Supreme Court Allows Appeal in Cooperative Society Dispute — Jurisdictional Error in Revisional Authority's Decision.

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Case Note & Summary

The dispute arose from disciplinary proceedings against the Chief Accounts Officer of a cooperative society, who faced multiple charges of misconduct. Following an inquiry, he was dismissed from service, leading to an appeal before the Registrar, which was dismissed. The respondent then filed a revision petition before the State Government, which was allowed, prompting the cooperative society to challenge this decision in the High Court. The High Court dismissed the writ petition, leading to the current appeal. The appellant contended that the State Government acted without jurisdiction in entertaining the revision application, as an appeal was maintainable. The respondent argued that the State Government could exercise its revisional power suo motu. The Supreme Court analyzed the provisions of the Haryana Act and the Punjab Act, concluding that the State Government's revisional power could not be exercised if an appeal was available. The court found that the inquiry against the respondent was not properly conducted and directed the Registrar of Cooperative Societies to arbitrate the matter afresh, ensuring that the previous inquiry report would not influence the new proceedings. The court also ordered that no recovery of salary should be made from the respondent for the period he was employed following the High Court's order. The appeal was allowed with specific directions regarding the arbitration process.

Headnote

A) Cooperative Societies Law - Revisional Jurisdiction - Exercise of Revisional Power - Haryana Co-operative Societies Act, 1984, Section 115 - The State Government's exercise of revisional jurisdiction was found to be without jurisdiction as an appeal was maintainable, thus rendering the revisional order coram non judice. The court held that if an appeal lies, the revisional jurisdiction cannot be exercised (Paras 9-10).

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Issue of Consideration

Whether the State Government acted illegally and without jurisdiction in entertaining the revision application filed by the respondent.

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Final Decision

The Supreme Court allowed the appeal, directing the Registrar of Cooperative Societies to arbitrate the matter afresh and ensuring that no recovery of salary would be made from the respondent for the specified period.

Law Points

  • Revisional jurisdiction
  • disciplinary proceedings
  • ex parte inquiry
  • jurisdictional error
  • arbitration under cooperative law
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Case Details

2006 LawText (SC) (11) 81

Appeal (civil) 4773 of 2006

2006-11-10

S.B. Sinha, Dalveer Bhandari

Vinay Garg, Jawahar Lal Gupta

The Shahabad Cooperative Sugar Mills Ltd

Special Secretary to Govt. of Haryana Corp. & Ors

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Nature of Litigation

Disciplinary proceedings against a cooperative society employee.

Remedy Sought

The cooperative society sought to challenge the revisional order of the State Government.

Filing Reason

The respondent's revision application was entertained by the State Government despite an available appeal.

Previous Decisions

The High Court dismissed the writ petition challenging the State Government's revisional order.

Issues

Whether the State Government acted without jurisdiction in the revision application. Whether the inquiry against the respondent was conducted properly.

Submissions/Arguments

The appellant argued that the State Government's revisional order was illegal as an appeal was maintainable. The respondent contended that the State Government could exercise its revisional power suo motu.

Ratio Decidendi

The revisional jurisdiction cannot be exercised if an appeal lies; the inquiry was not properly conducted, necessitating fresh arbitration.

Judgment Excerpts

The State Government's exercise of revisional jurisdiction was found to be without jurisdiction. The inquiry against the respondent was not properly conducted.

Procedural History

The respondent was dismissed from service following disciplinary proceedings, appealed to the Registrar, and subsequently filed a revision petition before the State Government, which was allowed. The High Court dismissed the writ petition challenging this decision, leading to the current appeal.

Acts & Sections

  • Haryana Co-operative Societies Act: Section 102, Section 114, Section 115
  • Punjab Co-operative Societies Act: Section 68, Section 69
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