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Friday, March 23, 2012

an interesting question of law regarding the interpretation of the Rules of Business framed by the Governor of Maharashtra in exercise of powers conferred under Article 166(2) and (3)of the Constitution of India. According to the said Rules of Business, statutory appeals filed under Section 152 of the Maharashtra Cooperative Societies Act, 1960, hereinafter referred to as "the M.C.S. Act, 1960", are to be heard by the Minister-in-charge of the concerned Department.= Rule 6-A of the Rules of Business does not contemplate the functions of a Minister being discharged by the Secretary of the Department or any other officer for that matter.=. We, therefore, see no reason to interfere with the order passed by the learned Single Judge, and the appeals are, therefore, dismissed. So as not to delay the elections any further, we request the Chief Minister to take immediate steps to have the appeals filed by the Appellants herein under Section 152 of the M.C.S. Act, 1960, heard and disposed of as early as possible, but not later than 2 months from the date of communication of this judgment. In the event the Chief Minister is unable to hear the appeals himself and entrusts the hearing to one of the other Ministers, which, in our view, would also include the Minister of State of the concerned Department, he should also impress upon the said Minister the urgency of the matter since the elections to the Board of the Karkhana have not been held since 2007.



|REPORTABLE                         |


                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                     CIVIL APPEAL NOS.2990-2991 OF 2012
                (Arising out of SLP(C)Nos.8397-8398 of 2012)



1 RAJENDRA PRATAPRAO MANE & ORS.     ... APPELLANTS


             Vs.



           2 SADASHIVRAO MANDALIK K.T.S.S.K.


3 LTD. & ORS.                                   ... RESPONDENTS





                               J U D G M E N T



ALTAMAS KABIR, J.


1.    Leave granted.

2.    The facts of these appeals give rise to  an  interesting  question  of
law regarding the interpretation of the Rules  of  Business  framed  by  the
Governor of Maharashtra  in  exercise  of  powers  conferred  under  Article
166(2) and (3)of the Constitution of India.  According to the said Rules  of
Business, statutory appeals filed  under  Section  152  of  the  Maharashtra
Cooperative Societies Act, 1960, hereinafter  referred  to  as  "the  M.C.S.
Act, 1960", are to be heard  by  the  Minister-in-charge  of  the  concerned
Department.

3.    A few facts are required to be set out  in  order  to  appreciate  the
question which has been raised in these appeals.

4.    On 30th June, 2011, the appellants filed  an  application  before  the
Commissioner of  Sugar,  Maharashtra  State,  Pune,  complaining  about  the
unlawful manner in  which  persons  had  been  enrolled  by  the  respondent
Karkhana, despite the fact that they did not fulfill the  required  criteria
and were ineligible from becoming  members.  As  the  Commissioner,  or  his
subordinates, did not take any  action  on  the  application  filed  by  the
appellants they filed a writ petition, being W.P. No.7257  of  2011,  before
the Bombay High Court, for a  writ  in  the  nature  of  Mandamus  upon  the
authorities under the M.C.S. Act, 1960,  to  conduct  an  inquiry  into  the
allegations made by the appellants.

5.     On 27th September, 2011, the Division Bench of the Bombay High  Court
passed an order on  the  statement  made  by  the  Regional  Joint  Director
(Sugar), Kolhapur, to the effect that an inquiry team would  look  into  the
allegations made by the appellant.  The Division  Bench  directed  that  the
inquiry be completed within the stipulated time and the report be  submitted
before it. The order of the Division Bench was challenged by the  respondent
Karkhana by way of S.L.P.(C)No.28880 of 2011, which was  dismissed  by  this
Court and it was also indicated that the inquiry to be conducted   would  be
one under Section 11 of the M.C.S. Act, 1960.

6.    Writ Petition No. 7257  of  2011,  and  the  connected  Writ  Petition
No.10133 of 2011, were disposed of on a statement  made  by  the  Government
Pleader that the inquiry into the  complaint  by  the  appellants  would  be
completed  within  15th  February,  2012.  While  disposing  of   the   Writ
Petitions, the High Court directed that the  previous  list  of  voters  for
election to the Managing Committee of the respondent  sugar  factory  should
be published only after the inquiry was completed. In his report dated  10th
February, 2012, the Regional Joint Director (Sugar), Kolhapur, found that  a
total number of 6617 persons  did  not  satisfy  the  required  criteria  to
become members of the respondent sugar factory and  passed  an  order  under
Section 11 read with Section 11A of the Act.

7.    Immediately, thereafter, the respondent sugar factory and  several  of
the members, who were held to be ineligible from  becoming  members  of  the
factory,  challenged  the  order  passed  by  the  Regional  Joint  Director
(Sugar), Kolhapur, by filing appeals before the State of Maharashtra,  under
Section 152 of the M.C.S. Act,  1960.  On  22nd  February,  2012,  the  said
appeals were listed for admission and interim  orders  before  the  Minister
for Cooperation,  State of Maharashtra, but in view of  the  allegations  of
bias made against him in W.P.No.1685 of 2012, the Minister recused   himself
from hearing the  appeals  and  transferred  the  cases  to  the  Secretary,
Department  of  Cooperation,  for  hearing  and  disposal.  The   appellants
appeared before the Secretary on 24.2.20121, but raised an objection to  his
jurisdiction to hear a substantive appeals under Section 152 of  the  M.C.S.
Act, 1960. The order of  the  Joint  Director  (Sugar),  Kolhapur  was  also
challenged by the respondent sugar factory and some of the persons who  were
held to be ineligible, notwithstanding the  pendency  of  their  substantive
appeals under Section 152 of  the  Act,  challenging  the  very  same  order
before the State of Maharashtra.

8.    In the above-mentioned appeals assigned for hearing to the  Secretary,
Cooperation Department, an objection was raised on behalf of the  Respondent
No.2 that neither  under  the  Maharashtra  Cooperative  Societies  Act  and
Rules, nor under the provisions of the Rules of Business of  the  Government
of Maharashtra, was the Secretary of the Department  entitled  to  hear  the
appeals and that it was only the Minister in charge of  the  Department  who
could do so.  The same objection was raised  in  the  writ  petitions  also.
The learned Single Judge of the High Court, while disagreeing with the  said
decision, and referring the matter for  determination  of  the  issue  by  a
larger Bench, also observed that the judgment of the Bombay  High  Court  in
the case of Ravindra V. Gaikwad & Ors.  Vs.  State  of  Maharashtra  &  Ors.
still held the field and, accordingly, attempted to work out a  solution  to
solve the deadlock.  The learned Single Judge  was  of  the  view  that  the
answer to the question which had arisen, lay in  Rules  6  and  6-A  of  the
Rules of Business of the Government, which provides as follows :

      "6.   The Chief Minister and a Minister in consultation with the Chief
      Minister may allot to a Minister of State or  a  Deputy  Minister  any
      business appertaining to a Department or part of a Department.


      6-A. When the Chief Minister is  unable  to  discharge  his  functions
      owing to absence, illness, or for any other cause, the Chief  Minister
      may direct any other Minister to discharge all or any of his functions
      during his absence.  When any Minister is likewise unable to discharge
      his functions, the Chief Minister may direct  any  other  Minister  to
      discharge all or any of the functions  of  the  Ministers  during  the
      Minister's absence."

9.    The learned Judge, after recording that the Minister  for  Cooperation
had expressed his inability to hear and decide the appeals, felt  that  this
was a case, where the Chief Minister  could  himself  hear  the  appeals  or
direct any other Minister to exercise  the  function  of  the  Minister  for
Cooperation for hearing the appeals. The learned Judge was of the view  that
the said power contained in Rule 6-A would  have  to  be  exercised  by  the
Chief Minister. Since, the appeals were already  pending  before  the  State
Government, the learned Single Judge directed the Chief Minister  to  either
hear the appeals himself or to  appoint  any  other  Minister  to  hear  and
decide the same by performing the function of the Minister for  Cooperation,
in relation to the hearing of the above appeals.

10.   The present appeals have been filed by the Respondent Nos.3, 4  and  5
on various grounds.  The first ground, which has been  urged  by  Mr.  Mukul
Rohatgi, learned Senior Advocate, appearing for the Appellants, is that  the
High Court was not  justified  in  disposing  of  the  writ  petitions  with
directions, without giving the Appellants herein  an  opportunity  of  being
heard.

11.   The second ground taken for filing the appeals  is  whether  the  High
Court could have directed the Chief Minister of Maharashtra  to  invoke  the
Rules of Business in terms of Rules 6 and 6-A thereof and also  whether  the
appeals  could  at  all  be  heard  by  the  Secretary  of  the  Cooperation
Department.  Mr. Rohtagi contended that when the Minister of State  for  the
Department of Cooperation was available, as were other Ministers  who  could
decide the appeals in terms of Rule 6-A of the Rules of Business, there  was
no reason for having the appeals heard by the Secretary of the Department.

12.   Yet another ground  was  taken  as  to  whether  the  High  Court  was
justified  in  hearing  the  writ  petition  of  the  Respondent,  when  its
substantive appeal under Section 152 of the M.C.S. Act, 1960, in respect  of
the same order, was pending  before  the  Government  of  Maharashtra.   Mr.
Rohatgi also urged that Rule 10 of  the  Rules  of  Business  were  probably
overlooked by the High Court while passing  the  impugned  order,  since  by
virtue of the said Rule, it was the Minister in charge  of  the  Department,
who was to be primarily responsible for the disposal of the business of  the
Department.

13.   On the other hand, Mr. Uday U. Lalit, learned Senior  Advocate,  urged
that in view of the peculiar situation created  by  the  Minister  concerned
and, thereafter, the Chief  Minister  who  also  recused  himself  from  the
hearing of the appeals, on account of the allegation of bias  against  them,
the Court had no alternative  but  to  work  out  a  solution  so  that  the
elections to the Cooperative Societies could be held. The  ground  realities
were such as to make it almost impossible to have  the  appeals  heard  out,
unless the Secretary of the Department was directed to do so.

14.   At this stage, it may be recalled that the  entire  controversy  arose
on  account  of  the  disqualification  of  6617  voters,  who  were   found
ineligible to be members of Respondent No.1 Karkhana by the  Regional  Joint
Director (Sugar), Kolhapur.

15.   As indicated hereinbefore, the order  passed  under  Section  11  read
with  Section  25A  of  the  Maharashtra  Cooperative  Societies  Act,   was
challenged by the members of the said factory.  The Appellants  herein,  who
appeared before the Secretary, brought to his notice that  in  view  of  the
decision of the Bombay High  Court  in  the  case  of  Ravindra  V.  Gaikwad
(supra), he possibly did not have jurisdiction to  hear  the  appeals  under
Section 152 of the said Act.  It was, thereafter, that  the  writ  petitions
were filed and orders were passed by the learned Single  Judge,  whereby  he
directed the Chief Minister to exercise his powers under  Rule  6-A  of  the
Rules of Business.

16.   The Writ Petitions were heard and disposed of by  the  learned  Single
Judge of the Bombay High Court by the order impugned in  these  appeals,  at
the very threshold, without issuing notice to the Respondent  Nos.3,  4  and
5.  In our view, the said Respondents, who are likely to be affected by  the
 order, should have been given notice before the impugned order was  passed.
Such being the position, the normal course for us would have been to  remand
the matter to the  High  Court  for  a  fresh  decision  after  hearing  the
Appellants herein, but nothing fruitful will materialize if we were to  pass
such an order, in view of the reasoning of the learned  Judge  while  making
the impugned order.  Apart from the above, we have heard Mr. Rohtagi on  the
legal aspect of the question regarding the competence of  the  Secretary  of
the Department to hear the appeals in the light of Rule 6-A of the Rules  of
Business.  Any further hearing before the High Court on this question  would
only amount to duplication and waste of judicial time.

17.   In our view, the order passed by  the  learned  Single  Judge,  was  a
pragmatic attempt by the High Court to ensure that the elections  were  duly
held and the same was within the parameters of Rule  6-A  of  the  Rules  of
Business, which has been extracted hereinabove and  indicates  that  if  the
Chief Minister was  unable  to  discharge  his  functions  for  the  reasons
indicated, he could direct any other Minister to discharge  all  or  any  of
his functions during his  absence.  Likewise,  if  any  other  Minister  was
unable to discharge his functions,  the  Chief  Minister  could  direct  any
other Minister to discharge all or any of  the  functions  of  the  Minister
during the absence of the said Minister.

18.   The order of the  learned  Single  Judge  has  been  made  within  the
framework of the  aforesaid  Rules  and  as  indicated  hereinabove,  was  a
pragmatic attempt to break the impasse so that the elections  to  the  Board
of Directors of the Karkhana could be  held.   Rule  6-A  of  the  Rules  of
Business does not contemplate the functions of a Minister  being  discharged
by the Secretary of the Department or any other officer for that matter.

19.   We, therefore, see no reason to interfere with  the  order  passed  by
the learned Single Judge, and the appeals are,  therefore,  dismissed.    So
as not to delay the elections any further, we request the Chief Minister  to
take immediate steps to have the appeals  filed  by  the  Appellants  herein
under Section 152 of the M.C.S. Act, 1960, heard and disposed  of  as  early
as possible, but not later than 2 months from the date of  communication  of
this judgment.  In the event the  Chief  Minister  is  unable  to  hear  the
appeals himself and entrusts the hearing to  one  of  the  other  Ministers,
which, in our view,  would  also  include  the  Minister  of  State  of  the
concerned Department, he should also impress  upon  the  said  Minister  the
urgency of the matter since the elections to the Board of the Karkhana  have
not been held since 2007.

20.    The  appeals  are  accordingly  disposed  of   with   the   aforesaid
directions.

21.   There will be no order as to costs.


           ...............................................................J.
                                                   (ALTAMAS KABIR)



           ...............................................................J.
                                                (J. CHELAMESWAR)
New Delhi
March 22, 2012.