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1977 (9) TMI 118

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..... s these are common. The appellant was registered by the Deputy Registrar of Cooperative Societies, Yelamanchili, on 26th September, 1975. The area of operation of the appellant was provided in its bye-laws was for the entire taluk with a view to grant arrack licences to it in respect of all the arrack shops within the said taluk. There was, however, an infection of the cooperative movement and it appears that trials in the various villages in the taluk were. also encouraged by the Cooperative Department to form their own village cooperative societies and to ask for grant of licences of their village shops in favour of the respective village societies instead of granting all the licences of the taluk to a single society, such as the appellant. With this purpose of initiating them into the liquor trade, the village societies were registered on 4th October, 1975. Having thus registered the village co-operative societies (briefly the village societies), the Deputy Registrar of Cooperative Societies gave a notice to the appellant under section 16(5) of the Andhra Pradesh Co-operative Societies Act, 1964, calling upon it to, amend its bylaws so as to restrict its area of .....

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..... n which was dismissed as infructuous. On the very day, viz., 6th October, 1976, when the respondents filed their revision before the Government, the appellant filed anapplication to the Government disputing the claim of the village societies. The appellant also field before the Government a similar applicationon 28th October, 1976. On 5th November, 1976, the appellant prayed to the Government for an opportunity to file counter in the revision petition filed by the respondents. The Government, however, without any notice to the appellant, passed final orders on 4th December, 1976, allowing the two review petitions filed by the village societies and set aside the order of the Registrar dated 10th December, 1975. Under the aforesaid order the Government requested the Excise Superintendent, Visakhapatnam, to take action under section 32 of the Andhra Pradesh Excise Act, 1968, for withdrawal of the licence already granted in favour of the appellant and to issue a fresh licence amending the area of operation restricting it only to Chintapalli village. The Excise Superintendent was also requested to issue thereafter fresh individual licences to all the village level societies .....

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..... ns, and powers of the Registrar under section 16. Section 2(n) of the Act defines Registrar as follows: Registrar means the Registrar of Cooperative Societies appointed under section 3(1) and includes any other person on whom all or any of the powers of the Registrar under this Act are conferred . Section 3 may be read 3(1) There shall be appointed a Registrar of Co-operative Societies for the State and as many other persons as the Government think fit for the purposes of this Act. (2) Every other person appointed under subsection (1) shall exercise, under the general superintendence of the Registrar, such powers of the Registrar, under this Act as the Government may, from time to time, confer on him . In exercise of the powers conferred by section 3 of the Act the Governor of the Andhra Pradesh has conferred, inter alia, powers under section 16 on the Deputy Registrars of Co-operative Societies incharge of Divisions. It was therefore competent for the Deputy Registrar to issue the notice under section 16(5) to the appellants. The question next arises whether the Registrar could entertain a petition under section 77 when the proceedings under .....

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..... y order passed by the Deputy Registrar of Co-operative Societies under section 16 is appealable to the Registrar under section 76(2) (ii). Section 77 provides for the power of revision and only the Registrar and the Government have this concurrent Flower. This power can be exercised either on an application by a party or suo moto. Power under section 77 is not conferred on the Deputy Registrar whereas power under section 16 along with some other powers is conferred on the Deputy Registrar. Section 77 provides that the Registrar may of his own motion or on an application made to him call for and examine the record of any officer subordinate to him in respect of any proceeding, not being a proceeding wherefrom appeal lies to the Tribunal under section 76(1) to satisfy himself as to the regularity of such proceeding, or the correctness, legality or propriety of any decision passed or order made therein and pass any of the appropriate orders specified in section 77(1). This power of the Registrar is in accord with the preeminent position accorded by the Act to the Registrar under whose supervision every other person appointed under section 3(1) may function and act. It is, .....

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..... quirement of the principles of natural justice which are ingrained in section 77(2) is that the party whose rights are going to be affected and against whom some allegations are made and some prejudicial orders are claimed should have a written notice of the proceedings from the authority disclosing grounds of complaint or other objection preferably by furnishing a copy of the petition on which action is contemplated in order that a proper and effective representation may be made. This minimal requirement can no on account be dispensed with by relying upon the principle of absence of prejudice or imputation of certain knowledge to, the party against whom action is sought for. It is admitted that no notice whatever had been given by the Government to the appellant. There is, therefore, clear violation of section 77(2) which is a mandatory provision. We do not agree with the High Court that this provision can by-passed by resort to delving into correspondence between the appellant and the Government. Such non-compliance with a mandatory provision gives rise to unnecessary litigation which must be avoided at all costs. The impugned order of the Government is invalid bei .....

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