Orissa High Court
Bhabani Prasad Majhi vs State Of Odisha And Others on 20 January, 2025
Bench: Arindam Sinha, M.S. Sahoo
IN THE HIGH COURT OF ORISSA AT CUTTACK
WA No. 2310 of 2024
Bhabani Prasad Majhi ....
Appellant
Represented by Adv.-
Mr. P.K. Rath, Senior Advocate
Mr. Saibrata Rath, Advocate
-versus-
State of Odisha and others .... Respondents
Represented by Adv.-
Mr. Kailash Chandra Kar, Government Advocate
With
WA No. 2743 of 2024
Pradyumna Kumar Tripathy .... Appellants
and others
Represented by Adv.-
Mr. B. Routray, Senior Advocate
-versus-
State of Odisha and others .... Respondents
Represented by Adv.-
Mr. Kailash Chandra Kar, Government Advocate
CORAM:
THE HON'BLE MR. JUSTICE ARINDAM SINHA,
ACTING CHIEF JUSTICE
AND
THE HON'BLE MR. JUSTICE M.S. SAHOO
ORDER
20.01.2025
WA Nos. 2310 and 2743 of 2024
Order No.
05. 1. The appeal (WA no.2310 of 2024) has been preferred by
appellant, who was writ petitioner. Mr. Rath, learned senior advocate
appears on his behalf and submits, his client was ex-President of
Sundergarh District Central Co-operative Bank Limited. Impugned in
the writ petition was order dated 11th June, 2021 made by the Auditor
General of Co-operative Societies, Odisha, purporting to appoint
auditors in exercise of power under section 62 in Odisha Co-operative
Societies Act, 1962.
2. Mr. Routray, learned senior advocate appears on behalf of
appellant in WA no.2743 of 2024. He submits, his client was
petitioner in another writ petition. He submits further, his client was
member of the erstwhile committee of the co-operative bank.
3. Submission on behalf of appellants is that the order
appointing auditors was illegally made. It was made in respect of,
inter alia, management of the co-operative bank. Furthermore, the
Auditor General could only have appointed auditors, who are
chartered accountants empanelled or from the panel approved by the
national bank. The appointees are not such empanelled auditors. In
the circumstances, impugned order of the learned single Judge is
erroneous. It be set aside in appeal.
4. Mr. Kar, learned advocate, Government Advocate appears on
behalf of State. He opposes both the appeals. On query made he
submits, the appointees under said order dated 11th June, 2021 are not
chartered accountants from the panel approved by the national bank.
5. We are not required to go into the controversy regarding
whether or not the Auditor General could have exercised the power
for special audit in respect of managerial aspects of the co-operative
bank. This is because the auditors appointed are admittedly not on the
panel approved by the national bank. It will be appropriate to
reproduce below section 62 (1)(i) and second proviso under the clause
from Odisha Co-operative Societies Act, 1962.
"62. Audit - (1)(i) The Auditor-General shall
audit, or cause to be audited by an Auditor or auditing
firm, having such qualification and experience as laid
down by the State Government duly authorized by him
in that behalf, the accounts of every Society for each
Co-operative year, and complete such audit within six
months of the closure of the year, at least once or for
such number of times as may be directed by the State
government from time to time in respect of any Society
or class of Societies.
xxx xxx xxx
Provided further that the accounts of the Orissa State
Co-operative Bank and the Central Co-operative Bank shall
be audited by the Chartered Accountants from the panel
approved by the National Bak."
6. Impugned judgment dated 16th July, 2024 is set aside. It is
also necessary for us and we do set aside the appointment order dated
11th June, 2021 made by the Auditor General and the report made
pursuant thereto on direction for the Auditor General to duly exercise
the power.
7. The appeals are disposed of.
( Arindam Sinha )
Acting Chief Justice
( M.S. Sahoo )
Judge
Prasant
Signed by: PRASANT KUMAR SAHOO
Designation: PERSONAL ASSISTANT
Reason: Authentication
Location: Orissa High Court
Date: 20-Jan-2025 20:12:59
