhai Patel of other cooperative societies, it is submitted that as such none of the decisions / resolutions can be said to be illegal.
4.3. Now, so far as resolutions being resolution no.9 passed in the meeting held on 20.01.2014 transferring 240 shares in favour of Ileshbhai Dahyabhai Patel is concerned, it is submitted that as such the said decision was taken pursuant to the direction issued by the learned Single Judge in the order dated 10.1.2014 passed in Special Civil Application No.18020 of 2013 and Special Civil Application No.17944 of 2013. It is submitted that even otherwise the said decision cannot be said to be a major policy decision which can be said to be contrary to the directions issued by this Court in order dated 08.08.2013. It is submitted that even otherwise the said resolution is absolutely legal and in Page 11 of 17 C/SCA/7185/2014 CAV JUDGMENT accordance with law.
4.4. Now, so far as allegation with respect to other resolutions getting back shares from other cooperative societies and thereafter transferring in favour of other cooperative societies belonging to the office bearers / Director / Managing Director of the respondent no.5 Bank is concerned, it is submitted that all those resolutions are legal and as such prior to order passed by this Court dated 08.08.2013. Making above submissions, it is requested not to grant any relief in the present petition except directing respondent nos. 1 to 4 to declare and hold the election as stated above.
5.0. Heard the learned advocates for the respective parties at length. Now, so far as prayer of the petitioner to direct respondent nos. 1 to 4 and / or appropriate authority to declare election of the Managing Committee of the respondent no.5 Bank and to hold and conduct the election is concerned, it is required to be noted that as such there is broad consensus between the learned advocates for the respective parties recorded herein above. It appears that earlier the election of the members of the Managing Committee / Board of Directors of the respondent no.5 Bank could not be held in view of the proceedings pending before the Hon'ble Supreme Court against the decision of the Full Bench of this Court in Special Civil Application No.12067 of 2012 and other allied matters. However, now the proceedings before the Hon'ble Supreme Court are concluded and disposed of and the decision of the Full Bench of this Court in Special Civil Application No.12067 of 2012 and other allied matters has been confirmed. The term of the members of the Managing Committee of the respondent no.5 has expired as far as back on 02.07.2013. Under the circumstances, respondent nos. 1 to 4 are now required to be directed to declare the Page 12 of 17 C/SCA/7185/2014 CAV JUDGMENT election and to hold and conduct the election of the Board of Directors of respondent no.5 Bank at the earliest and considering the decision of the Full Bench of this Court in Special Civil Application No.12067 of 2012 and other allied matters.
5.1. Now, so far as other prayers prayed in the Special Civil Application directing Registrar (Cooperative Societies), State of Gujarat to initiate appropriate proceedings for the decisions taken by the respondent no.5 Bank after their term had expired i.e. 02.07.2013 and any policy decisions taken after 08.08.2013 is concerned, it is required to be noted that present body / Board of Directors of the respondent no.5 bank were continued as care taker and not as an Administrator / Custodian in place of Managing Committee and on condition that there shall not be have any major policy decisions without prior approval of the District Registrar, Cooperative Societies, pursuant to the order dated 08.08.2013 passed in Special Civil Application No.12264 of 2013.
5.2. Number of allegations and counter allegations are made with respect to decisions / resolutions passed by the Bank, more particularly, with respect to return/ transfer of shares by some of the cooperative societies and transferring / allotting same to some other cooperative societies belonging to and / or supporting Managing Directors / Board of Directors of the present body whose term has expired. Number of other allegations are also made with respect to other resolutions after 02.07.2013 for which necessary inquiry is required to be held by the Registrar (Cooperative Societies), State of Gujarat after giving opportunity to the Bank. It is required to be noted that in the report dated 02.08.2014, the District Registrar has also opined that resolutions / decisions of the Bank are illegal and without obtaining any approval from the District Registrar (Cooperative Societies), State of Page 13 of 17 C/SCA/7185/2014 CAV JUDGMENT Gujarat. All these things are required to be inquired into by the Registrar, Cooperative Societies. At this stage, it is required to be noted and it is not disputed by the learned advocate for the respondent no.5 that any resolutions / decisions of the Bank is subject to approval by the District Registrar (Cooperative Societies) and even under the provisions of the Gujarat Cooperative Societies Act, Registrar, Cooperative Societies has jurisdiction to look into the legality and validity of any resolutions / decisions of the Bank. Under the circumstances, directions are required to be issued to the Registrar (Cooperative Societies), State of Gujarat to hold an inquiry with respect to decisions / resolutions passed by the Bank after 02.07.2013 with respect to any policy decision, more particularly, when the present body was continued as care taker and as their term had expired after 02.07.2013.
5.3. However, so far as resolution no.9 passed in meeting held on 20.1.2014 transferring 240 shares in favour of Ileshbhai Patel and one of the Director of the respondent no.5 Bank whose term has expired is concerned, the same cannot be sustained and it appears that the same is in teeth of the order passed by this Court dated 08.08.2013 passed in Special Civil Application No.12264 of 2013. It is required to be noted that as per the amended byelaws a person who is holding share of less than Rs.40,000/ ( minimum 800 shares) is not eligible to contest the election as a Director. It is alleged and it is not in dispute that said Ileshbhai Patel was short of requisite share holding. He preferred Special Civil Application No.17944 of 2013 and Special Civil Application No.18020 of 2013 before this Court, in which, statement was made by the learned advocate for the respondent no.5 Bank that they will decide the application for transfer of shares within a period of 10 days and therefore, the learned Single Judge disposed of the aforesaid Special Civil Application vide order dated 10.01.2014 directing the Bank to Page 14 of 17 C/SCA/7185/2014 CAV JUDGMENT decide the said application. At this stage, it is required to be noted that the learned Single Judge issued the direction solely on the basis of statement made by the learned advocate for the respondent Bank and did not issue any direction on merits. However, thereafter, taking the shelter of the said order, in the meeting held on 20.01.2014, 240 shares are transferred in favour of aforesaid Ileshbhai Patel so as to enable him to become eligible to contest the election as a Director. Even considering the resolution no.9 the purpose for transfer of 240 shares in favour of aforesaid Ileshbhai Patel can be borne out and there is specific reference to the fact that on transfer he may be eligible to contest the election as a Director. Therefore, it was a clear design on the part of the respondent no.5 Bank and the said Ileshbhai Patel, first to make statement before the Court that they will decide the application for transfer of shares within the period of 10 days and thereafter inviting order and under the guise of that order to decide the application, despite the specific order dated 08.08.2013 directing the Bank not to take any major policy decision. It is contended on behalf of the respondent no.5 Bank that the aforesaid cannot be said to be major policy decision, which cannot be accepted. If the aforesaid cannot be said to be major policy decision, then there cannot be any other major decision. To transfer the share in favour of Director so as to enable him to become eligible to contest the election as Director can certainly be termed as major policy decision, which could not have been and ought not to have been taken by the respondent no. 5 Bank in view of order passed by the Division Bench dated 08.08.2013 in Special Civil Application No.12264 of 2013 restraining the bank from taking any major policy decisions. Under the circumstances, resolution no.09 transferring 240 shares in favour of aforesaid Ileshbhai D Patel is absolutely illegal and in teeth of the directions issued by this Court dated 08.08.2013 passed in Special Civil Application No.12264 of 2013 and it is non est and nullity, which Page 15 of 17 C/SCA/7185/2014 CAV JUDGMENT cannot be sustained. It is required to be noted that as such for the aforesaid action it can be said that there is deliberate and willful disobedience of the order passed by this Court dated 08.08.2013 passed in Special Civil Application No.12264 of 2013. However, in the present proceedings, the aforesaid may not be considered. Under the circumstances, Resolution No.9 transferring 240 shares in favour of aforesaid Ileshbhai Patel, by the Bank/ Board of Directors of the Bank which is absolutely illegal and in teeth of the order passed by the Division Bench of this Court dated 08.08.2013 passed in Special Civil Application No.12264 of 2013, cannot be sustained and same deserves to be quashed and set aside. If such an order is not passed, in that case, it will be permitting to perpetuate / continue the illegality.
6.0. So far as, other resolutions/ policy decisions which are referred in the report of District Registrar, Cooperative Societies dated 02.08.2014 is concerned, as observed herein above, the same is required to be inquired into and looked into by the Registrar, Cooperative Societies as observed herein above.
7.0. In view of the above and for the reasons stated above, petition succeeds. Concerned respondent nos. 1 to 4 are hereby directed to declare the election of the Managing Committee / Board of Directors of the respondent no.5 Bank within a period of two weeks from today and thereafter hold and conduct the election of the members of the Managing Committee/ Board of Directors of the respondent no.5 Bank considering the decision of the Full Bench of this Court rendered in Special Civil Application No.12067 of 2012 and other allied matters which has been confirmed by the Hon'ble Supreme Court at the earliest. The Registrar, Cooperative Societies is hereby directed to initiate proceedings and hold necessary inquiry with respect to legality and Page 16 of 17 C/SCA/7185/2014 CAV JUDGMENT validity of the resolutions / policy decisions taken by the respondent no.5 after their term had expired i.e. on 2.7.2013 and to exercise its powers conferred under the Gujarat Cooperative Societies Act within a period of three months from today and take appropriate decision after following due procedure and giving an opportunity to all concerned. All concerned are directed to cooperate Registrar (Cooperative Societies), State of Gujarat in the aforesaid inquiry. So far as resolution / decision of the bank dated 27.12.2013 transferring 240 shares in favour of Director Shri Ilesh D Patel is concerned, it is held to be major policy decision and the same is hereby quashed and set aside being in teeth of order passed by the Division Bench of this Court dated 8.8.2013 passed in Special Civil Application No. 12264 of 2013. Rule is made absolute to the aforesaid extent so far as Special Civil Application No. 7185 of 2014. In view of the order passed in Special Civil Application No. 7185 of 2014, no further order is required to be passed in Special Civil Application No. 17257 of 2014 except disposal of the same. In view of the aforesaid directions, Civil Application stands disposed of.
sd/ (M.R.SHAH, J.) sd/ (R.D.KOTHARI, J.) Kaushik Page 17 of 17