ORDER SHEET
IN THE HIGH COURT OF SINDH, KARACHI
Suit No.846 OF 2012
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Order with signature of Judge
For hearing of CMA No.7153/12
18.09.2012.
Mr.S.Tauqir Hassan, Advocate for the Plaintiff along with Mr.Amir Ali Hashim Kabani, Chairman of plaintiff society.
Mr.Khizar A. Zaidi, A.A.G.
Mr.Muhammad Sadiq Rajar, Registrar, Cooperative Societies present in person.
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MUHAMMAD ALI MAZHAR, J: This plaintiff has filed this suit for declaration and permanent injunction with the following prayers:-
A. declaration to the effect that since no reason has been published in the official gazette by the Defendant No.2 regarding the inquiry of the plaintiff society dated 18.07.2012 bearing No.RCS/KYC/241/2012 is in violation of the law and justice and on 23.07.2012 without any result of the inquiry plaintiff society’s account number 2900002 with Bank Al Falah Garden Branch Karachi were ceased and thus said act is illegal, unjust, arbitrary and mala fide.
B. A declaration to the effect that the inquiry into the affairs of the Plaintiff Society conducted under the order of Defendant No.2 dated 18.07.2012 was order in violation of Section 43(1) of the Cooperative Societies Act 1925 in as much as the same was done without fulfilling the ingredients of the said Section 43.
C. A declaration to the effect that since no illegality and/or act of misappropriation has been found into the audit report dated 28.06.2012 bearing diary No.GC1/259/2012 was submitted without objection by the defendant No.2 hence no act of inquiry without any reason could be done by the Defendant No.2 thus the order of Defendant No.2 18.07.2012 and 23.07.2012 are illegal, just, arbitrary and mala fide.
D. A permanent injunction suspending the operation of the order dated 18.07.2012 bearing No.RCS/KYC/241/2012 and 23.07.2012 bearing No.DDO/COOP-IV)/INQ/PMPCS/292/2012 passed by the Defendant No.2.
E. A permanent injunction restraining the Defendant No.2 his agents, employees, servants and/or any other persons claiming through or under him from dealing with the accounts and affairs of the Plaintiff Society in any manner whatsoever.
F. A. mandatory injunction directing the Defendant No.2 his agent, employees, servants, administrators and/or any other persons claiming through or under him to handover the charge of the Plaintiff Society to the Plaintiff till the disposal of this suit.
G. To grant the cost of the suit.
H. To grant any other/further/additional relief/relief’s this Hon’ble Court deems fit and proper under the circumstances of the case.
In this suit the plaintiff has questioned the inquiry letter communicated to the plaintiff on 18.7.2012 along with order dated 18.7.2012 passed by the Registrar, Cooperative Societies, Sindh, Karachi, whereby it was intimated to the plaintiff that inquiry under section 43(1) of the Cooperative Societies Act, 1925 is being initiated against the plaintiff and in compliance thereof Mr.Muhammad Mansoor Ahmed Siddiqui, Deputy District Officer, Cooperative-IV, Karachi was appointed Inquiry Officer.
The controversy between the plaintiff and defendants is that the plaintiff has challenged the appointment/nomination of Inquiry Officer on the ground that the said Inquiry Officer is the same person, who has given report against the society and if he is appointed as Inquiry Officer the possibility of bias cannot be ruled out.
Today, Mr.Amir Ali Hashim Kabani, Chairman of the plaintiff along with his counsel and Mr.Muhammad Sadiq Rajar, Registrar, Cooperative Societies (defendant No.2) along with Assistant Advocate General are present in person and agreed that the suit may be disposed of. By consent the suit is disposed of as under:-
(1). The Registrar (defendant No.2) and plaintiff have mutually agreed that new Auditor may be appointed to audit the accounts of the plaintiff for the financial years 2010-2011 and 2011-2012. For this purpose the defendant No.2 has given three names of panel auditors, namely, M/s.Abid, Hamayoon and Farkhunda for appointment, out of which by consent Mrs.Farkhunda is appointed Auditor, who will conduct the audit of the plaintiff only for aforesaid financial years. The Registrar will also issue letter for appointment of Auditor within three days
(2). The Auditor shall submit her reports for the above financial years to the Registrar Cooperative Societies within one month from date of her appointment without fail. The fee of the auditor if any, shall be paid by the plaintiff with the approval of Registrar of Cooperative Societies.
(3). The chairman of the plaintiff present in court undertakes that the plaintiff will produce entire record and accounts for the purpose of audit and not create any interference or hindrance in the audit work.
(4). Defendant No.2 also agrees that till finalizing and submitting the audit reports, no inquiry shall be initiated in pursuance of letter dated 18.7.2012 and order dated 18.7.2012 available at Page-127 to 129 of the court file and the same shall deem to have been recalled.
(5). If in the audit reports any illegality or embezzlement or misappropriation of fund or any violation of bye-laws or cooperative societies laws and rules are pointed out or reported by the auditor, the Registrar may initiate action against the plaintiff in accordance with law, which may include holding of inquiry under section 43(1) of the Cooperative Societies Act, 1925 after issuing fresh notice and order for inquiry. It is clarified that if inquiry is ordered, the Registrar shall assign and appoint inquiry officer to any D.D.O. other than the D.D.O. who was assigned the inquiry vide order dated 18.7.2012.
The suit is disposed of along with pending applications.
JUDGE