Ludhiana Aggarwala Coop House Building Society vs Commissioner Jalandhar Division

N.K. Sodhi, J.—This petition has been filed by the Ludhiana Aggarwala Co-operative House Building Society Ltd., Aggar Nagar, Ludhiana (for short the Society) challenging the orders of the Assistant Registrar, Cooperative Societies, Ludhiana and of the Commissioner (Appeals) exercising the powers of the State Government whereby the resolution passed by the General Body of the Society removing Shri Amrit Lal Aggarwal (respondent 3) from the membership of the Society has been set aside.

During the course of arguments, it transpired that on a complaint received from one Shri Mangat Ral regarding some irregularities committed in the working of the Society, Shri Amarjit Singh Gill, Assistant Registrar, Co- operative Societies, Ludhiana conducted a fact finding inquiry and he found several irregularities committed by the Administrator during the period June, 1984 to June, 1986. A copy of this report was produced in court at the time of arguments and I have perused the same. It was strenuously urged by Mr. D.V. Sharma, Advocate on behalf of the Society that respondent 3 who had been appointed an Advisor to the Administrator of the Society from June 25, 1985 to May 14, 1986 was also responsible for the demolition of the servant- quarters and for the allotment of that land to some members of the Society at a throw away price. It has been observed by the Enquiry Officer that respondent 3 had signed the original proceedings of the meeting of the Administrator held on November 6, 1985 in which a decision was taken to demolish the servant quarters of the Society and allot the land to some members though it has also been observed that there was some interpolation in the proceedings thereafter and it was suggested that he did not agree to the decisions of the Administrator in regard to items 5 and 9 of the said meeting. According to the counsel, this respondent acted against the interest of the Society and connived with the Administrator and other officials in giving undue benefit to some of the mem-bers.He further submitted that the General Body of the Society was, therefore, justified in removing him from the membership.

Mr. R.P. Bali, learned counsel for respondent 3 on the other hand submitted that the Enquiry Officer has not held his client directly responsible though he has held the Administrator and the Secretary responsible. He also contended that his client had not been associated with the fact finding inquiry and the findings recorded therein were given at the back of respondent 3. It was further submitted that his client was not a party to the decision at items 5 and 9 of the meeting of the Administrator held on November 6, 1985 and in any case his client was not responsible for any interpolation as has been pointed out by the Enquiry officer.

After hearing counsel for the parties, I am not satisfied with the inquiry held by the Assistant Registrar, Cooperative Societies, Ludhiana and in my opinion a detailed inquiry needs to be conducted by some senior officer of the Cooperative department to find out the names of all those who were responsible for causing loss to the Society and for demolishing the servant quarters and allotting land of the Society to its members. The loss that has been caused to the Society is said to be phenomenal as the land is said to have been allotted at the rate of Rs. 10/- per square yard when the price of the same in a town like Ludhiana is more than Rs. 5,000/- per square yard. The Registrar, Cooperative Societies, Punjab is, therefore,, directed to have the following matters inquired into by an officer not below the rank of an Additional Registrar,Co-operative Societies:-

(i) Who are the persons responsible for the decision taken at item 5 and 9 of the meeting of the Administrator held on November 6,1985 in which it was decided to demolish the servant quarters and to enroll some members ?

(ii) To fix responsibility for the subsequent allotment of the land to some of the members and who are the persons to whom the land was allotted and at what rate ?

(iii) Under what circumstances were the Advisors to the Administrator appointed and what role have they played in the demolition of servant quarters and allotment of land to some members of the Society and how much is the approximate loss caused to the Society by this decision ?

The Additional Registrar to whom the inquiry is entrusted should associate the Society and respondent 3 in the inquiry. The report should be submitted to this Court so as to reach on or before October 31, 1995. The Society and respondent 3 have been directed through their counsel to appear before the Registrar, Cooperative Societies, Punjab on September 25,1995 at 11 a.m. for further directions.

The case to come up on November 6,1995 for further arguments.

A copy of this order certified by the Court Reader be supplied to counsel for the parties by tomorrow.