A.Murali Mukund vs B.Ravindranath
2021 Latest Caselaw 3546 Tel

          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

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.

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

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

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

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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