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25.4 In case of STATE OF MADHYA PRADESH AND OTHERS VS. SANJAY NAGAYACH AND OTHERS [(2013) 7 SCC 25]; the Court held that Statutory functionaries like Registrar/Joint Registrar of Cooperative Societies functioning under the respective Act must be above suspicion and function independently without external pressure. The Registrar / Joint Registrar, while exercising powers of supersession has to form an opinion and that opinion must be based on some objective criteria, which has nexus with the final decision. A statutory authority shall not act with pre-conceived notion and shall not speak his masters' voice, because the formation of opinion must be his own, not somebody else in power to achieve some ulterior motive. There may be situations where the Registrar/ Joint Registrar are expected to act in the best interest of the society and its members, but in such situation, they have to act bona fide and within the four corners of the Statute. Apt would be to reproduce some of the findings and observations:

Registrar/Joint Registrar and external influence "36. Statutory functionaries like Registrar/Joint Registrar of Co¬ operative Societies functioning under the respective Cooperative Act must be above suspicion and function independently without external pressure. When an authority invested with the power purports to act on its own but in substance the power is exercised by external guidance or pressure, it would amount to nonexercie of power, statutorily vested. Large number of cases are coming up before this Court" and the High Courts in the country challenging the orders of supersession and many of them are being passed by the statutory functionaries due to external influence ignoring the fact that they are ousting a democratically elected Board, the consequence of which is also grave because the members of the Board of Directors would also stand disqualified in standing for the succeeding election as well.