THE HON'BLE SRI JUSTICE UJJAL BHUYAN
AND
THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA
W.A.No.583 OF 2021
JUDGMENT:
(Per Hon'ble Sri Justice Ujjal Bhuyan) Heard Mr.Dammalapati Srinivas, learned senior counsel for the writ appellant and Mr.R.N.Hemendranath Reddy, learned senior counsel for the respondent Nos.1 to 11.
2 This appeal has been preferred against the interim order dated 27.10.2021 passed by the learned single Judge in I.A.No.2 of 2021 in W.P.No.26849 of 2021.
3 Respondent No.14 i.e. Jubilee Hills Cooperative House Building Society Limited (referred to hereinafter as "the Cooperative Society") is a house building society, registered under the provisions of the Telangana State Cooperative Societies Act, 1964 (briefly, 'the Act' hereinafter). Therefore, the cooperative society is governed by the provisions of the Act, Telangana State Cooperative Societies Rules, 1964 and its bye-laws.
4 Elections to the Managing Committee of the cooperative society were held on 21.3.2021. Following the same, new Managing Committee members were elected including the appellant herein i.e. A.Murali Mukund as Secretary and respondent No.1 - B.Ravindranath as the President. 5 Ten members of the Managing Committee signed and delivered a written notice dated 26.8.2021 under Section 34 A of the Act to the Commissioner for Cooperation and Registrar of 2 Cooperative Societies, proposing a no confidence motion against the appellant. Commissioner and Registrar issued notice dated 27.8.2021 under Section 34 A (3) of the Act to all the members of the Managing Committee for attending a meeting on 17.9.2021 at 11.30 AM to consider the no confidence motion against the appellant.
6 The meeting was convened as scheduled and all the 15 members of the Managing Committee were present. In the election held twelve members voted in favour of the no confidence motion and three against. Thus, the no confidence motion against the appellant was passed. Thereafter, the Commissioner and Registrar passed order dated 17.9.2021 declaring that appellant was removed from the office of Secretary of the Cooperative Society. 7 Aggrieved by the aforesaid order dated 17.9.2021, appellant filed an appeal under Section 76 (6) of the Act before the Cooperative Tribunal at Hyderabad (briefly, 'the Tribunal' hereinafter) which was registered as CTA No.19 of 2021. Appellant also filed an Interlocutory Application for stay of the order dated 17.9.2021 which was registered as I.A.No.145 of 2021 in CTA No.19 of 2021. By order dated 21.9.2021, Tribunal, for the reasons mentioned in the said order, held that the impugned order of the Commissioner and Registrar dated 17.9.2021 was patently irregular, unfair and was in violation of orders of this Court. It was therefore opined that the said order deserved to be suspended till further orders. Accordingly by the said order dated 21.9.2021, Tribunal allowed I.A.No.145 of 2021 and suspended the order of the Commissioner and Registrar dated 17.9.2021. 3 8 Respondent Nos.1 to 11 as the writ petitioners have challenged the aforesaid order of the Tribunal dated 21.9.2021 before this Court by way of a writ petition which has been registered as W.P.No.26849 of 2021. Since the writ petitioners were not parties in the appeal before the Tribunal, they sought leave from the Court to file the related writ petition. In the writ petition they have sought for quashing of the order dated 21.9.2021. Respondent Nos.1 to 11 had also filed an Interlocutory Application for suspension of the order dated 21.9.2021 passed by the Tribunal pending disposal of the writ petition which was registered as I.A.No.2 of 2021. By order dated 27.10.2021, learned single Judge agreed with the submissions of learned counsel for the writ petitioners (respondent Nos.1 to 11 herein) and suspended the order dated 21.9.2021. Aggrieved thereby, present appeal has been preferred.
9 According to Mr. Srinivas, learned senior counsel for the appellant, writ petitioners were not parties to the appeal before the Tribunal. Therefore, they had rightly sought for leave to file the related writ petition. Without considering or granting leave as sought for, learned single Judge straightaway passed the order dated 27.10.2021 staying the order dated 21.9.2021. The aforesaid order was passed without issuing notice to or hearing the appellant who has been arrayed as respondent No.2 in the writ petition, that too after more than a month. Interim order dated 27.10.2021 is virtually in the nature of final order inasmuch as by staying the order of the Tribunal, the writ Court has revived the decision of the Commissioner and Registrar removing the appellant 4 from the office of Secretary of the Cooperative Society. He submits that it is well settled law that ordinarily the Court should not grant such interim order which is in the nature of final order or which virtually grants the final relief sought for in the writ petition. 10 On the other hand, Mr. Hemendranath Reddy, learned senior counsel for respondent Nos.1 to 11 submits that the appeal is not maintainable inasmuch as it is directed against the interim order of the writ Court. Appellant can very well raise his grievance before the learned single Judge who may pass appropriate orders in accordance with law, but that does not entitle the appellant from filing the present appeal. On merit, he submits that respondent Nos.1 to 11 are necessary parties. They were signatories to the no confidence motion brought against the appellant which was successfully passed. In the absence of necessary parties, Tribunal could not have passed the order dated 21.9.2021. It is evident that Secretary has lost confidence of the Managing Committee. Therefore, the Secretary cannot hold on to his office contrary to the wishes and desires of the majority members. Order of the Commissioner and Registrar dated 17.9.2021 is only consequential as he has only given effect to the no confidence resolution of the majority members removing the appellant from the office of Secretary.
11 We have heard learned counsel for the parties at length and also perused the materials on record.
12 Without entering into the rival contentions, we are of the view that it would be in the interest of justice if the parties are 5 relegated to the forum of appeal before the Tribunal. It may be mentioned that the appeal before the Tribunal being CTA No.19 of 2021 filed by the appellant is still pending. Tribunal had passed the order dated 17.9.2021 in I.A.No.145 of 2021 filed by the appellant. Though in the said appeal only the Commissioner and Registrar of Cooperative Societies as well as the Cooperative Society have been arrayed as respondents, we feel that having regard to the nature of dispute members of the Managing Committee should be parties to the appeal and they should be heard before disposing of the I.A.
13 Accordingly we direct that respondent Nos.1 to 11 as well as the other members of the Managing Committee of the Cooperative Society be added as respondents in CTA No.19 of 2021 by the Tribunal. Let all the respondents be heard by the Tribunal before passing final order in I.A.No.145 of 2021 or in CTA No.19 of 2021. Respondent Nos.1 to 11 as well as the other members of the Managing Committee of the Cooperative Society and the appellant shall appear before the Tribunal for further hearing of I.A.No.145 of 2021 in CTA No.19 of 2021 on 22.11.2021 at 11.00 AM, whereafter the Tribunal shall hear the parties afresh and pass order (s) in I.A.No.145 of 2021 or in CTA No.19 of 2021. Till such order (s) is passed, I.A.No.145 of 2021 shall be treated as pending and the suspension order passed by the Tribunal on 21.9.2021 shall be construed to be an ad-interim stay of the order dated 17.9.2021 till disposal of I.A.No.145 of 2021. Let final decision in I.A.No.145 of 2021 be taken within a period of two weeks from the date of 6 appearance of the parties i.e. from 22.11.2021. All contentions are kept open.
14 Order dated 27.10.2021 passed by the learned single Judge in I.A.No.2 of 2021 in W.P.No.26849 of 2021 is set aside. Writ Petition as well as the Writ Appeal along with the interlocutory applications are disposed of.
____________________ UJJAL BHUYAN, J _________________________________ Dr.CHILLAKUR SUMALATHA, J Date: 18.11.2021.
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