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Judgment
Rajasekhar Mantha, J
The two writ petitions are taken up together since the questions of law involved in both the writ petitions are similar and identical.
In the first writ petition being W. P. No. 21003(W) of 2019 is with regard to meeting of the Board of Directors of the Raiganj Central Co-operative Bank to be held on 21.11.2019 at 11.00 a.m. in which the only agenda about "No Confidence Motion has been issued against the Chairman of the Board".
In the second writ petition being W. P. No. 21005(W) of 2019 the impugned order is dated 08.11.2019. The sum and substance whereof rescinding of the resolution adopted by the meeting of the Board of Directors dated 27th September, 2019 in so far as the continuation of defaulter members of the Board invoking the Section 37(2) of the WBCS Act, 2006 read with Rule 59 of the WBCS Rules, 2011.
The issues that arise are as to the interpretation of Section 134C(10)(B) of the WBCS Act, 2006.
This Court is of the view that one of the questions framed to be decided are whether the expression "unless default is clear", would mean a clearance of the default within the time stipulated by the lender subsequent to the loan itself or the default under the terms and conditions of the loan-in-question.
It is contended on behalf of both the writ petitioners that Section 134C must be read with Rule 59. Rule 59 prescribes that in the event of a difference of opinion between the C.E.O. (nominee of the State Government) and the majority of the Board Members, the C. E. O. is entitled to refer the matter to the Registrar whose decision would be final and binding on the C. E. O. and the Board Members.
The third question that is raised is as to whether the clearance of the defaulter would also mean clearance pursuant to a chance given to the concerned defaulting member and the entitlement of such defaulter member to continue as member upon availment of the chance given to him.
In those circumstances, since all parties are represented before this Court no further communication of this order needs be made formally to the Registrar. The Registrar shall be within Friday (22.11.2019) of the receipt of a communication orally or otherwise and preferably on the letterheads of the counsel appearing before this Court decided the matter as indicated herein above as required under the Statute. The meeting shall be held by the Registrar on Thursday (21.11.2019) at about 11.30 a.m. in the presence of all parties. No further notice shall be given by the Registrar in this regard.
For the aforesaid purpose, the Registrar will consider all minutes of the A.G.M and all documents that the parties may present before them and pass a reasoned order as required under the statute.
In the meantime, the Chairman of the Society and the general body members of the Raiganj Central Co-operative Bank shall not take any decision except those necessary for the day to day function of the Co-operative Bank unless and until the decision of the Registrar, Central Co-operative Bank.
With the aforesaid observations, the two writ petitions are disposed of.
No order as to costs.
The Registrar shall act on website copy of this order as communicated to him.
Urgent photostat certified copy of this order, if applied for, be given to the parties upon compliance of all formalities.