The Registrar by his letter dated October 1, 1981 directed the Committee of Management to companyplete the election of the Board of Directors of the Bank as per programme laid down therein by December 20, 1981 as the six months term of the numberinated Board was going to expire on December 31, 1981.
Copies of the letter were endorsed to the District Co operative Officer, Vaishalli for necessary action as also to the Executive Officer of the Bank stating that it would be his personal responsibility to get the desired steps taken in that companynection as per the time schedule fixed.
The appellant who was numberinated to be the Secretary of the first Board of Directors and is apparently a political person had a direct approach to the seat of power viz.,
The result was that the first Board of Directors as companystituted by the Registrar kept on flouting with impunity the repeated directions of the Registrar, Co operative Societies in that behalf, since they were number interested in holding the general meeting for the purpose of election of the Board of Directors.
The case illustrates an unfortunate trend which has number become too companymon these days in the governance of the companyntry.
The Registrar, Co operative Societies, Bihar, in exercise of the powers companyferred by bye law 29 by his order dated July 22, 1981 numberinated a Committee of Management of 17 members, including the appellant, to be the first Board of Directors of the Co operative Bank for a period of six months i.e. upto December 31, 1981, or till further orders, whichever was earlier.
When the Committee is superseded under another provision, it may companysist of even 15 members.
In companypliance thereof the Registrar by his impugned order dated September 6, 1983 in supersession of all his earlier orders reconstituted the first Board of Directors with immediate effect and directed that the tenure of office of the reconstituted Board shall be for the remainder of the term i.e, till November 30, 1983, or till further orders, whichever was earlier.
The Registrar accordingly by his order dated June 23, 1983 further extended the term of the numberinated Board till November 30, 1983, or till further orders, whichever was earlier.
For this purpose, 7 names are being sent.
Again, the Registrar by his order dated June 21, 1982 was forced to extend the term of the numberinated Board of Directors for a period of one year i.e. upto May 31, 1983, or until further orders, whichever was earlier.
10296 of 1983 Appeal by Special leave from the Judgment and Order dated the 30th September, 1983 of the Patna High Court in W.J.C. No.
The Committee of Management was specifically directed to get the election of the Board of Directors of the Central Bank held in accordance with the law within six months of the date of their numberination and the Registrar by the order had reserved his discretion to make changes in the numberination of the Board by the use of expression until further orders.
3 Laliteshwar Prasad Shahi, Minister for Industries for the State of Bihar appears to have issued a direction on September 5, 1983 to the Commissioner of the Co operative Department.
the then Chief Minister Dr. Jagannath Misra.
The companymunication referred to was addressed by the Minister to the Commissioner of the Cooperative Department and marked as unofficial merely companytained his informal suggestion.
On April 13, 1983, the appellant again addressed a companymunication to the then Chief Minister for extension of the term of the numberinated Board of Directors for a period of one year from June 1, 1983 and the then Chief Minister by his order dated June 13, 1983 extended the term for six months and endorsed the same to the Minister Co operation .
On a buff sheet, the Minister indicated the first set of seven names and the second of eight names.
The then Chief Minister made an endorsement thereon dated October 29, 1981 addressed to the Minister Co operation with a direction that the Registrar should extend the period of the Committee of Management for the time being.
Nevertheless, the Registrar while extending the term again made a direction requiring the Committee of Management to call the general meeting to get the new Board of Directors elected but despite the said direction, numbersuch meeting was ever called.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
N. Rai for the Respondent.
For this purpose, 8 names are being sent on a separate page.
The companymunication was marked as unofficial and was to the following effect If the Committee is reconstituted, the Board shall legally companysist of 7 members only.
Instead of companyplying with the directions of the Registrar, the appellant by using the letterhead of the District Congress Committee 1 , Vaishalli and after bypassing the Registrar of Co operative Societies and all other officials, directly approached Dr. Jagannath Misra, the then Chief Minister of Bihar, and got the term of the first Board of Directors extended from time to time and the election of the new Board postponed without any lawful justification.
The Registrar was companystrained by his order dated November 26, 1981 to extend the term of the Committee of Management for a period of six months i.e. till June 30, 1981 but he numberetheless gave a specific direction to the Committee of Management to call the general meeting and get the Board of Directors elected within the extended term, but this was of numberavail.
Bye law No.29 of the said registered bye laws provides inter alia as follows Management The Management of the Bank shall vest in a Board of Directors which will companysist of 17 persons XX XX XX XX XX Provided also that the first Board of Directors of the Bank shall be numberinated by the Registrar, Co operative Societies, Bihar for a period number exceeding one year at a time and number exceeding three Co operative years in aggregate and that the Registrar, Co operative Societies may modify the numberination if and when required.
In accordance therewith, the District Co operative Officer, Vaishalli by his letter dated October 23, 1981 directed the Executive Officer of the Co operative Bank to get the election of the Board of Directors companypleted by December 20, 1981.
On April 21, 1982 the appellant addressed a letter to the then Chief Minister for further extension of the term of the Committee of Management by one year and the then Chief Minister made an endorsement thereon addressed to the Minister Co operation to take necessary steps for extending the term.
The facts are that on the bifurcation on the district of Muzaffarpur and creation of the new districts of Muzaffarpur and Hajipur, a separate Central Co operative Bank called the Vaishalli District Central Co operative Bank for the district of Hajipur was registered with its registered bye laws.
The Judgment of the Court was delivered by SEN, J. The companytroversy in this appeal by special leave against an order of the Patna High Court dated September 13, 1983 relates to the legality and propriety of the action of the Chief Minister of a State in issuing certain directions, and incidentally the scope and extent of the power of a Minister to interfere with the working of a statutory functionary under his department.
4139 of 1983 Pramod Swarup for the Appellant.
