Dr. Ambedkar Cooperative House Building Society Ltd and Ors v. State of Punjab and Others

CWPoNo.284oofo2022(O&M)o o o -1-oo o 2023:PHHC:043263o o INoTHEoHIGHoCOURToFORoTHEoSTATESoOFoPUNJABoANDoHARYANAo AToCHANDIGARHo o o o o o o o CWPoNo.284oofo2022(O&M)o o o o o o o o Reservedoon:17.02.2023o o o o o o o Pronouncedoon.17.03.2023o o o o o o Dr.oAmbedkaroCooperativeoHouseoBuildingoSocietyoLtd.oandoothersooo o o o o o o o o o o o o...Petitionerso o o o o o o Vso o StateoofoPunjaboandoothersoo o o o o o ...Respondentso CORAM:HON'BLEoMS.oJUSTICEoJAISHREEoTHAKURo Present:o Mr.oMansuroAli,oAdvocateoo o o Mr.oImranoA.oAli,oAdvocateoo o o o forotheopetitioners.o o o o Mr.oDeepanjayoSharma,oDAG,oPunjab.o o o o o o Mr.oRanjitoSinghoKalra,oAdvocateoo o o Mr.oRandeepoSinghoSamagh,oAdvocateoo o o Ms.oGagandeepoSekhon,oAdvocateoo o o fororespondentoNo.5.o o o o -.-o JAISHREEoTHAKURoJ.o

1.o o PetitionersohereinoknockedodoorsoofotheoCourtobyoinvokingoArticleo 226/227oofotheoConstitutionoofoIndiaoseekingoissuanceoofoaowritoinotheonatureoofo Certiorario foro quashingo ordero datedo 16.12.2021o (Annexureo P-17)o passedo byo respondento No.1o ando ordero datedo 16.11.2021o (Annexureo P-15)o passedo byo respondento No.2o wherebyo lettero datedo 24.06.2013o (Annexureo P-3)o issuedo byo respondento No.3o grantingo approvalo too theo petitionero No.1-Societyo foro itso conversionotooaoSelfoSupportingoCooperativeoHouseoBuildingoSocietyoLtd.ohaso beenowithdrawnoasowelloasoorderodatedo18.11.2021o(AnnexureoP-16)opassedobyo AssistantoRegistrar,oCooperativeoSocietiesoMohali.o

2.o o Briefo facts,o whicho areo enumeratedo ino theo writo petition,o areo thato petitioneroNo.1-Dr.oAmbedkaroCooperativeoHouseoBuildingoSocietyoLtd.,oMohalio (hereinaftero referredo too aso theo Society)o waso registeredo undero theo Punjabo CWPoNo.284oofo2022(O&M)o o o -2-oo o 2023:PHHC:043263o o CooperativeoSocietiesoAct,o1961.ooTheoSocietyoisostatedotoobeototallyoself-financedo asothereoisonooaidoreceivedofromotheoCentralooroStateoGovernment.ooOno26.11.2012,o theoManagingoCommitteeoofotheoSocietyodecidedotooconveneoaomeetingoofotheo GeneraloBodyoofotheoSocietyoforo29.12.2012otooconsiderotheoconversionoofotheo SocietyointooSelf-SupportingoCooperativeoSocietyounderoPunjaboSelfoSupportingo CooperativeoSocietiesoAct,o2006o(inoshortoActoofo2006).ooAothirtyodaysonoticeowaso affixedoonotheonoticeoboardoalongowithotheoagendaoono26.11.2012oforoholdingotheo GeneraloBodyomeetingoono29.12.2012.ooNoticesowereosentotootheomembersothrougho courier,o givingo clearo 15o dayso notice,o ino termso ofo Ruleo 80o ofo theo Punjabo CooperativeoSocietiesoRules,o1963.oooTheoGeneraloBodyomeetingowasoheldoono

29.12.2021o whereino allo memberso unanimouslyo resolvedo too geto theo Societyo convertedointooaoSelfoSupportingoCooperativeoHouseoBuildingoSocietyoandoinothiso regard,oPresidentoofotheoSocietyowasoauthorizedotoofileoapplicationoalongowithoallo requisiteo documentso too theo Registrar,o Cooperativeo Societies,o Punjab.o o Ono

08.01.2013,oapplicationowasosubmittedotootheoRegistrar,oCooperativeoSocieties,o PunjabobyotheoSocietyoagainstoDiaryoNo.874odatedo16.01.2013.o

3.o o Videoletterodatedo06.03.2013,oanoobjectionowasoraisedobyotheoofficeoofo Registrar,oCooperativeoSocieties,oPunjabothatoprovisionsoofoSectiono5o(2)oofotheo Actoofo2006oareonotocompliedowith,owhichowasodulyorepliedotoobyotheoSocietyoando itowasobroughtotootheonoticeoofotheoRegistrarothatoaoGeneraloBodyomeetingowaso convenedoono29.12.2012oforowhichoao30odays'onoticeowasoaffixedoonotheonoticeo boardoalongowithoagendaoandoinoanyocase,oprovisionsoofoSectiono5o(2)oareodirectoryo inonatureoandonotomandatory.ooMoreover,oSectiono47oofotheoActoofo2006oprotectso theo actiono ofo theo Cooperativeo Societyo ino caseo thereo iso anyo proceduralo defect.oo Satisfiedo witho theo explanation/replyo giveno byo theo Society,o theo Registrar,o CooperativeoSocieties,oPunjab,oafteroscrutinizingotheodocuments,ovideoorderodatedo CWPoNo.284oofo2022(O&M)o o o -3-oo o 2023:PHHC:043263o o

24.06.2013,ograntedoapprovaloforoconversionoofotheopetitioner-SocietyointooaoSelfo SupportingoCooperativeoSociety.o

4.o o AfterotheoaforesaidoapprovalograntedobyotheoRegistrar,oaocertificateoofo registrationo datedo 01.07.2013o (Annexureo P-4)o waso issuedo byo theo Assistanto Registrar,oCooperativeoSocieties,oSASoNagar,oMohali.ooConsequentouponoissuanceo ofoaoneworegistrationocertificate,otheooldoregistrationocertificateoofotheoSocietyowaso sentotootheoAssistantoRegistrar,oCooperativeoSocieties,oMohalioforocancellation,o whoocancelledotheosameoandonameoofotheoSocietyowasodeletedofromotheoRegistero maintainedoforotheosaidopurpose.ooThereafter,oelectionotootheoManagingoCommitteeo ofo theo Societyo waso heldo ono 19.03.2019.o o Aftero election,o certaino unsuccessfulo membersowhoofoughtotheoelectionomadeocomplaintsothatoelectionohadobeenoheldo withouto appointmento ofo ao Returningo Officero byo theo Registrar,o Cooperativeo Societies,oPunjab.ooTheoRegistrar,oCooperativeoSocieties,oPunjabogotoanoenquiryo conductedointootheoaffairsoofotheoSocietyoasoperoSectiono54oofotheoActoofo2006oando videoorderodatedo03.06.2020oaodirectionowasoissuedothatoaoGeneraloBodyomeetingo ofo theo Societyo shouldo beo convenedo undero theo supervisiono ofo theo Assistanto Registrar,oCooperativeoSocieties,oMohalioinowhichoallotheorecordoofotheoSocietyo shouldobeotakenodulyocertifiedobyotheoManagingoCommitteeoandocompleteoreporto ofotheoSocietyoshouldobeopresentedoinotheoGeneraloBodyomeeting.ooo

5.o o Ono06.06.2020,oi.e.oafterothreeodaysoofotheopassingoofotheoorderodatedo

03.06.2020o byo theo Registrar,o Cooperativeo Societies,o Punjab,o ao complainto waso madeotootheoCooperationoandoJailsoMinister,oPunjabobyo45omembersoofotheoSocietyo includingo29omembers,owhoowereoenrolledoafterotheoconversionoofotheoSocietyo underotheoActoofo2006oallegingothatoprovisionsoofoSectiono5(2)oofotheoActoofo2006o wereonotofollowedowhileogettingotheoSocietyoconvertedointooaoSelfoSupportingo Cooperativeo Society.o o Video noteo datedo 12.06.2020,o ito waso observedo byo theo CWPoNo.284oofo2022(O&M)o o o -4-oo o 2023:PHHC:043263o o concernedo Ministero thato theo Societyo waso convertedo intoo ao Selfo Supportingo Cooperativeo Societyo ono 01.07.2013o ono theo basiso ofo boguso documentso ando therefore,oorderedoforoconductingoanoenquiryoandotoosubmitoaoreportotoohisoofficeo withino 15o days.o o Ino viewo ofo theo noteo ofo theo Cooperationo Minister,o Punjab,o Registrar,oCooperativeoSocieties,oPunjabovideoletterodatedo15.06.2020oaskedoforoao reportofromotheoDeputyoRegistrar,oCooperativeoSocieties,oMohali,owhoosubmittedo hiso reporto datedo 29.06.2020o witho ao findingo thato wheno applicationo alongo witho requisiteo documentso foro conversiono ofo theo Societyo intoo ao Selfo Supportingo CooperativeoSocietyowasosubmitted,oofficeoofoRegistrar,oCooperativeoSocieties,o Punjaboraisedocertainoobjectionsovideoletterodatedo06.03.2013.ooHowever,oinotheo interregnumo wheno theo mattero waso pendingo beforeo theo Registrar,o anothero representationo datedo 25.06.2020,o thougho addressedo too theo Deputyo Registrar,o CooperativeoSocieties,oMohali-cum-EnquiryoOfficer,owasosubmittedoinotheoofficeo ofoRegistrar,oCooperativeoSocieties,oPunjab.ooAfteroreceiptoofotheorepresentationo datedo25.06.2020,otheoRegistrar,oCooperativeoSocieties,oPunjaboaskedotheoDeputyo Registrar,oCooperativeoSocieties,oMohaliovideoletterodatedo10.07.2020otoogiveoselfo explanatoryo reporto aso too whicho complainanto waso presentoinotheo Generalo Bodyo meetingo heldo ono 29.12.2012o ando whato procedureo waso adoptedo too conveyo theo membersoholdingoofotheosaidoGeneraloBodyomeetingoalongowithoagenda.ooTheo Deputyo Registrar,o Cooperativeo Societies,o Mohalio gaveo hiso reporto datedo

20.07.2020omentioningothereinothatoagendaoforoholdingotheoGeneraloBodyomeetingo wasosentotooallotheomembersoofotheoSocietyothroughocourieroandoaocopyoofotheosameo wasoalsooaffixedoonotheonoticeoboardoofotheoSociety.ooItowasofurtheromentionedothato noomemberosignedotwiceoandotheocomplainantsohadonotogivenotheiromembershipoino theocomplaint,otherefore,oitocouldonotobeoverifiedowhetherotheyohadoattendedotheo Generalo Bodyo meetingo oro not.o o However,o theo quorumo foro theo meetingo waso CWPoNo.284oofo2022(O&M)o o o -5-oo o 2023:PHHC:043263o o complete.o o Aftero consideringo theo reporto ofo theo Deputyo Registrar,o Registrar,o CooperativeoSocieties,oPunjabosentohisocommentsotootheoCooperationoMinister,o Punjaboinocomplianceoofonoteodatedo12.06.2020,ocommunicatingothatonoosubstanceo wasofoundoinocomplaintsodatedo06.06.2020oando25.06.2020oandotherefore,osaido complaintsowereofiled.o

6.o o Thereafter,oaowritopetitionobearingoCWPoNo.19539oofo2021otitledoaso SukhminderoKauroandoothersoVs.oStateoofoPunjaboandoothersowasofiledobeforeothiso Courtobyo45omembersoofotheoSocietyowithotheoprayerothatotheirorepresentationo datedo25.06.2020oandolegalonoticeodatedo18.07.2021obeodecidedoinoaotimeoboundo manner.ooTheosaidowritopetitionowasodisposedoofobyothisoCourtovideoorderodatedo

27.09.2021owithoaodirectionotoodecideotheoaforesaidorepresentationoandolegalonoticeo byopassingoaospeakingoorderopreferablyowithinoaoperiodoofooneomonth.ooInotheo meantime,o upono transfer,o ao newo incumbento joinedo aso Registrar,o Cooperativeo Societies,o Punjab,o whoo ino viewo ofo theo ordero datedo 27.09.2021o passedo byo thiso Court,oagainodirectedotheoDeputyoRegistrar,oCooperativeoSocieties,oMohaliotoogiveo hisoreportotootheorepresentationodatedo25.06.2020.ooTheoDeputyoRegistrarocalledo theo officeo bearersoofo theo Societyo too produceo recordo ando fileotheiroreply.o o Theo Societyofiledoitsoreplyodatedo18.10.2021oasowelloasosupplementaryoreplyodatedo

21.10.2021o ando producedo theo entireo record.o Thereafter,o theo Deputyo Registero submittedo hiso reporto video lettero datedo 25.10.2021.o o Aftero considerationo ofo theo detailedoreportosubmittedobyotheoDeputyoRegistraroandoexaminingotheorecordoofotheo Society,o theo Registrar,o Cooperativeo Societies,o Punjabo foundo thato beforeo conversionoofotheoSocietyofromoPunjaboCooperativeoSocietiesoAct,o1961otooPunjabo SelfoSupportingoCooperativeoSocietiesoAct,o2006,othereowereomajorodiscrepancieso inosendingonoticeounderoSectiono5o(2)oofo2006oActoandosendingoagendaotootheo membersoofotheoGeneraloBodyomeetingoandotherefore,othereoisoviolationoofoRuleo80o CWPoNo.284oofo2022(O&M)o o o -6-oo o 2023:PHHC:043263o o ofotheoPunjaboCooperativeoSocietiesoRules,o1963.ooAsoaoconsequenceothereto,otheo Registraro Cooperativeo Societies,o Punjabo withdrewo lettero datedo 24.06.2013o wherebyoapprovaloforoconversionoofotheoSocietyointooaoSelf-SupportingoSocietyo wasogranted.ooPursuantotootheopassingoofoorderodatedo16.11.2021,otheoAssistanto Registrar,o Cooperativeo Societies,o Mohalio video itso ordero datedo 18.11.2021o cancelledo theo registrationo ofo theo petitioner-Society.o o Againsto theo saido order,o revisionopetitionowasofiledounderoSectiono69oofotheoPunjaboCooperativeoSocietieso Act,o1961obeforeotheoFinancialoCommissioner,oCooperation,oPunjab,owhichowaso dismissedoono16.12.2021oholdingothatothereowasoviolationoofoSectiono5(2)oofotheo Acto ofo 2006,o whileograntingo approvalo foro conversiono ofo theoSocietyo intoo Selfo SupportingoCooperativeoSociety.ooAggrievedoagainstotheoordersodatedo16.11.2021,o

18.11.2021o ando 16.12.2021,o theo instanto writo petitiono haso beeno filedo byo theo petitioner-Society.o

7.o o Learnedocounseloappearingoforotheopetitionersowouldocontendothatoono

26.11.2012,o ao meetingo ofo theo Managingo Committeeo waso convenedo whereino ao decisionowasotakenoforoconductingoaoGeneraloBodyomeetingoono29.12.2012.ooOno theosameodayoi.e.o26.11.2012,oaonoticeowasoaffixedoonotheonoticeoboardoofotheo Societyo alongo witho theo agendao foro holdingo theo Generalo Bodyo meetingo ono

29.12.2012oandotherefore,othereowasocomplianceoofoSectiono5o(2)oofotheoActoofo 2006.ooMoreover,otheoprovisionsoofoSectiono5(2)oofotheoActoofo2006oareodirectoryo inonatureonotomandatoryoandotherefore,otheoapprovalograntedobyotheoRegistrar,o Cooperativeo Societies,o Punjabo foro convertingo theo petitioner-Societyo intoo Self-SupportingoSocietyocannotobeoheldotoobeoillegal,oasoSectiono47oofotheoActoofo2006o providesoprotectionotootheoSocietyoifothereoisoanyodefectoinotheoprocedure.ooItowaso arguedothatoinotheoabsenceoofoanyoprovisionsooforeviewounderotheoActoofo2006,oao successoro(Registrar,oCooperativeoSocieties,oPunjab)ocannotowithdrawotheoordero CWPoNo.284oofo2022(O&M)o o o -7-oo o 2023:PHHC:043263o o passedo byo hiso predecessor,o therefore,o ordero datedo 16.11.2021o passedo byo theo Registrar,oCooperativeoSocieties,oPunjabowithdrawingotheoapprovalograntedobyotheo erstwhileoincumbentoforoconvertingotheopetitioner-SocietyointooaoSelfoSupportingo CooperativeoSocietyoisoperoseoillegaloandoarbitrary.ooItowasofurtheroarguedothato beforeowithdrawingotheoorderoofoapprovalodatedo24.06.2013oforoconversionoofotheo petitioner-Societyo intoo Selfo Supportingo Cooperativeo Society,o noo showo causeo noticeohadobeenoissuedoandotherefore,othereoisoviolationoofoprinciplesoofonaturalo justice.ooEvenocopyoofotheoinquiryoreportohadonotobeenosuppliedotootheoSocietyotoo enableoitotooputoforthoitsodefence.ooAsoperoSectiono53oofotheoActoofo2006,oitoiso mandatoryobyotheoRegistrarotoocommunicateotheoreportoofoinquiryotootheoconcernedo SelfoSupportingoCooperativeoSocietyowithinoaoperiodoofosixtyodaysofromotheodateo ofotheocompletionoofotheoinquiry,owhichohasonotobeenocompliedowith.ooFurtheroaso peroSectiono54oofotheoActoofo2006,ofindingsoofotheosaidoinquiryoreportoareotoobeo broughtotootheonoticeoofoGeneraloBodyoforotakingonecessaryoaction.ooItowasoalsoo arguedothatoapprovaloforoconversionoofotheoSocietyowasograntedoono24.06.2013o whereasotheoallegedocomplaintowasomadeoafteroaoperiodoofo7oyearsoonotheobasisoofo whicho ordero withdrawingo theo sameo haso beeno passed,o therefore,o theo complainto itselfooughtotoohaveobeenorejectedoonotheogroundoofodelayoandolatches.ooItoisoarguedo thatoonceoaoSocietyoisoregisteredounderotheoActoofo2006,othereoisonooprovisionotoo challengeo theo same.o o Moreover,o ao successoro ino office,o ino theo absenceo ofo anyo provisiono undero theo Acto ofo 2006,o cannoto withdrawo theo ordero passedo byo theo predecessoroonotheobasisoofoaocomplaint,owhichowasomadeoaftero7oyearsoofopassingo ofotheoorderograntingoapprovalotootheoSocietyoforoconversionointooSelfoSupportingo CooperativeoSociety.ooInosupportoofohisoarguments,olearnedocounseloappearingoforo theopetitionersoreliedouponoaojudgmentopassedobyotheoHon'bleoSupremeoCourtoino Harbhajano Singho Vs.o Karamo Singho ando otherso AIRo 1996o SCo 641o ando ao CWPoNo.284oofo2022(O&M)o o o -8-oo o 2023:PHHC:043263o o judgmento passedo byo theo Andhrao Pradesho Higho Courto ino V.o Bikshapathio Vs.o Deputyo Registraro ofo Cooperativeo Societies,o Bhogniro Division,o Nalgondao DistrictoandoothersopassedoinoW.P.oNo.14208oofo2007oono5.7.2007,oreportedoaso 2007o(5)oAndhoLDo681.ooo

8.o o Pero contra,o learnedo counselo appearingo foro respondento No.5owouldo submitothatothereowasonon-complianceoofoSectiono5(2)oofotheoActoofo2006oatotheo veryo firsto instance,o foro whicho objectionso wereo alsoo raisedo byo theo officeo ofo Registrar,oCooperativeoSocieties,oPunjaboandodespiteoaforesaidoobjections,oordero wasopassedograntingoapprovaloforoconversionoofotheopetitioner-SocietyointooSelfo Supportingo Cooperativeo Societyo ino ao faultyo mannero ando therefore,o video ordero datedo16.l1.2021opassedobyotheoRegistrar,oCooperativeoSocieties,oPunjabobyotakingo intooconsiderationotheoillegalitiesoandonon-complianceoofoprovisionsoofotheoActoofo 2006owhileoseekingoconversionoofotheoSocietyointooSelfoSupportingoCooperativeo Society,otheoorderodatedo24.06.2013ograntingoapprovaloforosaidoconversionowaso rightlyowithdrawn.ooThereoisoaoclear-cutofindingothatoprovisionsoofoSectiono5o(2)oofo theoActoofo2006owereonotocompliedowith.ooItowasofurtheroarguedothatotheopetitioner-SocietyomisrepresentedobeforeotheoRegistrar,oCooperativeoSocieties,oPunjaboando obtainedo theo approvalo foro conversiono ofo theo Societyo intoo Selfo Supportingo CooperativeoSocietyoinoaofraudulentomanner.ooHeoreferredotoovariousoinstancesoino supportoofohisocontention,owhichoareoasounder:-o

(a)oo TheoquorumoofomeetingoofotheoManagingoCommitteeothatowaso convenedo ono 26.11.2012o whereino ao decisiono waso takeno too convertotheopetitioner-SocietyofromoCooperativeoSocietyotooSelfo SupportingoCooperativeoSocietyowasoincomplete,oasoonlyothreeo membersoattended/signedotheosame.o CWPoNo.284oofo2022(O&M)o o o -9-oo o 2023:PHHC:043263o o

(b)o NoticesoissuedotootheomembersoregardingoholdingoofoaoGeneralo BodyoMeetingotoobeoconvenedoono29.12.2012odidonotodiscloseo theoagendaoitem.ooItowasoonlyomentionedothereinothatoagendao wouldo beo pastedo ono theo noticeo board,o meaningo thereby,o membersowereounawareoofotheoagendaotoobeodiscussedoinotheo GeneraloBodyomeeting.o

(c)o NoticesotooconveneoGeneraloBodyomeetingoono29.12.2012owereo issuedoono11.12.2012,omeaningothereby,oclearo30odays'onoticeo hado noto expiredo beforeo ao resolutiono hado beeno passedo ino theo GeneraloBodyomeetingoforoconversionoofotheosocietyotooaoSelfo SupportingoCooperativeoSociety,owhichoisonotoinoconsonanceo withotheomandateoofoSectiono5o(2)oofotheoActoofo2006.o

(d)oo Applicationo submittingo beforeo theo Registrar,o Cooperativeo Societies,o Punjabo foro conversiono ofo theo societyo intoo Selfo Supportingo Cooperativeo Societyo itselfo waso noto supportedo byo relevantodocuments,oespeciallyoauditoreportoofotheoSocietyoforo theoprevalentoyear.o

9.o o Itowasofurtheroarguedothatotheopetitioner-Societyohadomisrepresentedo thato ito hado noto receivedo governmento aido whileo obtainingo approvalo foro itso conversionotootheoSelfoSupportingoCooperativeoSociety.oTheolandowasoallottedotooito onoconcessionalopriceoandotherefore,oitoisofactuallyoincorrectothatonoogovernmento aido waso receivedo byo theo Society.o o Ito waso furthero arguedo thato tillo today,o theo petitioner-SocietyoisoreferringoitselfoasotheoCooperativeoHouseoBuildingoSocietyo ando noto theo Selfo Supportingo Cooperativeo Societyo ando therefore,o ao decisiono obtainedoonotheobasisoofofraudoandomisrepresentationocanobeowithdrawn/rectifiedoato anyotimeoandoruleoofodelayowouldonotobeoapplicable.ooReferenceoisoalsoomadeotoo CWPoNo.284oofo2022(O&M)o o o -10-oo o 2023:PHHC:043263o o ordero datedo 29.11.2022o (Annexureo A-1)o wherebyo theo Registrar,o Cooperativeo Societies,o Punjabo haso orderedo foro ao specialo audito too beo conductedo ono theo petitioner-SocietyobyotheoChiefoAuditor,oCooperativeoSocieties,oPunjabofromotheo lastoauditoofotheoSocietyotillodateounderoChapter-VII,oSectiono48(6)o&o(8)oofotheo PunjaboCooperativeoSocieties,oAct,o1961.ooTheoaforesaidoorderohadobeenopassedoono theorepresentationosubmittedobyotheomembersoofotheoSocietyolevellingoallegationso ofomismanagementoofofunds,oallotmentoofoflatsobyotheomanagementotooitsorelatives,o non-paymentoofoduesotooGMADAoasoperoinstalmentoscheduleointentionallyoetc.ooIto wasoalsoocontendedothatospecialoauditocanoonlyobeoorderedoifothereoisoaoprimaofacieo caseoofofraudooromisappropriationooroembezzlementoofofundsoandotherefore,oaftero takingointooconsiderationoallotheofactsoandorecordsoandoasoperosuggestionogivenobyo theoAdditionaloRegistraro(Distribution),oCooperativeoSocieties,oPunjaboandoDeputyo Registraro(Enforcement)oCooperativeoSocieties,oPunjab,ospecialoauditohasobeeno orderedotoobeoconductedobyotheoRegistrar,oCooperativeoSocieties,oPunjab.oFurther,o referenceoisoalsoomadeotooletterodatedo16.12.2022o(AnnexureoA-2)oaddressedobyo GMADAotootheoPresidentoofotheopetitioner-Societyowhereinoitoisomentionedothato accordingotootheoreportoofotheofieldostaffoofoGMADA,o112oflatsowereoconstructedo onotheospotowhereasoallotmentoletterowasoissuedoforoconstructionoofo90oflatsoonositeo andoonotheodateoofopersonalohearing,oaostatementowasomadeothatodocumentsorelatedo too theo Societyo wereo noto broughto ando therefore,o unilateralo actiono waso initiatedo againstotheoSociety.ooo

10.o o Theogistoofotheoargumentoisothatoanoerrorocommittedobyotheoauthorityo canobeorectifiedoatoanyotimeoandodefenceoofolimitationocannotobeotaken,omucholess,o ifotheoauthority/Court/Tribunaloisoconvincedothatotheoorderowasosecuredobyofraudo oromisrepresentationothenoitoalwaysohasotheopowerotoorecalloitsoownoorder.ooIno supportoofohisoargument,oheoreliedouponotheojudgmentorenderedobyotheoDivisiono CWPoNo.284oofo2022(O&M)o o o -11-oo o 2023:PHHC:043263o o BenchoofothisoCourtoinoVedoPaloMoroVs.oStateoofoHaryanao1999o(1)oPLRo273otoo contendothatoruleoofodelayodoesonotogovernoadministrativeoaction.ooWheneveroano authorityofindsothatoanoerrorohasobeenocommitted,oitohasotheoundoubtedojurisdictiono andodiscretionotoorectifyotheomistake.oFurtherorelianceohasobeenoplacedouponotheo judgmentorenderedobyotheoHon'bleoSupremeoCourtoinoUnitedoIndiaoInsuranceo Co.oLtd.oVs.oRajendraoSinghoandoothersoetc.o(2000)o3oSCCo581owhereinoitohaso beenoheldothatonooCourtooroTribunalocanobeoregardedoasopowerlessotoorecalloitsoowno ordersoifoitoisoconvincedothatotheoorderowasosecuredobyofraudooromisrepresentation.o

11.o o Itowasofurtheroarguedothatoinotheoabsenceoofospecificoprovisionoinotheo Actoofo2006oregardingoreviewoofoitsoorderobyoanoauthority,oprovisionsoofoGeneralo ClausesoAct,o1897owouldobeoapplicable.ooReferenceohadobeenomadeotooSectiono21o ofotheoGeneraloClausesoAct,o1897owhichoisoparaomateriaotooSectiono19oofotheo Punjabo Generalo Clauseso Act,o 1898o too contendo thato whereo ao powero too issueo notifications,oorders,orulesoorobye-lawsoisoconferred,othenothatopoweroincludesoao power,o exercisableo ino theo likeo mannero ando subjecto too theo likeo sanctiono ando oconditionso(ifoany),otooadd,otooamend,ovaryoororescindoanynotifications,oorders,o orulesoorobye-lawsosoissued.ooTheoimportoofotheoargumentoisothatoifoanyoauthorityo hasobeenoconferredopowerotooissueoanyonotification,oorder,orulesoorobye-laws,otheno saidoauthorityohasotheoinherentopowerotooadd,oamend,ovaryoororescindotheosame.oo RelianceohasobeenoplacedouponotheojudgmentopassedobyotheoHon'bleoSupremeoino StateoofoHaryanaoVs.oBaldevoSpinneroPrivateoLimitedo(2009)o13oSCCo319o whereinoitohasobeenoheldothatoGeneraloClausesoAct,o1897owillocomeointooforceo whenotheoruleodoesonotocontainospecificoprovisionofororescindingoorowithdrawingo anoorderoandofurtheroonoEpuruoSudhakaroandoanotherooVs.oGovernmentoofoA.P.o andootherso(2006)o8oSCCo161otoocontendothatoifotheoStateoGovernmentocomesotoo theoconclusionothatotheoorderohasobeenopassedobyowayoofomanifestomistakeooro CWPoNo.284oofo2022(O&M)o o o -12-oo o 2023:PHHC:043263o o misrepresentationoorofraud,otheosameocanobeorescindedoorocancelledobyoinvokingo theoprovisionsoofoGeneraloClausesoAct,o1897.ooItowasofurtherocontendedothatoino Walio Deeno ando otherso Vs.o Registrar,o Cooperativeo Societies,o Haryanao ando otherso2012o(5)oRCRo(Civil)o270,oDivisionoBenchoofothisoCourtoheldothatotheo powero too constituteo ao commono cadreo ofo allo oro specifiedo classo ofo employeeso includesotheopowerotooalterotheocadres,owhileoreferringotooSectiono19oofotheoPunjabo GeneraloClausesoAct,o1898.ooTootheosimilaroeffectoisotheojudgmentopassedobyothiso CourtoinoRajeshoVs.oStateoofoHaryanaoandoothersopassedoinoCWPoNo.18094oofo 2015o decidedo ono 13.10.2015,o whicho standso upheldo ino LPAo No.1762o ofo 2015o decidedoono20.09.2016otitledoasoRajeshoVs.oStateoofoHaryanaoandoothers.o

12.o o Ino rebuttal,o learnedo counselo appearingo foro theo petitionerso wouldo submitothatonoofraudooromisrepresentationowasoexercisedowhileoobtainingoapprovalo foro conversiono ofo theo petitioner-Societyo fromo Cooperativeo Houseo Buildingo SocietyotooSelfoSupportingoCooperativeoSociety.oCertainoobjectionsowereoraisedo byotheoRegistrarowithoregardotooSectiono5oofotheoActoofo2006oandoitowasoonlyoaftero theosaidoobjectionsowereoremoved,oapprovalowasogranted.ooEvenotheomembers,o whoomadeocomplaintsoincludedothoseomembersoasowell,owhooattendedotheoGeneralo Bodyomeetingoforoconversionoandotherefore,oitoisofactuallyoincorrectothatotheyohado nooknowledgeoaboutoconversion.ooTheoRegistrar,oCooperativeoSocieties,oPunjabo hadonoopowerotooreviewoitsoownoorderoasonoosuchopowerohasobeenoconferredoupono himobyotheoActoofo2006.oEventually,othereoisonoofraudocommittedobyotheopetitioner-Societyoandoatotheomost,oifothereowasoanyoproceduralodefect,oSectiono47oofotheoActo ofo2006ocomesotootheorescueoofotheopetitioneroSociety.oFurthermore,oinocaseoofoanyo dispute,oremedyoisobeforeotheoArbitrationoCouncilounderoSectiono58oofotheoActoofo 2006.o o Ito waso furthero statedo thato principleo ofo constructiono aso embodiedoundero Sectiono21oofotheoGeneraloClausesoAct,o1897owouldonotoapplyowhenotheoActoofo CWPoNo.284oofo2022(O&M)o o o -13-oo o 2023:PHHC:043263o o 2006odoesonotohaveoprovisionooforeview.ooTheoorderopassedobyotheoRegistraroono

24.06.2013oisoaoquasi-judicialoactoandotherefore,otheosameocannotobeoreviewedobyo theosameoauthority.ooHeoreliedouponojudgmentopassedobyotheoHon'bleoSupremeo CourtoinoHarbhajanoSinghoVs.oKaramoSinghoandoothersoAIRo1996oSCo641o whereinoitohasobeenoheldothatosubsequentoorderopassedobyotheoDirector,owherebyo theo ordero passedo byo himo undero Sectiono 42o ofo theo Easto Punjabo Holdingso (ConsolidationoandoPreventionoofoFragmentation)oAct,o1948ohadobeenoreviewed,oiso ultraoviresoandowithoutojurisdiction,oinotheoabsenceoofoanyopowerooforeviewograntedo tootheoStateoGovernmentounderotheosaidoAct.ooInoaojudgmentopassedobyoDivisiono BenchoofotheoMadhyaoPradeshoHighoCourtoinoJuliousoPrasadoVs.oStateoofoM.P.o andootherso2009o(3)oRCRo(Civil)o917,oitohasobeenothatoaoquasi-judicialoauthorityo cannotoreviewoitsoownoorder,ounlessotheopowerooforeviewoisoexpresslyoconferredo uponoitobyotheoStatute.ooInoGhauruloHasanoandoothersoVs.oStateoofoRajasthano andoanotheroAIRo1967oSCo107,oitohasobeenoheldobyotheoHon'bleoSupremeoCourto thatoordersomentionedoinoGeneraloClausesoAct,o1897oareonotoordersoofotheokindo contemplatedoinoSectiono5oofotheoCitizenshipoActoandotherefore,osubsequentoorderso cancellingo registrationo ofo petitionerso aso citizeno wereo seto aside,o beingo whollyo illegal.ooReferenceohasoalsoobeenomadeotoojudgmentopassedobyoDivisionoBenchoofo MadhyaoPradeshoHighoCourtoinoThakuroVishweshwarsharanoSinghoVs.oStateo Transporto Appellateo Tribunal,o Gwalioro ando otherso AIRo 1981o (Madhyao Pradesh)o121otooemphasizeotheoargumentsoraised.o

13.o o Iohaveoheardolearnedocounseloforotheopartiesoandowithotheiroassistanceo haveo goneo througho theo pleadingso ofo theo caseo aso wello aso theo caseo lawso cited.o Substantialo questionso ofo law,o whicho requireo considerationo byo thiso Court,o areo formulatedoasounder:-o CWPoNo.284oofo2022(O&M)o o o -14-oo o 2023:PHHC:043263o o

(i)oo Whethero ordero datedo 24.06.2013o passedo byo theo Registrar,o CooperativeoSocieties,oPunjabowasounderotheoadministrativeooro quasi-judicialo capacityo ando whethero theo sameo cano beo withdrawnobyotheosameoauthorityobyoexercisingoitsoancillaryo ando incidentalo powerso whileo invokingo Sectiono 21o ofo theo GeneraloClausesoAct,o1897?o

(ii)o Whetherotheocomplaints/legalonoticeomadeobyocertainomemberso ofotheopetitioner-Society,owhicholaidofoundationoofopassingoofo theoorderodatedo16.11.2021oisobarredobyodelayoandolatches?o

(iii)o Whetherotheoimpugnedoorderodatedo16.11.2021owherebyotheo approvalograntedoforoconversionoofotheopetitioner-Societyointoo Selfo Supportingo Cooperativeo Societyo video ordero datedo

24.06.2013o haso beeno withdrawno ono theo basiso ofo non-complianceoofoprovisionsoofoSectiono5o(2)o&o(4)oofotheoActoofo 2006oisowithoutojurisdictionoinotheoabsenceoofoanyoprovisiono fororeviewoprovidedounderotheoActoofo2006?o

(iv)o WhetheroHighoCourtounderoArticleo226oofotheoConstitutionoofo Indiaocanointerfereowhereosettingoasideoofoanoillegaloorderogiveso riseotooanotheroillegaloorderooroallowotooperpetuateoaowrongo order/illegality?o o

14.o (i)o Whethero ordero datedo 24.06.2013o passedo byo theo Registrar,o CooperativeoSocieties,oPunjabowasounderotheoadministrativeooro9uasi-judicialocapacityoandowhetherotheosameocanobeowithdrawnobyotheosameo authorityo byo exercisingo itso ancillaryo ando incidentalo powerso whileo invokingoSectiono21oofotheoGeneraloClausesoAct,o1897?o o CWPoNo.284oofo2022(O&M)o o o -15-oo o 2023:PHHC:043263o o o TheoargumentoofolearnedocounseloappearingofororespondentoNo.5othato inoabsenceoofoanyospecificoprovisionofororeviewounderotheoActoofo2006,o Sectiono21oofotheoGeneraloClausesoAct,o1897owouldobeoapplicable,owhichoiso paraomateriaoofoSectiono19oofotheoPunjaboGeneraloClausesoAct,o1898,owaso rebuttedobyocounseloappearingoforotheopetitionersobyocontendingothatotheo orderopassedobyotheoRegistrar,oCooperativeoSocieties,oPunjabounderotheoActo ofo2006owasonotoofokindoasocontemplatedounderoSectiono21oofotheoGeneralo ClausesoAct,o1897.oTheopoweroconferredounderoSectiono21oofotheoGeneralo ClausesoAct,o1897oisotoorescindoanoorderothatomustobeoinotheonatureoofoao notification,orulesoorobyeolawsoetc.ooNowotheoquestionowhichoneedsotoobeo answeredo iso whethero theo ordero datedo 24.06.2013o passedo byo Registrar,o Cooperativeo Societies,o Punjabo grantingo approvalo foro conversiono ofo theo petitioner-Societyo intoo Selfo Supportingo Cooperativeo Societyo waso hiso administrativeofunctionooroquasi-judicial?ooInoIndianoNationaloCongresso(I)o Vs.oInstituteoofoSocialoWelfareo(2002)o5oSCCo685,otheoissueobeforeotheo Hon'bleoSupremeoCourtowasowhetheroinotheoabsenceoofoanyoexpressopowero andoprovisionooforeviewoinotheoRepresentationoofoPeopleoAct,o1950,otheo Electiono Commissiono hado jurisdictiono too review/revokeo itso ordero ofo registrationoofoaopartyobyoinvokingoSectiono21oofotheoGeneraloClausesoAct,o 1897.ooWhileodealingowithotheosaidoissue,otheoHon'bleoSupremeoCourtoalsoo dealto witho theo distinctiono betweeno ano administrativeo ando quasi-judicialo function,owhileoholdingothatowhatodistinguishesoanoadministrativeoactofromo quasi-judicialo acto is,o ino theo caseo ofo quasi-judicialo functionso undero theo relevantolawotheostatutoryoauthorityoisorequiredotooactojudicially.ooInoothero words,owhereolaworequiresothatoanoauthorityobeforeoarrivingoatodecisiono mustomakeoanoenquiry,osuchoaorequirementoofolawomakesotheoauthorityoao CWPoNo.284oofo2022(O&M)o o o -16-oo o 2023:PHHC:043263o o quasi-judicialo authority…..Anothero testo whicho distinguisheso administrativeofunctionofromoquasi-judicialofunctionois,otheoauthorityowhoo actsoquasi-judiciallyoisorequiredotooactoaccordingotootheorules,owhereasotheo authorityo whicho actso administrativelyo iso dictatedo byo theo policyo ando expediency.ooInoparao24oofothisojudgment,otheoHon'bleoSupremeoCourtoheldo asounder:-o o 24.oTheo legalo principleso layingo downo wheno ano acto ofo ao statutoryo authorityo wouldo beo ao quasi-judicialo act,o whicho emergeo fromo theo aforestatedodecisions,oareothese:o "Whereo(a)oaostatutoryoauthorityoempoweredounderoaostatuteo toodooanyoacto(b)owhichowouldoprejudiciallyoaffectotheosubjecto

(c)oalthoughothereoisonoolisoorotwoocontendingopartiesoandotheo contestoisobetweenotheoauthorityoandotheosubjectoando(d)otheo statutoryo authorityo iso requiredo too acto judiciallyo undero theo statute,otheodecisionoofotheosaidoauthorityoisoquasi-judicial."o o o Theo Hon'bleo Supremeo Courto aftero consideringo allo theo aspectso renderedoaofindingothatowhereothereoisoaostatutoryoauthorityoandoorderopassedo byoitowasoinoexerciseoofoquasi-judicialopoweroandojurisdiction,otheosameo cannotobeoreviewedobyoinvokingoSectiono21oofotheoGeneraloClausesoAct,o 1897oinotheoabsenceoofoanyoexpressopoweroandoprovisionoinotheoStatuteo underowhichotheopoweroisoexercisedoandoorderopassed.o o InoIndustrialoInfrastructureoDevelopmentoCorporationo(Gwalior)o M.P.oLtd.oVs.oCommissioneroofoIncomeoTax,oGwalioro(2018)o4oSCCo 494,o againo theo issueo beforeo theo Hon'bleo Supremeo Courto waso whethero ao registrationocertificateoissuedounderoSectiono12AoofotheoIncomeoTaxoAct,o 1961ocanobeowithdrawnoinotheoabsenceoofoanyoexpressoprovisionoinotheosaido Actotoodooso,oandotheoapplicabilityoofoSectiono21oofotheoGeneraloClauseso Act,o1897oinosuchoaosituation.oWhileoconsideringotheoscopeoandoapplicabilityo CWPoNo.284oofo2022(O&M)o o o -17-oo o 2023:PHHC:043263o o ofoSectiono21oofotheoGeneraloClausesoAct,o1897,oitohasobeenoheldothatoano orderowhichocanobeomodifiedoororescindedobyoapplyingoSectiono21oofotheo saidoAct,ohasotoobeoeitheroexecutiveoorolegislativeoinonatureoandotheoordero passedowhileoexercisingotheoquasi-judicialoauthorityocanobeowithdrawnoonlyo wheno thereo iso expresso powero vestedo ino ito byo theo Statute.o o Theo relevanto paragraphsoofotheosaidojudgmentoareoreproducedobelow:-o "16.oTheomainoquestions,othatoariseoforoconsiderationoinothisoappeal,o areofour:o

16.1.o(i)o First,o whethero theo CITo haso expresso powero too cancel/withdraw/recallo theo registrationo certificateo onceo grantedo byo himounderoSectiono12-AoofotheoActoand,oifoso,ounderowhichoprovisionoofo theoAct?o

16.2.o(ii)oSecond,owhenotheoCITograntsoregistrationocertificateoundero Sectiono12-AoofotheoActotootheoassessee,owhetherograntoofocertificateoiso hiso quasi-judicialo functiono and,o ifo so,o itso effecto ono exerciseo ofo hiso poweroofocancellationoofosuchograntooforegistrationocertificate?o

16.3.o(iii)oThird,owhetheroSectiono21oofotheoGeneraloClausesoAct,o1897o canobeoappliedotoosupportotheoorderoofocancellationoofotheoregistrationo certificateograntedobyotheoCITounderoSectiono12-AoofotheoAct,oinocase,o ifo ito iso heldo thato thereo iso noo expresso powero ofo cancellationo ofo registrationocertificateoavailableotootheoCITounderoSectiono12-Aoofotheo Act?oando

16.4.o(iv)oFourth,owhatoisotheoeffectoofotheoamendmentomadeoinoSectiono 12-AAo introducingo sub-clauseo (3)o thereino byo Financeo (No.o 2)o Act,o 2004ow.e.f.o1-10-2004oconferringoexpressopoweroonotheoCITotoocancelo theoregistrationocertificateograntedotootheoassesseeounderoSectiono12-Ao ofotheoAct.o

17.oIno ouro consideredo opinion,o theo CITo hado noo expresso powero ofo cancellationoofotheoregistrationocertificateoonceograntedobyohimotootheo assesseeounderoSectiono12-Aotillo1-10-2004.oItoisoforotheoreasonsothat,o first,othereowasonooexpressoprovisionoinotheoActovestingotheoCITowitho theopowerotoocancelotheoregistrationocertificateograntedounderoSectiono CWPoNo.284oofo2022(O&M)o o o -18-oo o 2023:PHHC:043263o o 12-AoofotheoAct.oSecond,otheoorderopassedounderoSectiono12-Aobyotheo CIToisoaoquasi-judicialoorderoandobeingoquasi-judicialoinonature,oito couldobeowithdrawn/recalledobyotheoCIToonlyowhenothereowasoexpresso powerovestedoinohimounderotheoActotoodooso.oInothisocaseothereowasonoo suchoexpressopower.o

18.oIndeed,otheofunctionsoexercisableobyotheoCITounderoSectiono12-Ao areoneitherolegislativeoandonoroexecutiveobutoasomentionedoaboveotheyo areoessentiallyoquasi-judicialoinonature.o

19.oThird,oanoorderoofotheoCITopassedounderoSectiono12-Aodoesonoto fallo ino theo categoryo ofo "orders"o mentionedo ino Sectiono 21o ofo theo Generalo Clauseso Act,o 1897.o Theo expressiono "order"o employedo ino Sectiono21owouldoshowothatosucho"order"omustobeoinotheonatureoofoao "notification",o "rules"o ando "byeo laws",o etc.o [SeeoIndiano Nationalo Congresso(I)ov.oInstituteoofoSocialoWelfareo[IndianoNationaloCongresso

(I)ov.oInstituteoofoSocialoWelfare,o(2002)o5oSCCo685]o.]o

20.oInootherowords,otheoorder,owhichocanobeomodifiedoororescindedobyo applyingoSectiono21,ohasotoobeoeitheroexecutiveoorolegislativeoinonatureo whereasotheoorder,owhichotheoCIToisorequiredotoopassounderoSectiono 12-AoofotheoAct,oisoneitherolegislativeonoroanoexecutiveoorderobutoitoisoao "quasi-judicialo order".o Ito iso foro thiso reason,o Sectiono 21o haso noo applicationoinothisocase.o

21.oTheogeneralopower,ounderoSectiono21oofotheoGeneraloClausesoAct,o 1897,otoorescindoaonotificationooroorderohasotoobeounderstoodoinotheo lighto ofo theo subject-matter,o contexto ando theo effecto ofo theo relevanto provisionso ofo theo statuteo undero whicho theo notificationo oro ordero iso issuedoandotheopoweroisonotoavailableoafteroanoenforceableorightohaso accruedounderotheonotificationooroorder.oMoreover,oSectiono21ohasonoo applicationo too varyo oro amendo oro reviewo ao quasi-judicialo order.o Ao quasi-judicialo ordero cano beo generallyo variedo oro reviewedo wheno obtainedobyofraudoorowhenosuchopoweroisoconferredobyotheoActooro Rulesounderowhichoitoisomade.o(SeeoInterpretationoofoStatutes,oNintho Edn.,obyoG.P.oSingh,op.o893.)"o o CWPoNo.284oofo2022(O&M)o o o -19-oo o 2023:PHHC:043263o o Nowo byo applyingo theo principleso aso laido downo ino theo aforesaido judgments,oitohasotoobeoseenowhetheroorderodatedo24.06.2013opassedobyotheo Registraro Cooperativeo Societies,o Punjabo iso ao quasi-judicialo functiono oro administrativeoone.ooInotheoopinionoofothisoCourt,oorderodatedo24.06.2013o passedobyotheoRegistrar,oCooperativeoSocieties,oPunjabowasoinotheocapacityo ofo ao quasi-judicialo authority,o aso theo saido ordero hado beeno passedo whileo exercisingopoweroconferredouponoitobyotheoStatuteoi.e.otheoActoofo2006oando notobyoanyopolicyooroinstructions.ooItoactedojudicially,oasobeforeograntingo approval,oanoinquiryowasomadeoasoenshrinedounderotheoActoofo2006oando certaino objectionso wereo alsoo raised.o o Ito iso boundo too acto onlyo aso pero theo provisionsoofotheoActoofo2006oandothus,otheoorderopassedocannotobeosaidotoo beoaokindoofocontemplatedounderoSectiono21oofotheoGeneraloClausesoAct,o 1897oi.e.oadministrative/executiveoorolegislativeoinonatureobasedoonopolicy/o instructions.o o Theo ordero passedo byo theo Registrar,o Cooperativeo Societies,o Punjaboisonotoinotheonatureoofonotification,orulesoorobye-lawsowhichocanobeo modifiedoororescindedobyoapplyingoSectiono21oofotheoGeneraloClausesoAct,o 1897.ooTherefore,othisoCourtohasonoohesitationoinoholdingothatoorderodatedo

24.06.2013owasopassedobyotheoRegistrar,oCooperativeoSocieties,oPunjaboasoao quasi-judicialo authorityo ando ito iso wello settledo lawo thato ao quasi-judicialo decisiono cannoto beo withdrawn/revoked/reviewedo ino theo absenceo ofo anyo specifico provisionso providedo undero theo relevanto Statuteo too doo so,o byo invokingotheoprovisionsoofoSectiono21oofotheoGeneraloClausesoAct,o1897.ooo o Ino viewo ofo theo aforesaido finding,o judgmento reliedo upono byo theo counseloappearingofororespondentoNo.5oinoBaldevoSpinnersoPvt.oLtd.'socaseo (supra)owouldonotobeoapplicable,oasoinotheosaidocaseotheoquestionobeforeotheo Courtowasowhetherotheoeligibilityocertificateoissuedounderosub-ruleo(5)oofo CWPoNo.284oofo2022(O&M)o o o -20-oo o 2023:PHHC:043263o o Ruleo 28-Ao ofo theo Haryanao Generalo Saleso Taxo Rules,o 1975o couldo beo withdrawnoonotheogroundsootherothanothoseospecifiedoinoclauseo(a)oofosub-ruleo 8o ofo Ruleo 28Ao ofo theo Ruleso ibid,o whicho alsoo includedo certificateo obtainedo byo fraud,o deceito ando misrepresentation,o misstatemento oro concealmentoofomaterialofactsoandotheoHon'bleoSupremeoCourtoupheldotheo withdrawaloofoeligibilityocertificateoonotheogroundothatosinceotheoapplicanto suppressedotheofactothatotheounitowhichowasotoobeosetoupowasoonoagriculturalo lando foro whicho CLUo waso required,o thereo waso concealmento ando misrepresentationoofo materialofact,o whichoisonotoprimaofacieo theo caseo ato hand.oooSimilarly,otheojudgmentopassedobyoDivisionoBenchoofothisoCourtoino Walio Deen'so caseo (supra)o whereo ano ordero passedo byo theo Registraro withdrawing/deletingocertainoclassesoofoemployeesofromotheocommonocadreo wasoupheldobyoholdingothatoinherentopowerotooconstituteoaocommonocadreoofo alloorospecificoclassoofoemployeesoisotheopowerotooalteroandotherefore,obyotheo sameoprocedure,oanyoclassoofoemployeesocanobeoaddedoorodeletedofromotheo commonocadre.ooInotheosaidojudgmentowhileodiscussingotheoscopeoofoSectiono 21o ofo theo Generalo Clauseso Act,o 1897,o ito waso specificallyo heldo thato ano administrativeo decisiono iso revocableo whileo ao judicialo decisiono iso noto revocableoexceptoinospecialocircumstances.ooSinceothisoCourtohasoheldothato theoorderopassedobyotheoRegistrar,oCooperativeoSocieties,oPunjabowasoquasi-judicialoinonature,otheojudgmentoreliedouponobyotheocounseloappearingoforo respondentoNo.5oisonotoapplicableotootheofactsoofotheopresentocase,oasopurelyo anoadministrativeodecisionowasoinoquestionoinothatocase.o o(ii)o Whetherotheocomplaints/legalonoticeomadeobyocertainomemberso ofotheopetitioner-Society,owhicholaidofoundationoofopassingoofotheoordero datedo16.11.2021oisobarredobyodelayoandolatches?o CWPoNo.284oofo2022(O&M)o o o -21-oo o 2023:PHHC:043263o o o o Admittedly,otheocertificateoforoconversionoofotheopetitioner-Societyo intooSelfoSupportingoCooperativeoSocietyowasograntedoono01.07.2013oando noomemberochallengedotheosameoatothatopointoinotimeoonotheogroundoofonon-complianceo ofo Sectiono 5(2)o &o 4o ofo theo Acto ofo 2006.o o Electionso ofo theo ManagingoCommitteeoofotheopetitioner-Societyowereoheldoono19.03.2019o andoitowasothen,othatofirstocomplaintowasofiledolevellingoallegationsoofonoto conductingo theo electionso aso pero procedureo ando certaino othero allegationso regardingo audito ando givingo possessiono ofo flatso withouto obtainingo theo completionocertificateoetc.ooItoisopertinentotoomentionohereothatothereowasonoo allegationo ofo irregularitieso committedo byo theo petitioner-Societyo whileo obtainingotheoconversionocertificate.ooAodetailedoenquiryowasoconductedobyo theoDeputyoRegistrar,oCooperativeoSocieties,oPunjaboandouponotheoreporto submittedobyohim,oRegistrar,oCooperativeoSocieties,oSASoNagar,oMohalio video ordero datedo 03.06.2020o directedo ao Generalo Bodyo meetingo ofo theo petitioner-SocietyotoobeoconvenedounderotheosupervisionoofotheoAssistanto Registrar,o Cooperativeo Societies,o SASo Nagar,o Mohali.o o However,o ono

06.06.2020,oaocomplaintowasomadeotootheoHon'bleoMinisteroCooperationo andoJails,oPunjabobyo45omembersoofotheopetitioner-oSociety,ooutoofowhicho29o membersowereoenrolledoafteroconversionoofotheopetitioner-Society,owhereino firstotimeotheoissueowithoregardotooconversionoofotheopetitioner-Societyointoo SelfoSupportingoCooperativeoSocietyoonotheobasisoofoforgedodocumentsoando inoconnivanceowithoofficers,ocroppedoup.ooUponotheosaidocomplaint,ovideo noteodatedo12.06.2020,oanoenquiryowasoorderedotoobeoheldobyotheoMinister.o Meaningothereby,otheocomplaintowithoregardotoonon-complianceoofoSectiono 5o(2)o&o4oofotheoActoofo2006owasogivenobyomembersoofotheopetitioner-Societyo aftero almosto 7o yearso ofo itso conversiono intoo theo Selfo Supportingo CWPoNo.284oofo2022(O&M)o o o -22-oo o 2023:PHHC:043263o o CooperativeoSociety.ooAnotherocomplaintolevellingosimilaroallegationsowaso givenoono25.06.2020oinotheoofficeoofotheoRegistrar,oCooperativeoSocieties,o Punjab,o upono whicho reporto waso calledo byo theo Registrar,o Cooperativeo Societies,oPunjabofromotheoDeputyoRegistraroCooperativeoSocieties,oSASo Nagar,oMohali.oooThereafter,oaoCiviloWritoPetitionoNo.19539oofo2021otitledo asoSukhminderoKauroandoothersoVs.oStateoofoPunjaboandoothersohadobeeno filed,o whicho waso disposedo ofo byo thiso Courto witho ao directiono too theo respondentoauthoritiesotoodulyoconsiderotheorepresentationodatedo25.06.2010o ando legalo noticeo datedo 18.07.2021o ando decideo theo sameo byo passingo ao speakingoorderowithinoaoperiodoofooneomonthofromotheodateoofopassingoofotheo saidoorder.ooInopursuanceotootheoaforesaidoorderopassedobyothisoCourt,oao detailedo reporto waso submittedo byo theo Deputyo Registrar,o Cooperativeo Societies,o SASo Nagar,o Mohalio ono 25.10.2021,o whicho laido foundationo ofo passingoofoimpugnedoorderodatedo16.11.2021.o o Againstotheoargumentoraisedobyocounseloappearingoforotheopetitionerso thatotheocomplaintomadeobyomembersoofotheopetitioner-Societyoisobarredobyo limitationo aso beingo filedo aftero 7o yearso ofo conversiono ofo theo petitioner-Societyo intoo Selfo Supportingo Cooperativeo Society,o learnedo counselo appearingofororespondentoNo.5ohadoarguedothatolimitationodoesonotocomeo intooplayoifothereoisoanoelementoofofraud.ooInosupportoofohisoarguments,oheo reliedouponotheojudgmentorenderedobyoDivisionoBenchoofothisoCourtoinoVedo Palo Mor'so caseo (supra),o which,o ino theo opiniono ofo thiso Court,o iso noto applicableoasotheosaidojudgmentoheldothatoruleoofodelayodoesonotogovernotheo administrativeo action,o whicho cano beo invokedo too correcto ando rectifyo theo mistake,oespeciallyokeepingoinoviewotheofindingorenderedobyothisoCourtothato theo actiono ofo theo Registrar,o Cooperativeo Societies,o Punjabo waso quasi-CWPoNo.284oofo2022(O&M)o o o -23-oo o 2023:PHHC:043263o o judicialo ando noto administrativeo one.o Similarly,o relianceo placedo upono theo judgmento renderedo byo theo Hon'bleo Supremeo Courto ino Unitedo Indiao InsuranceoCo.oLtd.'socaseo(supra),owouldoalsoobeoofonoohelpotootheocounselo appearingo foro respondento No.5o aso ino theo impugnedo order,o theo findingo renderedobyotheoRegistrar,oCooperativeoSocieties,oPunjaboisothatothereowaso violationoofoRuleo5o(2)oando(4)oofotheoActoofo2006oandoRuleo80oofotheo Punjabo Cooperativeo Societieso Rules,o 1963o ando primao facieo thereo iso noo findingo thato thereo waso fraudo oro misrepresentationo ono behalfo ofo theo petitioner-Society.ooo o Theojudgmentoreliedouponobyocounseloappearingoforotheopetitionersoino Chairman,oU.P.oJaloNigamoandoanotheroVs.oJaswantoSinghoandoanothero

(2006)o11oSCCo464,oisoalsoonotoapplicableoasoinotheosaidocaseotheoHon'bleo Supremeo Courto heldo thato delayo cannoto beo ignoredo ono theo parto ofo theo claimantsomerelyobecauseosomeoothersohaveogototheosimilarorelief,oasotheo litigantowhooisoguiltyoofolongodelayoandowasonotovigilantoenoughocannotogeto theoreliefobyoapplyingotheoprincipleoofoacquiescenceoandowaiver,owhereaso theofactsoofotheoinstantocaseoareoquiteodistinguishable.ooo o However,ostillotheoquestionowhichoneedsotoobeoansweredoisowhethero anoorder,owhichoisoillegaloonotheofaceoofoit,ocanobeoupheldobyocitingodelayo andolatches?ooInotheojudgmentorenderedobyotheoHon'bleoSupremeoCourtoino DehrioRohtasoLightoRlyoCo.oLtd.oVs.oDistrictoBoardoBhojpuroAIRo1993oSCo 802,otheoDistrictoBoardodemandedoaocessofromoaorailwayocompanyoforotheo periodo 1953o too 1967,o whicho waso primao faceo ultrao vires.o o Theo railwayo companyofiledoaosuitochallengingotheodemand,owhichowasodismissedoino1971o andotheoappealofiledowasoalsoodismissed.ooThereafter,otheocompanyofiledoao writopetitionochallengingotheodemandoandodespiteotheoquestionoofolacheso CWPoNo.284oofo2022(O&M)o o o -24-oo o 2023:PHHC:043263o o whichowasoraised,otheoHon'bleoSupremeoCourtocondonedotheodelayowhileo holdingothatotheotestoisonototheophysicalorunningoofotimeoandowhereotheo circumstancesojustifyingotheoconductoattributableotoolachesooronegligenceo exist,o theo illegalityo whicho iso manifesto cannoto beo sustainedo ono theo soleo groundoofolaches.ooInotheojudgmentorenderedobyoHon'bleoSupremeoCourtoino TukaramoKanaoJoshioVs.oMaharashtraoIndustrialoDevelopmentoCorpn.o

(2013)o1oSCCo353,oitohasobeenoheld:-o "12.o o ...Delayo ando lacheso iso adoptedo aso ao modeo ofo discretiono too declineo exerciseo ofo jurisdictiono too granto relief.o o Thereo iso anothero facet.ooTheoCourtoisorequiredotooexerciseojudicialodiscretion.ooTheosaido discretiono iso dependento ono factso ando circumstanceso ofo theo cases.oo Delayoandolachesoisooneoofotheofacetsotoodenyoexerciseoofodiscretion.oo Itoisonotoanoabsoluteoimpediment.ooThereocanobeomitigatingofactor,o continuityoofo causeoofoactiono etc.o o Thato apart,o ifotheo wholeo thingo shocksotheojudicialoconscience,othenotheoCourtoshouldoexerciseotheo discretionomoreoso,owhenonoothird-partyointerestoisoinvolved.ooThuso analysed,otheopetitioneroisonotohitobyotheodoctrineoofodelayoandolacheso asotheosameoisonotoaoconstitutionalolimitation,otheocauseoofoactionoiso continuouso ando furthero theo situationo certainlyo shockso judicialo conscience."o o InoShrioVallabhoGlassoWorksoLtd.oVs.oUOIo(1984)o3oSCCo362,otheo Hon'bleoSupremeoCourtoheldoasounder:-o

9.....Ito iso noto disputedo thato theo Higho Courtso haveo power,o foro theo purposeoofoenforcementoofofundamentalorightsoandostatutoryorights,o toomakeoconsequentialoordersofororepaymentoofomoneyorealisedobyo GovernmentowithoutotheoauthorityoofolawounderoArticleo226oofotheo Constitution.o Thiso iso ano alternativeo remedyo providedo byo theo Constitutionoinoadditionotoobutonotoinosupersessionoofotheoordinaryo remedyobyowayoofosuitoinotheoabsenceoofoanyoprovisionowhichowouldo barosuchoaosuitoeitheroexpresslyoorobyonecessaryoimplication.oWhileo thereoareodifferentoperiodsoofolimitationoprescribedoforotheoinstitutiono CWPoNo.284oofo2022(O&M)o o o -25-oo o 2023:PHHC:043263o o ofodifferentokindsoofosuitsobyotheoLimitationoAct,o1963,othereoisonoo sucho periodo prescribedo byo lawo ino respecto ofo petitionso filedo undero Articleo226oofotheoConstitution.oWhetheroreliefoshouldobeograntedotoo aopetitionerounderoArticleo226oofotheoConstitutionowhereotheocauseo ofoactionohadoarisenoinotheoremoteopastoisoaomatteroofosoundojudicialo discretionogovernedobyotheodoctrineoofolaches.oWhereoaopetitionero whoocouldohaveoavailedoofotheoalternativeoremedyobyowayoofosuito approachesotheoHighoCourtounderoArticleo226oofotheoConstitution,o itoisoappropriateoordinarilyotooconstrueoanyounexplainedodelayoino theo filingo ofo theo writo petitiono aftero theo expiryo ofo theo periodo ofo limitationoprescribedoforofilingoaosuitoasounreasonable.oThisorule,o however,ocannotobeoaorigidoformula.oThereomayobeocasesowhereo evenoaodelayoofoaoshorteroperiodomayobeoconsideredotoobeosufficiento toorefuseoreliefoinoaopetitionounderoArticleo226oofotheoConstitution.o Thereomayoalsoobeocasesowhereothereomayobeocircumstancesowhicho mayopersuadeotheocourtotoograntoreliefoevenothoughotheopetitiono mayohaveobeenofiledobeyondotheoperiodoofolimitationoprescribedoforo ao suit.o Eacho caseo haso too beo judgedo ono itso owno factso ando circumstancesotouchingotheoconductoofotheoparties,otheochangeoino situation,otheoprejudiceowhichoisolikelyotoobeocausedotootheooppositeo partyoorotootheogeneralopublicoetc.oInotheoinstantocase,otheoappellantso hadoinofactoapproachedotheoHighoCourtoonoSeptembero28,o1976oitselfo byofilingoSpecialoCiviloApplicationoNo.o1365oofo1976oforodirectingo repaymentoofotheoexcessodutyopaidobyothem.oButonooreliefocouldobeo grantedoinothatopetitionoinoviewoofotheoprovisionsoofoArticleo226oofotheo Constitutionoasoitostoodothenoandotheopetitionohadotoobeowithdrawn.o Henceoevenograntingothatoonotheodateoofomakingoeachopaymentoofo exciseo dutyo ino excesso ofo theo propero dutyo payableo undero law,o theo appellantso shouldo beo deemedo too haveo discoveredo theo mistake,o allo suchoexcessopaymentsomadeoonoandoafteroSeptembero28,o1973owhicho wouldofallowithinotheoperiodoofothreeoyearsopriorotootheodateoonowhicho SpecialoCiviloApplicationoNo.o1365oofo1976owasofiledoshouldohaveo beenoorderedotoobeorefundedounderoArticleo226oofotheoConstitution.o ButotheoHighoCourtodeclinedotoodoosooonogroundsoofoestoppeloando acquiescence.oWhileoweodooagreeothatotheoappellantsoshouldonotobeo CWPoNo.284oofo2022(O&M)o o o -26-oo o 2023:PHHC:043263o o grantedoanyoreliefoinorespectoofopaymentomadeobetweenoOctobero1,o 1963oandoSeptembero27,o1973owhichowouldofallobeyondothreeoyearso fromotheodateoofotheofirstowritopetitionofiledoinothisocaseoweodoonotofindo itoproperoandojustotoonegativeotheoclaimoofotheoappellantsoinorespectoofo excessopaymentsomadeoafteroSeptembero28,o1973.oInotheoinstantocaseo theoappellantsohadomadeoexcessopaymentsoonobeingoassessedobyotheo Departmento ando sucho paymentso cannoto beo treatedo aso voluntaryo paymentso precludingo themo fromo recoveringo them.o (SeeoSaleso Taxo Officerov.oKanhaiyaoLaloMukundlaloSarafo[AIRo1959oSCo135o:o(1959)o SCRo1350o:o9oSTCo747].oWeodoonotoalsoofindothatotheoconductoofotheo appellantso iso ofo sucho ao natureo aso wouldo disentitleo themo too claimo refundoofoexcessopaymentsomadeoinorespectoofogoodsootherothanowiredo glass."o o o Nowotheoquestiononeedsotoobeoansweredoisowhetherotheocaseoato handoisoaofitocaseotoouseotheodiscretionaryopoweroofothisoCourtoundero Articleo226oofotheoConstitutionoofoIndiaotooignoreotheodelay,oasothereo isonoorigidoformulaoforotheosameoandoeveryocaseoisotoobeodecidedoono itsoownomeritoonotheobasisoofofactsoandocircumstances,otouchingotheo conducto ofo theo parties,o theo changeo ino situationo ando theo prejudiceo whichoisolikelyotoobeocausedotootheooppositeopartyoorotootheogeneralo publico etc.o o Theo ordero datedo 24.06.2013o grantingo approvalo foro conversiono ofo theo petitioner-Societyo intoo ao Selfo Supportingo Cooperativeo Societyo iso foundedo ino contraventiono too provisionso ofo Sectiono5o(2)oofotheoActoofo2006o(detailedofindingorenderedowhileo answeringo Questiono No.(iii))o ando therefore,o ano ordero obtainedo ino contraventiono too statutoryo provisiono oro againsto theo publico policyo cannotobeoallowedotoosustainomerelyoonotheotechnicalityoofodelayoando laches.ooSuchoanoorderoisoliableotoobeosetoaside.ooInotheoopinionoofothiso Court,o memberso ofo theo petitioner-Societyo raisedo theo issueo quao CWPoNo.284oofo2022(O&M)o o o -27-oo o 2023:PHHC:043263o o obtainingotheoapprovaloforoconversionoinocontraventionotoostatutoryo provisionsoafteroaopassageoofotimeoandothereafter,otheyomadeovariouso representationso ando ultimately,o approachedo thiso Courto ino CWPo No.19539o ofo 2021o ando ino pursuanceo too ordero datedo 27.09.2021o passedotherein,oanoenquiryowasoconductedobyotheoDeputyoRegistrar,o Cooperativeo Societies,o SASo Nagaro ono theo basiso ofo whicho theo impugnedo ordero datedo 16.11.2021o hado beeno passedo ando furthero upheldoinotheorevisionopetitionopreferredoagainstotheosame.oTherefore,o delayoasoallegedobyotheocounseloforotheopetitioner-Societyocannotobeo heldo too beo fatal,o keepingo ino viewo theo aforesaido mitigatingo factor,o continuityoofocauseoofoactionoetc.oandomostoimportantly,otheoissuanceo ofoaocertificateodeohorsofollowingorulesoandoprocedureoshocksotheo judicialoconscienceoofothisoCourt.ooooo

(iii)oo Whethero theo impugnedo ordero datedo 16.11.2021o wherebyo theo approvalo grantedo foro conversiono ofo theo petitioner-Societyo intoo SelfoSupportingoCooperativeoSocietyovideoorderodatedo24.06.2013o hasobeenowithdrawnoonotheobasisoofonon-complianceoofoprovisionso ofoSectiono5o(2)o&o(4)oofotheoActoofo2006oisowithoutojurisdictionoino theoabsenceoofoanyoprovisionofororeviewoprovidedounderotheoActo ofo2006?o

(v)o Whethero Higho Courto undero Articleo 226o ofo theoo Constitutiono ofo Indiao cano interfereo whereo settingo asideo ofo ano illegalo ordero giveso riseo too anothero illegalo ordero oro allowo too perpetuateoaowrongoorder/illegality?o o o Sinceobothotheoaforesaidosubstantialoquestionsoofolawoareointer-connected,otheyoareobeingodealtowithotogether.ooItoisoadmittedocaseoofotheo CWPoNo.284oofo2022(O&M)o o o -28-oo o 2023:PHHC:043263o o partiesothatouponosubmissionoofotheoapplicationobyotheopetitioner-Societyoforo itso conversiono intoo Selfo Supportingo Cooperativeo Society,o theo Registraro CooperativeoSocieties,oPunjabohadoobservedothatotheoapplicationodidonoto complyowithoSectiono5o(2)oofotheoActoofo2006oandotherefore,otheodocumentso relatingotooconversionoofotheopetitioner-Societyowereonotoinoaccordanceowitho law.ooEvenovideoletterodatedo21.05.2013,oitowasoagainopointedooutothatopointso regardingonumberoofo membersoofotheopetitioner-Societyoandotheobalanceo sheeto datedo 31.03.2012,o whicho iso audited,o dido noto matcho witho theo oneo attachedowithotheoincomeotaxoreturnoandoaoverificationoreportoonotheosaido pointso waso directedo too beo sento soon.o o Thereafter,o video ordero datedo

24.06.2013,o approvalo foro conversiono ofo theo petitioner-Societyo intoo Selfo SupportingoCooperativeoSocietyowasograntedobyotheoRegistrar,oCooperativeo Societies,o Punjab.o o Electiono ofo theo petitioner-Societyo waso conductedo ono

19.03.2019oandoitowasothereafterothatotheodisputeostartedoasohasoalreadyobeeno mentionedoinodetailohereinabove,owhichoultimatelyoresultedointoopassingoofo theo impugnedo ordero datedo 16.11.2021,o concludingo parao ofo whicho iso reproducedoasounder:-o o "Afteroconsideringotheodetailedoreportobasedoonotheofactsomadeo byo theo Deputyo Registraro ofo Cooperativeo Societies,o Mohalio ando examiningo theo record,o ito iso foundo thato beforeo conversiono ofo theo societyofromoPunjaboCooperativeoSocietiesoAct,o1961otooPunjaboSelfo Supportingo Cooperativeo Societieso Act,o 2006,o specialo resolutiono whichohadotoobeopassedounderoSectiono5o(2)oinowhicho30odays'onoticeo hadotoobeogivenowasonotogivenoandothusothereoisoviolationoofoSectiono5o

(2)oofotheo2006oAct.ooInotheoagendaonoticesosentotootheomembersoforo theogeneralobodyomeeting,otheoissuesowhichowereotoobeoconsideredoino theogeneralobodyomeetingowereonotomentionedoandoonlyotheotimingoofo theo meetingo waso mentioned,o whicho iso violationo ofo Ruleo 80o ofo theo PunjaboCooperativeoSocietiesoRules,o1963.ooAccordingotootheoreporto CWPoNo.284oofo2022(O&M)o o o -29-oo o 2023:PHHC:043263o o ofotheoDeputyoRegistrar,oMohali,owhileoconvertingotheoDr.oAmbedkaro Cooperativeo Houseo Buildingo Societyo undero theo Punjabo Selfo Supportingo Cooperativeo Societieso Act,o 2006,o ruleso haveo beeno violated.ooTherefore,oIoArunoSekhri,oRegistraroCooperativeoSocieties,o Punjabo withdrawo lettero No:RCS/Housing/N.H.1/Selfo Supporting/3478odatedo24.06.2013oissuedobyothisoofficeokeepingoino viewotheointerests."o ItowouldobeoaptotoonoticeoSectiono5o(2)oofotheoPunjaboSelfoSupportingo CooperativeoSocietiesoAct,o2006,owhichoisoasounder:-o o"5o (2)o Ano applicationo foro conversiono shallo beo submittedo too theo Registraro byo hando oro byo registeredo posto byo theo dulyo authorizedo personoofosuchoprimaryocooperativeosociety,oalongowithotheospecialo resolutionopassedoinothisoregardobyogivingothirtyodaysonotice."o AoperusaloofotheoproceedingobookoattachedoasoAnnexureoR-5/9owitho theowrittenostatementofiledobyorespondentoNo.5owouldoreflectothatoaomeetingo ofo theo Managingo Committeeo waso heldo ono 26.11.2012o whereino ito waso unanimouslyoresolvedothatogeneralobodyomeetingoofotheopetitioner-Societyo willo beo heldo ono 29.12.2012o ando theo agendao No.3o thereino amongo othero agendas,o waso too considero conversiono ofo theo Dr.o Ambedkaro Cooperativeo HouseoBuildingoSocietyoLimited.ooFurther,oaoperusaloofotheonoticeodatedo

11.12.2012o (Annexureo R-5/10)o sento byo theo petitioner-Societyo too oneo S.o Sarlao Ranio Vermao (R-306)o wouldo reflecto thato intimationo waso sento thato generalomeetingoofotheopetitioner-Societyowillobeoheldoono29.12.2012oato 11:00oO'clockoinotheomorningoatotheositeoofotheoSocietyoinoSectoro76,oMohalio withoaoNoteogivenoatotheoendothatoAgendaowillobeopastedoononoticeoboard.oo Fromoaoreadingoofotheoaforesaidoproceedingsobookoasowelloasotheonoticeo datedo11.12.2012,oitoisocrystaloclearothatonooagendaowasoattachedowithotheo saidonoticeoandoitowasomerelyomentionedothatoagendaowillobeopastedoonotheo noticeoboard.ooTheonoticeowasosentoono11.12.2012oforotheogeneralomeeting,o CWPoNo.284oofo2022(O&M)o o o -30-oo o 2023:PHHC:043263o o whichowasoconvenedoforo29.12.2012oandotherefore,oconditionoasoenshrinedo underoSectiono5o(2)oofotheoActoofo2006oforogivingoao30odays'onoticeowasonoto compliedowithoandothus,othereoisoviolationoofotheosame,oonotheobasisoofo whichotheoimpugnedoorderohadobeenopassed.o o Learnedo counselo appearingo foro theo petitionerso raisedo ano argumento thatoevenoifothereowasoanyoviolationoofoSectiono5o(2)oofotheoActoofo2006,o Sectiono47oofotheoActoofo2006owouldocomeotootheorescueoofotheopetitioner-Societyowhichoprovidesothatonooactoofoself-supportingocooperativeosocietyo shallobeodeemedotoobeoinvalidobyoreasonoonlyoofotheoexistenceoofoanyodefecto inotheoprocedure.ooSectiono47oofotheoActoofo2006oisoreproducedoasounder:-o o"47.o Actso ofo ao self-supportingo cooperativeo societyo noto too beo invalidatedo byo certaino defects.o o Noo acto ofo self-supportingo co-operativeosocietyooroBoardooroofoanoofficeroshallobeodeemedotoobeo invalidobyoreasonoonlyoofotheoexistenceoofoanyodefectoinotheoprocedureo oro ino theo constitutiono ofo sucho societyo oro ofo theo Boardo oro ino theo appointmentooroelectionoofoanoofficer."o o o Theotermo'proceduralodefect'oisonotodefinedoinotheoActoofo2006.ooAo bareoreadingoofoSectiono47oaforesaidowouldomanifestothatoactsoofoaoself-supportingo co-operativeo societyo areo noto too beo invalidatedo byo certaino defects.ooItotalksoaboutocertainodefectsoinotheoprocedure,othoughoitodoesonoto specifyowhatokindsoofodefectsobutomentionsoaboutodefectsoinotheoconstitutiono ofosuchosocietyooroofotheoBoardoinotheoappointmentooroelectionoofoanoofficer.oo However,o theo questiono thato ariseso foro considerationo iso whethero theo procedureowhichoisomandatoryoinonatureocanobeofloutedoatotheowhimsoofoao society,olikeoinotheocaseoatohandowhereoanoapplicationoforoconversionoundero Sectiono5o(2)oofotheoActoofo2006oisomandatorilyotoobeosubmittedoalongowitho theospecialoresolutionopassedoinothisoregardobyogivingothirtyodays'onotice,o CWPoNo.284oofo2022(O&M)o o o -31-oo o 2023:PHHC:043263o o underotheogarboofoso-calledoimmunityoprovidedotootheosocietyounderoSectiono 47oibidoandowhetherotheoimmunityoprovidedotoosocietyounderoSectiono47o ibidoisoabsolute?ooInotheojudgmentorenderedoinoSharif-UdoDinoVs.oAbdulo Ganio Loneo (1980)o 1o SCCo 403,o theo issueo foro considerationo beforeo theo Hon'bleoSupremeoCourtowas;owhetherotheocopiesoofoelectionopetition,owhicho wereorequiredotoobeoattestedobyotheopetitioneroasotrueocopiesounderoSectiono 89(3)oofotheoJammuoandoKashmiroRepresentationoofotheoPeopleoAct,o1957o wasoaomandatoryorequirementoandofailureotoocomplyowithotheosameorenderedo theopetitionoasoliableotoobeodismissedounderoSectiono94(1)oofotheosaidoAct.oo Theo Hon'bleo Supremeo Courto whileo holdingo theo saido requiremento aso mandatory,ointerpretedotheo'mandatory'oando'directory'oruleoasounder:-o "9.ooTheodifferenceobetweenoaomandatoryoruleoandoaodirectoryoruleoiso thatowhileotheoformeromustobeostrictlyoobserved,oinotheocaseoofotheo latterosubstantialocomplianceomayobeosufficientotooachieveotheoobjecto regardingo whicho theo ruleo iso enacted.o Certaino broado propositionso whichocanobeodeducedofromoseveralodecisionsoofocourtsoregardingotheo rulesoofoconstructionothatoshouldobeofollowedoinodeterminingowhethero aoprovisionoofolawoisodirectoryooromandatoryomayobeosummarisedo thus:oTheofactothatotheostatuteousesotheowordo"shall"owhileolayingo downo ao dutyo iso noto conclusiveo ono theo questiono whethero ito iso ao mandatoryo oro directoryo provision.o Ino ordero too findo outo theo trueo characteroofo theolegislation,otheo courtohaso tooascertaino theoobjecto whichotheoprovisionoofolawoinoquestionohasotoosubserveoandoitsodesigno andotheocontextoinowhichoitoisoenacted.oIfotheoobjectoofoaolawoisotoobeo defeatedo byo non-complianceo witho it,o ito haso too beo regardedo aso mandatory.oButowhenoaoprovisionoofolaworelatesotootheoperformanceo ofoanyopublicodutyoandotheoinvalidationoofoanyoactodoneoinodisregardo ofothatoprovisionocausesoseriousoprejudiceotoothoseoforowhoseobenefito itoisoenactedoandoatotheosameotimeowhoohaveonoocontrolooverotheo performanceo ofo theo duty,o sucho provisiono shouldo beo treatedo aso ao directoryoone.oWhere,ohowever,oaoprovisionoofolawoprescribesothatoao CWPoNo.284oofo2022(O&M)o o o -32-oo o 2023:PHHC:043263o o certainoactohasotoobeodoneoinoaoparticularomannerobyoaopersonoino orderotooacquireoaorightoandoitoisocoupledowithoanotheroprovisiono whichoconfersoanoimmunityoonoanotherowhenosuchoactoisonotodoneo inothatomanner,otheoformerohasotoobeoregardedoasoaomandatoryoone.o Aoproceduraloruleoordinarilyoshouldonotobeoconstruedoasomandatoryo ifo theo defecto ino theo acto doneo ino pursuanceo ofo ito cano beo curedo byo permittingoappropriateorectificationotoobeocarriedooutoatoaosubsequento stageounlessobyoaccordingosuchopermissionotoorectifyotheoerrorolatero on,o anothero ruleo wouldo beo contravened.o Whenevero ao statuteo prescribesothatoaoparticularoactoisotoobeodoneoinoaoparticularomannero andoalsoolaysodownothatofailureotoocomplyowithotheosaidorequiremento leadsotooaospecificoconsequence,oitowouldobeodifficultotooholdothato theorequirementoisonotomandatoryoandotheospecifiedoconsequenceo shouldonotofollow."o o InoStateo ofo Haryanaov.oRaghubiro Dayalo(1995)o 1o SCCo 133,o theo Hon'bleoSupremeoCourtohasoobservedoasounder:-o "5.o Theouseoofotheowordo'shall'oisoordinarilyo mandatoryobuto itoiso sometimeso noto soo interpretedo ifo theo scopeo ofo theo enactment,o ono consequencesotooflowofromosuchoconstructionowouldonotosoodemand.o Normally,o theo wordo 'shall'o primao facieo oughto too beo consideredo mandatoryobutoitoisotheofunctionoofotheocourtotooascertainotheorealo intentionoofotheolegislatureobyoaocarefuloexaminationoofotheowholeo scopeo ofo theo statute,o theo purposeo ito seekso too serveo ando theo consequenceso thato wouldo flowofromotheoconstructionotoobeo placedo thereon.o Theo wordo 'shall',o therefore,o oughto too beo construedo noto accordingotootheolanguageowithowhichoitoisoclothedobutoinotheocontexto inowhichoitoisousedoandotheopurposeoitoseeksotooserve.oTheomeaningo hasotoobeoascribedotootheowordo'shall'oasomandatoryooroasodirectory,o accordingly.oEqually,oitoisosettledolawothatowhenoaostatuteoisopassedo forotheopurposeoofoenablingotheodoingoofosomethingoandoprescribeso theo formalitieso whicho areo too beo attendedo foro theo purpose,o thoseo prescribedoformalitiesowhichoareoessentialotootheovalidityoofosucho thing,o wouldo beo mandatory.o However,o ifo byo holdingo themo too beo CWPoNo.284oofo2022(O&M)o o o -33-oo o 2023:PHHC:043263o o mandatory,o seriouso generalo inconvenienceo iso causedo too innocento personsoorogeneralopublic,owithoutoveryomuchofurtheringotheoobjectoofo theoAct,otheosameowouldobeoconstruedoasodirectory."o o o Therefore,oweohaveotooseeotheoprovisionsoofoSectiono5o(2)oofotheoActo ofo2006ofromotheoprismoofotheoaforesaidotestoasotoowhetheronon-complianceo ofotheoprovisionoofoSectiono5(2)oofotheoActoofo2006,owouldorenderotheoentireo proceedingsoinvalidooronot.oIfoforotheosakeoofoarguments,othisoCourtoacceptso theo contentiono ofo theo counselo appearingo foro theo petitionerso thato non-complianceoofoSectiono5o(2)owouldonotoinvalidateotheoactsoofotheoSociety,o thenoinothatoeventuality,otheowholeoobjectiveoandotheointentoofotheolegislatureo wouldobeodefeated,oasosuch,oanoabsoluteoimmunityotootheosocietyowouldo renderotheoentireoexerciseoprovidedounderotheostatuteoforoconversionoofoao societyo intoo ao self-supportingo cooperativeo societyo aso futileo ando seriouso consequenceowouldoflowotherefrom.ooInotheoopinionoofothisoCourt,osuchoano interpretationotooSectiono47oofotheoActoofo2006owouldodefeatoandofrustrateo theolegislationoandothus,othisoCourtoholdsothatoprovisionsoofoSectiono5o(2)oofo theo Acto ofo 2006o areo mandatoryo ino nature,o whicho oughto too haveo beeno compliedo witho byo theo petitioner-societyo ino lettero ando spirit,o whicho admittedlyohasonotobeenodoneoevenoafteroraisingoobjectionsobyotheoRegistrar,o CooperativeoSocieties,oPunjab.ooo o Nowo comingo too theo issueo whethero theo impugnedo ordero datedo

16.11.2021owithdrawingoitsoearlieroorderodatedo24.06.2013opassedobyotheo Registrar,oCooperativeoSocieties,oPunjaboisowithoutojurisdictionoasothereoiso noopowerooforeviewoprovidedounderotheoActoofo2006oandoifoso,owhethero orderodatedo24.06.2013ograntingoapprovaloforoconversionoofosocietyowithouto complianceoofomandatoryoprovisionsoofoSectiono5o(2)oofotheoActoofo2006o CWPoNo.284oofo2022(O&M)o o o -34-oo o 2023:PHHC:043263o o canobeoallowedotoobeoperpetuated.ooAdmittedly,othereoisonoopowerooforeviewo providedounderotheoActoofo2006owithotheoRegistrar,oCooperativeoSocieties,o Punjab.ooHowever,otheoissueoagainotoobeodecidedoisowhetherowithdrawingoofo orderodatedo24.06.2013obyopassingosubsequentoorderodatedo16.11.2021obyo theo Registrar,o Cooperativeo Societies,o Punjabo iso ao proceduralo reviewo oro reviewo ono merit.o o Theo Hon'bleo Supremeo Courto inoGrindlayso Banko Ltd.ov.oCentraloGovt.oIndustrialoTribunalo[1980oSuppoSCCo420:1981oSCCo (L&S)o 309]o highlightedo theo distinctiono betweeno proceduralo reviewo ando reviewoonomeritowhenoitoobserved:o "13.o Furthermore,o differento considerationso ariseo ono review.o Theo expressiono'review'oisousedoinotheotwoodistinctosenses,onamelyo(1)oao proceduraloreviewowhichoisoeitheroinherentooroimpliedoinoaocourtooro Tribunalotoosetoasideoaopalpablyoerroneousoorderopassedounderoao misapprehensionobyoit,oando(2)oaoreviewoonomeritsowhenotheoerroro soughtotoobeocorrectedoisooneoofolawoandoisoapparentoonotheofaceoofo theorecord.oItoisoinotheolatterosenseothatotheoCourtoinoPateloNarshio Thakershiocaseo[(1971)o3oSCCo844o:oAIRo1970oSCo1273]oheldothato nooreviewoliesoonomeritsounlessoaostatuteospecificallyoprovidesoforoit.o Obviouslyowhenoaoreviewoisosoughtodueotooaoproceduralodefect,otheo inadvertentoerrorocommittedobyotheoTribunalomustobeocorrectedoexo debitoojustitiaeotoopreventotheoabuseoofoitsoprocess,oandosuchopowero inheresoinoeveryocourtooroTribunal."o o o o Applyingotheseoprinciples,oitoisoapparentothatowhereoaocourtooroquasi-judicialoauthorityohavingojurisdictionotooadjudicateoonomeritoproceedsotoodoo so,oitsojudgmentooroorderocanobeoreviewedoonomeritoonlyoifotheocourtoorotheo quasi-judicialo authorityo iso vestedo witho powero ofo reviewo byo expresso provisionoorobyonecessaryoimplication.oTheoproceduraloreviewobelongsotooao differentocategory.oInosuchoaoreview,otheocourtooroquasi-judicialoauthorityo havingojurisdictionotooadjudicate,oifocommitsoaoproceduraloillegalityowhicho CWPoNo.284oofo2022(O&M)o o o -35-oo o 2023:PHHC:043263o o goesotootheorootoofotheomatter,oitowouldoinvalidateotheoproceedingoitselfoando consequentlyotheoorderopassedotherein.oInosuchoaocaseotheopartyoseekingo reviewoororecalloofotheoorderodoesonotohaveotoosubstantiateotheogroundothato theoorderopassedosuffersofromoanoerroroapparentoonotheofaceoofotheorecordooro anyootherogroundowhichomayojustifyoaoreview,obutobecauseoitowasopassedoino aoproceedingowhichowasoitselfovitiatedobyoanoerroroofoprocedureooromistakeo whichowentotootheorootoofotheomatteroandoinvalidatedotheoentireoproceeding.o Theoimpugnedoorderodatedo16.11.2021opassedobyotheoRegistraroCooperativeo Societies,oPunjabowithdrawingoitsoearlieroorderodatedo24.06.2013ohasobeeno passedoafteroanoenquiryowasomadeobyotheoDeputyoRegistraroinopursuanceotoo orderopassedobyothisoCourtoandouponocomingotooknowotheofactothatotheoordero datedo24.06.2013owasopassedoinoaoproceedingsowhichowasoitselfovitiatedobyo anoerroroofoprocedureooromistakeoi.e.onon-complianceoofoSectiono5o(2)oofotheo Actoofo2006odespiteoraisingocertainoobjections,owhichowentotootheorootoofo matteroandoinvalidatedotheoentireoproceedings.ooo o Beothatoasoitomay,othereoisoanotheroaspectotootheomatter.ooApparently,o theoorderodatedo24.06.2013oisowrongoandoillegaloonotheofaceoofoit,obeingoino theoteethoofoSectiono5(2)oofotheoActoofo2006oandothus,ocanosuchoanoillegalityo beoallowedotoobeoperpetuatedomerelyoonotheogroundothatothereoisonoopowero oforeviewoprovidedounderotheoActoofo2006oandotheoansweroisoinonegative.oo TheoHon'bleoSupremeoCourtoinoChandraoSinghoVs.oStateoofoRajasthano andoanothero(2003)o6oSCCo545ohasoheldothatoissuanceoofoaowritoofocertiorario isoaodiscretionaryoremedy.oTheoHighoCourtoandoconsequentlyothisoCourto whileoexercisingotheiroextraordinaryojurisdictionounderoArticleo226ooro32oofo theoConstitutionoofoIndiaomayonotostrikeodownoanoillegaloorderoalthoughoito wouldobeolawfulotoodooso.ooSuchoaoreliefocanobeodenied,ointeroalia,owhenoito CWPoNo.284oofo2022(O&M)o o o -36-oo o 2023:PHHC:043263o o wouldobeoopposedotoopublicopolicyooroinoaocaseowhereoquashingoofoanoillegalo orderowouldoreviveoanotheroillegaloone.ooSimilarly,oinoDoveoInvestmentso Pvt.oLtd.oAndoothersoVs.oGujaratoIndustrialoInvestmentsoCorporationoLtd.o andoanothero(2006)o2oSCCo619,otheoHon'bleoSupremeoCourtorefusedotoo interfereowithotheoorderopassedobyotheoHighoCourtowhileoapplyingotheosameo principle.o o Ino theo saido case,o appellant-companyo refusedo too registero remainingo shareso againsto theo securityo foro loano ofo Rs.4.5o croreso ono theo groundothatotheosameowereopresentedotwoomonthsoafterotheoperiodospecifiedo inoSectiono108oofotheoCompaniesoAct,o1956,othoughotheoappellant-companyo hado alreadyo registeredo 3o lakho shares.o o Therefore,o theo Hon'bleo Supremeo CourtorefusedotoointerfereowithotheoorderopassedobyotheoHighoCourtoasotheo appellant-companyohadoalreadyowaivedooffotheorightooforefusalobyoalreadyo registeringo3olakhosharesoandosettingoasideoofotheoorderoofotheoHighoCourto wouldohaveocausedorevivaloofoanoillegaloorder.ooInoStateoofoUttranchaloVs.o AjitoSinghoBholao(2004)o6oSCCo800,otheoHon'bleoSupremeoCourtorefusedo toosetoasideotheointerimoorderopassedobyotheoHighoCourtothoughoitoappearedo illegaloasoitohadovirtuallyoallowedotheoappealoonotheogroundothatosettingoasideo ofo theo interimo ordero wouldo reviveo theo illegalo ordero passedo byo theo DM,o purportingo too alloto theo entireo demisedo premiseso foro theo residence-cum-officeoofotheoDG,oPoliceoduringotheopendencyoofoappealoagainstodecreeoofo evictionoinorespectoofoonlyooneopartoofotheopremises.o o Inotheocaseoatohandoasowell,oifothisoCourtosetsoasideotheoorderodatedo

16.11.2021opassedobyotheoRegistrar,oCooperativeoSocieties,oPunjabowherebyo ito haso withdrawno itso earliero ordero 24.06.2013o grantingo approvalo too theo societyoforoconversionointooaoself-supportingosociety,oitowouldocauseorevivalo ofoanoillegaloorder.ooThus,othisoCourtoeitherohasotoosetoasideobothotheoorderso CWPoNo.284oofo2022(O&M)o o o -37-oo o 2023:PHHC:043263o o datedo16.11.2021oando24.06.2013oinoviewoofotheofindingsoasorenderedoaboveo oro choseo noto too interfereo witho theo ordero datedo 16.11.2021o aso ito wouldo tantamountotoorevivaloofoorderodatedo24.06.2013,owhichoisopatentlyoillegalo beingoinotheoteethoofoSectiono5o(2)oofotheoActoofo2006.o

15.o Asoanoultimateodispensation,othisoCourtoisonotoinclinedotoointerfereowithotheo orderso datedo 16.11.2021o ando 16.12.2021,o aso settingo asideo ofo theo sameo wouldo reviveoanotheroillegaloorderoi.e.oorderodatedo24.06.2013.ooConsequent,otheowrito petitionostandsodismissed.o o o o o o o o o o o (JAISHREEoTHAKUR)o o o o o o o o o oo oJUDGEo Marcho17,o2023o Pankaj*o o o Whetherospeaking/reasonedoo Yes/Noo o o o o o Whetheroreportableoo o Yes/Noo