Holding

The Chief Minister and the Minister exceeded their authority and could not usurp the statutory functions of the Registrar; only the Registrar could validly reconstitute the Board, and the reconstitution done at the Minister’s behest was invalid.

Summary

The appellant, a political figure, was appointed Secretary of the first Board of Directors of the Vaishalli District Central Cooperative Bank under Bye‑law 29, which allowed the Registrar to nominate the Board for up to one year at a time. The Board's term was repeatedly extended by directions from the Chief Minister, and elections were postponed without legal justification. After the Chief Minister left office, the Minister for Industries issued an unofficial directive to the Registrar to reconstitute the Board with specific names, leading the Registrar to do so. The appellant challenged the reconstitution in a writ petition, which the High Court dismissed; the matter reached the Supreme Court. The Court held that neither the Chief Minister nor the Minister had authority to usurp the statutory functions of the Registrar, and that the Registrar alone could reconstitute the Board, but the reconstitution effected under the Minister’s direction was invalid. Consequently, the Court ordered the Registrar to take over the bank’s management and call a general meeting to elect a new Board, setting aside the impugned order.

Issues considered

The Chief Minister’s power to extend the term of the first Board of Directors under Bye‑law 29.
The Minister for Industries’ authority to direct the Registrar to reconstitute the Board and specify nominees.
The Registrar’s power under Bye‑law 29 to reconstitute the Board and curtail its extended term.
The scope of executive power of the State under Article 154(1) of the Constitution and Section 65A of the Bihar & Orissa Cooperative Societies Act.

Legislation cited

Bihar & Orissa Cooperative Societies Act, 1935s. 11, s. 14, s. 65A, s. 7
Constitution of Indias. 154(1)

Subjects

executive powerArticle 154cooperative societiesstatutory functionministerial overreachboard of directorsreconstitutionBye‑law 29administrative law

Judgment

646
CHANDRIKA iHA
A
v.

STATE OF BIHAR & ORS.

B October 17, 1983

"
(A.P. SEN AND E.S. VENKATARAMIAH, JJ.]

Constitution of India 1950. Article 154(/) 'ExecutiVI power' of State-
Exerciseby Governor-Supervisory jurisdiction of State Governn1ent 11nd1r statute-
c Whether exercisable under 'executive f!OWer'.

Bihar & Orissa Co·operative Societies Act, 1935. S. 65A.

Biha/ Co-operatiYe Society Rules, 1959 Bye-Law 29. District Co-operative
Bank-First Board of Directors nominated by Regislrar-EXpiry of term-Chief
D Minister extending term from time to time-Minister-in-charge forwarding /iJt of
names with directive to Registrar to make appointn1ent therefrom-Such actio~
}Vhether valid.

Administrative LAw-Chief. Minister or Minister-incharge whether can
exercis~ the functions of a statutory authority,.
E
Bye-law 29 of the Bihar Co-operative Society Rules, l~i59 provided that
the management of a Co-operative Bank shall vest in the Board of Directors,
and that the first Board of Directors shall be nominated by the Registrar for a
period not exceeding one year at a time and not exceeding three Co-operative
F years in the aggregate, and that the .Registrar could modify the nomination if
and when required.

The Registrar, Cooperative Societies in exercise of the power conferred
by the aforesaid bye-law nominated a Committee of Management of 17 members
to the first Board of Directors of the District Co-operative Bank. The Committee r
G was· directed to get the election of the Board of Directors -completed within six
months of .the date of their nomination. The appellarit who was a political
person was nominated to be the Secretary of the first Board.

The appellant got the period of the firSt Board of Directors extended from
ti~e to time and the election of the Board postponed without any lawful ju1ti-
H fication. Between October 1981 and November 1983 at the instance _of the
appellant, the Chief Minister gave directions to the Minister (Co-operation),
that the Registrar be asked to extend the term of the Board, and the· Registrar
,
CllANbRilliA ', BIHAR . 64?
in turn extended the term with thC direction that the Committee of Marulaement
should call a general meeting and· get .the Board of Directors elected. A
When the Chief Minister demilted office, the third respondent, who was
the Minister for Industries issued a direction to the CommissionCr of t~
co..operative Department, marked as 'unofficial'. It was stated therein that if
the Committee was reconstituted the Board shall lcgally·consist of seven mem-
bers oDly. For this purpose seven names were sent. If the Committee was
superseded it was to consist of fifteen members. On a separate sheet the B
Minister indicated tlic first set of seven names and second set of eight names.

In compliance with the Minister's directive the-R.:ejistrar by his impugned
order in superseSsion of all earlier orders recori-s!itutCd- the first Board of
Directors with immediate effect and directed that the 1enure of the office of the
reconstituted Board shall be for the remainder of the term i.e. till, November c
30, 1983.

Being a1grieved 1 the appellant assailed the order by a wrH petition in the
Hiah Court, which was dismissed.

On appeal to this Court, it was contended on behalf of the appellant that
the Registrar had no power to reconstitute the Board under bye~law 29 and
that in any ·event the Minister could not issue any direction to the Registrar as
to the reconstitution of the_Board. The respondents, however, contended that
the Chief Minister had illegally usurped the statutory functions of the Registrar
and passed several orders and that the Minister was justified in issuing the
requisite orders.
E
Allowina the appeal,

HELD : I. Neither the Chief f\Hnister nor tl_le Minister for Cooperation
or Jndustries had the power to arrogate to himself \he statutory functions of the
Registrar under bye-law -9. Under the Cabinet system of Government, the
Chief Minister occupies a position of pre":'eminence and he virtually carries on F
the governance of the State. The Chief Minister may call for any infor-
mation which is available to the Minister-in-charge of any department and may
issue necessary directions for carrying on the general adn1inistration of the
State Goverr,mcnt. Presumably, the Chief Minister dealt with the question as
if it were an executive function of the State Government and thereby exceeded
his powers in usurping the statutory functions of the Registrar under bye-law 29 G
in extendiilg the tenn of the first Board of Directors from time to time.
[655 A, 654 C·D]

2. The executive power of the State vested in fhe Govcrncir under Att.
154(1) connotes the residual or governmental functions. that remaiD after the
legislative and judicial functions arc taken away~- The· 1'xecutive power includes
1 H
acts necessary-for the carrying ~nor supervision of the general administration
of the State including both a decision as to action and the carrying out of. the
decision. Some of the fun&'tions exercised under "executive power!" ma)'
SUPREME COURT ilE.PORTS (1984f 1 S.C.R •.
include powers such as the supervisory jui'isdictioa of the,, State, Government
A u'nder s. 65A of the Act. The action of the Chjef M_inister -cannot however, be
supported by the terms of s. 65A of the Act inasmuch as there was no proceed-
ing pen.ding befor~ the Registrar in relation to any of the matters specified in
. s. 65A of .the. Act nor had the RegiStrar pasSed
.. . .. .
aaY·
Order in. respect thereto.
· .. ·~~

-v--·(
\..
. For the same reasons, it must be held that thC: I\1inister "for Industries
B also exceeded his own allthority in directing the inanner in which the new
Board of Directors was to be consiituted by the Registrar under bye-law 29 by
,. rOrwarding a list of 7 nan1es to be nominated by him in the reconstituted Board
_and a further list of 8 names indicating that if the ~ommittiee of Management
Was_supersede_d uil.de·r ai1other provision, it she Jld Consist of those· 15 petsons.
[655 C-D)

3. Ubder bye-law 29,-the Re&is"trar had the power to reconstitute·lbe·
first Board of Directors· or tO curtail the extended term. Proviso to bye-law
29 lays down that the first B0:ard of Directors shall be nominated by the
Registrar for a period not exceeding one·.year-at a time and-not exceeding three
cooperative years in the aggregate. It however· does not entail the consequence
that when-the term of the first Board of Directors is extended from time to
D time, it-must necessarily extend to three cooperative years. That -apart, the
extended term of the first Board of Directors was to ·enu1e "till further orders·•
and·, therefore.the Registrar had reserved to himself the right to curtail the
extended· te_rm. by reconstituting the Board, at any.liµie. "(65SE- 656A]
"-._.. -
Upon this view, thC Court directed "(i) ·the· Registrar, CoOperativC
E Societies, to take over the District Central Cooperative Bank and ·exerecise ·all }
the powers and perform all the duties vested in the Committee of Management
which under the B1har & Orissa Coopefative Societies.Act, 1935.~nd.the Bihar
Cooperativ·e Societies Rules, 1959 and the bye-laws thereunder are vested in the
Gommittec of Management. And (ii) the Registrar, ·eitb_cr himseff or through
an ·Omeer· in the-coopercltiVe Depaftri1enfdeSigDatcd b)i hiin, shall Calra general
,..
"meeting ·of the Society atid :f'.C-quire· the· SocU:ty to 'elect a' neW Boatd of
F Director;.[656 C-DJ ' · ·

.C1v1LAPPELLATE JuR1so1cnoN : .Civil .Appeal No. .J0296 ,of
1983

. ·. Appeal by Special leave from the Judgment. and Order., dated
G
the 30tJ1September, 1983 ofthe Patn;i High Coui-tin .c. .w. J.C.No.
4139of1983
0

·PramodSwarupfo r the Appellant.
H
K.N. Rai for the Respondent.

T)le Judgment·of the Court. was deliv~red by
CllANDR!KA v. BIHAR (Sen, J.) -

SEN, J. The controversy in this appeal by special leave against
an order of the Patna High Court dated Septemb.er 13, 1983 relates A
to the legality and propriety of the action of the Chief Minister of a
· State in issuing certain directions, and. incidentally the scope and
extent of the power of a Minister to interfere with the working of a
statutory functionary under his department.

The facts are that on. the bifurcation 01 the district of
B
Muzaffarpur·and creation of the new districts of Muzaffarpur· and
Hajipur,a separate Central Co-operative Bank called the Vaishalli
District Central Co-operative Bank for the district of Hajipur was
registered with its registered bye-laws. Bye-law No.29 of the said
. registered ,bye-laws provides inter a/ia as follows : c
" 29. Management: The Management of the Bank
shall vest in a Bpard of Qirectors which will consist of
17 persons :
D
xx xx xx xx xx
'Provide.d also that the first Board of Directors of the
Bank shall be nominated by the Reg.istrar, Co-operative
Societies, Bihar for a period not exceeding one year at a
time and not· exceeding three Co-operative years in E

-
aggregate and that the· Registrar, Co-operative Societies
may modify the nomination if and when required.".

The Registrar, Co-operative Societies, Bihar, in exercise of the
powers confe:rred by bye-law 29 by his· -order dated July . 22,. 1981 F
n9minated a Committee of Mauagement of 17 members,. including
the appellant, to be the first Board of Directors of the. Co-operative
Bank for a period of six months i.e. upto December 31, 1981, or
till further orders, whichever was earlier. The Committee of Manage-
ment was specifically direoted to get the election Of the Board of G
Directors of the Central Bank .·held in ·accordance with the Jaw
within six months of the date of their nomination and the ,Registrar
by the order had reserved his discretion to make ~hange~· in ''the
nomination of the Board by ·the use of expression 'until ''ftirtlier
orders'. The Registrar by his letter.dated October I, 1981 directed

.. the Committee of Management to complete the eleclio'n of the" Board
of Directors of the Bank as per programme iaid down ... therein by
December 20, 1981 as the six mcin\hs' term of the riominated Board
H
'
650 sl:Jl>RM COURT REPORTS [1984) I s.c.a.

was going to expire on December 31, 1981. Copies of the letter were
A endorsed to. the District Co-opera.live Qfficer, Vaisha!H for necessary
action as also to the Executive Officer of the Bank stating that it
would be his personal responsibility to get the desired steps taken in
that connection as per the time schedule fixed. In accordance there-
with, the District Co-operative Officer, Vaishalli by his letter dated
October 23, 1981 directed the Executive Officer of the Co-operative
Bank to get the election of the Board of Directors completed by
Oecember 20, 1981 ..

The case illustrates an unfortunate trend which has now become
too common these days in the governance of the country. The
c appellant who was nominated to be the Secretary of the first Board
of Directors and is apparently a political person had a direct appro-
ach to the seat of power viz., the then Chief Minister Dr. Jagannath
Misra. The result was th.at the first {loard of. Directors as consti-
tuted by the Registrar kept on flouting with impunity the repeated
directions of the Registrar, Co-operat.ive Societies in that behalf,
D since they were not interested in holding the general meeting for the
purpose of-election of the Board of Directors. Instead of complying
with the· directions of the Registrar, the appellant by using the letter-
head of. the District Congress Committee (I), Vaish.alli and after by-
passing the Registrar of Co-operative Societies and all other officials,
E directly approached Dr. Jagannath Misra, the then Chief Minister

-
of Bihar, and got the term of the firsi Board of Directors extended
from time to time and the election of the new Board postponed
without any lawful justification. The then Chief. Minister
made an endorsement thereon dated October 29, 1981 addressed to
the Minister (Co-operation) with a direction that the Registrar should
F extel)d the period of the Co~mittee of Management for the tiiµebeing.
The Registrar was constrained by 1\is order dated November 26,
1981 to extend the term of the Committee of Management : for a
period of six months i.e. till June 30, 1981 but be nonethefoss·gave a \
spetjfic direction to the Committee of Management to call the 'gene-
G ral meeting and get the Board of Diiectors elected within the exten-
ded term, but this was of no avail. On April 21, 1982 the appellant
addressed a letter to the then Chief Minister for further extension of
the term of the Committee of Management by one year and the then
Chief Minister made an endorsement thereon addressed to the
H Minister (Co-operation) to take necessary steps for extending the
term-. Again, th~ Registrar by his order dated June 21, 1982 was
forced to extend the term of the.nominated Board of Directors for a
-
CHANDRJKA v. BIHAR (Sen, /.) 651

7'.. period of one year i.e. upto May 31, 1983, or until further orders,
whichever was earlier. Nevertheless, the Registrar while extending A
the term again made a direction requiring the Committee of Manage·
ment to call the general meeting to get the new Board of Directors
elected but despite the said direction, no such meeting was ever
called. On April 13, 1983, the appellant again addressed a commu·
nication to the then Chief Minister for extension of the term of the
B
nominated Board of Directors for a period of one year from June I,
19S3 and the then Chief Minister by his order dated June 13, 1983
extended the term for six months and endorsed the same to the
Minister (Co-operation). The Registrar accordingly by his order
dated June 23, 1983 further extended the term of the nominated
Board till November 30, 1983, or till further orders, whichever was c
earlier. While extending the term, he again made a specific direction
to the Co.mmittee of Management to call the genesral meeting for the
aforesaid purpose.

With the resignation of the then Chief Minister on August 13, D
1983, the respondent No. 3 Laliteshwar Prasad Shahi, Minister for
Industries for the State of Bihar appears to have issued a direction
.--.I. on Sepetember 5,, 1983 to the Commissioner of the Co-operative
Department. The communication Was marked as 'unofficial' and
was to the following effect :
•

-
"If the Committee is reconstituted, the Board shall
legally consist of 7 members only. For this purpose, 7
names are being sent. When the Committee is superseded
under another provision, it may consist of even 15
members. For this purpose, 8 names arc being sent on F
a separate page."

Ori a buff-sheet, the Minister indicated the first set of seven names
and the second of eight names.
G
In compliance the reofthe Registrar by his impugned order dated
Sepetember 6, 1983 in supersession of all his earlier orders· reconsti·
tuted the first Board of Directors with immediate effect and directed
that the tenure of office of the reconstituted Bgard shall be for the
rcmain<ter of the term i.e, till November 30, 1983, or till further H
orders, whichever was earlier.

•
..
652 SUPREME COURT REPORTS • (19~4) 1 S,C.R.

·The short question that falls for determination is whether the
A then Chief Minister was entitled to usurp the functions of the Regis-.
trar of Co-operative Societies under bye-law 29. Further, the.
question is whether the Minister was entitled to issue. a direction to
the Registrar of Co-operative Societies to reconstitute the nomi-
• nated ·)3oard of Directors under bye-law 29; and if so, whether he
B could go further and ·assume the functions of the Registrar and for-
ward to him a list of names to be nominated on the reconstituted
Board. Under bye-law 29, it is the function of the Registrar to
constitute the first Board of Directors which necessarily carries with
it the incidental or ancillary power to reconstitute such Board when
he is satisfied that the circumstances attendant so require.
c
It is urged on behalf of the appellant that the )legistrar had no
power to reconstitute the Board under bye-law 29 and that in any
event the Minister could not issue any direction to the Registrar as
to the manner in which the Board was to be reconstituted. The
D contention to the contrary advanced by the respondents is that the
then Chief Minister had illegally usurped to himself the s\atutory
functions of the Registrar under bye-Jaw 29 and passed the several
orders in question to oblige the appellant and a handful of persons
who retained their confrol over the Central Cooperative Bank cont-
rary to the scheme of the Act, and that upon his demitting the office
E of the Chief Minister, the Minister for Industries was fully justified

-
· in issuing a direction to the Registrar for reconstitution of the
Board. It is said that the Minister was an important political worker
in the district of Vaisha\li and he was informally asked to suggest the
names of suitable persons to the Registrar for his consideration. The
F communication referred to was .addressed · by the Minister to the
Commissioner of the Cooperative Departm.ent and marked as 'un-
official' merely contained his informal suggestion. The submission is
that the Minister is entitled to issue a direction of this nature. to a
statutory functionary under his department and therefore the Regis·
trar had necessarily to act under the directions of the Minister.
G
The Bihar & Orissa Cooperative Societies Act, 19.35 ('Act' for
short) is intitnled as : "An Act to consolidate and aniend the law
relating to Cooperative Societies in the States of Bihar and Orissa",
H and the Preamble recites that t\le object and purpose of the legisla-
tion was "to facilitate the formation working and consolidation. of
cooperative societies for the promotion of thrift, self-help and mutal.
aid among.agriculturists and other persons with common needs".
CHANDRIKA v. BIHAR (Sen, J.) 653

Sub·s. ( 1) of s. 7 provides that a society which has as. its objects the
promotion of the common interests in its members in accordance A
with cooperative principles, or a society established with the object of
facilitating the operations of such a society, may be registered. under
the Act with or without limited liability. Sub·s. (I) of s.11 provides
•
that if the Registrar is satisfied that a society has complied · with
provisions of the Act and the Rules and that its proposed by.e·laws
are not contrary to ·the Act, or to the Rules, he may, if he thinks fit,
B
register the society and its bye-laws. Sub-s.. (2) ofs .. 14 of the Act
provides that the management of a registered society shall be vested
in a managing committee constituted in accordance with the Rules.
Sub-s.(3) of s. 14 of the Act provides ti}at the. term of office of the
elected members and office-bearers of the managing committee of. the c
society ~hall be·asprovided in the bye-laws of the society.and the
elected members and office-bearers shall continue to hold office after
the expiry of their term till their successors are elected or for three
months, whichever is earlier. A Central. Cooperative · Bank is. a
financing Bank within °the.meaning.of s.2(c) which means a registered
society the main object of which is to make advances in cash or kind D
to other registered societies or to both such societies and agriiml•
turists. From the :·very nature of things, a Central Cooperative
Banks holds large sums of money. Under the scheme of the Act,
the Registrar of Cooperative Societies is charged with the duty of
administering all cooperative societies within the State. · E

The Bihar Cooperative Societies Rules, 1959 provide that,
subject to nomination by the Registrar of such number of. members
to the managing committee and in such manner as may be prescribed
by him, a managing committee of a registered society including its
F
office-bearers shall be elected by vote from among the members of
the society at the annual general meeting held in accordance ·with the
bye-laws. Bye-law 29 read with the proviso confers po.w,er on the
} Registrar to constitute.the first Board of Directors of the . Central
Cooperative Bank. Under the second part of the proviso to bye.Jaw
29, he has the necessary power to reconstitute such .Board; G
•
S. 65A of the Act, on which reliance is placed, runs thus :

"65-A. Notwithstanding anything to th~ contrary H
contained in this Act, the State Government may, of its
own motion or on an application made to it by any·
party aggrieved by the constitution, . or reconstitution.
654 SUPRBMI! COUllT RBPORt'S (1984) 1 s.c.a.

amalgamation, election, supersession, liquidation or any
A other matter concerning working of the society, call for
any record of inspection or enquiry made nnder this Act
or proceedings of any matter pending before the Registrar 'r-\
or his subordinate or any person acting under his autho· )
rity and ex!!,mine and pass such orders as it may deem
n :fit."

We fail to appreciate the propriety of the Chief Minister pass·
ing orders.for extending the term of the first Board of Directors.
Under the Cabinet system of Government, the Chief Minister occu-
pies a position of pre-eminence and he virtually carries on the
c governance of the State. The Chief Minister may call for any in-
formation which i~ available to the Minister-in charge of any depart·
ment and may issue necessary directions for carrying on the general
administration of the State Government. Presumably, the. Chief
Minister dealt with the question as If it were an executive function
D of the State Government and thereby clearly exceeded his powers in
usurping the statutory functions of the Registrar under bye·law.·29 in
extending the term of the first Board of Directors from time to time.
The executive power of the State vested in the Governor under
Art. 154 (!)connotes the residual or governmental functions that
remain after the legislative and judicial functions are taken away.
E The executive power includes acts nrcessary for the carrying on or
supervision of the general administration of the State including both
a decision as to action and the carrying out of the decision. Some
of the functions exercised under "executive powers" may include
powers such as the supervisory jurisdiction of the State Government
under s.65A of the Act. The Executive cannot, however, go against
F the provisions of the Constitution or of any law. ·'

The action of the then Chief Minister cannot also be supported ~
by the term~ of s.65A of the Act which essentially confers revisional '
power on the State Government. There was no proceeding pending
G
before the Registrar in relation to any of the matters specified in
s.65A of the Act nor had the Registrar passed any order in respect
thereto. . Jn the absence of any such proceeding or such order, there
was no occasion for the State Government to invoke its powers under
s.65A of. the Act. In our opinion, the State Government cannot for
H
itself exercise. the statutory functions of the Registrar under the Act
or the Rules,
CH;:'NDRIKA v, BIHAR (Sen, J.) . 655.

;:J.. Neit.her the Chief Minister nor the. Minister for Cooperation or
Industries had the power to arrogate to himself the statutory A
functions of the Registrar under bye-law 29. The aci of the then•
Chief Minister in extending the term of the Committee of Manage·
ment from time to ·time was not within his power. Such action was
. violative.of the provisions. of the Rules and the bye:laws frame·d
'thereunder. The Act as amended from time. to time was· enacted
for the ,purpose of making the cooperative s~~ietie~ broad-based
B
· and democrati.zing the institution rather than to allow them to be
• monopolized by a few' persons. The action of the Chief Minister
meant the very negation oflhe beneficial measures contemplated by
the Act. '
.I

FOr the same reasons, it must be held that the Minister for
Industries also exceeded his own authority in directing the·manner in
which the new Board of Directors was to be constituted by the
Registrar under bye-law 29 by forwarding a list of 7 names to ·be
nominated by him in the reconstituted Board and a furtbe~list of 8 D
names indicating th~t i.f the Committee of Management was super· ·
,sede4 .under another provision, it should consist of those 15 persons.

There is no warrant for the submission that the Registrar had
no power to reconstitute.the first Board of Directors under bye-law E
. 29 or to curtail the extended term. While the proviso ·to· 'bye· law
29 lays down that the first Board of Directors shall he nominated by
the Registrar for a period not exceeding one year at a time ·and not
exceeding three cooperative years in the aggregate, it does not entail "
the consequence that when the term of the first Board of Directors is
extended from time ·to time, it must nec<is.sarily extend to ·three F
cooperative years. The expression· ~·cooperative year" is defined in
f.
s.2. (bb) to .mean the year beginning from the !st of July to the 30th - ·
of June.. The. second part of the proviso expressly confers power. on
the Registrar tg modify ihe nomination of such Board, if and ._;.hen
required. On a reading of bye-law 29 read along with the proviso,
it is manifest that the first Board of Directors is entitled to hold office
.G
I
fo'r a period not exceeding three cooperative years in tl\e aggregat~ ..
~ unless it is reconstituted .by the Registrar within the aforesaid period.
That apart, the order passed by the Registrar dated July 22, 1981
nominating the first Board of Directors was for a. period· of six
H
months i.e. upto December 31, 1981or till further orders. The
words "till further orders" appear in ali the subsequent orders exten·
ding the term of the· Board and therefo're the Reg;i5trar bac;I reserved·
•
656, SUPREME COURT RB~ORTS [1984] I S.C.R.

·,to himself the right to curtai) ·the extended term by reconstituting
A .the Board, at any tiine. In the instant case, however, the impugned
order issued by the Registrar to reconstitute the first Board of
Directors was not niaM by him at his own discretion in , the exercise
of his powers under bye-Jaw 29 but was made at the behest of the
·Minister for Industries and it' must accordingly be held to be fovalid.
·B
In the circumstances of the case, we feel it proper to direct the
Registrar, Cooperative Societies, Bihar to take over the Vaishalli
District Central Cooperative Bank and exercise all the powers and •
perform all the duties which under the Bihar and Orissa Cooperative
Societies Act, 1935 and the Bibar Cooperative societies Rules 1959.
c and the bye-laws of the Central Cooperative Bank are· vested in the
Committee of Management. The Registrar shall either himself or
through an Officer in the Cooperati~e Department designated by him
call a general meeting of the society at such time and place at the ·
headquarters of the Central Cooperative Bank and to require the
society io elect ·a new Board of Directors. We further ·direct that
D neither the members of the first Board of Directors constituted by the
R:egistrar of July' 22, 1_981, nor the so·called Board of Direotors
reconstituted by him on September 6, 1983, shall interfere with the
affairs of the society. , In compliance with these direction; the
Registrar of Cooperative Societies will issue immediate instructions
E for taking over the management of the Central Cooperative Bank and
may designate an Officer in the Cooperative Department to discharge
the duties and functions of the Committee of Management till a new
BOard of Directors is constituted in accordance with law.

·The appeal is disposed of accordingly. There shall be no order
as to costs.

N.V.K. Appeal f!llowed.

'

• \
•