1983 (10) TMI 282 - SC - Indian Laws

Summary

Issues Involved:
1. Legality and propriety of the Chief Minister's actions in issuing directions.
2. Scope and extent of a Minister's power to interfere with a statutory functionary's working.
3. Registrar's authority under bye-law 29 to reconstitute the Board of Directors.
4. Validity of the Minister's direction to reconstitute the Board of Directors.

Detailed Analysis:

1. Legality and Propriety of the Chief Minister's Actions:
The core issue was whether the Chief Minister had the authority to usurp the functions of the Registrar of Co-operative Societies under bye-law 29. The Court found that the Chief Minister exceeded his powers by extending the term of the first Board of Directors from time to time, which was a statutory function of the Registrar. The Chief Minister's actions were deemed improper and violative of the statutory provisions, as the executive power of the State vested in the Governor does not include overriding statutory functions assigned to specific officers like the Registrar.

2. Scope and Extent of a Minister's Power:
The Court examined whether the Minister for Industries had the authority to issue directions to the Registrar for reconstituting the Board of Directors. It was concluded that neither the Chief Minister nor the Minister had the power to arrogate to themselves the statutory functions of the Registrar under bye-law 29. The Minister's action in forwarding a list of names to be nominated by the Registrar was found to be beyond his authority and thus invalid.

3. Registrar's Authority Under Bye-law 29:
The Court upheld that the Registrar had the power to reconstitute the first Board of Directors under bye-law 29. The proviso to bye-law 29 allows the Registrar to nominate the first Board for a period not exceeding one year at a time and not exceeding three cooperative years in aggregate. The Registrar also holds the power to modify the nomination if required. Therefore, the Registrar's authority to reconstitute the Board was affirmed, but it was noted that the impugned order was not made at the Registrar's discretion but at the Minister's behest, rendering it invalid.

4. Validity of the Minister's Direction:
The Minister for Industries' direction to the Registrar to reconstitute the Board and the forwarding of specific names was found to be an overreach of his authority. The Court ruled that the Minister exceeded his powers by directing the manner in which the Board was to be constituted, which was a statutory function reserved for the Registrar.

Conclusion and Directions:
The Court directed the Registrar, Cooperative Societies, Bihar, to take over the Vaishalli District Central Cooperative Bank and to exercise all powers and perform all duties vested in the Committee of Management. The Registrar was instructed to call a general meeting to elect a new Board of Directors. The Court also prohibited the members of the first Board constituted on July 22, 1981, and the reconstituted Board of September 6, 1983, from interfering with the society's affairs. The appeal was allowed, and there was no order as to costs.